Barclays European High Yield and Leveraged Finance Conference

Barclays European High Yield and Leveraged Finance Conference

30 October 2014

1

Disclaimer

This presentation has been prepared solely for use at this presentation. By attending the meeting wher e this presentation is made, or by reading the pres entation slides, you agree to be bound by the following limitations.

This presentation is not an offer for sale of secur ities in the United States or in any other jurisdic tion where such offer or sale would be unlawful. An y securities referred to herein may not be sold in the United States absent registr ation or an exemption from registration under the U .S. Securities Act of 1933, as amended. Grupo Antol ín-Irausa, S.A. (the “Company”, which expression should mean the Company and/or its subsidiaries, as appropriate) does not intend to register any portion of any offering of t he Company’s securities in the United States or to conduct a pub lic offering of any securities in the United States .

This presentation has been prepared for information and background purposes only. It is confidential a nd does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company o r any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purch ase or subscribe for any securities of the Company or any member of its group or with any other contrac t or commitment whatsoever.

Neither this presentation nor any part of it may be reproduced (electronically or otherwise) or redist ributed, passed on, or the contents otherwise divulg ed, directly or indirectly, to any other person (excluding the recipient's profess ional advisers) or published in whole or in part fo r any purpose without the prior written consent of the Company. This presentation does not purport to be all-inclusive o r to contain all of the information that a person c onsidering the purchase of any offered securities ma y require to make a full analysis of the matters referred to herein. Each re cipient of this presentation must make its own inde pendent investigation and analysis of any offered s ecurities and its own determination of the suitability of any investment, with particular reference to its own investment ob jectives and experience and any other factors which may be relevant to it in connection with such investment, based in each case on an offering memorandum (including any supplemen t thereto) which may be prepared in connection with any offer or sale of Company securities, and on such other informatio n and advice from its own legal, accounting and tax advisers as it deems relevant.

This presentation may contain certain forward-looki ng statements that reflect Company management’s int entions, beliefs or current expectations. These for ward-looking statements include, but are not limited to, all sta tements other than statements of historical facts, including, without, limitation, those regarding the Company’s future financial position and results of operations, strategy, plans , objectives, goals and targets and future developm ents in the markets where the Company participates or is seeking to participate. The Company’s ability to achieve its p rojected results is dependent on many factors which are outside management’s control. Actual results m ay differ materially from (and be more negative than) those projected or impl ied in the forward-looking statements. Such forward -looking information involves risks and uncertainti es that could significantly affect expected results and is based on certain key assumptions. Due to such uncertainti es and risks, readers are cautioned not to place un due reliance on such forward-looking statements as a prediction of actua l results. All forward-looking statements included herein are based on information available to the Co mpany as of the date hereof. The Company undertakes no obligation to upd ate publicly or revise any forward-looking statemen t, whether as a result of new information, future e vents or otherwise, except as may be required by applicable law. All su bsequent written and oral forward-looking statement s attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary sta tements.

To the extent available, the industry, market and c ompetitive position data contained in this Presenta tion come from official or third party sources. Third party industry publications, studies and surveys generally state t hat the data contained therein have been obtained f rom sources believed to be reliable, but that there i s no guarantee of the accuracy or completeness of such data. While the Co mpany believes that each of these publications, stu dies and surveys has been prepared by a reputable s ource, the Company has not independently verified the data contained t herein. In addition, certain of the industry, mark et and competitive position data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's m anagement in the market in which the Company operates . While the Company believes that such research and estimates a re reasonable and reliable, they, and their underly ing methodology and assumptions, have not been veri fied by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the i ndustry, market or competitive position data contained in this present ation.

No representation or warranty, express or implied, is made as to the fairness, accuracy or completenes s of the information contained herein. None of the Company, its advisers, shareholders, connected persons or any other person accepts any liability for any loss howsoever arisi ng, directly or indirectly, from this presentation or its contents. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable laws or regulations of any jurisdiction which may not l awfully be disclaimed (including in relation to fraudulent misrepresentat ion).

