Slide 1: Investor Presentation
Global supplier of control systems and control cables INVESTOR PRESENTATION __________________________________________ March 2024
Slide 2: Key Highlights
COFLE GROUP Key Highlights KEY POINTS DESCRIPTION • Secular trends driving increased total addressable 145 Growth market Farm Tractors ($bn) 1 • Global Farm Tractors Market Forecast to 2031 estimated growing with +5,5% 85,1 ($bn) Market size 2031E CAGR 2021-20311 2021 Global Presence • We are where
Slide 3: Cofle Group: Snapshot
COFLE GROUP: Snapshot One global player, two divisions: OE and IAM ALL-IN-HOUSE ALL-IN-HOUSE PRODUCTION PRODUCTION** ORIGINAL INDEPENDENT EQUIPMENT - 70%* AFTERMARKET - 30%* ▪ OEM ▪ OES CABLES FOR THE AUTOMOTIVE CONTROL SYSTEMS: T/O (€)62% AFTERMARKET Third-Party Brand Cofle Brand CONTROL CABLES: T/
Slide 4: Key Milestones
KEY MILESTONES Group history since foundation • Evolution from the initial • Significant boost in the Aftermarket workshop setting to a more industry - Cofle clearly part of this trend • The Group aims at expanding industrial one • Set up of production activities in Turkey further its products offer
Slide 5: Cofle Group Today
COFLE GROUP TODAY ITALY– IAM Logistic Plant TURKEY – TK 1 OE Plant ITALY – OE Logistic Plant PRODUCTION PLANT ITALY – HQ & Plant ALL-IN-HOUSE 6 in 4 countries PRODUCTION Pricing power thanks to COMMERCIAL DEPARTMENT all production In-House Plant description Plant Description 1 (France) Plant descrip
Slide 6: Group Structure & Governance
GROUP STRUCTURE & GOVERNANCE Board of Directors Chairman & CEO Cofle SpA Walter Barbieri Italy Director Alessandra Barbieri Director Silvio Benedetti 80% Independent Director 100% Cofle Do Brasil Tabo Otomotiv A.S. Enrico Mambelli Ltda Director Sergio Buoncristiano Cofle TK Otomotiv 87% 76,5% Cofle
Slide 7: Organization Chart
ORGANIZATION CHART Experienced multinational Management Team Walter Barbieri CEO Alessandra Barbieri Total Workforce as of 30/06/2023 Diego Galbussera Head of Group Comm. CFO Company Employees & IRM Cofle S.p.A. 148 Tabo Otomotiv 183 Halil Bilgin Demet Benveniste Rosario Giuliana Cofle TK Otomotiv 2
Slide 8: OE Division
OE DIVISION All-In-House production Off-Road Applications Premium Luxury Brands Applications Steering Cables for all Columns applications Fix Hub and Anti-Dumping System Gearshift Lever, Handbrake and Cables Gearshift Towers with Electronics Knobs P.T.O. Joysticks for Front Loader Systems (with push
Slide 9: IAM Division
IAM DIVISION All-In-House production Control Cables Brake Cables Brake Hoses IAM DIVISION Epb Puller Cables Epb Systems 9
Slide 10: Where are we going? Where does the market go?
