Mahle Metal Leve : Release - 3rd Quarter 2018

MAHLE REPORTS EBITDA OF R$ 148.7 MILLION IN THE 3Q18;

MARGIN OF 20.9%

Mogi Guaçu (SP), November 13, 2018 - MAHLE Metal Leve S.A. (B3: LEVE3), a Brazilian autoparts company that manufactures and sells components for internal combustion engines and automotive filters, announces today its results for the third quarter of 2018. The Company's operating and financial information, unless otherwise indicated, is presented on a consolidated basis in BRL according to Brazilian Corporation Law.

Conference call and Webcast of Results:

3Q18 HIGHLIGHTS

Date: November 14, 2018

•  Net Sales Revenue of R$ 710.3 million in the 3Q18, meaning a growth of 19.1% compared to the 3Q17;

12:00 - Brasília time 14:00 - London time 09:00 - New York time

•  Growth of 17.4% in domestic sales of original equipment manufacturer (OEM) and of 20.0% in OEM exports in the 3Q18 compared to the 3Q17;

  Phone numbers:

  Brazil: [phone] Brazil: [phone]

•  R$ 71,7 million Interest on Equity distribution approved on November, 13th BoD meeting;

  USA: [phone]

  Other countries: 1-800-492-3904

  Password: MAHLE

•  In October 2018, MAHLE Metal Leve received the "Transparency Award 2018" from Brazil's National Association of Finance, Accounting and Administration Executives (ANEFAC) for the quality of the information in its 2017 financial statements.

Webcast:http://cast.comunique-se.com.br/MAHLE/3Q18

Website RI:http://ri.mahle.com.br/

Website MAHLE:http://www.br.mahle.com/pt/

TABLE OF CONTENTS

1
2
3
3.1	Performance of the Brazilian automotive industry ......................................................................................................... 4
3.2	Performance of the Argentinean automotive industry .................................................................................................... 5
3.3	Production and sales of vehicles in Brazil and Argentina .............................................................................................. 5
3.4	Vehicle production in the main export markets .............................................................................................................. 6
4	COMPANY'S ECONOMIC AND FINANCIAL PERFORMANCE ......................................................................................... 6
4.1	Net sales revenue and market share by segment ......................................................................................................... 6
4.2	OEM (original equipment manufacturer) sales .............................................................................................................. 7
4.3	Aftermarket sales .......................................................................................................................................................... 8
4.4	Consolidated exports by region ..................................................................................................................................... 8
4.5	Net sales revenue by segment ...................................................................................................................................... 8
4.6	Net sales revenue by product ........................................................................................................................................ 9
4.7	Gross margin ................................................................................................................................................................. 9
4.8	Selling, general and administrative expenses ............................................................................................................... 9
4.9	Technology and product development expenses .......................................................................................................... 9
4.10	Other operating income (expenses), net ..................................................................................................................... 10
4.11	Operating income measured by EBITDA .................................................................................................................... 10
4.12	Net financial income (expenses) ................................................................................................................................. 11
4.13	Income and social contribution taxes .......................................................................................................................... 12
4.14	Net income .................................................................................................................................................................. 12
4.15	Capital expenditures .................................................................................................................................................... 12
4.16	Net position of financial assets and liabilities .............................................................................................................. 12
4.17	Dividends and interest on capital to shareholders ....................................................................................................... 13
5	INVESTOR RELATIONS AND CAPITAL MARKET ......................................................................................................... 13
5.1	Performance of the Company shares and free-float shares ........................................................................................ 14
5.2	Shareholders' profile ................................................................................................................................................... 14
6	INDEPENDENT AUDITORS ........................................................................................................................................ 14
7	REPRESENTATION BY THE EXECUTIVE BOARD ......................................................................................................... 14
8	ACKNOWLEDGEMENTS ............................................................................................................................................ 15

MANAGEMENT'S COMMENTS ................................................................................................................................... 3

ABOUT MAHLE METAL LEVE ...................................................................................................................................... 3

PERFORMANCE OF THE AUTOMOTIVE INDUSTRY ...................................................................................................... 4

MANAGEMENT .................................................................................................................................................................... 15

9 EXHIBITS .................................................................................................................................................................. 15

• 9.1 Balance sheet .............................................................................................................................................................. 15

• 9.2 Income statement ........................................................................................................................................................ 16

• 9.3 Cash flow statement .................................................................................................................................................... 17

1 Management's Comments

The Company's continued positive results are due to the growth in domestic OEM sales (to automakers) throughout 2018. In the 9M18, our domestic OEM sales increased by 23.6%, meaning a performance above the vehicle production in Brazil (10.5% in the 9M18).

It is also worth highlighting that our balanced share in the markets we operate, i.e. OEM and aftermarket segments, both in Brazil and abroad, has allowed us to maintain our profit margins over time. In the 3Q18, net margin and EBITDA margin were 13.0% and 20.9%, respectively.

Accordingly, in the 3Q18 the Company reported net sales revenue of R$ 710.3 million, representing a growth of 19.1% in relation to the 3Q17, due to the positive performance of the OEM exports (20.0%), aftermarket sales (19.4%) and domestic OEM sales (17.4%).

Comparing the 9M18 with the 9M17 the Company reported a growth of 16.0% due to the positive performance of domestic OEM sales (23.6%), OEM exports (17.0%), and Aftermarket sales (8.9%).

The graph below shows revenue distribution in the 9M18 and 9M17 in the markets where the Company operates:

In the 9M18, the Company reported operating income measured by EBITDA of R$ 380.4 million, reaching EBITDA margin of 19.4% due to an increase in sales volume in all our markets, greater presence of products with more technology and therefore greater value added.

For the fifth consecutive year, the Company received the "Transparency Award 2018" from Brazil's National Association of Finance, Accounting and Administration Executives (ANEFAC). The award highlighted the Company as one of the most transparent companies for the quality of the information in its 2017 financial statements in the category of net income of up to R$ 5 billion.

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-the-art technology and the highest quality, and we continuously invest in the research and development of new products and production processes.

We have developed 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,

Volkswagen, Fiat, Ford, Daimler MBB, Opel, International, Cummins, Volvo, PSA Peugeot, John Deere, Renault, Scania, Caterpillar, Honda, Hyundai and others.

We own five industrial plants, four of which are located in Brazil, in the cities of Mogi Guaçu (two units) and São Bernardo do Campo, all of which are located 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 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, 16 research and development centers and approximately 78 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 are key factors to the high level of market penetration and customer loyalty that we have achieved.

3 Performance of the automotive industry

3.1

Performance of the Brazilian automotive industry

Brazilian vehicle production in the 9M18 grew 10.5% and sales of the Brazilian automotive industry increased 13.8% compared to the same period of 2017.

According to the Brazilian Association of Motor Vehicle Manufacturers (ANFAVEA) vehicle inventory recorded at the end of the 9M18 totaled 283.4 thousand units, corresponding to 40 days of sales. In the same period of the previous year vehicle inventory was equivalent to 34 days of sales, corresponding to 224.1 thousand units.

The graph below shows the changes in the production, sales and total inventory of national vehicles in the first nine months of 2018 compared to the same period of 2017:

3.2

Performance of the Argentinean automotive industry

Comparing the 9M18 with the 9M17 the Argentinean automotive industry reported a drop of 11.9% in sales and an increase of 5.2% in production of vehicles supported by exports.

3.3

Production and sales of vehicles in Brazil and Argentina

The table below shows consolidated figures for vehicle production and sales in Brazil and Argentina. This refers to the domestic market in which the Company operates.