MAHLE Metal Leve S A : Dados Econômico-Financeiros

MAHLE Metal Leve S.A.

Quarterly information (ITR)

on June 30, 2021

Mogi Guaçu, São Paulo, August 12, 2021 - MAHLE Metal Leve S.A. (B3: LEVE3), a Brazilian automotive parts company that manufactures and sells components for internal combustion engines and automotive filters, today announced its second quarter 2021 financial results. Unless otherwise noted, financial and operating information is provided on a consolidated basis and in Brazilian reais (BRL) and is prepared in accordance with the Brazilian Corporation Law.

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Second Quarter 2021

Earnings Conference

Call and

Webcast

Date: August 13, 2021

Time

12 noon - Brasilia 4:00 p.m. - London 11:00 a.m. - New York

Webcast in Portuguese

(original)

CLICK HERE

Webcast in English

(simultaneous

translation)

CLICK HERE

Dial-in numbers

Brazil: [phone]

Brazil: [phone]

To listen to the conference call audio in Portuguese, ask the operator for the original audio.

USA: [phone]

Passcode: MAHLE

IR website:

https://ri.mahle.com.br

HIGHLIGHTS

Net Sales Revenue: R$ 889.1 million in 2Q21, which represents an increase of 146.4% compared with 2Q20. In 1H21, net sales revenue was up 84.5% from 1H20;

Domestic Aftermarket: R$ 243.5 million in 2Q21, which represents an increase of 115.5% compared with 2Q20. In 1H21, net sales revenue was up 86.7% from 1H20; (See details in items 4.1 and 4.3);

Domestic Original Equipment Market: R$ 244.7 million in 2Q21, which represents an increase of 234.7% compared with 2Q20. In 1H21, net sales revenue was up 99.8% from 1H20 (See details in items 4.1 and 4.2);

Aftermarket Exports: R$ 70.2 million in 2Q21, which represents a 98.3% growth compared with 2Q20. In 1H21, net sales revenue was up 75.1% from 1H20 (See details in items 4.1 and 4.3);

Original Equipment Exports: R$ 330.7 million in 2Q21, which represents an increase of 137.2% compared with 2Q20. In 1H21, net sales revenue was up 74.6% from 1H20 (See details in items 4.1 and 4.2);

• Adjusted EBITDA: For details of the adjustments, see items 4.11 and 4.12. ² Adjusted net profit: For details of the adjustments, see item 4.14.

MAHLE Metal Leve S.A. | 2Q21 Earnings Release

CONTENTS

1. Management Commentary

2. About MAHLE Metal Leve

3. Development of the Automotive Industry

3.1 Development of the Brazilian market Page | 2 3.2 Development of the Argentine market

3.3 Brazil's and Argentina's vehicle production and sales

3.4 Vehicle production in the major export markets

4. Company's Financial and Economic Performance

4.1 Net sales revenue and net revenue by market

4.2 Original Equipment (OE) sales

4.3 Aftermarket sales

4.4 Consolidated export by region

4.5 Net revenue by segment

4.6 Net revenue by product

4.7 Gross margin

4.8 Selling, general and administrative expenses

4.9 Research and development (R&D) expenses

4.10 Other operating income (expenses), net

4.11 Operating result measured by EBITDA and adjusted EBITDA

4.12 Net finance costs

4.13 Income tax and social contribution

4.14 Net profit and adjusted net profit

4.15 Capital expenditures

4.16 Net financial position

4.17 Distribution of dividends and interest on capital to shareholders

5. Coronavirus (COVID-19)

6. Investor Relations and Capital Market

6.1 Stock performance and free float turnover

6.2 Shareholder structure

7. Independent Auditors

8. Executive Board's Declaration

9. Acknowledgments

MAHLE Metal Leve S.A. | 2Q21 Earnings Release

1.Management Commentary

2021 is being as challenging as 2020. Despite the improvement in the pandemic situation - the advancing vaccination campaigns help create a more favorable environment - now there are new difficulties to deal with.

Brazil's new vehicle market was struggling to recover when it was hit principally by a shortage of semiconductors. The
new vehicle market grew over the last quarters and is currently facing material shortages.
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With respect to the second-hand and used car market, it is necessary to go back to the first half of 2020 when there was
a supply chain disruption caused by the COVID-19 pandemic. As demand increased, the market began recovering in the
second half of 2020 and continued through the first quarter of 2021. Nevertheless, in the first quarter of 2021, there was
the impact of the second wave of the coronavirus pandemic.
The Company's 2Q21 net revenue grew by 146.4% compared with 2Q20, driven by an increase in Aftermarket sales
(+111.4%), domestic OE market (+234.7%) and OE exports (+137.2%). The Company's 1H21 net revenue grew by
84.5% compared with 1H20, driven by an increase in Aftermarket sales (+84.1%), domestic OE market (+99.8%) and OE
exports (+74.6%).
The charts below show the Company's revenue by business segment in1H21 and 1H20:

In 2Q21, the Company reported an adjusted EBITDA margin of 19.6% (4.0% in 2Q20) with adjusted EBITDA of R$ 174.1 million (R$ 14.3 million in 2Q20). Adjusted EBITDA margin for 1H21 was 21.7% (R$ 373.3 million) versus adjusted EBITDA margin of 11.3% in 1H20 (R$ 105.8 million). The adjustments relate to the following non-recurring events. See items 4.11 and 4.14 for details.

