Sogefi S.p.a. · MIL:SGF
Sogefi — Euronext Star Conference 2023
42 slides from Sogefi's conference presentation, Mar 22, 2023
Slide 1: Euronext Star Conference
Euronext Star Conference March 22, 2023 Frédéric SIPAHI – CEO Olivier PROUST – CFO 1
Slide 2: Agenda
AGENDA • Group Profile • A Resilient Business Model and a Sustainable Transformation • Financial 2
Slide 3: Group Profile
SOGCFI Group Profile
Slide 4: Key Figures
KEY FIGURES 40 1.6 18 TO listed on years of experience in (2022) the Milan + automotive Billions Stock business Exchange of revenues since 1986 countries 5 400 35 productions EMPLOYEES Air&Cooling 3 7 plants Business Filtration Units R&D centers Suspensions 4
Slide 5: E-Mobility since 6 years
KEY PARTNER Strong position in New product range Plants certified E-MOBILITY since 6 years For quality 16949 with THERMAL & FLUID MANAGEMENT Air purification 14001 social GENDER 45001 EQUALITY INDEX PRODUCT OF THE YEAR 2022 50001 deployed in in France already achieved in all our plants China in 2022
Slide 6: A Global Footprint
A GLOBAL FOOTPRINT A stable shareholder structure and a long-term vision ✓Very fast global development ✓Opening of new plants in India, China, Mexico and Eastern Europe. A balanced approach of our international development ✓Grow where market and technology grow ✓ Invest either in production sites or
Slide 7: A Global Footprint
A GLOBAL FOOTPRINT A remarkable growth in China : Strategic region for e-mobility and in terms of market size Strong presence in North and South America with very dominant positions A very fast development in India : we are monitoring very closely this region A global offer and a real culture of inn
Slide 8: Diversified Product Lines, 2022 Sales €1,552M
DIVERSIFIED PRODUCT LINES, 2022 Sales € 1,552 M Suspensions Filtration Air&Cooling N°2 ✓ N°4 • • Stabilizer bars Coil springs • • Oil filters Fuel filters ✓ Worldwide • • Manifolds Air ducts Worldwide • Torsion bars • Engine Air filters • Coolant Pump and outlet • Leaf springs • Cabin filters housin
Slide 9: E-Mobility New Product Line
E-MOBILITY NEW PRODUCT LINE THERMAL MANAGEMENT AIR PURIFICATION E-Pump circulates & regulates the coolant flow Air Cabin Purifier captures E-Valve + Coolant Manifold distribute the coolant CO2 & H2O Battery Cooling plates regulate cells temperature in Cabin + enables Battery Battery Pack cooling reg
Slide 10: Diversified Markets
DIVERSIFIED MARKETS AFTERMARKET N°1 ✓ France MAIN BRANDS ORIGINAL EQUIPEMENT 10
Slide 11: Our Customers (% of sales)
OUR CUSTOMERS (% of sales) 2021 2022 11
Slide 12: Our New EV Customers
OUR NEW EV CUSTOMERS ✓ Chinese Pure Electric OEMs ✓ North America Pure Electric OEMs ✓ New Entrants LCV ✓ New Entrants From Other Sectors 12
Slide 13: A Resilient Business Model and a Sustainable Transformation
02 A Resilient Business Model and a Sustainable Transformation 13
Slide 14: A Sustainable Transformation
A SUSTAINABLE TRANSFORMATION Air&Cooling Filtration a transition to E-Mobility started 6 a transition from Diesel years ago products to new products for Purification Suspensions Operational improvements and new footprint Environment, Social and Governance achievements and strong commitment 14
Slide 15: Business Development
BUSINESS DEVELOPMENT A&C BU concluded in H1 four huge contracts in NAFTA with a local car maker and an LCV manufacturer SOGEFI will supply water pumps and thermal management products for electric mobility. After these contracts for premium models and LCV, in the Q3 the first contract in Europe for c
Slide 16: Air & Cooling Very Positive Commercial Activity
Air & Cooling Very Positive Commercial Activity • In 2022 the largest electric mobility contract was signed with a LCV manufacturer for the production of aluminum cooling plates, further contracts were then signed for with major 54% of the generalist OEM for battery cooling plates awards • In Septem
