8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 2, 2017

SUPERIOR INDUSTRIES INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-6615	95-2594729
(State or Other Jurisdiction Incorporation)	(Commission File Number)	(IRS Employer No.)
26600 Telegraph Road, Suite 400 Southfield, Michigan		48033
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (248) 352-7300

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On March 2, 2017, Superior Industries International, Inc. (“Superior”) issued a press release announcing the results of operations for the fourth quarter and year ended December 25, 2016 and reaffirmed Superior’s outlook for fiscal year 2017 (the “Press Release”). A copy of the Press Release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. Following the issuance of the Press Release, Superior hosted an earnings call in which its financial results and outlook were discussed. The investor presentation materials used for such call are furnished as Exhibit 99.2 to this report and is incorporated herein by reference.

The information contained in Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

This Current Report on Form 8-K contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and can generally be identified by the use of future dates or words such as “may,” “should,” “could,” “will,” “expects,” “seeks to,” “anticipates,” “plans,” “believes,” “estimates,” “intends,” “predicts,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements also include, but are not limited to, the 2017 outlook, and Superior’s strategic and operational initiatives, and are based on current expectations, estimates, and projections about Superior’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, risks and uncertainties discussed in the Superior’s Securities and Exchange Commission filings and reports, including Superior’s 2015 Annual Report on Form 10-K for the year-ended December 27, 2015, Quarterly Reports on Form 10-Q and other reports from time to time filed with the Securities and Exchange Commission. You are cautioned not to unduly rely on such forward looking statements when evaluating the information presented in this report. Such forward-looking statements speak only as of the date on which they are made and Superior does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this report.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

Exhibit Number	Exhibit Description
99.1	Press Release, dated March 2, 2017, as issued by Superior Industries International, Inc. announcing results of operations for the fourth quarter of 2016, furnished herewith.
99.2	Investor Presentation, dated March 2, 2017, furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SUPERIOR INDUSTRIES INTERNATIONAL, INC.
	(Registrant)
Date: March 2, 2017	/s/ Kerry A. Shiba
	Kerry A. Shiba
	Executive Vice President and Chief Financial Officer

INDEX TO EXHIBITS

Exhibit Number	Exhibit Description
99.1	Press Release, dated March 2, 2017, as issued by Superior Industries International, Inc. announcing results of operations for the fourth quarter of 2016, furnished herewith.
99.2	Investor Presentation, dated March 2, 2017, furnished herewith.

EX-99.1

Exhibit 99.1

  News Release

Superior Industries Reports Fourth Quarter and

Full Year 2016 Financial Results

Fourth Quarter and Full Year 2016 Highlights:

• Full year 2016 unit shipments of 12.3 million, a 9% increase year-over-year

• Full year 2016 diluted EPS of $1.62, an 80% increase year-over year

• Full year 2016 net income of $41.4 million, a 73% increase year-over year

• Full year 2016 adjusted EBITDA of $88.5 million, a 16% increase year-over-year

• Full year 2016 net sales of $732.7 million; value-added sales growth of 13% year-over-year

• Q4 2016 diluted EPS of $0.31, in line with the prior year

• Q4 2016 cash provided by operating activities of $39.2 million, a 95% increase year-over-year

SOUTHFIELD, MICHIGAN – March 2, 2017 – Superior Industries International, Inc. (NYSE:SUP), the largest manufacturer of aluminum wheels for light vehicles in North America, today reported financial results for the fourth quarter and fiscal year ended December 25, 2016.

Don Stebbins, President and Chief Executive Officer, commented, “In 2016 we delivered significantly improved financial performance compared to 2015 including an 80.0% increase in earnings per share. I would like to thank our employees for their dedication and hard work throughout the year which led to this achievement. Entering 2017, I am confident we can deliver stronger results. Our strategic plan remains focused on driving greater operating efficiency in our manufacturing footprint and further strengthening our global competitiveness. As we look ahead, we will continue to strive to deliver world-class results for our customers, while creating value for our shareholders.”

Fourth Quarter Results

For the fourth quarter of 2016, the Company reported net income of $7.8 million, or $0.31 per diluted share, compared to $8.1 million, or $0.31 per diluted share in the fourth quarter of 2015.

