Company Presentation 16 March 2011

Disclaimer


This document includes or may include statements or estimates about intentions, expectations or forecasts of CIE AUTOMOTIVE or of its management body on the present date, regarding several issues such as the evolution of its business and the company’s financial results. These statements correspond with our intentions, opinions and future expectations, thus there are certain risks, uncertainties and other relevant factors that could lead to different results or decisions from those intended, expected or estimated. These factors include, among others, (1) the market situation, macro-economic factors, political, governmental and legal regulations, (2) changes in local and international securities markets, exchange rates and interest rates, (3) competition, (4) technological developments, (5) changes in the financial situation, credit capacity, and solvency of customers, debtors and counterparties. These factors could affect and could mean that the information and the intentions expressed, forecast or predicted in this document and in other past or future reports, including those submitted to the regulatory and supervisory authorities (including the Spanish Securities Market Authority – Comisión Nacional del Mercado de Valores - CNMV) do not coincide with reality. CIE AUTOMOTIVE does not undertake to publicly review the information contained herein or in any other document, whether the facts upon which such estimations have been based change, or whether such changes would alter the strategies or intentions contained herein.




This representation must be taken into consideration by all those persons or entities that may have to take decisions or give opinions related to securities issued by CIE AUTOMOTIVE and, in particular, by analysts considering this document. Please be advised that this document may contain information that has not been audited or summarised, thus public information registered by CIE AUTOMOTIVE with the security market regulatory authorities should be consulted, in particular, prospectuses and the periodical information registered with the CNMV.

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Index 1. Introduction to CIE Automotive 2. 2010 Full year results a) Automotive b) Biofuels 3. Key success factors a) b) c) d) e) f)

Differential business model Limited risk profile Clear commitment to internationalization Sound financial position Experienced and results-driven team Positive outlook & sector dynamics

3

1. Introduction to CIE Automotive

4

What is CIE Automotive? We are an international industrial group specialized in managing high valueadded processes and fully committed to profitable growth Mkt Cap: 555 mill. €(1)  Employees >12.000 

 

Sales 2010: 1,429 mill. € EBITDA 2010: 193 mill. €

Core Business

Other Businesses

Automotive Components 

Specialized in the process and dedicated to the design, manufacturing and supply of automotive components and subassemblies



Tier 2 supplier specialized in providing parts to Tier 1 and OEM suppliers (50% OEM, 50% Tier 1)



Growth by creating and integrating over 50 companies since 1996. In February 2011, we have floated our subsidiary in Brazil, Autometal



39th Automotive Supplier worldwide in terms of competitiveness (according to Roland Berger) and 76th by size (according to Automotive News)

%

Percentage on Sales of CIE Automotive (2010)

Biofuels

93% 99%

%



Production and commercialization of biodiesel in Spain and Brazil

ICT 

7% 1%

Incorporation in 01/2011

Solutions and services in technology for education, healthcare, telecommunications, transports and environment

Percentage on EBITDA of CIE Automotive (2010)

(1) 25th February 2011

5

After a good 2010, the starting point in 2011 is characterized by 3 key factors

1) Return to historical levels of profitable growth



2) Autometal IPO



3) Merger with INSSEC and Dominion´ ´s ICT business integration



After this process, CIE Automotive Group comes out reinforced to face new challenges of international growth 6

1) Return to historical levels of profitable growth: 2002 – 2010 results evolution Sales evolution (mill. €)(1)

EBITDA evolution (mill. €) 1.429

1.261 1.109

157

1.016 910

133

782

116

670 481

193

181

570

80

116

91

53

2002 2003 2004 2005 2006 2007 2008 2009 2010

 

Growth ex-2009 of 17% RoCE(2) >13% in 2010 (+8p.p. vs. 02)

2002 2003 2004 2005 2006 2007 2008 2009 2010 

Growth ex-2009 of 20% and Auto EBITDA margin of 15% (+4p.p. vs. 02)

(1) 2006, 2007, 2008, 2009 and 2010 data deducting turnover of diesel oil used for blending (2) ROCE calculated as EBIT divided by average employed capital (equity + net financial debt)



After a “ lost” year 2009 due to the crisis, CIE Automotive has retaken its growth and profitability traditional path



Growth strategy 50/50 organic/acquisitions has allowed us growth rates of around 15-20% in sales and EBITDA 7

2) IPO de Autometal: Improves financial structure and allows Group development Key figures (31-12-2010 proforma post IPO)

IPO information 31.482.300 shares issued (=25% of the total post IPO)  Price: 14 R$  Amount: 440.752.200 R$  Use of proceeds: Business expansion 



