Investor Presentation Q Interim Statement

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1 Investor Presentation Q3 216 Interim Statement PKC October Investor 27, Presentation 216 Q3 216 Matti Hyytiäinen, President & CEO

Q3 216 Highlights Business Environment North American heavy-duty truck market has continued to shrink Heavy-duty truck demand in Europe has continued to recover even though volumes were down from Q2

2 Q3 216 Highlights Business Environment North American heavy-duty truck market has continued to shrink Heavy-duty truck demand in Europe has continued to recover even though volumes were down from Q2 due to regular vacation period shut-downs Brazilian market is in recession, while in China truck demand and production have grown PKC s Operations North American operations negatively impacted by extra expenses related to a specific light vehicle program ramp-down and ramp-up European manufacturing footprint improvement and program transfers continue including freeing up capacity for higher rolling stock volumes PKC s Financial Performance YTD EBITDA of 7.% at previous year level burdened by a specific LV program YTD cash flow from operations at previous year level PKC Investor Presentation Q3 216

3 35, 3, 25, 2, 15, 1, North America Market 5, Production units EPA st stage +9% +5% -29% EPA st stage 8, +2% +14% 7, Heavy Duty Trucks Medium Duty Trucks 1, 9, 6, 5, 4,-3% 3, 2, 1, Production units -18% -13% Q1/14 Q2/14 Q3/14 Q4/14 Source: LMC Automotive forecasting Q4/214 Heavy Duty Trucks Medium Duty Trucks 12,, 1,, 8,, 6,, 4,, 2,, Production units +7% +5% Market Share 1-9/216 38% 31% 62% 69% Heavy Duty Trucks Medium Duty Trucks Light Vehicle (Pick-up and SUV) Source: LMC Automotive forecasting Q3/216, ACT Build History October 216, PKC Group PKC Investor Presentation Q3 216

4 EU + 2 Market 45, Production units EURO 6 12, Production units 4, 35, 3, +12% +5% 1, +14% 8, -7% 25, 2, 15, 6, -3% 4, 1, 5, +17% +23% 2, -9% Heavy Duty Trucks Medium Duty Trucks Q1/14 Q2/14 Q3/14 Q4/14 Source: LMC Automotive forecasting Q4/214 Heavy Duty Trucks Medium Duty Trucks Market Share 1-9/216 23% 57% 43% 77% Heavy Duty Trucks Medium Duty Trucks Source: LMC Automotive forecasting Q3/216, PKC Group PKC Investor Presentation Q3 216

5 16, Brazil Market Production units 35, Production units 14, 3, 12, 1, 8, 6, 4, 2, -53% -13% -32% -28% 25, +14% 2, 15,-3% 1, 5, +7% -28% Heavy Duty Trucks Medium Duty Trucks Q1/14 Q2/14 Q3/14 Q4/14 Source: LMC Automotive forecasting Q4/214 Heavy Duty Trucks Medium Duty Trucks Market Share 1-9/216 31% 2% 69% Heavy Duty Trucks 98% Medium Duty Trucks Source: LMC Automotive forecasting Q3/216, PKC Group PKC Investor Presentation Q3 216

6 China Market Production units 9, 8, 7, 6, 5, Production units EURO 4 EURO 5 25, EURO 4 +11% -28% 2, +14% 15, -25% 4, 3, 2, 1, -18% -2% Heavy Duty Trucks Medium Duty Trucks 1,-3% 5, -9% Q1/14 Q2/14 Q3/14 Q4/14 Source: LMC Automotive forecasting Q4/214 Heavy Duty Trucks Medium Duty Trucks Market Share 1-9/216 8% % 92% Heavy Duty Trucks 1% Medium Duty Trucks Source: LMC Automotive forecasting Q3/216, PKC Group PKC Investor Presentation Q3 216

7 Revenue from Continuing Operations North America Europe South America 15 APAC PKC Investor Presentation Q3 216

8 Headcount, Average in Continuing Operations North America Europe 15, 15, 12,5 12,36 12,713 12,34 12,186 11,281 11,373 12,271 12,5 1, 7,5 5, 1, 7,5 5, 5,248 5,466 7,51 7,67 7,829 8,324 8,292 2,5 2,5 South America APAC 15, 15, 12,5 12,5 1, 1, 7,5 7,5 5, 2,5 2,213 1,736 1,553 1,31 1,284 1,218 1,124 5, 2, PKC Investor Presentation Q3 216

Market Outlook Full Year 216 North American heavy-duty and mediumduty truck production is estimated to decrease by 16% compared to previous year s level European heavy-duty and medium-duty truck

9 Market Outlook Full Year 216 North American heavy-duty and mediumduty truck production is estimated to decrease by 16% compared to previous year s level European heavy-duty and medium-duty truck production is estimated to increase by 8% compared to previous year s level Brazilian heavy-duty and medium-duty truck production is expected to decline by about 18% compared to previous year s level Chinese heavy-duty and medium-duty truck production is expected to grow by about 8% compared to previous year s level The demand for the rolling stock is expected to continue to grow steadily PKC Investor Presentation Q3 216

PKC Group s Outlook PKC Group estimates that with prevailing exchange rates 216 revenue from continuing operations (i.e. excluding Electronics business) will be close to previous year level and comparable EBITDA from continuing operations will be higher than previous year level.