Grupo Antolin

Section 1Business overview

3

Leading positions across the globe

�Grupo Antolin is a leading global Tier 1 supplier of automotive components for vehicle interiors

�Present in 25 countries with more than 125 facilities and over 25 technical commercial offices

� Supplying components for 1 out of every 4 vehicles manufactured around the world

� Providing components for 300 different models

� In 2013, Grupo Antolin generated revenues and EBITDA of €2.13bn and €238m respectively (11.2% EBITDA margin )

�The Antolin family is sole shareholder of Grupo Antolin

1ToyotaCorolla

2Ford Focus

3Ford F-Series

4ToyotaCamry

5Hyundai Avante (Elantra)

6HondaCivic

7HondaCR-V

8FordFiesta

9ChevroletCruze

10VolkswagenJetta

1Volkswagen Golf

2Ford Fiesta

3Renault Clio

4VolkswagenPolo

5Peugeot208

6Opel Corsa

7FordFocus

8Nissan Qashqai

9BMW 3Series

10Opel Astra

1Ford F-Series

2Chevrolet Silverado

3 Toyota Camry

4 Honda Accord

5DodgeRam

6 Honda Civic

7NissanAltima

8HondaCR-V

9ToyotaCorolla

10FordEscape

1Wuling Hongguang

2 Wuling Sunshine

3FordFocus

4Volkswagen Lavida

5Wuling Rongguang

6 Toyota Corolla

7 Buick Excelle

8Volkswagen Sagitar

9 Chevrolet Sail

10VolkswagenJetta

Note: Cars that carry a component supplied by Grupo Antolin are marked with Source: Marklines, JATO, Autoblog

Top selling cars by market 2013

USAEurope China World

Business unit Description Key financials (2013A, EURm)

Overheadsystems

(51% of revenues in

2013)

� A world leader (TIER I) by mastering modular solutions and incorporatinglighting, sunvisors, panoramic systems, etc

Revenues: €1,084m

EBITDA: €104m

Margin: 10%

Doors

(34%)

� Strong position in door trims and interior plastics with a wide range of modular solutions

Revenues: €727m

EBITDA: €95m

Margin: 13%

Seating

(9%)

� Development and production of high added-value light-weight seats for multi-purpose vehicles, light commercial vehicles and vans

� Technological leadership in fold-into-floor and removable seats

Revenues: €186m

EBITDA: €20m

Margin: 11%

Lighting

(6%)

� New unit following the acquisition in January 2012 of the French company CML Innovative Technologies, a leading manufacturer in Europe

Revenues: €130m

EBITDA: €21m

Margin: 16%

4

Tier-1 supplier of high value added interior trim s olutions for the automobile industry

14

Our products

Leading positions in core markets

Highly diversified business model

Long-standing and strategic contractual customer re lationships with main OEMs

Attractive market fundamentals

Strong innovation track record

Superior profitability and strong financial track r ecord

Experienced management team and committed core shar eholders

Overheadsystems

Seating

Lighting

Doors

4 Strategic Business Units

5

Grupo Antolin

Section 2Key credit highlights

7

Summary credit highlights

1

2

3

4

5

6

7

Leading positions in core markets



Attractive market fundamentals

Strong innovation track record


Experienced management team and committed core shar eholders

7% 7%

8

Leading position in core markets

Company estimates of market shares and ranking for several products in Antolin markets (2013)

1

11

1

1

Note: The number within each graph represents the position of Grupo Antolin in the ranking. Otherwise information is not available or not representative. Darker colored countries represent Grupo Antolin Production/JIT presence. Market shares are based on number of vehicles equipped

Source Vehicle volumes based on LMC Automotive Q1 2013. Market shares based on company estimates.

Overhead systems LightingDoors Ranking as main supplierSeating

NAFTAMarket size: 15.8m vehicles

WorldwideMarket size: 83.4m vehicles

MercosurMarket size: 4.5m

IndiaMarket size: 4.1m

EuropeMarket size: 18.7m

3

1

5

12%

1

39% 26%

46%

58%

23%

30%

Spain17%

Eastern Europe

13%

Western Europe

26%

NAFTA26%

Asia-Pacific11%

Mercosur6%

Other1%

2007 2013A

Geography

Client

Product

Spain31%

Eastern Europe

9%

Western Europe

36%

NAFTA16%

Asia-Pacific1%

Mercosur6%

Other1%

9


2007 revenues: €1,685m

Newly opened markets

Higher client diversification

New business lines

2013 revenues: €2,128m

Europe: 56%Europe: 76%

2

Group

Others

Group

Headliners42%

Doors42%

Seating14%

Other2%

27%

17%

17%

13%

7%

5%

4%3%

7%

(a) (a)

