TECHNOLOGY PRESENTATION Milano – November 28th, 2017

Laurent HEBENSTREIT Chief Executive Officer

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Agenda

Introduction

Technology

Profitable Growth Strategy

1 2 3

Introduction

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o Young automotive company created in 1980 by Carlo De Benedetti

o Listed in Milano Stock Exchange since 1986

o Strong Entrepreneurship DNA

o Developed through: • a series of strategic moves

• tight cost control

o Joined the best automotive suppliers in 2005

o Generated 31M€ of Cash in 2016

Who is Sogefi?

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3 Business Units

€ 563M

o Stabilizer Bars

o Coil SpringsMAIN PRODUCTS

€ 1,574M

2016 Sales 36%

Suspensions Filtration Air & Cooling

o Oil Filters

o Engine Air Filters

o Fuel Filters

o Cabin Air Filters

o Manifolds

o Coolant Pumps

o Coolant Outlet Housings

€ 535M

34%

€ 480M

30%

Main Competitors

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Sogefi Customers

CARS TRUCKS 2 WHEELERS 3 WHEELERSAFTERMARKET

MAIN BRANDS

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Ford

Renault/Nissan

FCA/CNH Industrial

PSA

GM

Daimler

Volkswagen/Audi

BMW

Toyota

VolvoGeely/Volvo

Well balanced clients mix

2015

2016

5% 10%

Sogefi Top 10 Clients – In % of Total Sales

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Supplying premium customers & models

PORSCHE CAYENNE

JAGUAR F-PACE

MASERATI QUATTROPORTE MERCEDES GLK

VOLVO XC90

AUDI A6

BMW 5-serie

FERRARI 599

CORVETTE

Technology

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Current Trends

Higher technology requirements

Fuel Consumption

Reduction

Weight

Reduction

Suspensions

Air & Cooling

Filtration

Air & Cooling

FiltrationFiltration

CO2 Emissions

Reduction Air Quality

Fine Particles

Reduction

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Stabilizer Bar content

Entry

Middle

High

Weight

reduction

Indicative weight

by vehicle:

Content by vehicle

Variable wall

thickness Tube

Tube

Solid Bar

Suspensions

TECHNOLOGY LEVEL

45%

35%

~6kg

24€

20€

16€

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Coil Spring content Weight

reduction

Composite

Steel

+ high performance

process

SteelEntry

Middle

High

Suspensions

TECHNOLOGY LEVEL

50%

25%

~10kg

50€

23€

20€

Content by vehicle

Indicative weight

by vehicle:

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4 Disruptive Future Trends

CONNECTIVITY

o Connected, Autonomous and Shared trends have limited direct impact for Sogefi

o Powertrain electrification is a key trend for Filtration and Air & Cooling

o Sogefi developed with Mc Kinsey support a detailed world data base and model to create alternative powertrain scenarios

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2

3

AUTONOMOUS

DRIVING

ELECTRIFICATION

SHARED

MOBILITY

Higher technology requirements

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Different types of powertrains

Electrification

Pure ICE

BatteryHybrid Fuel Cell

New Energy Vehicle (NEV)

Internal Combustion Engine (ICE) Electric Vehicle (EV)

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Different types of powertrains

Electrification

MHEV PHEVFHEV

o ICE: Internal Combustion Engine vehicle, operating on fuel.

o MHEV: Mild-Hybrid Electric Vehicle, 48V system. (e.g. New Renault Scenic dCi 110).

o FHEV: Full Hybrid Electric Vehicle, operating on fuel, assisted by a battery. Non rechargeable (e.g. Toyota Prius).

o PHEV: Plug-in Hybrid Electric Vehicle, operating on fuel, assisted by a battery. Rechargeable (plugged in to grid) (e.g. New Golf GTE).

o BEV: Battery Electric Vehicle, i.e., pure EV, with no ICE content (e.g. Renault ZOE, Nissan LEAF, Tesla).

o FCEV: Fuel Cell Electric Vehicle (e.g. Toyota Mirai).