Wheel unit shipments were 3.1 million in the fourth quarter of 2016, a decrease of 3.6%, compared to near-record fourth quarter unit shipments of 3.2 million in the prior year period. Net sales for the fourth quarter of 2016 were $188.3 million, compared to net sales of $194.6 million in the fourth quarter of 2015. Value-added sales, a non-GAAP financial measure

defined as net sales less pass-through charges, primarily for the value of aluminum, were $106.4 million for the fourth quarter of 2016, a 3.3% increase compared to the fourth quarter of 2015, driven by favorable product mix and other revenue partially offset by lower unit volume and foreign exchange rates, specifically the Mexican Peso versus the dollar. See “Non-GAAP Financial Measures” below and the reconciliation of consolidated net sales to value-added sales in this press release.

Gross profit for the fourth quarter of 2016 was $18.0 million or 9.5% of net sales, compared to $23.6 million or 12.1% of net sales in the prior year period. Gross profit as a percentage of value-added sales was 16.9% compared to 22.9% of value-added sales in the prior year period. The decrease in gross profit primarily reflects $5.9 million in expedited freight costs during the fourth quarter. Excluding these costs, gross profit as a percentage of net sales would have been 312 basis points higher than reported and 54 basis points higher than the prior year period. As a percentage of value-added sales, gross profit would have been 552 basis points higher excluding these costs. Since early January 2017, there have been no expedited shipments.

Selling, general and administrative expenses for the fourth quarter were $6.9 million, or 3.7% of net sales, compared to $10.1 million, or 5.2% of net sales in the prior year period. The decrease of 31.7% primarily reflects a gain on the sale of the Rogers, Arkansas facility and a reduction in accrued compensation expense.

Income from operations for the fourth quarter of 2016 was $11.1 million, or 5.9% of net sales, compared to operating income of $13.5 million, or 7.0% of net sales in the prior year period. Income from operations as a percentage of value-added sales was 10.4% for the fourth quarter of 2016 compared to 13.1% of value-added sales in the prior year period.

The provision for income taxes for the fourth quarter of 2016 was $3.8 million, resulting in an effective tax rate of 32.6%. This compares to an income tax expense in the fourth quarter of 2015 of $5.2 million and an effective tax rate of 39.2%.

Adjusted EBITDA, a non-GAAP financial measure, was $18.7 million, or 17.6% of value-added sales, for the fourth quarter of 2016. This compares to $25.3 million, or 24.5% of value-added sales, for the fourth quarter of 2015. The decline includes the aforementioned $5.9 million of expedited freight costs. Excluding these costs, adjusted EBITDA as a percentage of value-added sales would have been 552 basis points higher than reported. See “Non-GAAP Financial Measures” below and the reconciliation of net income to adjusted EBITDA in this press release.

Financial Position and Cash Flow

The Company reported net cash provided by operating activities of $78.5 million in 2016 compared to $59.3 million during 2015. The increase was primarily driven by higher net income and lower net working capital in 2016, as compared to 2015.

During the fourth quarter of 2016, the Company paid a quarterly dividend of $0.18 per share. The Company repurchased 300,431 shares for a total of $7.2 million in the fourth quarter and 1,040,688 shares at an average price of $19.91 for a total of $20.7 million in the full year. Year-to-date through March 1, 2017, the Company has repurchased 194,358 shares for a total of $4.5 million. A total of $35.0 million remains available under the $50.0 million stock repurchase program approved by the Board of Directors on January 14, 2016.

Full Year Results

For the 2016 full year period, Superior reported net income of $41.4 million, or $1.62 per diluted share, compared to $23.9 million, or $0.90 per diluted share in 2015. This represents an increase in earnings per diluted share of 80.0% year-over-year.

In 2016, wheel shipments increased 9.0% to 12.3 million compared to 11.2 million in 2015. Net sales for 2016 were $732.7 million, up 0.6% from $727.9 million in the prior year, primarily driven by higher unit shipments, partially offset by lower aluminum prices passed through to customers. Value-added sales for 2016 were $408.7 million, a 13.3% increase over value-added sales of $360.8 million in 2015. See “Non-GAAP Financial Measures” below and the reconciliation of consolidated net sales to value-added sales in this press release.

