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RESULTS 2Q2017|1H2017

2Q2017 | 1H2017 Results Conference Call 2

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to risks and uncertainties.

These statements are based on Management's beliefs and assumptions, as well as on currently available information. Forward-looking statements include information on our current intentions, beliefs or expectations, as well as those of the Company’s Board of Directors and Board of

Executive Officers.

The reservations as to forward looking statements and information also include data on possible or presumed operating results, as well as any statements preceded, followed or including words such as “believes”, “may”, “will”, “expects”, “intends”, “plans”, “estimates” or similar expressions.

Forward-looking statements are not performance guarantees; they involve risks, uncertainties and

assumptions because they refer to future events and, therefore, depend on circumstances which may or may not occur. Future results may differ materially from those expressed or suggested by forward-looking statements. Many of the factors which will determine these results and figures are

beyond our ability to control or predict.


Agenda

Highlights

Market Overview

Capital Markets

Financial Results

Outlook

4

6

9

10

12

2Q2017 | 1H2017 Results Conference Call

Highlights – 2Q2017

4

2Q2017 2Q2016 1H2017 1H2016 2Q2017 2Q2016 1H2017 1H2016 2Q2017 2Q2016 1H2017 1H2016

6,868 7,514 12,696 14,353 20,273 16,099 36,021 31,235 5,860 4,900 9,973 9,239

2Q2017 2Q2016 1H2017 1H2016 2Q2017 2Q2016 1H2017 1H2016 2Q2017 2Q2016 1H2017 1H2016

5,897 6,475 10,802 12,516 11,792 12,478 21,457 25,588 3,107 2,963 4,896 5,683

7.9%

** Sales * Sales * Sales

-8.9% -13.7% -5.5% -16.1% 4.9% -13.8%

-8.6% -11.5% 25.9% 15.3% 19.6%

Trailers Trucks Buses

*** Production * Production * Production

*Dat a from ANFAVEA ** Dat a from ANFIR *** Dat a from ANFIR+Aliceweb


Highlights – 2Q2017

2Q2017 2Q2016 Δ% 1H2017 1H2016 Δ%

Total Gross Revenue (*) 1,034,240 984,152 5.1% 1,875,729 2,004,665 -6.4%

Domestic market 901,083 834,472 8.0% 1,644,219 1,732,960 -5.1%

Foreign market 133,157 149,680 -11.0% 231,510 271,705 -14.8%

Foreign market in US$ 41,548 42,042 -1.2% 72,468 74,228 -2.4%

Consolidated Net Revenue 730,107 696,752 4.8% 1,309,843 1,431,366 -8.5%

Consolidated Gross Profit 181,949 162,366 12.1% 300,377 293,383 2.4%

Gross Margin (%) 24.9% 23.3% 1.6 p.p. 22.9% 20.5% 2.4 p.p.

Consolidated Net Profit 18,987 6,867 176.5% 20,567 -2,689 864.9%

Net Margin (%) 2.6% 1.0% 1.6 p.p. 1.6% -0.2% 1.8 p.p.

Consolidated EBITDA 86,882 75,300 15.4% 135,108 121,781 10.9%

EBITDA Margin (%) 11.9% 10.8% 1.1 p.p. 10.3% 8.5% 1.8 p.p.

(* ) Without eliminating intercompany sales


TRAILERS / SEMI-TRAILERS

• In a market with a low demand for freight, more versat ile products for cargo transportat ion, such as the t ipper/dump semi-trailer, are showing good sales performance;

• The use of the idle fleet to transport the record crop limited the sale of new semi-trailers, which dropped 8.6% year over year (6,868 semi-trailers in 2Q2017, compared to 7,514 units in 2Q2016);

• The Company was able to overcome the weak market and recorded growth of 13.6% in sales (3,063

semitrailers in 2Q2017 versus 2,696 units in 2Q2016);

• Randon’s market share reached 39.5% in 2Q2017, compared to 28.2% in 2Q2016 (2,327 units).

