Financial Results Q3/2013

October 31, 2013

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1

Strategy update

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2

CEO Agenda

Operational

performance

• Special focus on supply chain management optimisation to reduce logistic costs,

inventory of purchased components by implementation of state-of-the-art

production tools

• Implementation of lean management principles to increase productivity

significantly

Further Growth by

Product Innovation

• Generate further growth with new CO2-reducing product innovations (e.g.

variable transmission oil pumps and map controlled oil-/vacuum pumps)

• Reorganisation of the product development process and enhancing the project

management with focus on time to market and design to costs

• Brake Discs: development of further vehicle segments for composite brake discs

• Customers: expand customer portfolio in both business segments

Internationalisation

• Allocate adequate resources for the globalisation projects (will be integrated in

budget process)

• Define clear targets and responsibilities for the North American and Chinese

projects

• Build up competitive supplier base

Internationalisation will be financed by productivity gains

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3

Globalisation targets

Sales target in five years from now

(€m) 2012 2013e 2018e Growth 12-13e CAGR 12-18e**

NAFTA / Latin America 5 5 100

Asia-Pacific - - 100

Europe 320 347-357 420

Total 325 352-362 620 9.7%* 11.3%**

* Based on mid point of 2013 guidance

** CAGR 13e-18e 11.7%

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4

CFO Agenda

SAP

• SAP stabilisation concluded

• SAP optimisation, review and simplification of process flows in all departments

and modules

Controlling

• Enhancement of production controlling in the following areas:

Implementation of shop floor KPIs

Execution and monitoring of productivity roadmaps in all departments

Execution of monthly business reviews with plant management teams

Working Capital

Management

• Close monitoring of receivables and overdues

• Increase of consignment stocks for suppliers

• Re-work of the stock range controlling and planning

Internationalisation

• Support in implementing the internationalisation strategy

• Break down of strategic product and market objectives into individual measures

and activities

• Support in implementing and monitoring the objectives

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5

Financials

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SHW AG – pleasing Q3 results

Clearly outperforming European car market

• Group sales: € 92.6m (+12.7%)

• Adj. EBITDA: € 11.1m (+27.1%)

• Adj. EBIT: € 7.4m (+32.4%)

• Net income from continued operations: € 4.9m (+38.0%)

• ROCE (LTM): 16.4%

• Free Cash flow: € +1.2m

• Optimisation of SAP started

• Product launches proceeded consistently stable and on schedule

Highlights Q3/2013

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7

Group

Sales by quarter (€m)

Q4

72.3

Q3

92.6 82.1

Q2

91.8 85.6

Q1

84.6 85.4

12.7% 7.3% -1.0%

2013

2012

6.3%

9M/2013

269.0

9M/2012

253.1

Sales (€m)

Further growth acceleration in Q3

27.1% 17.1%

-31.9%

Q4

6.2

Q3

11.1

8.7

Q2

11.0

9.4

Q1

6.5

9.6 2013

2012

EBITDA (€m) EBITDA by quarter (€m)

3.3%

9M/2012 9M/2013

10.6%

27.7 28.6

10.9%

1.4 0.0 EBITDA

Adjustments

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Group

14.7 14.7

EAT by quarter (€m)

+8.7%

-58.1%

Q4

1.9

Q3

4.9

3.5

Q2

4.7 4.4

Q1

1.9

4.5

38.0%

2013

2012

-7.0%

9M/2013

11.5

9M/2012

12.4

EAT (€m)

+10.0% -59.4%

Q4

3.0

Q3

6.9

5.1

Q2

6.6 6.0

Q1

2.5

6.3

36.4%

2013

2012

-7.4%

9M/2013

16.0

9M/2012

17.3

EBT (€m) EBT by quarter (€m)

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9

TOP 10 customers

1.9 2.2

Sales by customer (€m)

SHW well positioned with German OEMs

52.6

Hilite 4.8

5.2

ThyssenKrupp 9.5

8.4

PSA 7.3

Other 54.1

8.9

Volvo Cars 12.4

10.2

Ford 5.4

9.0

Porsche 16.0

12.8

BMW 28.9

30.9

Daimler 44.7

35.7

VW 67.1

67.2

AUDI 14.8

16.2

9M/2013

9M/2012

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Pumps & Engine Components

Sales by quarter (€m)