Gross profit for 2016 increased to $86.2 million from $71.2 million in the prior year period. Gross profit as a percentage of net sales expanded 198 basis points to 11.8% compared to 9.8% of net sales in 2015. Gross profit as a percentage of value-added sales expanded 136 basis points year-over-year to 21.1%, compared to 19.7% of value-added sales in the prior year period. The increase in gross profit reflects higher unit shipments, cost structure improvement primarily driven by the new facility in Mexico operating at higher utilization rates, as well as improved mix. The increase in gross profit was partially offset by $13.3 million in expedited freight costs. Excluding these costs, gross profit as a percentage of net sales would have been 181 basis points higher than reported and 379 basis points higher than the prior year period. As a percentage of value-added sales, gross profit would have been 325 basis points higher excluding these costs. As mentioned before, there have been no expedited shipments, since early January 2017.

Selling, general, and administrative expenses decreased to $31.6 million, or 4.3% of net sales in 2016, compared to $34.9 million, or 4.8% in the prior year period.

For the 2016 full year period, income from operations increased to $54.6 million, or 7.5% of net sales, compared to $36.3 million, or 5.0% of net sales in the prior year period. Income from operations as a percentage of value-added sales was 13.4% for 2016, compared to 10.1% of value-added sales in the prior year period.

The effective tax rate for 2016 was 24.4%, resulting in income tax expense of $13.3 million. This compares to an effective tax rate of 32.1% or $11.3 million in income tax expense for the prior year period. The decrease in the effective tax rate was a result of the Company’s tax restructuring that took effect in late 2015.

Adjusted EBITDA increased 16.4% to $88.5 million, or 21.7% of value-added sales for the full year 2016 period, compared to $76.1 million, or 21.1% of value-added sales in 2015. The increase is net of the aforementioned $13.3 million of expedited freight costs. Excluding these costs, adjusted EBITDA as a percentage of value-added sales would have been 325 basis points higher than reported and 382 basis points higher than the prior year period. See “Non-GAAP Financial Measures” below and the reconciliation of net income to adjusted EBITDA in this press release.

2017 Outlook

Based on current economic trends and industry outlook, Superior reaffirms its 2017 outlook provided on January 11, 2017.

• Superior expects net sales to be in the range of $730 million to $750 million driven by unit shipments of 12.0 million to 12.25 million.

• 1Q17 unit ships are expected to decline 200K to 300K compared to 1Q16

• Value-added sales are expected to be in the range of $400 million to $410 million. Value-added sales are defined as net sales less pass-through charges, primarily for the value of aluminum

• Adjusted EBITDA is expected to be in the range of $97 million to $105 million

• Working capital is expected to be a net use of funds

• Capital expenditures are expected to be approximately $50 million

• Dividends are expected to be approximately $18 million

• The effective tax rate is expected to be in the range of 25% to 28%

Underlying Assumptions

The Company expects North American light vehicle production to decrease by approximately 2% to 17.5 million units in 2017 and the Company’s resulting market share to remain stable compared to 2016.

Mr. Stebbins concluded, “Based on current production schedules, we expect unit shipment growth will improve following the first quarter. In addition, similar to 2016, profitability will continue to benefit from our strategic shift to higher value-added products, which we believe will contribute to a great year ahead. Looking forward, we remain committed to the diligent execution of our long-term strategic plan, including investing in and expanding our manufacturing capabilities in order to generate sustainable and profitable long-term growth.”

Value-added sales and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Information”. In reliance on the safe harbor provided under section 10(e) or Regulation S-K, we have not quantitatively reconciled differences between adjusted EBITDA presented in our 2017 outlook to net income, the most comparable GAAP measure, as Superior is unable to quantify certain amounts that would be required to be included in net income without unreasonable efforts and due to the inherent uncertainty regarding such variables. Superior also believes that such reconciliation would imply a degree of precision that could potentially be confusing or misleading to investors. However, the magnitude of these amounts may be significant.

Conference Call

Superior will host a conference call beginning at 8:00 AM ET on Thursday, March 2nd, 2017. The conference call may be accessed by dialing (888) 240-0263 and using the required pass code 4191920. The live conference call can also be accessed by logging into the Company’s website at www.supind.com. Interested parties are invited to listen to the webcast. In addition, a presentation will be posted on the Company’s website and referred to during the conference call. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

During the conference call, the Company’s management plans to review operating results and discuss other financial and operating matters. In addition, management may disclose material information in response to questions posed by participants during the call.

About Superior Industries

Headquartered in Southfield, Michigan, Superior is the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America. From its plants in the U.S. and Mexico, the Company supplies aluminum wheels to the original equipment market. Major customers include BMW, FCA, Ford, General Motors, Mazda, Nissan, Subaru, Tesla, Toyota and Volkswagen. For more information, visit www.supind.com.

