#1PKC GROUP Acquisition of AEES Investor presentation 9 August 2011 Harri Suutari President & CEO#2Acquisition of AEES PKC becomes a leading wiring harness supplier PKC GROUP • PKC Group ("PKC") has today signed an agreement for the purchase of shares in AEES companies ("AEES") • AEES is one of the leading North American wiring harness manufacturers for heavy and medium duty trucks and it also has a significant position in light and recreational vehicle wiring harnesses Combining AEES and PKC will create a first-class global wiring harness manufacturer for trucks, serving the six leading Western heavy and medium duty truck groups in the market Through the AEES acquisition PKC will also enter the high volume automotive industry in North America and Brazil In addition, AEES offers PKC an opportunity to expand its product and service offering e.g. via manufacturing of components and wires • The acquisition strengthens and expands PKC's wiring harness business to a level that meets the future necessities of its global clientele • AEES will be consolidated to PKC as of closing and reported under PKC's wiring harness business segment 2#3Acquisition of AEES Purchase price and financing • Total purchase price, free of net debt : Cash consideration of €109 million - Share consideration of 1.25 million newly issued PKC shares PKC GROUP • Financing mainly through long-term credit facility agreement New long-term credit facility arrangement negotiated and fully committed Directed new share issue of 1.25 million shares to the vendors Share consideration based upon the authorisation received from AGM in March 2011 3#4Acquisition of AEES Transaction rationale & strategic fit Key items supporting the acquisition of AEES from PKC's point of view Create leading wiring system supplier for heavy truck industry PKC GROUP PKC, one of the leading wiring harness suppliers for heavy trucks in Europe and South America, will be become a significant global player Enhanced geographic footprint and global service offering support the combined entity's ability to strengthen its market position and customer base Access to new customer base and product segments Highly complementary customer portfolio in heavy trucks - access to new North American accounts creates a unique customer base in the world • Expansion into entirely new customer and product segments Economies of scale and synergy potential . • Accelerated sales growth through cross-selling opportunities and global footprint Strong purchasing power due to combined sourcing and volumes Streamlining of organisation and production network Combined PKC and AEES have a long term business opportunity and platform for future growth 4#5Acquisition of AEES AEES at a glance Overview • One of the leading North American wire harness provider for heavy and medium duty trucks Significant North American presence also in light and recreational vehicle harnesses • In addition, AEES produces components and wire solutions - offered mainly to tier-one suppliers, but utilized also internally • • • Operations in four different countries (USA, Mexico, Brazil and Ireland) with almost all production facilities located in low cost countries Major customers include e.g. Continental, Daimler Trucks North America, Ford, General Motors, Harley Davidson, Lear, Navistar and PACCAR Acquired by Platinum Equity (private equity firm) from Alcoa in May 2009 • Net sales 2010 of EUR 454 million and around 13,800 employees as per 30 June 2011 Note: USD/EUR exchange rate average for a given period. PKC GROUP Net sales by product area Total net sales 2010: EUR 454 million 24% 10% WH (trucks & recreat.) ■Components 36% • 30% WH (light vehicle) ■ Wire Net sales by geography Total net sales 2010: EUR 454 million 7% 91% 2% . • Wiring harness operations generate around two-thirds of AEES' net sales Components and wire operations stand for around 35 per cent of total net sales NA is by far the largest region in terms of net sales (by customer end location) Global expansion together with existing customers a growth opportunity North America Brazil ■Ireland 5#6Acquisition of AEES Key financials of AEES Expected growth in profitability • AEES has the past years successfully implemented a comprehensive rationalisation programme to enhance the company's overall efficiency and competitiveness • Costs related to the rationalisation programme have burdened the 2010 and H1/2011 profitability • A clear majority of the rationalisation costs for 2011 have already been booked in H1/2011 • Above-mentioned actions, in combination with a rebounding market environment, ensure growth in profitability going forward Key financials PKC GROUP 1-6/2011 1-12/2010 AEES GROUP, Єm Profit and loss Net sales 265.7 454.0 EBITDA (excl. rationalisation costs) 13.4 14.7 % of net sales 5.0% 3.2% EBITDA (reported) 5.1 (4.8) 1.9% (1.1%) % of net sales Balance sheet Fixed assets 26.1 25.7 Net working capital 43.3 37.4 Note: Financials as per US GAAP. USD/EUR exchange rate average for a given period. Balance sheet items converted at rate of the balance sheet date. 6#7Acquisition of AEES AEES' product portfolio • Full service capabilities: Design engineering Wiring harness Program management Launch support Manufacturing Testing