Final shareholders: Shareholders

Number of shares

Capital increase € 184 mill.(1) (million euros)

Pre IPO

Post IPO

Equity

354

520

Net Fincancial Debt (NFD)

507

342

Pre IPO

Post IPO

NFD/EBITDA

2,6x

1,8x

NFD/EQUITY

1,4x

0,7x

Shareholding %

CIE Automotive

97.132.501

77,15%

Free Float

28.775.140

22,85%

TOTAL

125.907.641

100,00%

CIE has suscribed for 4 mill shares and has sold 968.530 from Greenshoe.  1 year Waiver to reach a 25% free float (Nuevo Mercado´s legal minimum)

Ratios



Capital gain made to reserves

60

(1) Net capital increase corresponding to the sale of 31,5 million shares at 14 reals/share including capital increase costs



After the IPO, CIE Automotive´s shareholding in Autometal is 77,15%



70 funds and 1500 individuals have invested. The geographical distribution of the investment has been: Brazil 48%, USA 25%, Europe 23% and others 4% 8

2) IPO de Autometal: Improves financial structure and allows Group development Autometal´s stock evolution since IPO 3,8

17 15,80

16 16 15

≈

15,42 15,20

0,7

0,5 13,25 13,25

0,5

14,00

13,90

13,56

13,15

15,45

+20,5%

14,05

14,00 14,00

0,5 0,4

12,82 12,72

13

15,97

14,48 14,45

0,7 14,00

14

15,30

14,85

15 14

15,20

15,95

0,4

0,4

0,4

0,4 0,3

0,3

0,3

0,2

0,2

13

0,2

0,2

12

0,1

0,1 0,1

0,1 0,0

12

0,0



Stock´s liquidity during the first month of quotation, excluding the first day, has been BR$100 mill. (7,1 mill. stocks)



Free Float is 28,8mill. stocks



Extrapolating to the full year suposses a Free Float rotation of 2,7 (1) times per year

(1) Calculated taking into account the stock quotes 243 days per year

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3) Merger with INSSECand and Dominion integration: 3) Merger with INSSEC Dominion integration: newshareholder shareholderstructure structure for for aa new A Anew new growth growthperiod period

Pre-merger Shareholding Free float 20,2% Carisa 5,0% Addvalia Capital 5,0% QMC 5,1%

Post-merger Shareholding Free float 25,6%

INSSEC 64,8%

Institutionals 24,0%



Stable LT Shareholders group



Free float increase to ~26%



As a result liquidity increase and lower volatility

Industrial LT 25,9%

Management team and Family office LT 24,4%

Dominion´s ICT Business integration 

Dominion operates in two business areas: 

SOLUTIONS: operates in specific niches of higher growth potential technological sectors as education, transports, health, environment and communications



SERVICES: provides services to telecommunication, vendor and finance sectors, with a deployment of physical networks (RNS) and management centers by country (CIS)



Strong presence in Spain, Brazil, Mexico and presence in other Latin American countries.



Emerging markets development strategy taking advantage of the synergies in these markets with CIE

10

2. Full year results

11

CIE Automotive Group 2010 Results… (million euros) (Millones de euros) Turnover

31 Marzo 3131/12/10 Marzo 31/12/09 2009 2010

1.149,0

1.591,1

1.016,0

1.429,3

+41%

116,4

193,3

+66%

11,5%

13,5%

+2pp

EBIT

52,7

112,1

x2

EBT

26,6

65,4

x2,5

Net Income

11,1

41,4

x4

Adjusted Turnover* EBITDA % EBITDA on Adjusted Turnover

Notes: (*) Proforma value calculated deducting turnover of diesel oil used for blending. EBITDA: Net Operating Income + Depreciation; EBIT: Net Operating Income; EBT: Profit before taxes from continuous activities; Net Income: Profit attributable to the company's shareholders.



Excellent results with historical record sales and EBITDA



In comparison with 2009, sales growth +41%, EBITDA increase +66% and EBITDA margin improvement 2 points aprox



Results mainly supported in emerging markets and European recovery



This result includes a restructuring expense of 13 mill€ and a negative result of 5 mill€ for discontinued operations. Both effects have been partially offset with non-recurrent positive effects, mainly exchange rate differences

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...have allowed a solid financial position .

NFD Evolution (31-12-2010 proforma post Autometal´s IPO) Net Financial Debt (mill. €)

NFD/EBITDA 535

538

507

4,6x

408

3,0x

342

2,6x

2,6x

1,8x

2007

2008

2009

2010

NFD = Debt to banks and other financial institutions – cash and equivalents.