Non-GAAP Financial Information

In addition to the results reported in accordance with GAAP included throughout this earnings release, this release refers to “adjusted EBITDA,” which we have defined as earnings before interest, income taxes, depreciation, amortization, restructuring charges, plant closure costs and impairments of long-lived assets and investments and “value-added sales,” which we define as net sales less pass-through charges primarily for the value of aluminum. Adjusted EBITDA as a percentage of value-added sales is a key measure that is not calculated according to GAAP. Adjusted EBITDA as a percentage of value-added sales is defined as adjusted EBITDA divided by value-added sales. See the Non-GAAP Financial Measures section of this press release for a reconciliation of adjusted EBITDA and value-added sales.

Management believes the non-GAAP financial measures used in this press release are useful to management and may be useful to investors in their analysis of the Company’s financial position and results of operations. Further, management uses these non-GAAP financial measures for planning and forecasting future periods. This non-GAAP financial information is provided as additional information for investors and is not in accordance with or an alternative to GAAP. These non-GAAP measures may be different from similar measures used by other companies.

For reconciliations of adjusted EBITDA and value-added sales to the most directly comparable financial measures calculated and presented in accordance with GAAP, see the attached supplemental data pages which, together with this press release, have been posted on the Company’s website through the “Investors” link at www.supind.com.

Forward-Looking Statements

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and can generally be identified by the use of future dates or words such as “may,” “should,” “could,” “will,” “expects,” “seeks to,” “anticipates,” “plans,” “believes,” “estimates,” “intends,” “predicts,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements also include, but are not limited to, the 2017 outlook included herein, and the Company’s strategic and operational initiatives, including the resolution of operating inefficiencies, product mix and overall cost improvement and are based on current expectations, estimates, and projections about the Company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, risks, and uncertainties discussed in the Company’s Securities and Exchange Commission filings and reports, including the Company’s Annual Report on Form 10-K for the year-ended December 27, 2015, Quarterly Reports on Form 10-Q and other reports from time to time filed with the Securities and Exchange Commission. You are cautioned not to unduly rely on such forward looking statements when evaluating the information presented in this press release. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

SUPERIOR INDUSTRIES INTERNATIONAL, INC.

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in Millions, Except Per Share Amounts)

	Three Months Ended						Twelve Months Ended
	Dec. 25, 2016			Dec. 27, 2015			Dec. 25, 2016			Dec. 27, 2015
Net Sales	$	188.3		$	194.6		$	732.7		$	727.9
Cost of Sales		169.1			169.6			645.0			650.7
Restructuring costs		1.2			1.4			1.5			6.0
		170.4			171.0			646.5			656.7
Gross Profit		18.0			23.6			86.2			71.2
Selling, General and Administrative Expenses		6.9			10.1			31.6			34.9
Income From Operations		11.1			13.5			54.6			36.3
Interest Income (Expense), net		0.1			0.0			0.2			0.1
Other Expense, net		0.4			(0.2	)		(0.1	)		(1.1	)
Income Before Income Taxes		11.5			13.4			54.7			35.3
Income Tax Provision		(3.8	)		(5.2	)		(13.3	)		(11.3	)
Net Income	$	7.8		$	8.1		$	41.4		$	23.9
Earnings Per Share:
Basic	$	0.31		$	0.31		$	1.63		$	0.90
Diluted	$	0.31		$	0.31		$	1.62		$	0.90
Weighted Average and Equivalent Shares Outstanding for Earnings Per Share (in Thousands):
Basic		25,302			26,627			25,439			26,599
Diluted		25,428			26,305			25,539			26,633

SUPERIOR INDUSTRIES INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in Millions)

	Dec. 25, 2016		Dec. 27, 2015
Current Assets	$	254.1	$	245.8
Property, Plant and Equipment, net		227.4		234.6
Investments and Other Assets		61.3		59.5
Total Assets	$	542.8	$	539.9
Current Liabilities	$	86.0	$	73.9
Long-Term Liabilities		58.6		52.2
Shareholders’ Equity		398.2		413.9
Total Liabilities and Shareholders’ Equity	$	542.8	$	539.9

SUPERIOR INDUSTRIES INTERNATIONAL, INC.

