Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION May 2022
Slide 2: Cofle «at a glance»
Cofle «at a glance»
Slide 3: Cofle Group: Snapshot
Cofle Group: Snapshot One global player, two divisions: OEM and Aftermarket (AM) Cofle is a multinational company operating as Original Equipment Manufacturer (OEM) for the top worldwide manufacturers of agricultural & earthmoving machineries, luxury automotive and light commercial vehicles The Afte
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 industrial one • Set up of production activities in Turkey • The Group aims at expanding • At that time, about 15 p
Slide 5: Cofle Group Today
Cofle Group Today > 10 mln units of production capacity over approx. 17.000 sqm plants worldwide ITALY (HQ) – Plant & Logistic Center TURKEY – TK 1 OEM Plant TURKEY – TK 2 OEM Plant PRODUCTION PLANT 6 in 4 countries Plant Foto REPRESENTATIVE OFFICE 2 (US & China) Plant description Plant Description
Slide 6: Corporate Governance
Corporate Governance Board of Directors Chairman & CEO Walter Barbieri Cofle SpA Director Alessandra Barbieri Italy Director Silvio Benedetti Independent Director Enrico Mambelli Director 80% 100% Cofle Do Brasil Sergio Buoncristiano Tabo Otomotiv A.S. Ltda Statutory Auditors Cofle TK Otomotiv 91,9%
Slide 7: Organization Chart
Organization Chart Experienced multinational management team Walter Barbieri Total Workforce as of June 2021 CEO Company Employees Cofle Italy 141 Tabo Otomotiv 194 Alessandra Barbieri Cofle TK 176 Diego Galbussera Head of Global Comm. Cofle Zhuji CFO 1 & Mkt. Cofle Do Brasil 17 Cofle Taylor India 2
Slide 8: OEM Business “at a glance” (1/2)
OEM Business “at a glance” (1/2) Off-Road Applications Cables for all Steering Columns applications FIX HUB AND ANTI-DUMPING SYSTEM Power Shuttle Gearshift towers with Systems electronics knobs P.T.O. Joysticks for front loader Systems (with push buttons command) control Spool Valve command Brake le
Slide 9: OEM Business “at a glance” (2/2)
OEM Business “at a glance” (2/2) Premium Luxury Brands Applications Gearshift lever, handbrake and cables Gear Unlock DCT System cables Front and rear bonnet cables Source: Top Management Cofle S.p.A. 9
Slide 10: Aftermarket (AM) Business “at a glance” (1/2)
Aftermarket (AM) Business “at a glance” (1/2) Control Cables for the Automotive Aftermarket Business BRAKE CABLES BRAKE HOSES Broke Coliper Ball Bearing Linear Drive Control Electronics Brushless Electric Motor Parking Brake EPB PULLER CABLES EPB SYSTEMS Source: Top Management Cofle S.p.A. 10
Slide 11: Aftermarket (AM) Business “at a glance” (2/2)
Aftermarket (AM) Business “at a glance” (2/2) Cofle Brand and Third-Party Brand products Clients by category Selected Compatible Automakers Third-Party Brand Leading Automotive Aftermarket Players (mainly manufacturers and some distributors) Retail AFTERMARKET Customers DIVISION Automotive Clients b
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Key factors behind the success of an italian multinational company 1 A multinational company operating all over the world 2 Exceptionally sound path to growth on a global scale Global Growth Scenario 3 Only at an early stage of international scalability 4 Strategically posi
Slide 13: A multinational company operating all over the world
1 A multinational company operating all over the world Undisputed Global Footprint 81% 290+ REVENUES COMING FROM COSTUMERS ACROSS 38 ABROAD IN 2020 COUNTRIES IN 2020 PRODUCTION PLANT WHAREHOUSE ENGINEERING CENTER R&D CENTER REPRESENTATIVE OFFICE Source: Annual Report Cofle S.p.A.2019/2020; data on c
Slide 14: Exceptionally sound path to growth on a global scale
2 Exceptionally sound path to growth on a global scale Catching the wave of a secular trend in population dynamics and food demand Global Farm Tractors Market Forecast to 2027 (Units in mln) 85,5 Farm Tractors Market ($bn) Farm tractors installing Cofle’s size 66,7 systems in 2020 worldwide ($bn) 20
