TECHNOLOGY PRESENTATIONMilano – November 28th, 2017

Laurent HEBENSTREITChief Executive Officer

3 I

Agenda

Introduction

Technology

Profitable Growth Strategy

123

Introduction

5 I

o Young automotive company created in 1980 by Carlo De Benedetti

o Listed in Milano Stock Exchange since 1986

o Strong Entrepreneurship DNA

o Developed through:

• a series of strategic moves

• tight cost control

o Joined the best automotive suppliers in 2005

o Generated 31M€ of Cash in 2016

Who is Sogefi?

6 I

3 Business Units

€ 563M

o Stabilizer Bars

o Coil SpringsMAIN

PRODUCTS

€ 1,574M

2016 Sales36%

Suspensions Filtration Air & Cooling

o Oil Filters

o Engine Air Filters

o Fuel Filters

o Cabin Air Filters

o Manifolds

o Coolant Pumps

o Coolant OutletHousings

€ 535M

34%

€ 480M

30%

Main Competitors

7 I

Sogefi Customers

CARS TRUCKS 2 WHEELERS 3 WHEELERSAFTERMARKET

MAIN BRANDS

8 I

Ford

Renault/Nissan

FCA/CNH Industrial

PSA

GM

Daimler

Volkswagen/Audi

BMW

Toyota

VolvoGeely/Volvo

Well balanced clients mix

2015

2016

5% 10%

Sogefi Top 10 Clients – In % of Total Sales

9 I

Supplying premium customers & models

PORSCHE CAYENNE

JAGUAR F-PACE

MASERATI QUATTROPORTE MERCEDES GLK

VOLVO XC90

AUDI A6

BMW 5-serie

FERRARI 599

CORVETTE

Technology

11 I

Current Trends

Higher technology requirements

Fuel Consumption

Reduction

Weight

Reduction

Suspensions

Air & Cooling

Filtration

Air & Cooling

FiltrationFiltration

CO2 Emissions

ReductionAir Quality

Fine Particles

Reduction

12 I

Stabilizer Bar content

Entry

Middle

High

Weight

reduction

Indicative weight

by vehicle:

Contentby vehicle

Variable wall

thickness Tube

Tube

Solid Bar

Suspensions

TECHNOLOGYLEVEL

45%

35%

~6kg

24€

20€

16€

13 I

Coil Spring contentWeight

reduction

Composite

Steel

+ high performance

process

SteelEntry

Middle

High

Suspensions

TECHNOLOGYLEVEL

50%

25%

~10kg

50€

23€

20€

Contentby vehicle

Indicative weight

by vehicle:

14 I

4 Disruptive Future Trends

CONNECTIVITY

o Connected, Autonomous and Shared trends have limited direct

impact for Sogefi

o Powertrain electrification is a key trend for Filtration and Air & Cooling

o Sogefi developed with Mc Kinsey support a detailed world data base and model to create alternative powertrain scenarios

1

2

3

AUTONOMOUS

DRIVING

ELECTRIFICATION

SHARED

MOBILITY

Higher technology requirements

15 I

Different types of powertrains

Electrification

Pure ICE

BatteryHybrid Fuel Cell

New Energy Vehicle (NEV)

Internal Combustion Engine (ICE) Electric Vehicle (EV)

16 I

Different types of powertrains

Electrification

MHEV PHEVFHEV

o ICE: Internal Combustion Engine vehicle, operating on fuel.

o MHEV: Mild-Hybrid Electric Vehicle, 48V system. (e.g. New Renault Scenic dCi 110).

o FHEV: Full Hybrid Electric Vehicle, operating on fuel, assisted by a battery. Non rechargeable (e.g. Toyota Prius).

o PHEV: Plug-in Hybrid Electric Vehicle, operating on fuel, assisted by a battery. Rechargeable (plugged in to grid) (e.g. New Golf GTE).

o BEV: Battery Electric Vehicle, i.e., pure EV, with no ICE content (e.g. Renault ZOE, Nissan LEAF, Tesla).

o FCEV: Fuel Cell Electric Vehicle (e.g. Toyota Mirai).