Non-GAAP Financial Measures

(Dollars in Millions)

Value-Added Sales	Three Months Ended						Twelve Months Ended
	Dec. 25, 2016			Dec. 27, 2015			Dec. 25, 2016			Dec. 27, 2015
Net Sales	$	188.3		$	194.6		$	732.7		$	727.9
Less:
Aluminum Value and Outside Service Provider Costs		(82.0	)		(91.6	)		(324.0	)		(367.1	)
Value-added sales	$	106.4		$	103.0		$	408.7		$	360.8

Value-added sales is a key measure that is not calculated according to GAAP. Value-added sales represent net sales less the value of aluminum and services provided by outside service providers (OSP’s) that are included in net sales. Arrangements with our customers allow us to pass on changes in aluminum prices and OSP costs; therefore, fluctuations in the underlying aluminum price and the use of OSP’s generally do not directly impact our profitability. Accordingly, value-added sales is worthy of being highlighted for the benefit of users of our financial statements. Our intent is to allow users of the financial statements to consider our net sales information both with and without the aluminum and OSP cost components thereof.

Adjusted EBITDA	Three Months Ended						Twelve Months Ended
	Dec. 25, 2016			Dec. 27, 2015			Dec. 25, 2016			Dec. 27, 2015
Net Income	$	7.8		$	8.1		$	41.4		$	23.9
Adjusting Items:
- Interest Expense (Income), net		(0.1	)		(0.0	)		(0.2	)		(0.1	)
- Income Tax Provision (Benefit)		3.8			5.2			13.3			11.3
- Depreciation		8.4			8.8			34.3			34.5
- Closure Costs (Excluding Accelerated Depreciation)		0.2			3.1			1.2			6.3
- Gain on Sale of Facility		(1.4	)					(1.4	)
		10.9			17.2			47.1			52.1
Adjusted EBITDA	$	18.7		$	25.3		$	88.5		$	76.1

Adjusted EBITDA is a key measure that is not calculated according to GAAP. Adjusted EBITDA is defined as earnings before interest income and expense, income taxes, depreciation, amortization, restructuring charges and other closure costs and impairments of long-lived assets and investments. We use adjusted EBITDA as an important indicator of the operating performance of our business. Adjusted EBITDA is used in our internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors and evaluating short-term and long-term operating trends in our operations. We believe the adjusted EBITDA financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business, to evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies.

SUPERIOR INDUSTRIES INTERNATIONAL, INC.

Non-GAAP Financial Measures

(Dollars in Millions)

Outlook for Full Year 2017 Value-Added Sales	Outlook Range
Net Sales Outlook	$	730.0	$	750.0
Less:
Aluminum Value and Outside Service Provider Costs		330.0		340.0
Value-Added Sales Outlook	$	400.0	$	410.0

Value-added sales is a key measure that is not calculated according to GAAP. Value-added sales represent net sales less the value of aluminum and services provided by outside service providers (OSP’s) that are included in net sales. Arrangements with our customers allow us to pass on changes in aluminum prices and OSP costs; therefore, fluctuations in the underlying aluminum price and the use of OSP’s generally do not directly impact our profitability. Accordingly, value-added sales is worthy of being highlighted for the benefit of users of our financial statements. Our intent is to allow users of the financial statements to consider our net sales information both with and without the aluminum and OSP cost components thereof.

Contacts:

Investor Relations Line:

(248) 234-7104

Superior Industries

Troy Ford

www.supind.com

FTI Consulting

Effie Veres

(212) 850-5676

effie.veres@fticonsulting.com

EX-99.2

Superior Industries International Fourth Quarter and Full Year 2016 Earnings Conference Call March 2, 2017 Exhibit 99.2