(a) Excluding Spain

Overhead49%

Door36%

Lighting6%

Seat9%

2000 2007 2013A

10

3

€1,685m

€2,128m

Group

Other

Group

€627m

27%

17%

17%

13%

7%

3%4%

5%

7% 8%

3%3%3%

4%

5%

11%

12%

14%

15%

23%

Other


Other

Group

nm

Detailed Information (2013A)

Note: Revenues split by brand

Comfort and affordable price

Sustainability and safety

Globalizations of platforms

Consolidation of supplier base

Technological partnerships with OEMs

Growth outside traditional markets

11

Attractive market fundamentals – vehicle production continues to grow

Vehicle production continues to grow globally with 4% CAGR expected through 2018

Source: LMC Automotive Q3-2014. Vehicle production in millions

CAGR 13 – 18

South America

CAGR 13 – 18

Europe

CAGR 13 – 18

Asia PacificCAGR 13 – 18

Total

CAGR 13 – 18

NAFTA

4

1

2

3

4

5

6

2013 2014E 2015E 2016E 2017E 2018E

Key drivers/trends

3.1%

2013 2014E 2015E 2016E 2017E 2018E

5.2%

2013 2014E 2015E 2016E 2017E 2018E

3.4%

2013 2014E 2015E 2016E 2017E 2018E

1.3%

2013 2014E 2015E 2016E 2017E 2018E

4.4%

66

48 47 4854 58

2008A 2009A 2010A 2011A 2012A 2013A

4.2% 3.9% 2.9% 2.6% 2.6% 2.7%

Overhead systems

� Environmentally friendly polyurethane

� 1-shot edge wrapping

� Panoramic windshield sunblind

� New thermoforming technology

Doors� Chemical foaming

� Novaform extrusion compression process

� Lightweight technologies for injected thermoplastic

� DTM

Seats� Lightened seats

� Drop & Go

� Hybrid technology

� Fold-into-floor

Lighting� Fully integrated lighted headliner

� Supright / Door panel

� Interior ambient lighting

� Capacitive sensors

Total effort in R&D&I (€m)

Key focus (R&D&I) Key examples

� The company focuses its R&D&I in three main areas:

– Smart interiors – Supporting our customers’ brand strategy is key to end user experience and perceived quality based on customization

– Materials – Focused mainly on weight reduction and the use of green materials (recyclable / recycled)

– Industrial flexibility – Innovative processes to produce different functions

� Over 440 technical solutions registered

� Number of employees in engineering functions increased from 546 in 2009 to 819 in 2013

12

Strong innovation track record5

As % of revenues

487 421 427

503 571

4.3x2.3x 2.0x 2.2x 2.4x

2009A 2010A 2011A 2012A 2013A

Net financial debt Net financial debt/EBITDA

93 85

117 121 120

7.5%5.2%

6.2% 5.8% 5.7%

2009A 2010A 2011A 2012A 2013ACapex % sales

14


Targeting a flexible balance sheet

Successful operating performance(€ millions)

(€ millions)

� Strong (organic) topline growth – CAGR Sales (2009A – 2013A): +14.3%

� Strong EBITDA margin – above 10%

� Conservative leverage below 3x despite add- on acquisition in 2012

Note: Grupo Antolin migrated in 2006 from Spanish accounting standards to IFRS(a) For the purpose of this presentation, we have defined Free Cash Flow as: EBITDA – Change in WC – Capex – Cash Taxes(b) Net debt includes non recourse factoring and soft loans

Highly resilient business model

(b) (b)

6

1,248 1,637

1,876 2,087 2,128

9.2%11.2% 11.2% 10.7% 11.2%

2009A 2010A 2011A 2012A 2013A

Consolidated sales EBITDA %

Balanced investment strategy(€ millions)

Cash flow generation (a)

(€ millions)

� Focused investment plan oriented towards value added products and selected complementary inorganic opportunities