Overview – 2Q2017 Business Segments – Vehicles and Trailers

Randon Implementos forms Joint Venture in Peru with Epysa

On June 20, the first Joint Venture of the Vehicles and Trailer

Division was announced, an associat ion with Epysa, from Chile, creating Randon Perú.

The new plant will allow the company to manufacture,

assemble and sell Randon trailers and semi-trailers in Peru, through the combination of the technological know-how of the Company with the commercial experience of Epysa.

Agreem ent meeting with Epysa.

Cre

dit: J

oã

o L

azz

aro

tto


Overview – 2Q2017 Business Segments – Vehicles and Trailers

RAILCARS SPECIALTY VEHICLES

• Despite the importance of the railway

segment for the logistics of the country, the

volumes of railcars in the Brazilian market in 2017 should be lower than those of 2016;

• In 2Q2017, 269 railcars were sold against

429 units in 2Q2016 (-37.3%). In 1H2017, sales

totaled 438 units compared to 1,155 railcars

in 1H2016 (-62.1%).

• The exports of special vehicles are the

alternative for growth of volumes and

revenues in this market;

• Sales in 2Q2017 totaled 115 units versus

44 products in 2Q2016 (+ 161.4%).

• Of the total sales in 2Q2017, about 2/3 of

the products are shipped to the foreign

market.


Overview – 2Q2017 Business Segments – Auto Parts

AUTO PARTS

• Truck manufacturers have found in exports the alternative to raise production volumes and

reduce factory idleness, as the domestic market is still registering low demand;

• The volumes of auto parts sold by the Company are following the growth of truck production. In this quarter, the net revenue of the auto parts division grew 5.7% in relation to the revenue

reached in 2Q2016;

• In addition to the domestic market, the company continues to seek new sources of revenue in

both the aftermarket and the export market.

Fras-le closed the first deal of railway brake shoes to the African continent

Fras-le and Meritor celebrate 20 years of partnership

Fras-le’s brake linings are registered in the South American TEC DOC database

Master had an engineering project recognized in the 13th edition of the International Colloquium SAE BRASIL of Brakes & Engineering

Auto parts companies exhibit products in Mexico and Dubai trade shows


15.8

68.6 59.0

- -

0.07

0.28

0.19

- -

2012 2013 2014 2015 2016

Capital Markets RAPT4 Price/Daily Liquidity - R$ per share| R$ ‘000

Note: When comparing results with prior years, we have already taken into account the updated quotation with regard to the effect of bonus and payment of div idends.

Dividends and Interest on Equity - R$ million | R$ per share

Bonus 25%

9

12.0 12.6

9.3

4.1

8.1

4.0

7.9

9.54 8.83 4.71 2.45 3.45 3.25 4.60

2012 2013 2014 2015 2016 1S16 1S171H16 1H17

93,7%

+41.5%

+99.5%


Financial Results Gross Debt Breakdown 1H2017 - R$ million| %

Consolidated Working Capital 1H2017 - R$ million

Total Gross Debt R$ 2,164.5

Gross debt in BR currency R$ 1,579.5

Gross debt in foreign currency R$ 585.0

USD rate (Jun. 30,2017) R$ 3.3082

R$ 22.2 million

[NOME DA

CATEGORIA…

[NOME DA

CATEGORIA…


Financial Results Consolidated Net Debt (without Randon Bank) - R$ million – 1H2017

Autopeças

The chart above shows the company’s debt, without the cash and debt indicators of the Randon Bank. Consolidated net debt at the end of June, 2017, amounts to R$ 521.4 million, a multiple of 3.34x EBITDA over the last 12 Months.

*Net Debt/EBITDA

11


Outlook

• The second half of the year should present good numbers in production of trucks,

sustained by the growing volume of exports;

• The semi-trailers market indicates stable volumes in the domestic market and slight

reduction in exports.

Source: * BACEN / FOCUS report (07/21/2017)

** 10h Harvest-Survey 2016/2017 - Conab

ECONOMY

• GDP growth forecast: + 0.34% in 2017 and + 2.00% in 2018 *;

• Harvest: the 10th CONAB survey for the 2016-2017 harvest estimates an increase of

27.1% in grain production compared to the previous year (237.2 million tons) **;

• Central bank signals inflation at 3.33% by the end of 2017 *;

• Interest rate (SELIC) may end 2017 in single digits;

• Political instabil ity continues to affect the confidence of consumers and entrepreneurs.