Pure ICE BEVHybrid FCEV

17 I

1% 6% 12%

81%

1% 3%

41%54%

Estimated volume, including Passenger Car (PC) and Light Commercial Vehicle (LCV) < 3.5T (LCV > 3.5T excluded)

2017 Powertrain by regionEUROPE

Rest of the World

Source: Sogefi and Mc Kinsey

1% 6% 7%

87%

2% 3% 6%

90%

2% 4%17%

78%

CHINA

1% 6%22%

72%

20.8

19.9

28.0

92.3

8.7

14.9

LV sales (M units)

Type of engine

EV Hybrid Diesel Gasoline

NAFTA

Rest of Asia

WORLD

18 I

1

2

Diesel disruption mainly affecting Europe due to

o More stringent regulations

o Consumers turning away from Diesel

o Politics

• Diesel circulation restrictions in large cities

Diesel/Electric disruption trends

WW EV + Hybrid share: from 6% in 2017 to 30% in 2027 in Base case scenario (33% in Strong case)

Electrified powertrain evolution

o Technology improvements

o Politics

• France & UK to ban Diesel/Petrol cars from 2040

• China to significantly increase EV

Diesel share in Europe: from 41% in 2017 to 25% in 2027 in Base case scenario (20% in Strong case)

19 I

11% 13% 9%

68%

11% 13% 13%

64%

11% 13% 17%

60%

7% 9% 10%

75%

7% 9%18%

66%

6% 10% 10%

75%

6% 10% 14%

71%

6% 10%18%

67%

7% 9% 14%

71%

Share of 2022 sales per type of engine, LV1 global

All scenarios predict a reduction of ICE from 98% in 2017 to

93% in Base Case and 89% in Strong Case in 2022

2022 Sogefi Forecast

Base case

Strong case

Source: Sogefi and Mc Kinsey

Type of engine

EV Hybrid Diesel Gasoline

Scenario

Diesel Low Diesel High

EV Low

EV scenarios

EV High

Diesel scenarios1 including PC and LCV (<3.5 tons)

20 I

Share of 2027 sales per type of engine, LV1 global

All scenarios predict a reduction of ICE to reach

86% in Base Case and 81% in Strong Case in 2027

2027 Sogefi Forecast

Source: Sogefi and Mc Kinsey

Type of engine

Diesel Low Diesel High

EV Low

EV scenarios

EV High

Diesel scenarios1 including PC and LCV (<3.5 tons)

19% 15% 7%

59%

18% 15% 11%

56%

18% 15% 14%

53%

14% 16% 8%

63%

10% 16% 8%

66%

14% 16% 11%

60%

14% 16% 15%

56%

10% 16% 12%

62%

10% 16% 15%

59%

EV Hybrid Diesel Gasoline

Base case

Strong case

Scenario

21 I

Powertrain Forecast by region (Sogefi Base Case)

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 7% 6% 5%

ICE Gasoline 87% 80% 69%

Source: Sogefi and Mc Kinsey

NAFTA

2017 2022 2027

EV 1% 6% 13%

Hybrid 3% 7% 14%

ICE Diesel 41% 32% 25%

ICE Gasoline 54% 55% 49%

2017 2022 2027

EV 2% 8% 17%

Hybrid 3% 11% 18%

ICE Diesel 6% 5% 4%

ICE Gasoline 90% 76% 61%

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 22% 21% 18%

ICE Gasoline 72% 65% 56%

2017 2022 2027

EV 1% 5% 11%

Hybrid 6% 9% 15%

ICE Diesel 12% 10% 8%

ICE Gasoline 81% 76% 66%

2017 2022 2027

EV 2% 6% 14%

Hybrid 4% 9% 16%

ICE Diesel 17% 14% 11%

ICE Gasoline 78% 71% 60%

EUROPE

CHINA

Rest of AsiaRest of the World

WORLD

22 I

o Strong growth of Hybrid powertrains and Electric Vehicles (EV)

o But total Internal Combustion Engine (ICE) remains flat

Light Vehicles Sales Forecast (Sogefi Base Case)

