“Firm steps towards Globalization”
March, 2017
This presentation and discussion may contain forward-
looking statements, which are subject to risks, and
uncertainties that could cause the Company’s actual results
to differ materially from management’s current
expectations. Those risks and uncertainties include,
without limitation: new product development and
commercialization; demand and acceptance for the
Company’s products; competitive products and pricing;
economic conditions in the Company’s product and geographic
markets and foreign currency fluctuations.
FINANCIAL FORECAST
The financial forecasts and forward-looking statements
discussed during this presentation reflect the current belief of
the Company as of the publication of this presentation and the
Company undertakes no obligation to update these forecasts
and forward-looking statements for events or circumstances
that occur subsequent to such date.
| SAFE HARBOR STATEMENT
PROFILE &
EVOLUTION
Iron and Aluminum auto parts for brake,
engine, suspension and transmission
systems for the Automotive industry.
Ceramic and porcelain floor tiles, water
heaters and plastic and ductile iron pipe
fittings.
Diverse products for tableware,
kitchenware and electronic appliances.
GIS is a Mexican company,
with over 8 decades of experience in 3 sectors:
| ¿ WHO ARE WE ?
AUTO PARTS CONSTRUCTION HOUSEWARES
FOCUSED DIVERSIFICATION
| STRATEGIC REPOSITIONING…
2010 2012 2014-2015
2011 2012-2013 2015
million
San Luis Potosi
Auto Parts facility
Acquisition
USD $50million
to double the installed
capacity of SLP Plant
USD $65million
JV Fagor Ederlan for iron
auto parts machining
USD $50
Up to
million
Capacity expansion
Auto Parts
Saltillo e Irapuato
USD $30million
JV ZF-TRW for iron foundry
and machining of auto parts
for brake system
USD $120 USD $93million
Acquisition of ACE
Facilities in Spain, Poland and Czech
Republic. Iron casting and Aluminum
casting and machining. Top brake system
player in European Market
million
Divestiture Iron
Blocks and Heads
Business Unit
USD $439
From 2010 to 2016 Foundry Capacity Expansion:
78 to 525 K Annual Tons
2016
million Infun Acquisition
design, foundry and machining of
engine, transmission and suspension
components for the automotive industry
Plants: Spain, Italy and China
USD $308
| GLOBAL FOOTPRINTAmericas Europe Asia
Pre Infun Acquisition Pro-forma
Revenue per geography (2016) Income per currency (2016)
Europe
17%
Americas83%
66%
30%
Americas
Asia
4%
Europe
EUR
MXN
44%
17%
USD
39%
RMB
32%EUR
4%USD
30%
34%
MXN
Pre Infun Acquisition Pro-forma
* Joint Venture - ZF TRW
** Joint Venture - Fagor EderlanH
A
M
Horizontal Iron
Aluminum
Machining
H Vertical Iron
H Horizontal & Vertical Iron
*
**M
H
HH
H M
**
H
M
MA
H
H
H
M
H
H
| STRATEGIC ACQUISITION RATIONALE
| REPOSITIONED FOR GROWTH
44%
46%
AUTO PARTS
HOUSEWARES
10%
CONSTRUCTION
34%
HOUSEWARES
CONSTRUCTION
8%
58%
AUTOPARTS
Pre Infun Acquisition Pro-forma
Revenue per Sector (2016)
• Operations in México, Spain, Czech Republic, Poland, Italy and China. Trading presence in US.
• Oriented to design and generate comfort and safety solutions for our consumers in the world.
• Over 8,000 associates in 25 production facilities.
BUSINESS
PORTFOLIO
AUTO PARTSSECTOR
With 5 Business Units and facilities in Mexico, Spain,
Italy, Poland, Czech Republic and China, we supply
iron and aluminum components to our customers at
the most important regions in the world.