• 2Q20 - Impairment of R$ 29.2 million of the goodwill of subsidiary MAHLE Argentina S.A.;
• 2Q21 - Tax credits of R$ 88.8 million arising from exclusion of ICMS from the PIS and COFINS tax base.

It is important to mention that there is still a high degree of uncertainty surrounding the future developments of the pandemic and the global economic recovery, and various industry segments, including the sector in which the Company operates, may be adversely affected in the future.

2.About MAHLE Metal Leve

We are a Brazilian automotive parts company that manufactures and sells components for internal combustion engines and automotive filters. We manufacture the highest quality products using cutting-edge technology, and we are constantly investing in research and development of new products and production processes.

We have been operating in Brazil since the 1950's and have a large portfolio of products and integrated solutions, including customized products developed in close collaboration with our principal customers. In the original equipment industry, MAHLE supplies automotive manufacturers and the Aftermarket business segment supplies large auto parts distributors and engine repair shops.

Our products are manufactured and sold in Brazil and Argentina and exported to more than 60 countries, including USA, Germany, Mexico, Portugal and Spain, for a broad customer portfolio which includes General Motors, Volkswagen, Fiat, Ford, Daimler MBB, Opel, International, Cummins, Volvo, PSA Peugeot, John Deere, Renault, Scania, Caterpillar, Honda, Hyundai, Toyota, among others.

MAHLE Metal Leve S.A. | 2Q21 Earnings Release

We own five production plants, four of which are located in Brazil, in the cities of Mogi Guaçu (two units) and São Bernardo do Campo, in the State of São Paulo, and in Itajubá, State of Minas Gerais. Our fifth plant is located in the city of Rafaela, Argentina. We have two distribution centers: one in the city of Limeira, State of São Paulo, and one in Buenos Aires, Argentina. We have a technology center in the city of Jundiaí, State of São Paulo, which we believe is one of the largest and most well-equipped technology centers in Latin America for the development of components and solution packages for internal combustion engines. This center allows us to serve and deliver value to our customers in a customized and efficient manner, and develop innovative new product technologies and processes.

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As part of the globally active MAHLE Group, we are able to exchange knowledge, provide and have constant access to the latest technologies and develop products in close collaboration with customers, which we believe are key factors to the high level of market penetration and customer loyalty that we have achieved.

3.Development of the Automotive Industry

3.1 Development of the Brazilian market

The tables below show Brazil's domestic auto production, sales and inventory for the periods under review:

	Monthly production (thousand units)		Jan		Feb		Mar		Apr		May		Jun			Total
	2020		194.2		207.8		194.3		3.6		46.7		101.7			748.3
	2021		199.7		197.0		200.3		190.9		192.8		166.9			1,147.6
	Total monthly sales (thousand units)		Jan		Feb		Mar		Apr		May		Jun			Total
	2020		193.5		201.0		163.6		58.1		66.1		146.2			828.5
	2021		171.1		167.4		189.4		175.1		188.7		182.5			1,074.2
	Brazil's vehicle inventory (days)		Jan		Feb		Mar		Apr		May		Jun
	2020		43		37		48		128		80		36
	2021		18		18		16		17		16		15

Source: Anfavea

3.2 Development of the Argentine market

Argentine automotive industry

	Sales of vehicles		Jan-Jun 2021			Jan-Jun 2020		A/B
	(locally manufactured and imported)		(A)			(B)
Total light vehicles	172,426		123,158	40.0%
Total medium- and heavy-duty vehicles	7,536		4,582	64.5%
	Total vehicle sales		179,962			127,740		40.9%
Exports	107,877		53,222	102.75
Imports	91,294		88,282	3.4%
Trade balance	16,583		(35,060)	-147.3%
Change in vehicle inventory in the period (*)	5,963		(1,230)	-584.8%
Production of light vehicles	193,580		86,439	123.8%
Production of heavy-duty vehicles	1,392		429	224.5%
	Total vehicle production		194,972			86,868		124.4%

1. Change in vehicle inventory = production - (sales + exports - imports). Source: Adefa/Acaras Argentina/IHS.

MAHLE Metal Leve S.A. | 2Q21 Earnings Release