Slide 15: Only at an early stage of international scalability (1/2)
3 Only at an early stage of international scalability (1/2) At the forefront of the key trends in farm tractors industry worldwide Major technological changes involving farm tractors by geographical areas in the next decade +31% +28% 1 2 Mechatronic and high value Renovation of obsolete technology a
Slide 16: Only at an early stage of international scalability (2/2)
3 Only at an early stage of international scalability (2/2) Planning growth in the European underpenetrated automotive Aftermarket +23% Average Age of the EU vehicle fleet 209 257 ▪ Eastern European market is (€bn) (€bn) among the most promising market in the world. European Market Size European Mar
Slide 17: Strategically positioned to boost long term expansion
4 Strategically positioned to boost long term expansion Integrated facilities and platforms in the key areas of the world Global integrated facilities to meet top multinational customers’ needs centered 1 on shifting from overstretched supply chain to locally based suppliers Key competitive advantag
Slide 18: Distinctive Know How: Focus on excellence
5 Distinctive Know How: Focus on excellence OEM DIVISION – Excellence in Co-Engineering Co- Pricing & Orders Intake Production Delivery Engineering Prototype Highly customized and tailor made products to meet 1 the excellence requirements of Top clients OEM project usually takes from 1 to 3 years to
Slide 19: Top Credentials – OEM (1/2)
6 Top Credentials – OEM (1/2) A highly prestigious and diversified customer base all over the world Long term relationship with Top Market Leaders in the world, ranging from CNH to AGCO and John Deere 1 as undisputed proof of leadership: it usually takes at least 2 years to be included in the suppli
Slide 20: Top Credentials – AM (2/2)
6 Top Credentials – AM (2/2) From Top Aftermarket Manufacturers to Top Aftermarket distributors 1 Long term relationship with Top Aftermarket Leaders in the world (Continental & Bosch) 2 Long term relationship with Top Aftermarket Distributors in the world (Federal Mogul, Unix) Source: Top Managemen
Slide 21: Focus on innovation to anticipate next future trends
7 Focus on innovation to anticipate next future trends Commitment to launching disruptive solutions to stand out from the crowd as key principle in more than 50 years of Cofle history 2 28 2 8 1 R&D CENTER PEOPLE EMPLOYED IN R&D ENGINEERING CENTER REGISTERED PATENTS IN THE DEDICATED OEM INNOVATION A
Slide 22: Resilience to global recession and improved profitability
8 Resilience to global recession and improved profitability Cofle Total Revenues & Sales 2019/2020/2021FY EBITDA IFRS 16 Adj. and EBITDA Margin 2019/2020/2021FY (€mln) (€mln) 55,4 13,5 Total 38,06 38,07 Revenues 8,0 24,4% 6,8 52,2 37,8 37 21,1% 17,9% 2019 2020 2021 2019FY 2020 FY 2021FY Serie1 Sales
Slide 23: Financial Highlights
Financial Highlights
Slide 24: Group’s Top Line & breakdown 2019/2020/2021 by division
Group’s Top Line & breakdown 2019/2020/2021 by division Cofle Sales’ Breakdown by division 2019FY 2020FY 2021FY 44% 38% 48% € 37,8 M 52% € 37 M € 52,2 M 56% 62% OEM AM OEM AM OEM AM Source: Cofle’s management accounts 2019/2020 , Annual report 2019/2020, Press Release 31/03/2022 FY 2021 24
Slide 25: Financial Highlights
Financial Highlights Cofle Total Revenues & Sales 2019/2020/2021FY EBITDA IFRS 16 Adj. and EBITDA Margin 2019/2020/2021FY (€mln) (€mln) 55,4 13,5 Total 38,06 38,07 Revenues 8,0 24,4% 6,8 52,2 37,8 37 21,1% 17,9% 2019 2020 2021 2019FY 2020 FY 2021FY Serie1 Sales EBIT and EBIT Margin 2019/2020/2021FY
Slide 26: Consolidated Net Working Capital
Consolidated Net Working Capital Net Working Capital Analysis (€mln) Net Working Capital (€mln) 15,3 (€mln) 13,2 13,8 NWC 2019 NWC 2020 NWC 2021 12,0 12,3 13,5 2,9 2,5 1,9 Other Current Liabilities NWC in 2021 increase driven by Working Capital Other Current Assets significant revenues growth -4,1 -
Slide 27: Fixed Assets and Capex