Mexican and European leaders in the production of calipers for brake systems and engine
crankshafts.
| DIFFERENTIATED VALUE PROPOSITION
Global
Platforms
Co-participation in
design solutions of
Engineering
Development
Strategic
Geographic
Location
(MEX-EUR-CHINA)
Product
Specialization (6
strategic
components)
Value Chain
Integration –
Machining Process
Competitive
Pricing through
Operations,
Product
Engineering and
Process efficiency
Customer-Focused
| NAFTA - Cifunsa • 84% Sales to Tier 1 & 2 • 16% Direct Sales to OEMs
Clutch Plates
Transmission /
Gray and Ductile
Iron
Knuckles
Suspension /
Ductile Iron
Brackets
Brake / Ductile
Iron
Crankshafts
Engine / Ductile Iron
Calipers
Brake / Ductile Iron
Rotor Disk
Brake / Gray Iron
VW Tiguan Lincoln MKZ
Ford Focus Dodge Challenger
Chrysler RAM Mazda 2
| Europe - ACE
Iron and Aluminum components for light vehicles braking systems.
Audi A4 & A6 Mercedes Benz
Clases A,B,C & E
Audi Q5Opel Astra
Ford Focus BMW Series 3,5 & 7 VW Passat
| Europa / China - INFUN
Design, foundry and machining of engine, transmission and suspension components for
the automotive industry.
Engine Suspension
Land Rover Lincoln MKX Renault Megane Volvo Truck Renault Trafic Mercedes Truck
• 70% GIS / 30% ZF-TRW
• Ductile Iron Foundry for brake system
components
• US$120 million Investment
• Annual Foundry Capacity of 52 K tons in 2 lines,
machining capacity up to 7 million units
• 2nd Line SOP (26K tns) in 1Q17
• Incursion in Machining process – Value added
• Successful SOP and positive EBIT since 4Q15
• Feb-15 Sign of JV Agreement to establish
machining facility with Fagor Ederlan (50%
each partner)
• Up to US$52 million of Investment
• Iron components machining for the auto
industry
• Platforms from customers incoming
• 2017 - SOP in San Luis Potosi
• Capture new projects and substitution of imports
• Define portfolio: product / systems / geography
• Consolidate ACE & Infun Acquisitions and
achieve synergies
• Vertical integration through machining
• Diversification to other processes / materials /
globalization
| STRATEGIC FOCUS
CONSTRUCTIONSECTOR
Ceramic Tiles
60%
Water Heaters
40%
VITROMEX
Manufacture and market ceramic and porcelain tiles for
residential and commercial sectors, sold mainly in Mexico &
US through distributors and home centers.
• Customer and product portfolio segmentation
• Turn Around – EBITDA margin expansion
• Capacity transformation – larger formats,
strengthening product mix to luxury and premium
• Technological Update – Digital process for
decoration and design
| ENFOQUE ESTRATÉGICO
WATER HEATERSCommercial and Residential solutions for water
heating, mainly in Mexico and US
• Accelerated growth in US
• Continue our leadership in the Mexican Market
• Technological advances in our products
• Increasing speed of new product development and
launch (Speed to Market)
• Integration of Fluida pipe fitting business unit to
achieve commercial and administrative synergies, as
well as a lean structure
| STRATEGIC FOCUS
HOUSEWARESSECTOR
Manufacture and market diverse cookware &
dinnerware products. Also trade kitchenware
accessories & appliances.
• Improve profitability
• Growth Aluminum category
• Leadership in Enamel Steel and Ceramic,
through traditional channels
• Dynamic and profitable growth in US
| STRATEGIC FOCUS
FINANCIAL &
STOCK
PERFORMANCE
| SUSTAINED GROWTH
AUTO PARTS CONSTRUCTION HOUSEWARES
2013 2014 2015 2016
693 730 711
1,006
NET SALES
CAGR 2013 - 2016 + 13.2%$ USD
Million
2013 2014 2015 2016
EBITDA
CAGR 2013 - 2016 + 31.3%
74
8090
168
10.7% 10.9% 12.7% 16.7%EBITDA
Margin
INFUN
* *
2016 Proforma Basis:
2016 GIS + 2016 Infun*
780
113
14.5%
| MARKETABILITY
• Double stock transactions from July 2016 to
February 2017
• “Market Maker” service signed on Dec-16
• Improving on Marketability Ranking (6 positions)
from November 2016 to February 2017
• Analyst Consensus 2017 Price Target $43
MXP/Share
GISSA
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¿Why GISSA?• Auto Parts Differentiated Value Proposition
• Sustained Growth and EBITDA Margin Expansion
• Strategic Diversification to Europe & Asia
• Leading and Well-Known Trademarks
• Solid Corporate Governance
• GISSA’s share attractive valuation and potential upside (Infun Group Acquisition)
“Firm steps towards Globalization”
March, 2017