Rassini, S.A.B. de C.V. (Formerly Sanluis Corporation) Business Report FY ended Dec. 2017

Financial Overview

(in million MXN)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	Rate of change (%)
Overall
Net Sales	18,104	16,340	11
Operating Income	2,308	2,324	(1)
Sales by Division
Suspensions Division North America	10,449	10,047	4
Suspensions Division Brazil	2,003	1,518	32
Brakes Division North America	5,652	5,187	9

-Sales in North America is 16,223 million pesos, improved by 8%.

R&D Facilities

-The Company has a total of five technical centers located in the U.S., Mexico, and Brazil.

-The Company opened two engineering offices in Stuttgart, Germany and Tokyo, Japan.

R&D Activities

-The Company implemented Finite Element Software (Endurica) which will be able to predict with 90% assurance the performance and life of a suspension bushing at Bypasa facility in Queretaro.

Product Development

Leaf springs made from composite materials
-The Company’s North America Suspensions Division executed a project to develop leaf springs made from composite materials. The division developed materials to reduce the weight of the springs without changing their resistance or durability. Currently, the division has several purchase orders for the leaf springs.

Ceramic shot peening for coil springs
-As part of its work in developing new materials, the Company has completed the development of ceramic shot peening for its Coil Springs business. This enables the Company’s coil springs to achieve increased resistance and durability while also lowering weight.

Capital Expenditure

(in million MXN)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	FY ended Dec. 31, 2015
Overall	854	850	552

Planned Capital Investment

-The Company plans to invest approximately USD 20 million over the next two years to complete new plant to produce leaf springs with new materials of light commercial vehicles with respect to weight reduction.

Investment in Mexico

-The Company successfully started the seventh foundry line at the Brakes facility in Puebla.

-The Company completed the installation of a new painting line at the Piedras Negras plant.