Grupo Antolin-Irausa, S.A. Business Report FY ended Dec. 2015

Financial Overview

(in million EUR)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	Rate of change (%)	Factors
Net Sales	3,506.2	2,225.4	57.6	1)
EBITDA	388.2	267.0	45.4	-

Factors
1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2015 was EUR 3,506.2 million, an increase of 57.6% over the previous year. Sales from the Company’s new Cockpits and Instrument Panels business unit acquired from Magna contributed gains of EUR 813 million, while positive effects from favorable exchange rates generated gains of EUR 131 million. Excluding both the acquisition of the interior components business from Magna, as well as favorable currency exchange rates, the Company’s sales increased by approximately 15%. Drivers of growth for the Company’s organic sales include increased sales in the Doors and Overheads business units in Europe, new programs and the start of operations by the Company’s facility in Missouri in the NAFTA region, and general growth of sales in the Asia Pacific region.

Acquisitions

-The Company announced that it has completed the acquisition of the interiors business of Magna International Inc. The completed sale transaction does not include two joint ventures in China. The Company will incorporate Magna’s interiors business as a new business unit called Cockpits and Interior Trim, which will be headquartered in Allershausen, Germany. This transaction adds instrument panels, door panels and various soft trim products to the Company’s portfolio and will also improve its presence in key markets such as the U.S., UK, Germany and China. According to the pro-forma figures for 2014, the combined business would have global sales of more than EUR 4 billion in 2014, and a workforce of approximately 28,000 employees. The acquisition also adds 36 manufacturing facilities to the Company’s footprint. (From a press release on August 31, 2015)

Joint Ventures

-Dongfeng Electronic Technology Co., Ltd. (DETC) announced that Dongfeng Visteon Automotive Trim Systems Co., Ltd., a 50-50 joint venture between DETC and Yanfeng Automotive Trim Systems Co., Ltd., has established a joint venture with Grupo Antolin of Spain. The new company is called Dongfeng Antolin (Wuhan) Automotive Trim Co., Ltd. It is capitalized at CNY 20 million, of which 51% was invested by Dongfeng Visteon Wuhan Automotive Trim Systems and the remaining 49% was provided by Grupo Antolin. The joint venture will produce interior components such as roof trims and door panels. (From an announcement by the company on January 26, 2015)

Awards

-List of awards won by the Company during the fiscal year ended December 31, 2015

Presenter	Award	Award Winner
Hyundai Brazil	Suppliers of the Year	GA-Trimtec (Cacapava, Brazil)
Ford	Q1 Award	GA-South Africa (Rosslyn, South Africa)
Ford	Best Ford Supplier	GA-Logistik Deutschland (Saarlouis, Germany)
PSA Peugeot Citroen	Best Plants	GA-Lusitania (Vila Nova de Cerveira, Portugal); GA-Besancon (Besancon, France)
Volkswagen	Volkswagen Group Awards 2014	Company as a whole

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013
Expense in projects	69.9	69.4	57.5
% of Sales	2.0	3.1	2.8

R&D Facilities

-The Company has 25 technical commercial offices.

R&D Structure

-As of December 31, 2015, the Company has 1,071 employees working in research and development.

Patents

-As of December 31, 2015, the Company has registered 2,290 patents.

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013
Overall	170.9	143.5	115.6

Investments outside Spain

-The Company will open two new production centers in North America in the coming months. The two new centers will be located in Tlaxcala, Mexico and Louisville, Kentucky, U.S. The Tlaxcala facility will produce plastic parts and headliners, while the Louisville facility will manufacture overhead systems. (From a press release on November 19, 2015)

-In April 2015, the Company’s facility in Sanand, India began production of headliners and hard trims. Approximately EUR 4 million was invested in the brownfield facility, which is located within seven kilometers from Ford and Tata Motors plants.