WHERE ARE WE GOING? WHERE DOES THE MARKET GO? BE READY TO CHANGE DIRECTION 10
Slide 11: Navigating Market Trends
NAVIGATING MARKET TRENDS Overview of Key Sector Trends ● Aftermarket (AM) Trends: Observing decline in control/pull cables and an increase in demand for gear shift cables and electronic parking brakes (EPB), as well as brake hoses ● Original Equipment (OE) Trends: Observing a gradual decrease in mec
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS A company ready to ride secular trends for a long-term journey 1 OE: Exceptionally sound path to growth on a global scale Global Growth Scenario 2 IAM: Only at an early stage of international scalability 3 Strategically positioned to boost long term expansion 4 State of Art
Slide 13: OE: Exceptionally sound path to growth on a global scale
1 OE Exceptionally sound path to growth on a global scale catching the wave of a secular trend in population dynamics and food demand, despite the current contraction of the agricultural market. Global Farm Tractors Market Forecast to 2031 Global Farm Tractors Production 2021 145,4 Farm Tractors Mar
Slide 14: IAM: Planning growth in European underpenetrated aftermarket
2 IAM Planning growth in the European underpenetrated automotive Aftermarket 257 Average Age of the EU vehicle fleet European Market Size ($bn) 209 Aftermarket ($bn) 2025E 2021 IAM Brake Cables Market Size 2022 501 90 52 137 147 € mln 76 Total o/w € 12,5 mln Cofle 2022 Revenues Leveraging on Italian
Slide 15: Global Presence
3 GLOBAL PRESENCE Strategically positioned to boost long term expansion Integrated facilities and platforms in the key areas of the world 1 Global integrated facilities to meet multinational customers’ needs centered on shifting from overstretched supply chain to locally based suppliers 2 Key compet
Slide 16: State of Art Credentials - OE
4 STATE OF ART CREDENTIALS - OE A highly prestigious and diversified customer base all over the world Agriculture Construction & Industrial Automotive 1 Long term relationship with Top Market Leaders in the world, ranging from CNH to AGCO and John Deere as undisputed proof of leadership. It usually
Slide 17: State of Art Credentials - IAM
5 STATE OF ART CREDENTIALS - IAM From Top Aftermarket Manufacturers to Top Aftermarket distributors Long term relationship with Top Aftermarket Leaders in the world (Continental & Bosch) Long term relationship with Top Aftermarket Distributors in the world (Federal Mogul & Unix) Launching EPB Range:
Slide 18: Focus on R&D
6 FOCUS ON R&D Innovation to anticipate next future trends Commitment to launching disruptive solutions to stand out 2 28 2 8 1 R&D CENTER PEOPLE EMPLOYED IN ENGINEERING CENTER REGISTERED PATENTS DEDICATED OEM R&D ACTIVITES IN THE LAST 5 YEARS INNOVATION HUB ACROSS 5 COUNTRIES Today HOW WE 1 From sk
Slide 19: Update
UPDATE 19
Slide 20: Update: Cofle France
UPDATE Cofle France s.a.s. - Bureau Commercial Cofle’s aim is to have a direct presence in the French market, an area where Cofle operates since 1980s. From France the rationale is to intensify commercial activities in Spain, Portugal, Maghreb and Benelux, areas that present important potential in t
Slide 21: OE New Projects Update: INEOS
OE NEW PROJECTS UPDATE INEOS The agreement provides that, following the excellent results obtained in the first test phase and the second and final phase of testing in February 2022, the total value of production for Cofle in the two-year period 2023/2024 is equal to 5,5 million euros Cofle technolo
Slide 22: OE New Projects Update: Mechatronic Applications
OE NEW PROJECTS UPDATE SOME EXAMPLES OF OUR MECHATRONIC APPLICATIONS Development of innovative electronic products that represent an upgrade of the control system to ride precision farming wave E-THROTTLE PEDAL MICRO PUSHBUTTON E-POWER SHUTTLE E-HAND THROTTLE E-KNOBS E-KNOB FOR GEARSHIFT NANO PUSHBU
Slide 23: OE New Projects Update: Off Road Products
OE NEW PROJECTS UPDATE Off Road Products – Some examples of mechatronic & electronic applications In the Turkish plant, a new production department has recently been added for the SPECIAL SWITCHES KNOBS AND PCB manufacturing of electronic components The new department will be responsible for assembl
Slide 24: IAM New Products Update
IAM NEW PRODUCTS UPDATE All-In-House production to maintain high margins BRAKE HOSES EPB PROJECT In 2021 there was a big increase brake hoses revenues: € 416 thousands. Full Year 2022: € 585 thousands This system is widely used in the automotive industry to simplify the search and identification of