CIE has set as objective of its financial strategy a NFD/EBITDA ratio of~2x



Autometal ´s IPO has allowed CIE to substantially reduce its debt level



The lower indebtedness allows access to new international development challenges 13

3. 2010 Full year results a) Automotive: More than a year of excellent results supported in emerging

14

Automotive Results 2010

31 Marzo 31/12/09 2009

31/12/10

Turnover

969,0

1.322,7

+37%

EBITDA

120,2

191,4

+59%

12,4%

14,5%

+2,1pp

58,4

113,1

~ x2

6,0%

8,6%

+2,6pp

(million euros) (Millones de euros)

% EBITDA on Turnover EBIT % EBIT on Turnover Note: EBITDA: Net Operating Income + Depreciation; EBIT: Net Operating Income



Different performance by geographical area: emerging markets remain strong, particularly Brazil, Mexico and Eastern Europe. West Europe in recovery phase, though activity level still at 80%



High fixed costs reduction activity during the year with 13 mill.€ non-recurrent negative effect in the period. Breakeven reduction target maintaining volume margin at 80%



EBITDA margin 2010: 15,5%, without non-recurrent effects

15

An international and highly diversified company Sales by geographic area - final destination (2010; automotive)

Sales by geographic area - origin (2010; automotive) Mature Markets ~40%

China 1% Mexico 20%

Brazil 30%

China 1% Spain 5% NAFTA(1) 20%

Western Europe 41%

Brazil 30%

East Europe 8%

Rest of Europe 44%

High-Growth Markets ~60% 

65 production plants and 7 R&D centres in Europe, Brazil, Mexico and China



Only 5% of sales are directly dependent on the Spanish market

(1) North American Free Trade Agreement (includes Canada, USA and Mexico)

CIE Sales and EBITDA in high-growth markets represent more than 60% and 70% of the total, respectively 16

Automotive sales and EBITDA evolution Monthly Sales (mill. €)

Monthly EBITDA (mill. €)

18

% on Sales

117 104

121

15 13

95

14,0%

80 8

67

19

16

126

106

19

15,4% 15,5% 15,4% 15,4%

14,5%

9

11% 11,1%

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Million Euros Notes: - Monthly averages by quarter. Proforma values 3Q and 4Q equal to 2,6 and 2,7 months respectively, instead of 3 months as 1Q and 2Q. - 4Q2009, 2Q2010, 3Q2010 and 4Q2010 values deducting non-recurrent negative effects. - EBITDA: Net Operating Income + Depreciation



Positive quarterly trend in 2010 in Sales and EBITDA at a global basis and in each of CIE markets: Brazil, Mexico and Europe



EBITDA margin in standard levels, around 15,5% 17

3. 2010 Full year results b) Biofuels: we have achieved operative breakeven

18

Biofuels Results 2010 (million euros) (Millones de euros)

Turnover

31 Marzo 2009 31/12/09

180,0

31 Marzo 2010 31/12/10

268,4

Adjusted Turnover *

47,0

EBITDA

(3,8)

1,9

EBIT

(5,8)

(1,0)

+49%

106,7 +127%

Notes: (*) Proforma value calculated by deducting turnover of diesel oil used for blending EBITDA: Net Operating Income + Depreciation; EBIT: Net Operating Income



Our Strategy:  Focus on recycled oils segment  Investment containment in virgin oil factories  Strict costs control and risk reduction with buying and selling operations coverage

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3. Key succes factors

20

Key success factors

Differential business model Positive outlook & sector dynamics

Experienced and contrasted management team

Limited risk profile

Clear commitment to internationalization

Sound financial position

21

Clear positioning in the Automotive . sector Sector Players

OEM Original Equipment Manufacturers

Tier 1 component suppliers

Tier 2 component suppliers

Supply VEHICLES

Concentration level

Very high

Sell to final consumer

Supply FUNCTIONS

High

Sell to OEM

Supply COMPONENTS AND SUBASSEMBLIES

Low

Sell to OEM and Tier 1

CIE is positioned as a Tier 2 supplier, a market segment with a much lower concentration and professionalization 22

Within the segment of Tier 2 suppliers, CIE has a clearly differentiated model .