Slide 17: Suspensions & Filtration Commercial Activity
Suspensions & Filtration Commercial Activity SUSPENSIONS FILTRATION In H2 has concluded important contracts: Filtration is focusing on: ✓ In China for Stabilizer bars with local e-mobility ✓ Diesel migration with development of Air Cabin, player (new entrant) with SOP 2023/2024. Transmission Filters
Slide 18: Business Quotations Portfolio in E-Mobility
BUSINESS QUOTATIONS PORTFOLIO IN E-MOBILITY Suspensions Filtration Air & Cooling Orders Pipeline 100% 26% 10% 64% Of which E-mobility (82%) 79% 53% 87% 18
Slide 19: E-Mobility Tech Center Europe
E-MOBILITY TECH CENTER EUROPE New E-Mobility Tech Center based in the East of France a few minutes from the German border Dedicated to E-Mobility developments and news products Equipped with the biggest 3D printer in Europe 19
Slide 20: March 2023: Acquisition of ATN
March 2023: Acquisition of ATN A specialist with more than 30 years in the development of highly technical tooling within very short deadlines A supplier to the automotive industry, specializing in the design and manufacture of injection and welding molds with €3.6m sales Located in Alsace (France),
Slide 21: ESG: 2022 Projects and Achievements
ESG: 2022 PROJECTS AND ACHIEVEMENTS 1/Our range of has been enlarged thanks to our R&D teams committed on SOGEFI products for the future. Two of our products received as well French grants thanks to the technological advantages and low Co2 print: ✓ awarded by France 2030 that allow -99% lower gas em
Slide 22: ESG: KPIs related to Business Innovation and E-Mobility
ESG: KPIs related to BUSINESS INNOVATION and E-MOBILITY CHALLENGES KEY PERFORMANCE INDICATORS Actual Target 2022 2025 1 % of sales for e-mobility products (i.e. electric / 14% 24% hybrid / fuel cell) on total sales To develop innovative and eco-responsible 2 % of orders’ value for e-mobility product
Slide 23: Financial
SOGCFI Financial
Slide 24: FY 2022: Strong Results in an Unprecedented Market Scenario
FY 2022: Strong Results in an Unprecedented Market Scenario ✓ Sales up thanks to market outperformance and benefiting of - Despite of supply chain disruption, Covid, Russia/Ukraine and customer price increase related to pass- stop and go's’ thought and positive exchange ✓ Managing raw and energy pri
Slide 25: FY 2022: Financial Highlights
FY 2022: FINANCIAL HIGHLIGHTS • +12.6% at constant exchange benefiting of price increase related to pass-thought and good Revenues at €1552.1m vs 1320.6m in 2021 Aftermarket performance, over performing the market (+6.2%) • Volume positive (+3.9%) • Contribution margin € 425.1m vs € 403.7m in 2021 E
Slide 26: FY 2022: Sales by Geography
FY 2022: SALES BY GEOGRAPHY constant reference performance weight FY 2021 FY 2022 change exchange market vs market based on €m rates production (bps) FY 2022 Europe 27 813.6 890.9 9.5% 9.5% 5.7% 378 57.4% North America 262.4 340.3 29.7% 17.2% 9.7% 754 21.9% South America 77.8 108.0 38.8% 15.8% 8.3%
Slide 27: FY 2022: Sales by Business Unit
FY 2022: SALES BY BUSINESS UNIT reported constant FY 2021 FY 2022 change vs exchange €m 2021 rates change Air&Cooling 402.0 464.0 15.4% 8.9% Filtration 463.4 535.7 15.6% 12.1% Suspensions 458.2 556.7 21.5% 16.6% Intercompany (3.0) (4.4) Total 1320.6 1552.1 17.5% 12.6% Air and Cooling revenues up by
Slide 28: FY 2022: EBIT Performance Breakdown vs 2021
FY 2022: EBIT PERFORMANCE BREAKDOWN VS 2021 Full offsetting of materials and energy prices increases via “pass-through” to clients mainly for unfavorable 4.9 % 2021 carry over and of sales 4.4 % Romania ramp up 4.6 % of sales 3.9 % of sales of sales (*) Variances calculated at stable FX (**) Exchang
Slide 29: FY 2022: P&L