2017 2022 2027 CAGR 17/22 CAGR 22/27

Total Vehicles

(M units)92 99 110 1.4% 2.1%

EV 1 6 15 35% 19%

Hybrid 4 9 17 19% 14%

ICE Diesel 15 14 12 -2% -2%

ICE Gasoline 72 70 66 0% -1%

91 93 95 0.4% 0.5%

Source: Sogefi and Mc Kinsey Volume including Passenger Car (PC) and Light Commercial Vehicle (LCV) < 3.5T

Total ICE

23 I

Sogefi Filtration / Air&Cooling Main Products

Air & CoolingFiltration

Manifold

Coolant Pump

Coolant Outlet Housing

Oil Filter

Fuel Filter

Cabin Air Filter

OEM AFTERMARKET

European Car Park

10 years average age

Engine Air

24 I

Hybrid Powertrain

Filtration

Manifold

New Product

CoolantPump

Coolant OutletHousing

VOLUME X2

Oil Filter

Engine Air

Volume Effect

Battery Pack

Coolant Valve

Thermal Pack

Air & Cooling

Fuel Filter

Battery Pack

coolant Manifold

High performance

Cabin Air Filter

25 I

BEV Powertrain

Air & Cooling

Filtration

High performance

Cabin Air Filter

Battery Pack

Electric

Cooling Module

Coolant

ValveElectric

Coolant Pump

VOLUME X2

Coolant Outlet

Housing

Battery Thermal Pack

New Product

Volume Effect

Battery Pack CoolantManifold Module

26 I

FCEV Powertrain

Filtration

Fuel Cell

Air FilterFuel Cell

Filters

Water

Separator

Coolant Valve

Electric Coolant

Pump

Coolant Outlet

Housing

Air & Cooling

New Product

High performance

Cabin Air Filter

27 I

SOGEFI on Hybrid and Electric Powertrain

3-serie MALIBU

S-CLASS PANAMERA

A8

PACIFICA

ZOE B-CLASSFORTWO

TX5

500

28 I

o Even if all scenarios predict an increase of EV, the total ICE powertrainscould remain flat or a substantial part of the market until 2027.

o Hybrid powertrain is a first step towards a world of multiple powertrains.

o The rise of EV is depending on key evolving factors (vehicle range, battery costs, infrastructures development,…)

o The rise of Hybrid, BEV and FCEV offers opportunities for SOGEFI.