Tier 2 Suppliers Small size

CIE Automotive Significant size and financial strength

Monotechnology

Multitechnology (6 basic technologies: aluminum, forging, stamping, casting, machining and plastic)

Overcapacity at all levels

Flexibility, machinery capable of producing for different clients/platforms/plants

Local presence

Internationalization (65 production plants in Western and Eastern Europe, Brazil, Mexico and China)

Structures with scale problems

Lean structure: simple and robust procedures, costs under control and well below sector´s average

Low investment in R&D

R&D as a differentiating factor (R&D expenses account for 2,2% on sales; 5 R&D centers worldwide)

Family management

Professionalized management

CIE´s business model has clear competitive advantages over the rest of Tier 2 suppliers 23

CIE has a limited risk profile thanks to diversification of its client base … Sales by customer(2010)

Ventas por cliente (2009)

Sector´s weight of top 5 customers

CIE

NEXTEER 1%

DELPHI 1%

NSK 1% LEAR 1%

JTEKT 1%

SCHAEFFLER 1%

AUTOLIV 1%

Delphi

GKN 1% BOSCH 1% DAF 1% ZF 1%

AP-KAYABA 1% VISTEON 2%

Visteon OTHERS; 32%

FAURECIA 2%

Autoliv

CONTINENTAL 2%

Faurecia

TRW 4% PSA 5%

GKN VW 10% GM 10%

FIAT 5% RENAULT 10%

Valeo

FORD 7%

0%

20% TOP1

Source: Company data

TOP2

40% TOP3

60% TOP4

TOP5

80%

100%

Others

Source: Company data

Limited dependence on single customer and car model due to high diversification: maximum turnover per customer less than 10% of sales 24

…and to its flexibility in technology use and labour costs transfer capacity .

Multitechnology flexibility

Location flexibility

CIE is one of the few Tier 2 suppliers that offers different technologies integration

CIE can access the main production centres worldwide LABOUR COST (€/hour) 35,0

Technologies

• Aluminum • Forging • Stamping,

Aluminum Oil Pan

Stamping Oil Pan

Plastic Oil Pan

tube Forming and Welding

• Foundry • Machining • Plastic

Aluminum Engine Mounting

Stamp-Welded Engine Mounting

Hybrid Engine Mounting

Optimization

• Design • Cost • Weight • Functionality • Features

30,0 25,0 20,0 15,0 10,0 5,0 0,0

Injection Common-Rail Forging

Common-Rail Fabricated

Common-Rail Plastic Injection

Selection of the technology that best fits customers needs with the lowest raw material cost

Source USA: U.S. Department of Labour 2010 Source for Rest: CIE Automotive 2010

Possibility to transfer production to the country/plant with lower global cost

Machinery valid to produce for different types of clients/platforms, allows for a high saturation level of facilities 25

Globalización CIE, an international . company… USA

FRANCE

CIE USA

MEXICO

RUSSIA

LITHUANIA

CIE Compiegne

CIE Avtokom (Kaluga)

RS Automotive

CIE Avtokom (Samara)

CZECH REP.

ROMANIA

CIE LT Forge

CIE Matricon

CIE Plasty Cz

RS Automotive

CIE Unitools Press Cz CIE Metal Cz

CIE Automotive

CIE Kataforesis

CIE Celaya

CIE Recyde Cz

Pemsa

CIE Recyde Zdanice

Nugar

CIE Praga Louny

Nugar 2

CIE Joamar

CIE Recycomex Pemsa-Ramos Arizpe

GERMANY

Pemsa-Saltillo

CIE Deutschland KS

CIE Matic

CIE Deutschland WOB

Dominion

GUATEMALA

CHINA

BIONOR Guatemala

CIE China RS Automotive

BRAZIL CIE Autometal CIE Autometal Bahía CIE Autoliner

SPAIN

CIE Autometal Diadema

CIE Automotive

CIE Autometal San Bernardo 1

CIE Gameko

CIE Orbelan

RS Automotive

CIE Autometal San Bernardo 2

CIE Alcasting

CIE Inyectametal

CIE Recyde

BIONOR

CIE Autometal Taubaté

CIE Alfa Deco

CIE Legazpia

CIE Recylan

VIA Operador

CIE Alurecy

CIE Mecasur

CIE Recytec

Berantevilla

CIE C. Vilanova

CIE Mecauto

CIE Tarabusi

Biosur

CIE Egaña

CIE Norma

CIE Udalbide

Resigras, Gave

CIE Galfor

CIE Nova Recyd

GSB TBK

Dominion

CIE Jardim Sistemas

PORTUGAL CIE Plasfil

CIE Autoforjas CIE Durametal CIE Nakayone Bioauto SP Biojan Dominion

MOROCCO CIE Joamar Maroc

Headquarters CIE Automotive Plant

Engineering-commercial office RS Automotive Plant

Technology center Biofuels

ICT

Internationalization has been the key to CIE´s growth capacity and its resilience to the economic cycle 26

…enhanced by two expansion strategies in Latin Haga clic para modificar . estilo America and toelthe Eastde título del patrón CIE´s Expansion Strategies Growth in Latin America 

America´s business grouped under Autometal due to Mercosur and NAFTA´s growth potential (70% in 5 years(1))



Brasil, market with great potential in the medium and long term



High growth in Mexico, including the transfer of production from USA and Canada



Opportunities from the europeization of the car in NAFTA



Raising funds via IPO with capital increase or other alternatives, will increase our growing rate with expected investment of R$1.000 mill in the following 3-5 years.