Slide 25: New Logistics Center in Italy
NEW LOGISTICS CENTER IN ITALY Warehouse A Warehouse B Around 3.500 sq.m. just in proximity of Autostrada A4, a few minutes from the Headquarters, between Milano and Bergamo. Fully operational from April 2024. It hosts the OE Logistic Division 25
Slide 26: ESG: Environmental
ESG ENVIRONMENTAL • + 2,8% electricity from renewable sources (2022 vs. 2021). Total 47,5% [-29 tCO2e issued] • - 3,6 % total energy consumption per revenues (2022 vs. 2021) • 97% Raw materials used by recycling (Aluminium and Zamak) [-230 tCO2e issued] • 98,7% of the total waste is destined for rec
Slide 27: Sustainable Development Goals: Environmental
Sustainable Development Goals ENVIRONMENTAL • Installation of solar panels at the Pozzo d'Adda plant • Installation of electric vehicle charging stations powered by renewable energy 2024 sources • Study of new packaging to replace the use of plastic for all AM clients • Replacement of single-use woo
Slide 28: ESG: Social
ESG SOCIAL • 100% of employees on permanent contracts • 43% of hires are under the age of 30. • +5,7% growth of employees (2022 vs 2021) • +19.7% average training hours per employee (21.9) (2022 vs 2021) • Selection and evaluation of suppliers with environmental, ethical and social criteria • 90% of
Slide 29: Sustainable Development Goals: Social
Sustainable Development Goals SOCIAL • Pursuing of the prevention project with free medical visits SOCIAL for employees in collaboration with LILT (Italian League for the 2024 Fight against Cancer) • Increase in the percentage of female presence in the company (with the opening of the new logistics
Slide 30: ESG: Governance
ESG GOVERNANCE • 5.3% increase in Economic Value Generated (2022 vs 2020) • Investments in Research and Development; 8 Patents • Corporate Code of Ethics • Adoption of "Organizational, Management, and Control Model" pursuant to Legislative Decree No. 231/2001* • Integrated Quality and Environment Ma
Slide 31: Sustainable Development Goals: Governance
Sustainable Development Goals GOVERNANCE • Increase • Study in the share and inclusion of ESG of goals in the remuneration systemsinofthe female presence Managers company 2024 • Gradual expansion of the sustainability reporting scope to fully cover the Group consolidation.
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS 32
Slide 33: Group Sales by Division – Update 1H 2023
GROUP SALES BY DIVISION – Update 1H 2023 Sales Breakdown by division Sales Breakdown by division (FY 2021 – 2022) (1H 2022 vs 1H 2023) 2021 2022 – 1H 32% 38% € 52,2 M € 27,5 M 62% 68% OE IAM OE IAM 2022 2023 – 1H 30% 31% € 55,4 M € 29,7 M 70% 69% OE IAM OE IAM 27 Source: Management Accounts 2021 - 2
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS Cofle Total Revenues & Sales EBITDA IFRS 16 Adj. and EBITDA Margin (€mln) (€mln) 6,8 58,0 13,5 IFRS 16 IFRS 16 13,0 0,8 2,6 30,8 0,6 55,4 IFRS 16 5,4 1,0 OTHER 0,5 1,2 1,1 28,8 IFRS 16 0,7 1,3 EBITDA EBITDA 55,4 12,9 EBITDA 6,0 52,2 29,7 EBITDA 12,0 27,5 24,4% 4,2 22,4% 23,7% 17
Slide 35: Consolidated Net Working Capital
CONSOLIDATED NET WORKING CAPITAL Net Working Capital Analysis Net Working Capital (€mln) (€mln) NWC 2021 NWC 2022 NWC 1H2023 19,3 19,3 14,4 19,6 18,8 15,3 3,4 3,8 2,3 Other Current Liabilities Working Capital Other Current Assets -3,3 -3,0 -4,3 2021 2022 1H2023 -4,1 -4,0 Working Capital Composition
Slide 36: Fixed Assets and Capex
FIXED ASSETS AND CAPEX Tangible, Intangible and Financial Assets Consolidated Capex 2022 (€mln) Fixed Assets Intangible Capex (€ 0,8) (€mln) 10,1 Tangible Capex Intangible Capex main details 2022: (€ 2,5) € 3,3 • R&D M€ 0,6 by Cofle TK • Others M€ 0,2 7,0 Tangible Capex main details 2022: • Equipmen
Slide 37: Net Financial Position FY 2021 - 1H 2023
NET FINANCIAL POSITION FY 2021 - 1H 2023 NFP IFRS 16 FY 2019-2022 Composition of Net Financial Position (€) 2021 1H 2022 2022 1H 2023 Long Term Financial Debts 9.348.695 7.867.844 10.301.703 7.384.983 Short Term Financial Debts 1.299.154 4.621.425 4.269.010 8.304.368 Cash and Cash Equivalents -15.49
Slide 38: Cash Flow
CASH FLOW Net Financial Position Bridge FY22 to 1H2023 Cash Outflow of 4,1 M 32 Source: Management Accounts 2021-2023
Slide 39: www.cofle.com
WWW.COFLE.COM investor@cofle.it info@cofle.it Headquarters Via del Ghezzo 54 Trezzo sull’Adda (MI) Italy +39 02920020201