RESULTS 2H2017


Index Guidance 2017 1H2017

Total Gross Revenue R$ 3.9 billion R$ 1.9 billion

Consolidated Net Revenue R$ 2.8 billion R$ 1.3 billion

Investments R$ 100 million R$ 31.7 million

Revenues from Abroad US$ 240 million US$ 111.8 million

Imports US$ 45 million US$ 19.6 million

Guidance 2017

13

Investors Relations Contact [email protected] +55 54 3239.2795

Photo Credits: Magr ão Scalco

João Car los Lazzar ot to

Júlio Soar es

Phot o Dat abase Em pr esas Randon

mailto:[email protected]

SUPPORT MATERIAL

RESULTS 2Q2017|1H2017


Operating Results Physical Volume Sales | % Breakdown of Revenues by Segment

Autopeças

* On January 1st, 2017, the production of Wheel Ends was transferred from the subsidiary of the Parent Company, Suspensys,

to the subsidiary Castertech Fundição e Tecnologia Ltda. with the objective of reorganizing the process, gaining agility and productivity in the manufacture of these items. For this reason, the products that will represent the subsidiary Castertech in the physical volume table as of this quarter will be shown as Wheel Ends (Hubs and Drums), and the Castings volumes will no

longer be demonstrated.

2Q2017 2Q2016

Δ% Un.

1H2017 1H2016

Δ% Un.

Un.

%

CNR Un.

%

CNR Un. % CNR Un.

%

CNR

Vehicles and Road Equipment 43.9% 44.2% 42.4% - 47.9%

Trailers/ Semi-Trailers (un.) 3,063 32.8% 2,696 29.6% 13.6% 5,486 31.9% 4,999 27.8% 9.7%

Specialty Vehicles (un.) 115 2.4% 44 1.1% 161.4% 199 2.4% 89 1.2% 123.6%

Rail freight cars (un.) 269 8.7% 429 13.5% -37.3% 438 8.2% 1,155 18.9% -62.1%

Auto Parts 51.0% 50.6% 51.9% 47.2%

Friction Material (ton.) 17,576 28.4% 16,431 30.8% 7.0% 35,008 28.8% 33,209 29.0% 5.4%

Brakes (un.) 120,615 7.4% 114,682 7.2% 5.2% 229,559 7.7% 212,615 6.5% 8.0%

Coupling Systems (un.) 18,008 3.3% 13,160 3.0% 36.8% 31,916 3.5% 26,139 3.0% 22.1%

Suspension and axles (un.) 7,363 7.4% 3,290 7.8% 123.8% 13,898 7.5% 6,612 6.8% 110.2%

Hubs and drums (un.) 45,806 4.5% 21,629 1.6% 111.8% 78,403 4.4% 48,855 1.8% 60.5%

*Castings (ton.) 7,066 - 4,065 0.1% - 12,742 - 8,032 0.1% -

Financial Services 5.1% 5.2% 5.6% 5.0%

Coop-payment plan quotas sold 3,573 4.1% 3,277 3.9% 9.0% 6,370 4.4% 5,470 3.7% 16.5%

