Fras-le (FRAS3) Institutional Presentation summary

Market position and business overview

• Holds #1 market leadership in key automotive parts segments, serving over 125 countries with more than 5,900 employees and a broad product portfolio exceeding 21,400 SKUs across friction, suspension, and brake systems.

• Operates 10 industrial plants, 9 warehouses, 5 commercial offices, and 2 technology centers globally, leveraging synergies as part of a larger corporate group.

• Maintains a robust aftermarket presence, with 88% of sales in the aftermarket and 66% in the light vehicle segment.

• Recognized for iconic brands and a one-stop-shop approach, offering a complete portfolio and strong distribution platform.

• Achieved significant inorganic growth through acquisitions, expanding its portfolio and global reach.

Financial performance and guidance

• Reported net revenue of R$2,858.0M and adjusted EBITDA of R$512.0M for 9M24, with an EBITDA margin of 17.9%.

• Net profit margin for 9M24 was 8.4%, with free cash flow of R$80.4M and investments totaling R$85.9M.

• Net revenue guidance for 2024 is R$3.7–4.0B, with adjusted EBITDA margin expected between 17% and 21%.

• Foreign market sales reached US$214.3M in 9M24, with guidance of US$250–290M.

• Share price appreciated 5.7x since 2016, reflecting strong value creation.

Market share and competitive strengths

• Holds leading market shares in Brazil's aftermarket: 59% in brake linings for automobiles, 53% for heavy vehicles, and 41–42% in pads and shoes for automobiles.

• Defensive, non-elective portfolio with high recurrence and replacement cycles, ensuring revenue resilience.

• 70% of sales come from the aftermarket, with OE volume significantly smaller but maintaining leadership in Brazil and the US.

• Recognized with multiple industry awards for product quality, brand trust, and technical support.