Forward-Looking Statements This webcast and presentation contain statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts and can generally be identified by the use of future dates or words such as "may," "should," "could," “will,” "expects," "seeks to," "anticipates," "plans," "believes," "estimates," "intends," "predicts," "projects," "potential" or "continue" or the negative of such terms and other comparable terminology. These statements also include, but are not limited to, the 2017 outlook included herein, and the Company’s strategic and operational initiatives, including the resolution of operating inefficiencies, product mix and overall cost improvement and are based on current expectations, estimates, and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, risks, and uncertainties discussed in the Company's Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year-ended December 27, 2015, Quarterly Reports on Form 10-Q and other reports from time to time filed with the Securities and Exchange Commission. You are cautioned not to unduly rely on such forward looking statements when evaluating the information presented in this press release. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this webcast and presentation. Use of Non-GAAP Financial Measures In addition to the results reported in accordance with GAAP included throughout this presentation, this presentation refers to “Adjusted EBITDA,” which we have defined as earnings before interest, taxes, depreciation, amortization, restructuring charges and impairments of long-lived assets and investments and “Value-Added Sales,” which we define as net sales less pass-through charges primarily for the value of aluminum. Adjusted EBITDA as a percentage of value-added sales is a key measure that is not calculated according to GAAP. Adjusted EBITDA as a percentage of value-added sales is defined as adjusted EBITDA divided by value-added sales. Management believes the non-GAAP financial measures used in this presentation are useful to both management and investors in their analysis of the Company’s financial position and results of operations. Further, management uses these non-GAAP financial measures for planning and forecasting future periods. This non-GAAP financial information is provided as additional information for investors and is not in accordance with or an alternative to GAAP. These non-GAAP measures may be different from similar measures used by other companies. For reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, see the appendix of this presentation. In reliance on the safe harbor provided under section 10(e) or Regulation S-K, we have not quantitatively reconciled differences between adjusted EBITDA presented in our 2017 Outlook to net income, the most comparable GAAP measure, as Superior is unable to quantify certain amounts that would be required to be included in net income without unreasonable efforts and due to the inherent uncertainty regarding such variables. Superior also believes that such a reconciliation would imply a degree of precision that could potentially be confusing or misleading to investors. However, the magnitude of these amounts may be significant. Non-GAAP Financial Measures and Forward-Looking Statements

Full Year 2016 Business Highlights Completed 500,000 wheel capacity expansion at new Mexico facility Established Mexican finishing joint venture Flexed to 24/7 plant operating pattern Implemented new tax strategy Initiated investments in additional premium finishing capabilities Established new global OEM relationship Produced 1.0M more units than previous year Awarded our first program for our patent pending AluliteTM product Established relationship with Chinese supplier

Full Year 2016 Summary Financial Highlights Cash Flow from Operating Activities ($ in Millions) +13% +32% Net Sales ($ in Millions) +1% +80% Earnings Per Share Value-Added Sales(1) (1) Value-added sales is a non-GAAP measure defined as net sales less pass-through charges, primarily for the value of aluminum; see appendix for reconciliation to net sales

Fourth Quarter 2016 Summary Financial Highlights Cash Flow from Operating Activities ($ in Millions) +3% +95% Net Sales ($ in Millions) (3%) Flat Earnings Per Share Value-Added Sales(1) (1) Value-added sales is a non-GAAP measure defined as net sales less pass-through charges, primarily for the value of aluminum; see appendix for reconciliation to net sales

Fourth Quarter and Full Year 2016 Unit Shipments Year-over-Year Shipments Down (3.6%) Key increases: Malibu 180K, Kicks 79K, K2XX 57K, Sentra 55K Decreases: F Series (167K), Town and Country (134K), SRX (84K), Avalon (77K), Fusion (76K) Sequential Shipments Up 6.4% Key increases: K2XX 35K, F Series 32K, Impreza 26K Decreases: Camry (20K), Legacy (15K), Avalon (13K) Year-over-Year Shipments Up 9.0% Key increases: Malibu 806K, K2XX 308K, Sentra 213K, Kicks 170K, Tacoma 104K New volume: Impreza, Kicks and Sentra Decreases: SRX (291K), Town and Country (187K), F Series (185K), Fiesta (132K), Escape (129K), Avalon (122K) 2016 unit shipments increased by 9.0%, outperforming North America production growth of 2.5% 4Q16 4Q15 % Change (y-o-y) 3Q16 % Change (q-o-q) 2016 2015 % Change (y-o-y) NA Light Vehicle Production (Thousands of Vehicles) 4,345   4,292   1.2%   4,413   (1.5%) 17,828 17,393 2.5% Superior Shipments (Thousands of Wheels) 3,097   3,214   (3.6%)   2,912   6.4% 12,260 11,244 9.0% Fourth Quarter Shipments 2016 Shipments

Fourth Quarter 2016 Sales Comparison Year-over-Year ($ in Millions) ($ in Millions) Net Sales Value-Added Sales

Full Year Sales 2016 Comparison Year-over-Year ($ in Millions) ($ in Millions) Net Sales Value-Added Sales