� Sustained cash flow generation at an average of 3.5% of revenues

25

92

35

93 802.0%

5.6%

1.9%

4.5%3.8%

2009A 2010A 2011A 2012A 2013AFCF % sales

14

Experienced management and committed core sharehold ers

Proven commitment to profitability

International expansion including greenfield projects

Successful integration of

multicultural teams

Strategic long-term relationship with

key clients

Longtime commitment to

the Group

* Member of Grupo Antolin´s Steering Committee

7

� 28 years of international experience with the Group

� 21 years of experience with the Group


� Chairman since 1995 and co-founder in the 1950s



Special strengths of the management team

José Antolin

Chairman and Founder

Ernesto Antolin

Vice Chairman

José Manuel Temiño

Chief Executive Officer*

Jesús Pascual

Chief Operating Officer*

Miguel Ángel Vicente

Chief Commercial Officer*

Luis Vega

Chief Financial Officer*

�Highly experienced management with long-term track record with Antolin

�Family shareholders with long-term commitment provi des stability and focus on long-term value generation

�Strong personal and financial commitment by family shareholders

Grupo Antolin

Section 3Operational and financial overview

SP

A � 20 operating sites (1 JV)� 1 tech-commercial office

GE

R � 10 operating sites� 7 tech- commercial offices

FR

A � 7 operating sites� 4 tech-commercial offices

UK � 5 operating sites

� 2 tech-commercial offices

BE

L

� 1 operating site

ITL � 2 operating sites

� 1 tech-commercial office

CA

N

� 2 operating sites

US

A � 8 operating sites (1 JV)� 1 tech- commercial office

SK � 1 operating site (1 JV)


JPN


CZ

E � 10 operating sites� 1 tech-commercial office

PO

R


SLV � 3 operating sites (1 JV)

16

Note: Dots indicate presence in the country, not number of facilities

25 countries, more than 125 manufacturing and JIT f acilities (Just in Time), 25 TCO (Technical Commercial Offices)

PO

L

� 1 operating site (1JV)

RU

S

� 3 operating sites (1JV)

TU

R

� 4 operating sites (1JV)

RO

M

� 1 operating site

ME

X � 6 operating sites (1 JV)� 1 tech-commercial office

BR

Z � 4 operating sites (1 JV)� 1 tech-commercial office

AR

G

� 1 operating site (1 JV)

PR

C � 17 operating sites (7 JV)� 2 tech-commercial office

IND � 5 operating sites (1 JV)


TH

A

� 2 operating sites (1 JV)

MO

R


SA � 3 operating sites


Technical-commercial officesProduction Assembly and sequencing

Low cost countries

True global footprint – proximity to key OEMs

129 114

184 210224 238

8.2%9.2%

11.2% 11.2% 10.7% 11.2%

0%

3%

6%

9%

12%

0

50

100

150

200

250

300

2008A 2009A 2010A 2011A 2012A 2013A

(%)(€

m)

EBITDA (€m) % margin

17

� Antolin’s long-term growth has been driven by international expansion, new customers and underlying growth in global automobile industry

� Revenue growth in 2013 was lower due to Antolin’s soft European demand and weakening USD

� EBITDA margin improved due to continued focus on low-cost manufacturing, development of products with higher profitability and the acquisition of Lighting business unit

Strong and profitable growth underpins Antolin’s bu siness model

Revenues (€m) EBITDA (€m)

Comments

1,564

1,248

1,637

1,8762,087 2,128

(7.2)%(20.2)%

31.2%

14.6%

11.2%2.0%

(30)%

(10)%

10%

30%

50%

70%

90%

110%

0

500

1,000

1,500

2,000

2,500

2008A 2009A 2010A 2011A 2012A 2013A

(%)

(€m

)

Revenues % growth

18

Financial policy

Target leverage� Long-term target leverage (Net debt / EBITDA) of around 2x

� Deleveraging strategy in conformity with investment approach and cautious dividend policy

M&A / investments

� No transformational acquisitions anticipated

� Selective add-on acquisitions may be considered in case of strong strategic rationale and