10 PKC Group s Outlook PKC Group estimates that with prevailing exchange rates 216 revenue from continuing operations (i.e. excluding Electronics business) will be close to previous year level and comparable EBITDA from continuing operations will be higher than previous year level. Outlook includes higher than average uncertainty related to the North American heavy-duty truck production volumes and to a specific light vehicle program performance during rest of the year In 215, PKC s revenue from continuing operations was EUR million and comparable EBITDA from continuing operations was EUR 59.5 million PKC Investor Presentation Q3 216

11 Revenue and EBITDA, Q Revenue % Comparable EBITDA Items affecting comparability Comparable EBITDA, % of revenue YTD revenue from continuing operations increased +1% YTD negative FX impact of -1% Revenue in North America declined due to lower heavy-duty truck volumes European truck revenue grew even though it was down q-to-q due to regular vacation period shut-downs Increased production in China and in the rolling stock segment Comparable EBITDA down from Q2 to Q3, while YTD is at previous year level Extra ramp-up and ramp down expenses in a North American light vehicle program YTD EBITDA in North America declined owing to lower volumes, weakened utilization rates and unfavourable product mix Better productivity and production arrangements in Europe The recent transactions in Poland and China have a positive contribution to EBITDA Brazil improving despite low volumes PKC Investor Presentation Q3 216

12 Key Figures (from continuing operations unless otherwise noted) 7-9/16 7-9/15 Change % 1-9/16 1-9/15 Change % 1-12/15 Revenue EBITDA 1) EBITDA % 1) Items affecting comparability 2) Operating profit EPS (EUR) Net cash from operating activities 3) Working capital 3)4) ROCE, % 5) Gearing, % 3) Average headcount 22,564 21, ,885 2, ,855 1) Excluding items affecting comparability 2) 216: expenses related to North American organization and production capacity being adjusted to medium term demand outlook 3) Comparison periods include discontinued operations 4) Inventories + trade receivables - trade payables 5) ROCE, % = Adjusted operating profit (excl. items affecting comparability) / ((Total equity + interest-bearing liabilities)(average)) PKC Investor Presentation Q3 216

13 Cash Flow Cash from operations Cash after net capex Free cash flow Net capex (organic) Acquisitions Cash from operations Q1 Q2 Q3 Q4 Q1, Q2 and Q3 216 from continuing operations PKC Investor Presentation Q3 216

14 Balance Sheet and Return % Q3/15 Q3/ % Q3/15 Q3/ Equity ratio, %* 2 % Q3/16 Gearing, %* Q3/15 Q3/16 Net debt* EBITDA** ROCE, %* * *EBITDA of previous 12 months excl. items affecting comparability ROCE % = Adjusted operating profit (excl. items affecting comparability) / ((Total equity + interest-bearing liabilities)(average)) * Comparison periods include assets and liabilities of discontinued operations PKC Investor Presentation Q3 216

15 PKC s Strategy Captures Growth Opportunities PKC Investor Presentation Q3 216

16 PKC Strategy 218 Doubling the Addressable Market PKC s existing addressable market amounts to about EUR 4 billion Trucks in North America, Europe and South America EUR 1.5 billion Construction equipment globally EUR.7 billion Agriculture equipment globally EUR 1.5 billion Buses globally EUR.2 billion Existing market about EUR 4 billion Truck Agriculture Construction Bus New market opportunities equal to addressable market growth by about EUR 5 billion by 218 APAC truck wiring harnesses EUR 1 billion Rolling stock control panels, power packs and wiring harnesses globally EUR 2 billion Aerospace wiring harnesses globally EUR 2 billion New market opportunities about EUR 5 billion APAC Truck Rolling stock Aerospace PKC Investor Presentation Q3 216

Strategy Execution Proceeding Global off-road OEMs (agri, construction) entering new phase. OEM s are planning to centralize global buy to selected few global wiring harness companies.

17 Strategy Execution Proceeding Global off-road OEMs (agri, construction) entering new phase. OEM s are planning to centralize global buy to selected few global wiring harness companies. Recent awards in Europe and SA indicates that PKC is well positioned to capitalize this opportunity Global rolling stock OEMs speeding up their development of global supply chain and outsourcing of in-house production. PKC is in discussion with number of OEMs to develop global supply chain for electrical commodity 2nd Chinese JV has received the business license and operations are estimated to commence Q PKC knowhow recognized by the market and further organic and inorganic opportunities identified and in progress PKC Investor Presentation Q3 216

18 PKC Investor Presentation Q3 216 PKC Group Plc Bulevardi 7 FI-12 Helsinki, Finland

Technology + Innovation = Sustainability

Technology + Innovation = Sustainability David Woolley (CEO) & David Bessant (CFO) Q3 2012 Interim Report 1 Agenda Q3-12 Highlights DW Summary of financial results DB Economic head wind and de-stocking