Growth RIC (Russia, India y China) of a 65% in 5 years(1)



Growth in Russia due to market growth and local content requirements



It is expected that India will double(1) its production and China will

Growth to the East

Rusia China

RIC

India

sustain its growth due to domestic demand of both countries 

Growth to the East will be the management focus to increase presence in these markets

(1) CSM March2010. (Growth 2009-2014)

27

CIE faces 2011 from a clearly reinforced financial position .

NFD Evolution (31-12-2010 proforma post Autometal´s IPO) Net Financial Debt (mill. €)

NFD/EBITDA 535

538

507

4,6x

408

3,0x

342

2,6x

2,6x

1,8x

2007

2008

2009

2010

NFD = Debt to banks and other financial institutions – cash and equivalents.



CIE has set as objective of its financial strategy a NFD/EBITDA ratio of~2x



Autometal ´s IPO has allowed CIE to substantially reduce its debt level



The lower indebtedness allows access to new international development challenges 28

Experienced, committed and results-driven team .

Decentralized management model, results-driven, with high plant-level responsibility and Group-level shared services

Team Professional Experience

Key People Antón Pradera (Chairman)

(1)

Ignacio Martín (Vicechairman)

(1)

Jesús María Herrera (M.D. Operations - COO) Jesús Esmoris ( M.D. Business + Product Development) Mikel Barandiarán (M.D. ICT Business Unit) Ignacio Artázcoz (CFO) (1) Members of Executive Delegate Comission

Result-driven culture Cash flow generation is the key metric in management decisions



Strategy definition involving the whole team



Decision making process is fast, simple and robust



+ 30 years + 30 years + 20 years + 20 years + 26 years + 20 years

Presence and global order uptake



Managers at all levels with variable compensation based on objectives and longterm incentives



The members of CIE team have 80 years experience in the company (average, 13 years per person) 29

The automotive market is coming back to growth in 2010 – 2014… .

Annual vehicle production Europe (Mill. Units)

NAFTA (Mill. Units)

+15%

+39%

22,0

21,7 18,7

Brazil (Mill. Units) +8%

+25%

12,9 11,9

16,3

90,3

4,0

15,5

15,1

19,0

World (Mill. Units)

2,9

3,2

3,3

71,6

68,6

75,2

57,4

2,6 8,6

2007

2009 2010E 2011E 2014E



2010 better than initially expected



Medium term recovery accelerated by East Europe and Russia

2007

2009

2010E 2011E 2014E

2007

2009

2010E 2011E 2014E



Strong recovery in 2010



2010 follows the historical growth path



Positive perspectives due to growth in Mexico and recovery in USA



Maintaining the same levels towards the future

2007

2009

2010E 2011E 2014E



Recovery with record production in 2010 of aprox. 72 mill. units



Perspectives of reaching record levels every year

Source: Vehicle Production, CSM December 2010

CIE exposure to NAFTA and Brazil should facilitate growth above the European average (~5,3% annual for CIE locations vs. 4,0% for Europe until 2014) 30

…period during which CIE intends to continue with its strategy of expansion and growth CIE´s strategic objectives for the following years 

Increase presence in emerging markets (Brazil, Mexico, East Europe, Asia)



Seize opportunities of acquiring companies in the sector



Continue with the historical growth of the company, growing business and results at a double digit rate



Consolidate and increase the 15% EBITDA margin, reached in 2010



Maintain the leverage target of NFD/EBITDA ~2x



Focus R&D on reducing vehicles weight and lowering emissions



Development of both businesses in emerging markets by exploiting automotive management synergies with not relevant committed investments

Automotive components

Rest of Businesses

We expect to achieve 2.000 mill€ turnover in 2013 31

Our commitments…



We anticipate the previous commitment and we expect to double 2009 EBITDA at least one year earlier (in 2012 instead of in 2013)



Additionally, we expect to double 2010 net result in the following three years

32