Brembo N.v. · MIL:BRE
Brembo — Non-Deal Roadshow (February 2008)
48 slides from Brembo's roadshow presentation, Feb 28, 2008
Slide 1: Brembo London Roadshow, February 2008
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" BREMBO more than brakes London Roadshow, February 2008 1
Slide 2: Brembo at a glance, Sustainable growth, 2007 preliminary results
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Brembo at a glance Sustainable growth 2007 preliminary results 2
Slide 3: A simple business idea: producing the highest performing brakes in the world
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" b k brakes world Producing performing the highest th A simple business idea iin the 3
Slide 4: Brembo at a glance
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" f • World l d W ld leader performance, Brembo at a glance comfort, automotive applications t l
Slide 5: Where high energy comes into play, Brembo is the reference choice
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" t , 0 1,0 2,0 3,0 4,0 5,0 tons 10 50 100 is the reference choice 150 200 250 300 Where high ene
Slide 6: State of the art technology
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" State of the art technology 6
Slide 7: Products: the fundamental reason to be chosen by customers
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" by customers Products: the fundamental reason to be chosen 7
Slide 8: Our unique selling proposition
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Bite Performance Power Repeatability Our unique selling proposition diti Comfort every conditio
Slide 9: The strategy deployment: an effective pocket-sized multinational
The strategy deployment: an effective pocket-sized multinational Hayes Lemmerz Brake Sabelt facilities Division under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" ntial. © Brembo S.p.A.. reserves all rights of u "Strictly Confiden u
Slide 10: Growth, an essential part of our strategy
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 0 200 400 600 800 1000 530 2001 Sales, € Million 566 2002 634 2003 2004 678712 2005 806 2006 Gr
Slide 11: Sustainable growth delivers quality of margins
Sustainable growth delivers quality of margins EBITDA % of sales EBIT % of sales NET PROFIT under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 160 17% 15% 16,4% 14 8% 14,8% 16,0% 15,9% use and disposal, 15,5% 15,7% 130 137,1 14% 119
Slide 12: 2007 preliminary results
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Brembo at a glance Sustainable growth 2007 preliminary results 12
Slide 13: FY 2007 – Good growth of revenues and margins
FY 2007 – Good growth of revenues and margins; net profit benefits from positive non-recurrent items € million FY07 FY 06 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" % sales % sales % 07/06 S l Sales 912 0 912,0 100% 806 0 80
Slide 14: Q4 07 – Revenues and margins accelerate
Q4 ‘07 – Revenues and margins accelerate; Italian and Polish subsidiaries benefit from positive non-recurrent t tax it items under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" € million FY07 % sales % 07/06 Q4 07 % 07/06 9M 07 % 07/
Slide 15: FY 2007 – Revenues driven by organic and external growth
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" € Million 8,1 USA 5,0 Spain external growth; like-for-like +11,5% FY 2007 – Revenues driven by
Slide 16: FY2007 sales – Good performance in all areas
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" €M Mio ITALY +11,8% GERMANY +8,5% +4,9% FRANCE UK +6,8% +18% OTHER EU NAFTA +16,3% in Q4 strong
Slide 17: FY 2007 sales – Good growth in all business segments
FY 2007 sales – Good growth in all business segments, in particular Motorcycles and Commercial Vehicles € Million + 6.3% under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" yoy Q4 g growth driven by y + 2.1% Comm.vehicles, use and di
Slide 18: FY 2007 Sales - Segment and customer growth mix
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" € Million +13.1% 18 FY 2007 Sales - Segment and customer growth mix
Slide 19: Income Statement
Income Statement € million FY07 FY 06 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" % sales % sales % 07/06 Sales 912 0 912,0 100% 806 0 806,0 100% 13 1% 13,1% use and disposal, EBITDA 137,1 15,0% 119,0 14,8% 15,2% ntial. © Bre
Slide 20: FY07 EBITDA margin evolution
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" € Million RAW MATERIALS FY07 EBITDA margin evolution 20
Slide 21: Income Statement
Income Statement € million FY07 FY 06 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" % sales % sales % 07/06 S l Sales 912 0 912,0 100% 806 0 806,0 100% 13,1% use and disposal, EBITDA 137,1 15,0% 119,0 14,8% 15,2% ntial. © Bremb
Slide 22: FY – Financial Charges
FY 07 – Financial Charges € Million FY 07 FY 06 Δ 07/06 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Net financial charges 98 9,8 94 9,4 05 0,5 use and disposal, Financial charges 11,1 9,4 1,7 ntial. © Brembo S.p.A.. reserves
Slide 23: A sustainable growth path does not impact a sound financial profile
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 31.12.06 NET DEBT EBITDA NET CAPEX US sound financial profile… ACQUISITION NWC & DIVIDEND BUY-B
Slide 24: Main financial ratios