Randon Investimentos (Randon Bank) - 1.0% - 1.2% - - 1.2% - 1.3% -


38.6% 33.8%

2.2%

7.7%

1.7%

11.4%

4.1% 0.5%

46.7%

34.9%

2.7% 4.2% 1.0%

7.8%

1.8% 0.9%

MERCOSUL +

CHILE

NAFTA EUROPA ÁFRICA ÁSIA AMER. SUL E

CENTRAL

ORIENTE MÉDIO OCEANIA

1S2016 1S2017

264 242

192

158 152

42 42

74 72

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S172Q16 2Q17 1H16 1H17

58,4% CAGR

-13.0% US$ 111.8 million * Exports + Revenues from Abroad 1H2017

-1.2%

-2.4%

17

Operating Results Exports - US$ million

Exports – Destination by Economic Bloc 1H2017| US$ million

1H2017 1H2016

SOUTH AMERICA

AND CENTRAL AMERICA

MIDDLE EAST ASIA AFRICA EUROPE MERCOSUR

+CHILE


3,501.9

4,253.3 3,778.8

3,099.4 2,624.0

696.8 730.1

1,431.4 1,309.8

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

5,350.6

6,620.3

5,457.3

4,236.9 3,680.2

984.2 1,034.2

2,004.7 1,875.7

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

Consolidated Net Revenue - R$ million

58,4% CAGR -8.9%

-17,5%

CAGR

-7.0%

+5.1%

-6.4%

+4.8%

-8.5%

18

Financial Results Total Gross Revenue - Including Intercompany Sales - R$ million

2Q16 2Q17 1H16 1H17

2Q16 2Q17 1H16 1H17


732.2

1,039.6 943.0

640.9 520.9

162.4 181.9 293.4 300.4

20.9%

24.4% 25.0%

20.7% 19.9%

23.3% 24.9%

20.5%

22.9%

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

19

Financial Results Gross Profit| Gross Margin - R$ million

Consolidated COGS Breakdown 1H2017| R$ million

COGS 1H2017

R$ 1.0 billion (77.1% of CNR)

58,4% CAGR

-8.2%

+12.1% +2.4%

2Q16 2Q17 1H16 1H17

Raw Material

55%

Labor

18%

Depreciation

4%

Others

23%


Financial Results EBITDA | EBITDA Margin - R$ million

EBITDA | Quarterly EBITDA Margins - R$ million

280.2

563.9 490.5

161.9 142.7 75.3 86.9 121.8 135.1

8.0% 13.3% 13.0%

5.2% 5.4% 10.8% 11.9%

8.5% 10.3%

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

58,4% -35,4%

CAGR

-15.5%

+15.4% +10.9%

75

20

1

48

87

10.8%

3.5%

0.2%

8.3%

11.9%

2T16 3T16 4T16 1T17 2T172Q16 3Q16 4Q16 1Q17 2Q17

2Q16 2Q17 1H16 1H17


7

-16

2

19

1.0%

-2.8%

-7.8%

0.3% 2.6%

2T16 3T16 4T16 1T17 2T17-48

42.6

235.1 202.0

-24.6 -67.2

6.9 19.0

-2.7

20.6

1.2% 5.5% 5.3%

-0.8% -2.6% 1.0% 2.6% -0.2% 1.6%

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

58,4% -35,4%

+176.5% +864.9%

21

Financial Results Net Income| Net Margin- R$ million

Net Income| Quarterly Net Margin - R$ million

2Q16 3Q16 4Q16 1Q17 2Q17

1H16 1H17 2Q16 2Q17


Financial Results Gross Debt Breakdown 1H2017 - R$ ‘000 | %

Debt | Net Debt/EBITDA - R$ million

58,4%

760.4

1,193.2 1,057.8

1,357.3

613.5 658.1

521.4 386.3 316.6

2.70 2.12 2.16 8.38

4.30 3.54 3.34 2.23 2.17

2012 2013 2014 2015 2016 1S16 1S17 1S16 1S17

Net Debt (Without Randon Bank)

1H16 1H17 1H16 1H17

373.3

1,206.3 73.0%

320.0

265.0

27.0%

693.3

1,471.3

2,164.5

Short Term Long Term Total

National currency Fore ign currency

Origin of debt - Short and Long Term June 2017


295.7 404.2

617.7

125.4 87.6 48.9

175.0

239.2

122.7

47.4 0.7 0.1

470.7

643.4 740.4

172.8 88.3 49.0

2017 2018 2019 2020 2021 2022 - 2027

Moeda Nacional Moeda Estrangeira

23

Financial Results Schedule of Debt Payment 1H2017 - R$ million

Autopeças

Covenants

58,4% -35,4%

National Currency Foreign Currency

COVENANTS INDEX BALANCE IN JUN

30, 2017

Net Debt / EBITDA (consolidated without bank) >= 3.0x R$ 94.0 million

Net Debt / EBITDA (consolidated without bank) >= 3.5x R$ 326.1 million

TOTAL R$ 420.1 million


Financial Results Investments - R$ million

Shareholders’ Equity| ROE - R$ million (without non-controlling shareholders)