Fixed Assets and Capex Tangible, Intangible and Financial Assets Fixed Assets Consolidated Capex 2021 (€mln) 4,5 3,8 Tangible Capex 3,4 (3,4 €mln – 69%) Intangible Capex 3,0 3,0 (1,5 €mln – 31%) 0,9 0,9 0,1 0,1 Total Capex 2021: 4,9 €mln Intangible Assets Tangible Assets Financial Assets 2019 2020 2
Slide 28: Net Financial Position 2019/2020 – 1H 2021
Net Financial Position 2019/2020 – 1H 2021 NFP IFRS 16 2019/2020/2021 & 1H 2021 Composition of Net Financial Position • Valdiporto Financial Receivable refers to a loan extended to the (€) 2019 2020 1H 2021 2021 Barbieri real estate family company reclassified as Current Financial Long Term Financia
Slide 29: Cash flow Bridge to NFP IFRS 16 FY 2021
Cash flow Bridge to Net Financial Position 2H 2021 Bridge to NFP IFRS 16 FY 2021 (€mln) Mainly impacted by: 1- ∆ forex translation reserves 14,9 2 - IPO proceeds Capex Change in Equity +3,0 -10,6 Financial Incomes Operating Cash -0,9 Inflow* -6,1 ∆ Current Value of Debt Lease -0,25 30K NFP IFRS 16 1
Slide 30: Update
Update
Slide 31: Stock & Shareholders’ Structure
STOCK & SHAREHOLDERS’ STRUCTURE Shareholders’Structure Stock Performances Market Palladio Holding 16,50% S.p.A. Market: Euronext Growth Milan Price (10/05/2022): € 15,20 (+16,9%) 1,30% Ticker: CFL Market Cap (10/05/2022): ~ € 82,1 M Shares: 5.403.728 Avg. Volume: 10.614 shares Smart Agri S.r.l. 3,70
Slide 32: OEM New Projects Update: Ineos Grenadier
OEM NEW PROJECTS UPDATE INEOS GRENADIER Cofle technology will be aboard the new off-road Ineos Grenadier. The agreement provides that, following the excellent results obtained in the first test phase, starting from February 2022 will begin the second and final phase of testing on about 700 vehicles
Slide 33: OEM New Projects Update: Stage V
OEM NEW PROJECTS UPDATE STAGE V Over the past three years, manufacturers have faced new challenges to reduce tractor emissions and consumption. With no more transition periods, the European Stage V Regulation is now in force, which further reduces the maximum exhaust emission ceiling compared to Sta
Slide 34: OEM New Projects Update: A New EU Regulation to Boost Revenues
OEM NEW PROJECTS UPDATE A NEW EU REGULATION TO BOOST REVENUES Cables for all Steering Columns applications FIX HUB AND ANTI-DUMPING SYSTEM Power Shuttle Gearshift towers with Systems electronics knobs P.T.O. Joysticks for front loader Systems (with push buttons command) control Spool Valve command B
Slide 35: OEM New Projects Update: Upcoming Development Projects
OEM NEW PROJECTS UPDATE UPCOMING DEVELOPMENT PROJECTS Development of innovative electronic products that represent an upgrade of the control system, based on two specific projects for two customers MICRO PUSH BUTTON REED TECH. 2 & ELECTRONICS KNOBS 1 NANO PUSH BUTTON REED TECH. 3 ELECTRONIC FOOD PED
Slide 36: OEM New Projects Update: ITG Turkey Launched
OEM NEW PROJECTS UPDATE ITG TURKEY LAUNCHED ITG Turkey design & engineering center (focused on off-road vehicles). ITG S.r.l. Cofle TK Turkish manager Otomotiv A.S. 80% 15% Innovation 5% Technology Group Turkey Source: Top Management Cofle S.p.A. 36
Slide 37: AM New Products Update: Brake Hoses
AM NEW PRODUCTS UPDATE BRAKE HOSES In 2021 there was a big increase in the selling of the new brake hoses: € 416 thousands Source: Top Management Cofle S.p.A. 37
Slide 38: AM New Products Update: EPB Project
AM NEW PRODUCTS UPDATE UT AM – EPB project System overview: Sensors Actuators Electromechanical parking control Left / Right brake EPB Clutch position sender unit Electromechanical parking brake button Electromechanical parking brake warning light Brake system warning light Electromechanical parking
Slide 39: M&A Strategy
M&A STRATEGY CONSOLIDATION OF THE GLOBAL LEADERSHIP ACHIEVING HIGHER MARKET SHARES WORLDWIDE M&A: acquisition of target to extract value through product synergies Target size between € 10 e 20 mln OEM Scouting phase: on-going M&A: acquisition of target specialized in aftermarket distribution (market