16.5% +9.2% +1.6%

Q4

52.8

Q3

69.9

60.0

Q2

68.6 62.8

Q1

63.3 62.3

2013

2012

Sales (€m)

P&EC back on track

23.8% +6.3%

-35.2%

Q4

3.7

Q3

9.5

7.7

Q2

8.8 8.3

Q1

5.3

8.2

2013

2012

EBITDA (€m) EBITDA by quarter (€m)

+9.0%

9M/2013

201.8

159.3

21.0 20.3

9M/2012

185.1

141.6

21.7 21.8

Passenger Car

Truck & Off-Highway

Powder Metallurgy

Other

-2.3%

9M/2013

23.6

11.7%

9M/2012

24.1

13.0%

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Brake Discs

Sales by quarter (€m)

2.6% +2.1% -8.1%

Q4

19.5

Q3

22.7 22.1

Q2

23.2 22.7

Q1

21.2 23.1

Sales (€m)

Brake Discs remain on the road to success

58.4%

+48.4%

+6.6%

Q4

2.5

Q3

2.0

1.2

Q2

2.6

1.7

Q1

1.5 1.4

EBITDA (€m) EBITDA by quarter (€m)

-1.2%

9M/2013

67.2

16.7

34.9

11.6 4.0

9M/2012

68.0

19.7

8.8 3.1

36.3 Unprocessed BD

Ready-to-install BD

Composite BD

Other

2013

2012

2013

2012 37.9%

9M/2013

6.1

9.0%

9M/2012

4.4

6.5%

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12

Capex - Depreciation

14.7 14.7

14.7

Q3

3.7

Q2

9.2

3.3

Q1

8.1

4.6

9.3

Q4

9.6

2013

2012

Capex* (€m)

High capex for future growth

3.7

Q4

1.0

Q3

3.2

Q2

3.4 3.0

Q1

3.0 2.8

Depreciation (€m) Depreciation by quarter (€m)

2013

2012

+12.1%

9M/2013

10.2

9M/2012

9.1

11.5

130.1%

9M/2013 9M/2012

26.5

2012: calculatory depreciation;

2013: book depreciation

* Additions to tangible

and intangible assets

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13

Cash flow

5.

Again positive free cash flow despite high investments in Q3

(€m) Q3/2013 Q3/2012 9M/2013 9M/2012

Cash flow from operating activities 7.5 -1.2 7.8 3.8

Cash flow from investing activities -6.4 -3.7 -23.6 -11.5

Cash flow before financing activities

(free cash flow) 1.2 -4.9 -15.8 -7.7

Other (esp. dividend payment) 0.0 -0.4 -22.9 -6.3

Change in net cash 1.1 -5.2 -38.6 -14.0

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14

Working Capital influenced by higher receivables & inventories

Working Capital (% of sales)

Medium-term

target 11%

11.9% 12.4%

14.3%

11.9%

13.6%

11.7%

16.1%

13.3%

16.9%

15.5% 15.9%

Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013

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15

Sound financial profile

Balance sheet as of 30 September, 2013 (€m) Balance sheet as of 31 December, 2012 (€m)*

Other short term

liabilities

(34.0%)

Pensions

(12.7%)

Current

assets

(50.5%)

Non-current

assets

(48.5%)

Equity

(39.7%)

37.9

202.1m

Equity & Liabilites

68.6

21.0

6.6

25.7

80.1

Assets

2.0

98.0

102.1

Equity ratio still around 40 percent

Cash

(1.0%)

Other short term

liabilities

(31.4%)

Pensions

(14.3%)

Current

assets

(43.6%)

Non-current

assets

(45.6%)

Equity

(50.9%)

37.9

180.9m

Equity & Liabilites

56.8

6.2

25.8

92.0

Assets

19.6

82.4

78.8

Other long

term liabilities

(3.4%)

Cash

(10.9%)

Other long term liabilities

(3.3%)

Bank debt

(10.4%)

