MAHLE METAL LEVE S.A. C.N.P.J/MF 60.476.884/0001-87 PUBLICLY-HELD COMPANY
MATERIAL FACT
In compliance with paragraph 4 of article 157 of Law No. 6.404/76 and CVM Ruling No. 358/02, the management of MAHLE Metal Leve S.A. ("Company") hereby informs the shareholders and the market in general that the impairment tests provided for in the Accounting Pronouncement Committee Technical (Pronouncement CPC 27) were performed in the preparation of the financial statements for the year ended December 31, 2016 and an estimated loss of R$ 186.9 million was found in the recoverability of the goodwill of the Company's cash generating unit - namely the rings unit - relating to the engine components line of business, whose book value as of September 30, 2016 is R$ 568.6 million. That loss steams from a reduction in the future results due to changes in the exchange rates and a decrease in sales volume because of the current market situation that has been particularly affecting the automotive industry and whose recovery is not expected to occur in the coming years.
The recoverable value of the goodwill - rings business - was determined based on the value in use. Management used budget projections based on future profitability associated with the subsidiaries' activities and the discounted cash flow methodology.
Finally, the Company clarifies that such adjustment will not affect the continuity of its operations, the relationship with its customers and suppliers, or the performance of its contracts and other obligations, and it reiterates its commitment to offer a range of differentiated solutions for its customers in the markets it operates.
Mogi Guaçu, January 12, 2017 Claus Hoppen
Investor Relations Officer
MAHLE Metal Leve SA published this content on 12 January 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 January 2017 22:15:00 UTC.
Original documenthttp://ri.mahle.com.br/en/documentos/1007-2017-01-12-Fato-Relavante-Impaiment-eng.pdf
Public permalinkhttp://www.publicnow.com/view/8FB2353CC117B6ECE56747FCDCE33881DE289700
Mahle Metal Leve SA is a Brazil-based company primarily engaged in the automotive engine parts manufacture. The Companyâs activities are divided into two business segments: Engine components and Filter. The Engine components division produces parts for internal combustion engines and automotive vehicles, such as rings, sensors, rockers, rods, crank arms, bushes, cylinder sleeves, bearing covers, rocker assemblies, crowns, injectors, synchromesh hubs, universal joints, shafts, gears, guides and valve seats, pistons, water and oil pump impellers, gudgeon pins and pulleys. The Filters division manufactures various types of filters, such as fuel, air, oil, cabin and press, used in vehicles, as well as applied in industry, automobile service stations, passenger and cargo transport, earthworks, fishing terminals and farms. The Company is indirectly controlled by Mahle Industriebeteiligungen GmbH.
MAHLE METAL LEVE S.A. 