FY 2022: P&L €m 2021 % 2022 % REVENUES 1,320.6 100.0% 1,552.1 100.0% 28.7% without dilution effect due to selling CONTIBUTION MARGIN 403.7 30.6% 425.1 27.4% price increase (raw material and energy costs Gross Fixed Costs 226.1 17.1% 231.8 14.9% rise fully compensated by repricing) Restructuring 8.0
Slide 30: FY 2022: Free Cash Flow
FY 2022: FREE CASH FLOW €m 2021 2022 FUNDS PROVIDED BY 114.6 128.0 OPERATIONS Working Capital -13.0 -11.9 Capex (Tangible, Intangibles & IFRS15) -109.7 -98.8 Capex containment Others 43.1 13.2 In 2021 € 21m of Argentina disposal (non-cash) FREE CASH FLOW (NET) 35.0 30.5 NET DEBT 258.2 224.3 Factorin
Slide 31: FY 2022: Debt Profile
FY 2022: DEBT PROFILE • € 95m new medium-term loans signed in Q4 2021 • € 155m new medium-term loans signed in Q1 2022, with ESG target • 55% Gross MT Debt with fixed rate Figures as of December 31th 2022 31
Slide 32: 2023: Management Expectations
2023: MANAGEMENT EXPECTATIONS ✓Market flattish in Europe , limited increase in other areas, vigorous growth of pure EV powertrain (but stable ICE+Hybrid) ✓Steel and resins price stabilization but to remain high vs 2019, other raw materials (aluminum) still growing. Energy costs consensus is to a dow
Slide 33: Market Outlook
MARKET OUTLOOK Sogefi has a more conservative approach on 2023 market expectations vs S&P Global S&P Global (IHS) January 2023 FY 2022 vs Q4 2022 vs FY 2023 vs FY FY 2024 vs FY 2024 vs FY 2021 Q4 2021 2022 FY 2023 2019 €m Europe 27 5.7% 13.3% 7.1% 6.0% -12.8% North America 9.7% 7.8% 5.4% 5.1% -2.9%
Slide 34: Market Outlook
MARKET OUTLOOK • The visibility on the automotive market trend in 2023 remains reduced due to the uncertainties related to the Russia-Ukraine conflict, the macro-economic evolution and the raw materials prices, particular energy • For 2023, S&P Global (IHS) expects global auto production to grow 3.6
Slide 35: Contacts
CONTACTS Olivier Proust, Sogefi Group CFO Stefano Canu, Investor Relations Tel: +39 02 46750214 Fax: +39 02 43511348 Mail: ir@sogefigroup.com 35
Slide 36: Disclaimer
DISCLAIMER • This document has been prepared by SOGEFI S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. • For further details on the SOGEFI Group. reference should be made to publicly available information. including the Annual Report. the Semi
Slide 37: Appendix
APPENDIX 37
Slide 38: FY 2022: Suspensions
FY 2022: SUSPENSIONS SALES (€m) EBITDA (€m) excluding non-recurring EBITDA Margin 5.9% 5.4 % • 2022 up 21.5% (+16.6% at constant exchange) • EBITDA higher than last year in absolute value, % thanks to good performance in South/North diluted by repricing effect America, India, Europe and repricing 38
Slide 39: FY 2022: Filtration
FY 2022: FILTRATION SALES (€m) EBITDA (€m) excluding non-recurring EBITDA Margin 15.0% 15.0% • Revenues up 15.6% at current exchange rates (+12.1% at constant exchange rates) thanks to good performance in North America, India and Aftermarket • EBITDA improved by ~11 M€ vs 2021 • Aftermarket is a res
Slide 40: FY 2022: Air&Cooling
FY 2022: AIR&COOLING SALES (€m) EBITDA (€m) excluding non-recurring EBITDA Margin 20.4% 17.3% • In 2022 up 15.4% (+18.8% net of 2021 special • EBITDA margin slightly down, excluding the effect project sales, +8.9% at constant exchange) thank of the sale of the special project to good performance in
Slide 41: Q4 2022: P&L
Q4 2022: P&L €m Q4 2021 % Q4 2022 % +16.9% (+15.4% at constant exchange rates) REVENUES 330.6 100.0% 386.5 100.0% thanks to repricing and positive volume (+5.8%) over performing the market (+1.7% global) CONTIBUTION MARGIN 92.9 28.1% 102.3 26.5% Gross Fixed Costs 56.1 17.0% 56.8 14.7% Restructuring
Slide 42: Environment, Social and Governance
Environment, Social and Governance KEY PERFORMANCE INDICATORS Actual 2022 Target 2025 1 % of sales for e-mobility products (i.e. electric / hybrid / fuel cell) on total sales 14% 24% % of orders’ value for e-mobility products (i.e. electric / hybrid / fuel cell) on total order BUSINESS INNOVATION 2