if financially solid

Dividend policy

� Conservative dividend policy– 2014: €0m– 2015: €6m

� Family shareholders focused on value generation rather than dividends

Working Capital and Capex

outlook� In line with historic averages

19

Maturity profile, as of 30 June 2014

Gross Debt 30 June ’14EUR 753m

Net Debt 30 June ‘14EUR 576m

� EUR 400m Senior Secured Notes

� EUR 200 Senior Financing

� EUR 70m ADE Facility

� EUR 6m Soft Loans with cost; EUR 40m have no cost

� EUR 37m Other Facilities, of which EUR 10m are credit lines

� EUR 218 Undrawn Revolving Credit Facilities

� Cash available of EUR 137m

� For covenant purposes, Net Debt totalled EUR 576m,

representing 2.3x NFD/LTM EBITDA

9 17 2956

8910

10

10

10

10 10

400

2014 2015 2016 2017 2018 2019 2020 2021

Term Loan ADE loan Soft loans Leasings Senior Secures Notes Other loans

612,2 675,9

342,2330,2

53,565,264,638,0

H1 2013 PF H1 2104

EU

Rm

Europe NAFTA APAC Mercosur Others

20

2014 Year-to-date performance

� Sales up 3.5% versus industry production growth of 3,4%*

� EBITDA margin of 12.9%

� Strong European and Asian markets, weak Mercosur

� Adverse FX headwinds

� Seating and Lighting benefitting from new product launches

+22%-41%

-4%

+10%

Note: H1 2013 data is Pro Forma for IFRS 11

607 606

314 319

97 11265 82

H1 2013 PF H1 2104

EU

Rm

Overheads Doors Seating Lighting

+27%

+16%

+2%

0%

+3.5%

1,1201,082

*Source: LMC Automotive Light Vehicle Production Data July 2014

58,8 63,5

40,848,7

10,6

16,49,7

14,8

H1 2013 PF H1 2104

EU

Rm

Overheads Doors Seating Lighting

+52%

+55%

+19%

+8%

+18.9%

144

121

EBITDASales

21

Q&A

22

Back-up

23

Name Location Approx. Investment Product Clients Expecte d opening dates

Missouri Kansas (USA) US$ 10.4m Overhead systems Ford + GM May-2014

Valplast Sollana-Valencia (Spain) EUR 9.1m Doors Ford + Nissan Sep-2014

Gujarat Sanand (India) EUR 4m Overhead systems & Doors Ford Nov-2014

Sibiu Sibiu (Romania) EUR 3.8m LightingRenault + Nissan +

PSA + DiversSep-2014

Wuhan Hubei (China) EUR 6.1m(JV) Overhead systems &

Doors

Dongfeng Renault + DongfengPSA + Dongfeng Nissan +

Dongfeng HondaJan-2015

Puebla Huamantla (Mexico) US$ 26.6mDoors / Pillars / Headliners

sequenceAudi Q1-2016

Hangzhou Zhejiang(China) EUR 357k JIT Overhead systems Ford May-2014

Xiangyang Hubei (China) EUR 181k JIT Overhead systems Dongfeng Nissan May-2014

Náberezhnye Náberezhnye Chelny (Russia) EUR 1.9m JIT Overhead systems Ford Oct-2014

Dalian Liaoning (China) EUR 192k JIT Overhead systems Dongfeng Nissan Oct-2014

Changshu Jiangsu (China) EUR 129K JIT Overhead systems Chery Jaguar Land Rover Oct-2014

Nanchang Jiangxi (China) EUR 384k JIT Overhead systems Ford Feb-2015

Status of the plants under construction/development

2014 Year-to-date Free Cash Flow

257 287

203

469159

-403 -475

-600

-400

-200

0

200

400

600

800

Dec 2013 June 2014

EU

Rm

234 263

211

435166

-394 -418

-600

-400

-200

0

200

400

600

800

Dec 2012 June 2013

EU

Rm

Inventories Trade Receivables Fact. Trade Receivables Trade Payables

+108

+31

-72

+66

+58

+29

-24

+63

� Net working capital increased by €66m in the sixmonths ended June 30, 2014

– Traditional seasonality swings betweenDecember and June

– H1 2014 reflects (i) especially strong salesgrowth and (ii) efficient 2013 year-end closing

– 31 December data includes € 159m in non-recourse factoring. Factoring Agreement wascanceled in March 2014

– The Group is committed to maintaining its year-end working capital in line with historic averagesof c. 9.5% of sales

� Remaining FCF elements for the first half of 2014:

– EBITDA € 144m

– Capex € 60m

– Cash taxes € 12m

24Note: Average LTM Working Capital excludes Tooling

Average LTM WC* as % of LTM Sales= 8.6%

Average LTM WC* as % of LTM Sales= 8.7%

27%

19%

6%10%

6%

5%

5%

5%

4%3%

10%

Seating Lighting

Overhead systems Doors

25

Highly diversified business model (cont’d)

Others

Others

Group

Others

Group

Group

Others

2013 revenues: €186m 2013 revenues: €130m

2013 revenues: €1,084m 2013 revenues: €727m

Barclays European High Yield and Leveraged Finance Conference

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