Pure ICE BEVHybrid FCEV

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1% 6% 12%

81%

1% 3%

41% 54%

Estimated volume, including Passenger Car (PC) and Light Commercial Vehicle (LCV) < 3.5T (LCV > 3.5T excluded)

2017 Powertrain by region EUROPE

Rest of the World

Source: Sogefi and Mc Kinsey

1% 6% 7%

87%

2% 3% 6%

90%

2% 4% 17%

78%

CHINA

1% 6% 22%

72%

20.8

19.9

28.0

92.3

8.7

14.9

LV sales (M units)

Type of engine

EV Hybrid Diesel Gasoline

NAFTA

Rest of Asia

WORLD

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1

2

Diesel disruption mainly affecting Europe due to

o More stringent regulations o Consumers turning away from Diesel o Politics

• Diesel circulation restrictions in large cities

Diesel/Electric disruption trends

WW EV + Hybrid share: from 6% in 2017 to 30% in 2027 in Base case scenario (33% in Strong case)

Electrified powertrain evolution

o Technology improvements o Politics

• France & UK to ban Diesel/Petrol cars from 2040

• China to significantly increase EV

Diesel share in Europe: from 41% in 2017 to 25% in 2027 in Base case scenario (20% in Strong case)

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11% 13% 9%

68%

11% 13% 13%

64%

11% 13% 17%

60%

7% 9% 10%

75%

7% 9% 18%

66%

6% 10% 10%

75%

6% 10% 14%

71%

6% 10% 18%

67%

7% 9% 14%

71%

Share of 2022 sales per type of engine, LV1 global

All scenarios predict a reduction of ICE from 98% in 2017 to

93% in Base Case and 89% in Strong Case in 2022

2022 Sogefi Forecast

Base case

Strong case

Source: Sogefi and Mc Kinsey

Type of engine

EV Hybrid Diesel Gasoline

Scenario

Diesel Low Diesel High

EV Low

EV scenarios

EV High

Diesel scenarios 1 including PC and LCV (

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Share of 2027 sales per type of engine, LV1 global

All scenarios predict a reduction of ICE to reach

86% in Base Case and 81% in Strong Case in 2027

2027 Sogefi Forecast

Source: Sogefi and Mc Kinsey

Type of engine

Diesel Low Diesel High

EV Low

EV scenarios

EV High

Diesel scenarios 1 including PC and LCV (

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Powertrain Forecast by region (Sogefi Base Case)

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 7% 6% 5%

ICE Gasoline 87% 80% 69%

Source: Sogefi and Mc Kinsey

NAFTA

2017 2022 2027

EV 1% 6% 13%

Hybrid 3% 7% 14%

ICE Diesel 41% 32% 25%

ICE Gasoline 54% 55% 49%

2017 2022 2027

EV 2% 8% 17%

Hybrid 3% 11% 18%

ICE Diesel 6% 5% 4%

ICE Gasoline 90% 76% 61%

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 22% 21% 18%

ICE Gasoline 72% 65% 56%

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 12% 10% 8%

ICE Gasoline 81% 76% 66%

2017 2022 2027

EV 2% 6% 14%

Hybrid 4% 9% 16%

ICE Diesel 17% 14% 11%

ICE Gasoline 78% 71% 60%

EUROPE

CHINA

Rest of AsiaRest of the World

WORLD

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o Strong growth of Hybrid powertrains and Electric Vehicles (EV)

o But total Internal Combustion Engine (ICE) remains flat

Light Vehicles Sales Forecast (Sogefi Base Case)

2017 2022 2027 CAGR 17/22 CAGR 22/27

Total Vehicles

(M units) 92 99 110 1.4% 2.1%

EV 1 6 15 35% 19%

Hybrid 4 9 17 19% 14%

ICE Diesel 15 14 12 -2% -2%

ICE Gasoline 72 70 66 0% -1%

91 93 95 0.4% 0.5%

Source: Sogefi and Mc Kinsey Volume including Passenger Car (PC) and Light Commercial Vehicle (LCV) < 3.5T

Total ICE

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Sogefi Filtration / Air&Cooling Main Products

Air & CoolingFiltration

Manifold

Coolant Pump

Coolant Outlet Housing

Oil Filter

Fuel Filter

Cabin Air Filter

OEM AFTERMARKET

European Car Park

10 years average age

Engine Air

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Hybrid Powertrain

Filtration

Manifold

New Product

Coolant Pump

Coolant Outlet Housing

VOLUME X2

Oil Filter

Engine Air

Volume Effect

Battery Pack

Coolant Valve

Thermal Pack

Air & Cooling

Fuel Filter

Battery Pack

coolant Manifold

High performance

Cabin Air Filter

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BEV Powertrain

Air & Cooling

Filtration

High performance

Cabin Air Filter

Battery Pack

Electric

Cooling Module

Coolant

Valve