58,4% -35,4%

276.9 287.6

124.8

161.6

43.2

6.3 10.3 19.8 31.7

2012 2013 2014 2015 2016 2T16 2T17 1S16 1S17

CAGR

-37.1%

+62.4% +60.6%

1H16 1H17 2Q16 2Q17

1,369.5 1,337.2

1,431.6

1,277.3

1,413.2 1,434.2 3.1%

17.2% 15.1%

-1.7% -0.2% -0.2%

2012 2013 2014 2015 2016 1S171H17


Financial Results Consolidated Income Statement by Segment - R$ million/%

Vehicles and Trailers/Semi-

trailers Auto Parts Financial Services Consolidated

2Q2017 2Q2016 Δ% 2Q2017 2Q2016 Δ% 2Q2017 2Q2016 Δ% 2Q2017 2Q2016 Δ%

Gross Revenue 379,974 379,583 0.1% 481,422 453,247 6.2% 41,023 39,626 3.5% 902,419 872,456 3.4%

Deduction in Gross

Revenue -59,619 -71,402 -16.5%

-

108,919 -100,827 8.0% -3,774 -3,475 8.6% -172,312 -175,704 -1.9%

Net Revenue 320,355 308,182 3.9% 372,503 352,420 5.7% 37,249 36,150 3.0% 730,107 696,752 4.8%

Costs of Sales and Service -

272,082 -275,762 -1.3%

-

274,638 -256,338 7.1% -1,438 -2,287 -37.1% -548,158 -534,386 2.6%

Gross Profit 48,272 32,420 48.9% 97,865 96,082 1.9% 35,812 33,864 5.8% 181,949 162,366 12.1%

GROSS Margin (%) 15.1% 10.5% 4.5 p.p. 26.3% 27.3% -1.0 p.p. 96.1% 93.7% 2.5 p.p. 24.9% 23.3% 1.6 p.p.

Operating Expenses -46,030 -45,076 2.1% -53,196 -46,581 14.2% -24,085 -25,094 -4.0% -123,311 -116,751 5.6%

EBIT 2,242 -12,656 -117.7% 44,670 49,501 -9.8% 11,726 8,769 33.7% 58,638 45,615 28.5%

EBITDA 11,529 -2,939 -492.3% 63,527 69,352 -8.4% 11,827 8,887 33.1% 86,882 75,300 15.4%

EBITDA Margin(%) 3.6% -1.0% 4.6 p.p. 17.1% 19.7% -2.6 p.p. 31.8% 24.6% 7.2 p.p. 11.9% 10.8% 1.1 p.p.


Financial Results Consolidated Income Statement (by Segment/Quarterly) - R$ million/%

2Q2016 3Q2016 4Q2016 2016 1Q2017

2Q2017

Consolidated Net Revenue 696.8 570.2 622.4 2,624.0 579.7 730.1

% Vehicles and Trailers 47.9% 35.7% 44.5% 44.4% 40.6% 43.9%

% Auto Parts 47.2% 58.0% 49.6% 50.1% 53.1% 51.0%

% Financial Serv ices 5.0% 6.4% 5.9% 5.5% 6,3% 5.1%

Consolidated Gross Profit 162.4 112.0 115.5 520.9 118.4 181.9

% Gross Margin 23.3% 19.7% 18.6% 19.9% 20.4% 24.9%

EBITDA 75.3 19.9 1.0 142.7 48.2 86.9

% EBITDA Margin 10.8% 3.5% 0.2% 5.4% 8.3% 11.9%

Net Income 6.9 -16.0 -48.5 -67.2 1.6 19.0

% Net Margin 1.0% -2.8% -7.8% -2.6% 0.3% 2.6%

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