Fourth Quarter 2016 Adjusted EBITDA Comparison Year-over-Year Volume / Mix – 25% increase in wheels 19” or greater partially offset by 117K fewer units FX Impact – Reflects 4Q16 average peso rate devaluation against USD (16.8 in 4Q15 vs. 19.8 in 4Q16)* Cost Performance – Primarily driven by inefficiencies including $5.9M of expedited freight *FX Rates from Banco de Mexico Note: Adjusted EBITDA is a non-GAAP measure; see appendix for reconciliation to net income

Full Year 2016 Adjusted EBITDA Comparison Year-over-Year Adjusted EBITDA increased 16% year-over-year primarily due to significantly higher volume and improved mix Volume / Mix – Volume benefit with 1.0M unit increase and favorable mix with larger wheels increasing 39% FX Impact – Reflects 2016 average peso rate devaluation against USD (15.9 in 2015 vs. 18.7 in 2016)* Cost Performance – Primarily driven by $13.3M in expedited freight *FX Rates from Banco de Mexico Note: Adjusted EBITDA is a non-GAAP measure; see appendix for reconciliation to net income

Cash Flow and Capital Allocation Paid dividends of $0.18 per share in 4Q16 totaling $4.6M Total dividends paid in 2016 of $18.3M Focus on Returning Cash to Shareholders; $39.0M Returned in 2016 Dividends Share Repurchases Capital Investments 4Q16 repurchases of 300K for $7.2M; YTD Mar. 1, 2017 of 194K for $4.5M $35.0M remaining under the $50M share repurchase program 4Q16 capex of $9.4M compared to $6.9M in 4Q15 2016 capex of $39.6M compared to $39.5M in 2015 Operating Cash Flow Operating Cash Flow of $78.5M in 2016 vs $59.3M in 2015 Increase due to higher net income and improved working capital

Financial Performance Outlook for 2017 Unit Volume (000s) 12,000 - 12,250 Net Sales   $730M - $750M Value-Added Sales (1)   $400M - $410M Adjusted EBITDA (2)   $97M – $105M Capital Expenditures   Approximately $50M Working Capital   Net use of funds Effective Tax Rate   25% - 28% range Dividend Payments   Approximately $18M Key Metrics 2017 Outlook (provided 1/11/17) *Expect 1Q17 to be down 200K - 300K units compared to 1Q16 (1) Value-added sales is a non-GAAP measure defined as net sales less pass-through charges, primarily for the value of aluminum; see appendix for reconciliation to net sales (2) Adjusted EBITDA is a non-GAAP measure; see “Use of Non-GAAP Financial Measures” on slide two regarding the outlook

Appendix

Fourth Quarter and Full Year 2016 Income Statements (1) Value-added sales is a non-GAAP measure defined as net sales less pass-through charges, primarily for the value of aluminum; see appendix for reconciliation to net sales (2) Adjusted EBITDA is a non-GAAP measure; see appendix for reconciliation to net income Unaudited (US$ in Millions, except for units Unaudited and per share amounts) 4Q16 4Q15 FYE FYE Actual Actual 2016 2015 Unit Shipments (000s) 3,097 3,214 12,260 11,244 Net Sales 188.3 $ 194.6 $ 732.7 $ 727.9 $ Value-Added Sales (1) 106.4 $ 103.0 $ 408.7 $ 360.8 $ Gross Profit 18.0 $ 23.6 $ 86.2 $ 71.2 $ % of Net Sales 9.5% 12.1% 11.8% 9.8% % of Value-Added Sales 16.9% 22.9% 21.1% 19.7% SG&A Expenses 6.9 $ 10.1 $ 31.6 $ 34.9 $ % of Net Sales 3.7% 5.2% 4.3% 4.8% Operating Income 11.1 $ 13.5 $ 54.6 $ 36.3 $ Interest Income, net 0.1 $ 0.0 0.2 $ 0.1 $ Other expenses, net 0.4 $ (0.2) $ (0.1) $ (1.1) $ Income Before Income Taxes 11.5 $ 13.4 $ 54.7 $ 35.3 $ Income Tax (Provision) Benefit (3.8) $ (5.2) $ (13.3) $ (11.3) $ Net Income 7.8 $ 8.1 $ 41.4 $ 23.9 $ Income Per Share - Diluted 0.31 $ 0.31 $ 1.62 $ 0.90 $ Adjusted EBITDA (2) 18.7 $ 25.3 $ 88.5 $ 76.1 $ % of Net Sales 9.9% 13.0% 12.1% 10.4% % of Value-Added Sales 17.6% 24.5% 21.7% 21.1%

