1T16_RA_MML_EN__versao 2016_05_11__CLEAN MAHLE REPORTS EBITDA OF R$ 107.4 MILLION IN THE 1Q16; EBITDA MARGIN OF 18.7%

Mogi Guaçu (SP), May 11, 2016 - MAHLE Metal Leve S.A. (BM&FBOVESPA: LEVE3), a Brazilian autoparts company that manufactures and sells components for internal combustion engines and automotive filters, announces today its results for the first quarter of 2016. The Company's operating and financial information, unless otherwise indicated, is presented on a consolidated basis in BRL according to Brazilian Corporation Law.

1Q16 HIGHLIGHTS

Conference call and Webcast of Results:

Date: May 12, 2016

12:00 p.m. (Brasília time) 11:00 a.m. (Eastern time)

Phone numbers:

Brazil: +55 11 3193-1001

Brazil: +55 11 2820-4001

USA: +1 786 924-6977

Other: +1 888 700-0802

Webcast: http://cast.comunique- se.com.br/MAHLE/1Q16

  • Net Sales Revenue in the 1Q16 totaled R$ 574.7 million, almost the same as that of the 1Q15;

  • Exports and Aftermarket sales corresponded to 77.9% of total sales in the 1Q16 and 66.9% in the 1Q15;

  • Net Income of R$ 73.9 million and net margin of 12.9% in the 1Q16, an increase of 55.3% compared to the 1Q15;

  • The Net Debt /Ebitda ratio at the end of the 1Q16 was 0.66 times;

  • The Annual and Extraordinary General Meeting held on April 27, 2016 approved distribution of additional dividends in the amount of R$ 26.0 million, which refers to a remaining balance of 2015. The Company distributed in 2015 R$ 198.3 million of earnings, totaling 100.0% of the Net Income for the year;

  • The Board of Directors Meeting held on April 27, 2016 approved distribution of R$ 23.1 million (gross) in Interest on Equity referring to the 1Q16.

TABLE OF CONTENTS

1 MANAGEMENT'S COMMENTS 3
  1. PERFORMANCE OF THE AUTOMOTIVE INDUSTRY 5
  2. Performance of the Brazilian automotive industry 5

  3. Performance of the Argentinean automotive industry 6

  4. ECONOMIC AND FINANCIAL PERFORMANCE 7
  5. Net sales revenue 7

  6. Net sales revenue by market segment 8

  7. Domestic OEM (original equipment manufacturer) sales 8

  8. Domestic aftermarket sales 8

  9. OEM exports 8

  10. Aftermarket exports 8

  11. Consolidated exports by region 9

  12. Net sales revenue by product 9

  13. Gross margin 9

  14. Selling, general and administrative expenses 10

  15. Technology and product development expenses 10

  16. Other operating income (expenses), net 10

  17. Operating income measured by EBITDA 10

  18. Net financial income (expenses) 11

  19. Income and social contribution taxes 11

  20. Net income 11

  21. Capital expenditures 12

  22. Indebtedness 12

  23. Dividends and Interest on Equity to Shareholders 12

  24. INVESTOR RELATIONS AND CAPITAL MARKETS 13
  25. Performance of the Company shares and free-float shares 13

  26. Shareholders' profile 13

  27. INDEPENDENT AUDITORS 13
  28. REPRESENTATION BY THE EXECUTIVE BOARD 14
  29. ACKNOWLEDGEMENTS 14
  30. EXHIBITS 14
  31. Balance sheet 14

  32. Income statement for the period 15

  33. Cash flow statement 15

  34. 1 Management's Comments

    Year 2016 began even more challenging than 2015 for the Brazilian economy in many aspects directly affecting the Brazilian automotive industry.

    Therefore, for MAHLE Metal Leve it is essential to constantly balance its share in the markets it operates to maintain the income and profitability levels over time.

    The graphs below show how the Company's income is distributed in the market it operates in the 1Q16 and 1Q15:

    The Company was able to maintain its revenue between the periods thanks to a growth of 21.5% in OEM exports and of 7.6% in the aftermarket sales, which offset the drop of 33.6% in domestic OEM sales.

    With respect to our domestic it also necessary to consider the discontinuance of the operations of subsidiary MAHLE Hirschvogel Forjas S.A. in the second half of 2015, whose revenue in the 1Q15 amounted to R$ 16.3 million resulting in a negative impact in terms of comparison basis between the quarters in our domestic OEM. Equating comparison basis the drop would have been 27.4% in 1Q16.

    Our operating profitability increased in the 1Q16 (Ebitda margin of 18.7%) compared to 17.3% reported in the 1Q15. This is due to the dynamics of revenue among the markets we operate in the period, coupled with the initiatives of revamping our processes to increase productivity, such as automation of the production processes, intensification of cost management, among other measures.

    In addition, MAHLE Metal Leve has worked to develop components that soon may be part of an engine the Company has been naming Global Flex. Everyone knows that the flex-fuel engines produced in Brazil, because of the different compression ratio required for each type of fuel, do not have optimum performance neither with ethanol nor with gasoline, therefore, the purpose of such research is to drastically reduce the flex engine inefficiency in relation to those that operate with only one type of fuel (fueled either by gasoline or by ethanol). The Company has been researching on the best technological combination to have an engine achieving the best results in terms of efficiency and reduced emissions. Not to mention that Global Flex would put Brazil highlighted as an engineering supplier platform . The engine would give Brazilian engineering the chance to be ranked among the world's top positions in the development of solutions for CO2 reduction in short term, besides collaborating to balancing trade with reduction of gasoline imports.

    Finally, we intend to continuously revamp our production processes seeking to constantly boost competitiveness.

    2 About MAHLE Metal Leve

    We are a Brazilian autoparts company that manufactures and sells components for internal combustion engines and automotive filters. We manufacture products with state-of-art technology and the highest quality, and we continuously invest in the research and development of new products and production processes.

    We have been developing activities in Brazil since the 50's and have a broad portfolio of products and integrated solutions that in most cases have been customized jointly with our major customers. We operate in the OEM (Original Equipment Manufacturers) and aftermarket segments, serving automakers and large autoparts distributors and engine overhaul enterprises.

    Our products are manufactured and sold in Brazil and Argentina, and also exported to over 60 countries, among USA, Germany, Mexico, Portugal and Spain, for a diversified portfolio of customers including General Motors/Opel, Volkswagen, Fiat, Ford, Daimler MBB, International, Cummins, Volvo, PSA Peugeot, John Deere, Renault, Scania, Caterpillar, Honda, Hyunday and others.

    We own six industrial plants, five of which are located in Brazil, in the cities of Mogi Guaçu (two units), Indaiatuba, São Bernardo do Campo, all of which are located in the State of São Paulo, and in Itajubá, State of Minas Gerais. Our sixth 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 located 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 development of components and solution packages for internal combustion engines. This center allows us to add value to and meet the requirements of our customers in a customized and efficient manner, and develop innovative new product technologies and processes.

    We belong to the German autoparts group MAHLE, or MAHLE Group, which was established in 1920 and is one of the most traditional groups in the autoparts industry in the world. MAHLE Group, including the Company, currently has more than 170 industrial plants in 35 countries on five continents, 13 research and development centers and approximately 75 thousand employees.

    As part of the MAHLE Group, a group with global operations, we are able to exchange knowledge, have constant access to the latest technology and develop new products together with our customers, which we believe are key factors to the high level of market penetration and customer loyalty that we have achieved.

MAHLE Metal Leve SA published this content on 11 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 May 2016 23:02:06 UTC.

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