Design strategies: • Build to print • Base/ overlay Multiplex Black box PKC GROUP • Connectors Sealed blade connectors Unsealed blade connectors Co-injection moulding • Insert moulding • • Plastic medical components Modular components Harness and connector retainers Telecommunications components Components Precision Metal Stamping High speed precision stamped parts for the automotive industry through grand traverse stamping Product lines include complex component parts for automotive electrical distribution systems Junction Boxes Product line consists of automotive EMI/RFI filter mechanisms, electrical distribution and fuse centre assemblies and vehicle electrical harness connection system components Wire Dixie Wire PVC insulated wire XLPE insulated wire Other insulated and non-insulated wire products (including battery cable and multi-conductor trailer cables) Convolute (convoluted tubing) 7#8Acquisition of AEES AEES and PKC locations A comprehensive footprint allows global service offering Wiring harness Nogales, Mexico ■ Green Valley, Arizona ■ Kempele, Finland (HQ) ■ Keila & Haapsalu, Estonia ■ Kostomuksha, Russia ■ Barchfeld, Germany ■ Starachowice, Poland ■ Sosnowiec, Poland ■ Mukachewo, Ukraine ■Curitiba, Brazil ■ São Bento do Sul, Brazil ■ Acuna, Mexico ■ Piedras Negras, Mexico ■ Torreon, Mexico ■Sao Paolo, Brazil Itajuba, Brazil ■Dallas, Texas Farmington Hills, Michigan (HQ) ■ Jeffersontown, Kentucky ■ Kirkland, Washington ■ Portland, Oregon ■San Antonio, Texas Other segments Components Business: ■Mattawan, Michigan ■Traverse City, Michigan Juarez, Mexico ■Torreon, Mexico ■ Dundalk, Ireland Wire Business Nashville, Tennessee Acuna, Mexico Electronics ■Raahe, Finland Suzhou, China Kostomuksha, Russia PKC GROUP Blue: PKC Green: AEES 8#9Acquisition of AEES Combined entity sales split 2010 Net sales by product line PKC 6% 30% 21% 73% 10% AEES Combined entity 36% 23% 24% ■WH (trucks & recreat.) WH (light vehicle) ■Components Net sales by geography PKC AEES 69% 6% 16% 9% 49% PKC GROUP Comments 13% • 6% 9% Wire ■Electronics (excl. auto) 7% 54% 91% 2% Combined entity Wiring harnesses is the main operating segment with slightly more than 70% of the combined entity's net sales Wires, components and electronics combined generate just under 30% Comments . 11% 4% 32% ■ Europe ■North America ■South America ■Other Note: Financials excluding intra group items and adjusted for SEGU acquisition. USD/EUR exchange rate average for 2010. A more balanced geographic breakdown compared to the stand-alone companies before transaction North America generates more than half of the combined net sales, rest of the world responsible for some 45% 9#100 Acquisition of AEES Strong underlying market PKC GROUP North American heavy truck production North American medium duty production 400 400 2009-2013E CAGR: 30% 2009-2013E CAGR: 19% 350 350 300 300 250 250 200 200 150 150 100 100 50 50 50 50 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010E 2011E 2012E 2013E 0 2000A 2003A 2004A 2005A 2001A 2002A 2006A 2007A ■Units in thousands • Record 2006 production was driven by pre-emission buys and followed by a natural market decline • • Low production volumes in 2009-2010 due to limited economical visibility Sharp recovery expected in the near future as fleet ages highest in decades Source: J.D. Power and A.C.T Research. ■Units in thousands • Also the medium duty market declined rapidly in 2008-2009 caused by free-fall in housing market Healthy market growth ahead as inter-city deliveries pick-up with economical activity 2008A 2009A 2010E 2011E 2012E 2013E 10#11PKC GROUP Acquisition of AEES Unique customer portfolio Post acquisition, supplier to all the six leading Western truck OEM groups OEM Group 1 OEM Group 2 OEM Group 3 OEM Group 4 OEM Group 5 PKC GROUP AEES enabling power Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 OEM Group 6 Acquisition of AEES provides PKC with access to some of the leading truck OEM accounts in North America, i.e. Daimler Trucks, Navistar and PACCAR • Unique position achieved, as no other competitor supplies wiring harnesses to all of the six leading Western customer accounts Note: OEM groups in alphabetical order. Including both heavy and medium duty truck groups. 11#12Acquisition of AEES Summary highlights and details Unique opportunity for PKC PKC GROUP • AEES offers an ideal strategic fit for PKC with complementary geographic presence and customer base • A leading, global heavy truck wiring harness supplier, with unique customer portfolio, is formed Expansion into entirely new customer segments (light vehicles) and new product segments (components & wires) • Opportunity to attain critical size and capabilities to serve customers with broader product and service offering •⚫ The transaction brings benefits to our customers and employees as well as offers value- creation potential for our owners Other transaction details . • Closing of the transaction is subject to customary conditions, including approvals from competition authorities and is expected to take place on 1 October 2011 • AEES will be consolidated to PKC from time of closing • The acquisition is not expected to have a significant effect on PKC's 2011 result 12#13PKC GROUP Thank You! www.pkcgroup.com