More volume of Cooling products

New Sogefi products

Higher content for existing Sogefi products

Sogefi Filtration / Air&Cooling products offer opportunities

29 I

Oil Filter content

Oil Filter Module

+ Oil Cooler

+ Valves

Oil Filter Element

+ Cap

Oil Filter

Spin-on

Filtration

23€

2€

1€

Content

Entry

Middle

High

TECHNOLOGYLEVEL

30 I

Engine Air Filter content

Engine

Air Intake System

Filter Element

+ Box

Filter Element

Filtration Content

TECHNOLOGYLEVEL

28€

9€

2€Entry

Middle

High

31 I

Air Cabin Filter content

Particles and

odours

Pollen

Filtration Content

TECHNOLOGYLEVEL

3€

2€

1€Entry

Middle

High

Synthetic media with

activated carbon

Synthetic media with activated

carbon + anti-allergen

properties + high performance

Anti-allergen

Synthetic media

32 I

Aftermarket Pricing Power

Premium

Mid Range

Private Label

Filtration Price Index

TECHNOLOGYLEVEL

100

85

80Entry

Middle

High

33 I

Air Intake Manifold content

With Actuator

and Cooler

With Actuator

Simple

Air & Cooling Content

Cooled Air flow

Cooled Air flow

Hot Air flow

Cooled

Air flow

TECHNOLOGYLEVEL

40€

23€

10€Entry

Middle

High

34 I

Coolant Pump content

Smart Coolant

Pump

Pump module

with Cooler

+ Thermostat

Mechanical

pumpInlet Outlet

Impeller

outlet

Flow control

with e-valve

or e-motor

+ +

Air & Cooling Content

TECHNOLOGYLEVEL

25€

20€

8€Entry

Middle

High

35 I

Coolant Outlet Housing content

Coolant Outlet Housing

Smart

Multi Way

Valves

Electric

Thermostat

Thermostat

M

Air & Cooling Content

TECHNOLOGYLEVEL

25€

13€

8€Entry

Middle

High

36 I

Startups are becoming key players

of the automotive world

Sogefi Ventures

disrupting existing business

creating new business

Generate profits

Add value to existing Sogefiproducts

Generate new Sogefi products

1. Monitor the fields relevant to Sogefi:

Air and Cooling, Filtration, Suspensions

2. Build joint development agreements with startups

3. Buy minimum 5% to 10% equity

4. Secure active minority shareholders’ role

5. Cash investment of 3 ~ 5 M€ per year

OBJECTIVES HOW

Profitable Growth Strategy

38 I

Profitability improvement plan

3

5 performance drivers to increase operational efficiency

o Cost reduction

through technical

modifications

o Pluriannual price

and productivity

negotiations

o Low Cost Country

sourcing

o Scrap reduction

o Direct labor

productivity

• Higher

automatization

• Shorter reaction

times to deviations

o Indirect labor

productivity increase

• Lean organizations

o Price increases

for technical

modifications

o Systematic price

increases for volume

fluctuations

o Development and

tooling cash payment

1 PURCHASING

o Polyvalence and

Polycompetence

o Process redesign

o Industrial excellence

o Plant competitivity

plan

SHOPFLOOR2 3PROGRAM

MANAGEMENT 4 INDIRECT COSTS

REDUCTION

COMPETITIVE

FOOTPRINT5

39 I

o A deep analysis of the cost base has been done

o On € 100m addressablecosts some productivitypotential have been identified with expectedsaving in the next 3 years

Strategic cost reduction initiative

Sogefi Excellence System

1245

380290

100

945

TOTAL Material for finalproduct

Transformationcosts

Costs analized Adressable costs

100% 64% 23%36% 8%

VALUATION OF POTENTIALSTOTAL COSTS

Data: 2016 cost base

40 I

Leader

Challenger

Harvest

Worldwide

N°2Worldwide

N°4

Growth Strategies : Harvest, Challenger, Leader

Air & CoolingFiltration

Manifold

Coolant Pump

Coolant Outlet Housing

OEM AFTERMARKET

European Car Park

10 years average age

✓✓✓

✓

✓

✓

✓

✓

✓✓Oil Filter

Fuel Filter

Cabin Air Filter

Engine Air

✓ France

N°1

✓

✓

✓

41 I

Geographical Expansion and cost competitive footprint

Air & Cooling

Filtration

Suspensions

ASIA

China

India

✓✓✓

EMEA

NAFTA

Mexico

✓

Morocco

Romania

✓✓✓✓

✓✓

EMEA project

✓

42 I

Health & Safety, Quality, Capacity increase, Efficiency, New products, New plants

Tangible Investments 2014-2017E

3642

51

59

70

2013 2014 2015 2016 2017E

43 I

Value Creation Through ROCE Increase

10.2%

12.8%

17.5%

Q3 2015 Q3 2016 Q3 2017

EBIT: 12 months rolling

* Lazard – Roland Berger: global automotive suppliers study. ROCE of ~600 key suppliers

Benchmark*

13.5%

2015

44 I

3.7

2.3

1.6

Q3 2015 Q3 2016 Q3 2017

DEBT/EBITDA Ratio Improved

DEBT: Net debt (end of period)

EBITDA: 12 months rolling

Leverage now supports

Profitable Growth Strategy

45 I

Sogefi Strengths

1. Entrepreneurship DNA

2. Intimacy with R&D, Purchasing and Top Management of vehicle manufacturers

3. Recognized technical credibility to develop, launch and ramp-up innovative products

4. Multi-brand Aftermarket provides resilience to OEM volumes fluctuations

Higher Technology Requirements

EV expected to increase but total ICE will remain a substantial part of the market

NEV offer opportunities in terms of more volume of cooling products, new products and higher content

Profitable Growth Strategy

Cost reduction plan to sustain profitability and cash generation

Differentiated product strategies between Harvest, Challenger, Leader

External growth opportunities researched to complement organic growth

Executive Summary