Fourth Quarter and Full Year 2016 Statements of Cash Flow Unaudited Superior Industries International, Inc. Summary Cash Flow Statements Quarter Ended December 2015 and 2014 Unaudited (US$ in Millions) 4Q16 4Q15 FYE FYE Actual Actual 2016 2015 Net Income $7.7801163659999997 $8.1301774569999647 $41.381733938000004 $23.944358883999406 Depreciation 8.3728330999999994 8.8345692000000007 34.260550849999902 34.530237519999986 Accounts Receivable 12.570565241308302 4.2839584852076049 8.0429187042695691 -14.029999999999996 Inventories -10.1317480226464 -0.77075946146219942 -22.339115349870301 11.508722545356441 Prepaid Aluminum 4.3869999999999996 -3.5080969800000004 5.0449999999999999 1.9792925800000001 Accounts Payable 15.9 -4.5003338391409997 15.9 -1.1323954834901593 Other Operations Related Items 0.2 7.6235458497551001 -3.7796783735765729 2.498590519678018 Cash Flow from Operations 39.200000000000003 20.09306071135947 78.511409768822602 59.2988065655437 Cash Dividends -4.5570000000000004 -4.7110239600000039 -18.34 -19.081830040000007 Capital Expenditures -9.4 -6.9140700998555404 -39.6 -39.542999999999999 Proceeds from Exercise of Stock Options 2.51400000000001E-2 2.5645999999960624E-4 1.6407213300000001 7.26534192 Stock Repurchase -7.1931003658000003 -5.2636012112999992 -20.719492516700001 -19.637846109999998 All Other 4 -1.1164115521478364 4.2522736843443276 1.2838317761948617 Net Increase / (Decrease) 21.984788685388502 2.088210348056089 5.8 -10.414695888261441 Cash - Beginning 35.801107585218197 49.948161017685209 52.036000000000001 62.5 193.2 193.2 193.2 193.2 Cash - Ending $57.785896270606699 $52.036371365741296 $57.835999999999999 $51.985304111738557 $21.535999999999987 $0 $21.535999999999987 $-5.314695888261447 $26.850695888261434 Plant 15 June Ytd Capex per CI schedule

Summary Balance Sheet Unaudited Superior Industries International, Inc. Summary Balance Sheets (US$ in Millions) Unaudited December December ASSETS 2016 2015 Cash & Cash Equivalents $57.786000000000001 $52.036116290000002 Short Term Investments 0.75 0.95 Accounts Receivable, net 99.3 112.58885485899999 Inventories, net 82.8 61.769375689999997 Other Current Assets 13.376971999999999 18.477 Total Current Assets 254.1 245.821509499 Property, Plant & Equipment 227.4 234.64628787999993 Investments 2 2.0140216799999999 Deferred Taxes 28.8 25.597737289999998 Other Assets 30.4 31.850316060000125 Total Assets $542.79999999999995 $539.92987240900004 LIABILITIES & EQUITY Accounts Payable $37.85 $20.91348481 Other Current Liabilities 48.1 52.948632230000001 Total Current Liabilities 85.95 73.862117040000001 Non-Current Liabilities 58.6 52.155507254996948 Shareholders' Equity 398.226 413.912248118001 Total Liabilities & Equity $542.77600000000007 $539.92987241299795 A/R 99.3 112.58885485899999 Inventory 82.8 61.769375689999997 Ppd Alum #REF! #REF! Less: A/P -37.85 -20.91348481 #REF! #REF! Prepaid Aluminum 12,424,715.52 18,654,228.91

Fourth Quarter vs. Third Quarter 2016 Adjusted EBITDA *FX Rates from Banco de Mexico Volume / Mix – Volume increased 185K units FX Impact – Reflects 4Q16 average peso rate devaluation against USD (18.7 in 3Q16 vs. 19.8 in 4Q16 )* Cost Performance – Benefit from increased production in Mexico coupled with operational improvements SG&A – Driven primarily by higher incentive compensation accruals and administrative costs

Reconciliation of Non-GAAP Financial Measures

Reconciliation of Non-GAAP Financial Measures