Main financial ratios € Million 31.12.2007 31.12.2006 31.12.2005 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" ROI 15 4% 15,4% 16 2% 16,2% 15 9% 15,9% use and disposal, ROE 20,0% 16,3% 17,3% Gearing 74 8% 74,8% 71 4% 71,4% 79 8
Slide 25: Sustainable growth
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 9M 2007 results Brembo at a glance Sustainable growth 25
Slide 26: Sustainable growth – Passenger cars
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Audi A8 Serie BMW 1 AstonMartin DBS Lexus IS- F Porsche Sustainable growth – Passenger cars Pan
Slide 27: Sustainable growth – Commercial vehicles
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Vito Sprinter Mercedes Mercedes Sustainable growth – Commercial vehicles Nissan Schmitz Cargobu
Slide 28: Sustainable growth – Motorcycles
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Triumph Touring Platform Speed Triple Harley Davidson Sustainable growth – Motorcycles Ducati 1
Slide 29: Sustainable growth – Racing
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Moto GP Sustainable growth – Racing 29 F1 GT
Slide 30: Sustainable growth – M & A
under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Sustainable growth – M & A • Acquisition q of Hayes y Lemmerz brake component division (November 2007) ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, • Acquisiti
Slide 31: M&A: Acquisition of Hayes Lemmerz Brake Rotor Business
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" q Acquisition y M&A: of Hayes Brake Rotor Business Lemmerz – 31
Slide 32: Why an acquisition in the US
Why an acquisition in the US American market still the most important in the world under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" US market k t mature t and d sophisticated hi ti t d Æ well-fitting ll fitti with ith use and disp
Slide 33: The Company and its products
The Company and its products Leader in the precision machining of disc rotors for the under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" North American market use and disposal, Full Cast Vented Rotor Solid Disc Rotor Hub and Rotor C
Slide 34: The brake market scenario
under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" The brake market scenario ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, Brake by y Wire Electronic Stability y "Strictly Confiden Control Technological innovati
Slide 35: Manufacturing facilities
Manufacturing facilites Homer,, Michigan g No. of empl.: 125 Surface: 210.000 feet2 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, Northville, MI (Tech Center) "
Slide 36: Major OEM Customers
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" SRT Mazda 6 Cherokee & (WK) Grand Ford Ranger GMC Sierra Major OEM Customers Mazda Tribute Sebr
Slide 37: The transaction structure
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Homer,, MI HLI Homer Inc. The transaction structure Co. Inc. International Hayes Lemmerz HLI Br
Slide 38: The transaction structure
under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" The transaction structure Price : $ 58 million use and disposal, 2006 Company sales: $ 120 million ntial. © Brembo S.p.A.. reserves all rights of u Acquisition Multiples on expected
Slide 39: M&A: Acquisition of controlling stake of NYABS
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" q Acquisition M&A: Brake System) stake of NYABS of controlling g (Nanjing Yuejin Automotive 39
Slide 40: The transaction structure
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Price P ice : $ 5.9 5 9 million The transaction structure 2006 and 2007E Company sales: € 10 mi
Slide 41: The transaction structure
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 27.75% BREMBO S.P.A 67.74% 67 74% 42.25% NYABS The transaction structure (BEIJING) (NANJING) BR
Slide 42: M&A: Joint Venture with Sabelt
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" M&A: Joint Venture with Sabelt 42
Slide 43: The Company and its products
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 2- Racing seat belts 3- Premium OE seats is leader in: 1- Child safety system The Company and i
Slide 44: Manufacturing facilities
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" Torino, Italy Manufacturing facilites 44 Zilina, Slovakia
Slide 45: The transaction structure
The transaction structure MOU signed on September 6th 2007 under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" JV contract signed on February 19th 2008 use and disposal, Sabelt contributes its racing, g, OE and child safety y ntial.
Slide 46: The transaction structure
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" 70% BREMBO S.P.A The transaction structure BREMBO PERFORMANCE S.P.A 30% SABELT SHAREHOLDERS 46
Slide 47: Brembo strategy
"Strictly Confiden ntial. © Brembo S.p.A.. reserves all rights of u use and disposal, under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" for Brembo strategy o Racing, u ac g, Tuning OE ga O.E. Racing and HPK/Tuning g Premium O.E. d
Slide 48: Declaration
under the protection of the law, allso in connection with II.P.R., as well as copying and passing on to third parties" ntial. © Brembo S.p.A.. reserves all rights of u "Strictly Confiden use and disposal, DECLARATION The manager responsible for preparing the company’s financial reports CORRADO ORSI