* Adjustment pursuant IAS 19

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16

3.3%

2017

18.8

2016

18.3

2015

17.5

2014

16.3

2013

15.8

2012

15.9

5.1%

2017

476,162

2016

440,135

2015

398,439

2014

358,239

2013

368,915

2012

371,980

Source: PwC Autofacts – October 2013 Source: LMC Automotive – Q3/2013

Market environment in Europe slowly brightening

Light vehicle production (< 6 t) – Europe (m units) Truck production (GVW > 6t) - Western Europe (units)

m units 2012 2013 2014 2015 2016 2017 CAGR

VW Group 4.43 4.41 4.61 4.93 4.97 4.99 2.4%

PSA Group 1.98 1.97 2.09 2.12 2.20 2.28 2.9%

Renault-Nissan 1.91 1.81 1.83 2.00 2.17 2.16 2.5%

BMW Group 1.36 1.41 1.37 1.46 1.58 1.67 4.2%

Daimler Group 1.35 1.45 1.52 1.54 1.53 1.62 3.8%

Ford Group 1.06 1.06 1.07 1.11 1.10 1.07 0.0%

GM Group 0.94 0.87 0.87 0.93 1.17 1.27 6.2%

units 2012 2013 2014 2015 2016 2017 CAGR

Mercedes-Benz 91.416 87.832 85.031 92.673 101.031 107,905 3.4%

MAN Group 63,155 59,155 57,193 62,767 68,734 73,386 3.0%

PACCAR 46,806 48,189 47,717 54,366 60,490 66,100 7.1%

IVECO Group 43,238 43,057 41,451 47,873 54,900 60,479 6.9%

Volvo 47,254 46,752 44,423 49,375 54,304 58,955 4.5%

Scania 42,744 47,572 45,732 49,875 54,000 57,934 6.3%

Renault 32,577 31,104 31,337 35,013 39,157 43,000 5.7%

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17

Outlook 2013

• Target 2013: growing stronger than underlying European market

European Union: -0.9% to 15.8 million light vehicles*

North America: +5.0% to 16.2 million light vehicles*

China: +10.7% to 18.5 million light vehicles*

• Numerous new product launches in H2, especially two variable oil-/vacuum pumps for

new 3-cylinder engines of two renowned European OEMs

• Capex cash-effective: between € 26m - € 28m

• Group sales: € 352m - € 362m (previously: € 330m - € 345m)

P&EC sales: € 264m - € 272m (previously: € 240m - € 255m)

BD sales: € 88m - € 90m (previously: around € 90m)

• Group EBITDA: : € 35m - € 38m (previous year level: € 33.9m)

*Source: PwC Autofacts – October 2013

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18

Further sales growth in 2014 expected

Sales split - Pumps Passenger Cars*

Gearbox oil pumps and oil-/vacuum pumps as well as composite brake discs major growth drivers

Sales split - Brake Discs*

Pri

ce

pe

r u

nit

2014 2013 2012 2011

Other

Unprocessed discs

Ready-to-install discs

Composite discs

17.6%

16.7% 13.9%

12.6%

56.8%

56.1% 52.2%

51.7%

22.4% 23.7% 28.7%

31.9%

3.2% 3.5% 5.3% 3.8%

*Column height represents sales development

2014 2013 2012 2011

Variable oil pumps Gear box oil pumps

Fixed displacement pumps

Other

Oil-/vacuum pumps

34.6%

35.6%

13.9%

12.6%

22.0% 18.2%

34.4% 25.7%

22.6% 25.1%

11.5% 10.9%

11.8% 17.1% 20.1% 26.3%

34.0% 31.5%

9.0%

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19

Contact Investor Relations

Michael Schickling

Head of Investor Relations & Corporate Communications

SHW AG

Wilhelmstrasse 67

73433 Aalen-Wasseralfingen

Telephone: +49 (0) 7361 502-462

E-Mail: michael.schickling@shw.de

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20

Disclaimer

This document, which has been issued by SHW AG (the “Company” or “SHW”), does not constitute an offer to sell, or the solicitation of an offer to subscribe for or

buy, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or

investment decision in relation thereto.

The contents of this presentation are may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part,

for any purpose. Neither the Company nor any other party is under any duty to update or inform you of any changes to such information. In particular, it should be

noted that financial information relating to the Company contained in this document has not been audited and in some cases is based on management information

and estimates.

This material is given in conjunction with an oral presentation and should not be taken out of context.

Certain market data and financial and other figures (including percentages) in this document were rounded in accordance with commercial principles. Figures

rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the

actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from

percentages based on rounded figures.

Certain statements in this presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and

assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward‐looking statements. These risks,

uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. The Company does not

undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as

otherwise required by applicable laws and regulations. You should not place undue reliance on forward-looking statements, which speak as only of the date of this

presentation. Statements contained in this presentation regarding past trends or events should not be taken as a representation that such trends or events will

continue in the future.