Cofle S.p.a. · MIL:CFL
Cofle — Investor Presentation (June 2023)
32 slides from Cofle's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
INVESTOR PRESENTATION June 2023
Slide 2: Cofle Group: Key Highlights
COFLE GROUP: KEY HIGHLIGHTS Why invest with us? 105 Farm Tractors Market ($bn) • GROWTH 66,7 size ($bn) • Global Farm Tractors Market Forecast to 2026 2026E • Cofle growth: Secular trends driving increased total addressable market • INNOVATION • Development of innovative electronic products that rep
Slide 3: Cofle Group: Snapshot
COFLE GROUP: Snapshot One global player, two divisions: OEM and Aftermarket (AM) ALL-IN-HOUSE ALL-IN-HOUSE PRODUCTION PRODUCTION OEM DIVISION - 70%* AFTERMARKET DIVISION - 30%* CORE BUSINESS CORE BUSINESS CABLES FOR THE CONTROL SYSTEMS: T/O (€)62% AUTOMOTIVE CONTROL CABLES: T/O (€)38% Cofle Brand pr
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 • At that time, about 15 people • The Group aims at expa
Slide 5: Cofle Group Today
COFLE GROUP TODAY 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 (France/China ) Plant Description Plant description Plant Description WHAREHOUSE • Leased • Leased • Leased • 5.000 sqm • 2.000
Slide 6: Corporate Governance
CORPORATE GOVERNANCE Board of Directors Chairman & CEO Walter Barbieri Cofle SpA Director Italy Alessandra Barbieri Director Silvio Benedetti Independent Director Enrico Mambelli Director 80% 100% Cofle Do Brasil Tabo Otomotiv A.S. Sergio Buoncristiano Ltda Statutory Auditors Cofle TK Otomotiv 87% 7
Slide 7: Organization Chart
ORGANIZATION CHART • Experienced multinational management team Walter Barbieri CEO Total Workforce as of 31/12/2022 Company Employees Cofle Italy 148 Alessandra Barbieri Tabo Otomotiv 190 Diego Galbussera Head of Group Comm. Cofle TK 191 CFO & IRM Cofle Zhuji 1 Cofle Do Brasil 15 Cofle Taylor India
Slide 8: OEM Business at a glance
OEM BUSINESS “at a glance” • Off-Road Applications • Premium Luxury Brands Applications Gearshift lever, handbrake and cables Gear Unlock DCT System cables Front and rear ALL-IN-HOUSE bonnet cables PRODUCTION 8
Slide 9: Aftermarket (AM) Business at a glance
Aftermarket (AM) Business “at a glance” • Control Cables for the Automotive Aftermarket Business • Cofle Brand and Third-Party Brand products BRAKE CABLES ALL-IN-HOUSE BRAKE HOSES PRODUCTION AM DIVISION EPB PULLER CABLES EPB SYSTEMS 9
Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS A company ready to ride secular trends for a long-term journey 1 OEM: Exceptionally sound path to growth on a global scale Global Growth Scenario 2 AM: Only at an early stage of international scalability 3 Strategically positioned to boost long term expansion 4 Top Credenti
Slide 11: OEM: Exceptionally sound path to growth on a global scale
1 OEM 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 2031 (Units in mln) Farm tractors installing Cofle’s systems in 2022 worldwide 145.4 Farm Tractors Market size ($bn) ~150k (1
Slide 12: After Market: Only at an early stage of international scalability
2 AFTER MARKET Only at an early stage of international scalability Planning growth in the European underpenetrated automotive Aftermarket +23% Average Age of the EU vehicle fleet ▪ Eastern European market is 209 257 among the most promising (€bn) (€bn) market in the world. European Market Size ▪ Lit
Slide 13: Strategically positioned to boost long term expansion
3 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 on 1 shifting from overstretched supply chain to locally based suppliers Key competitive advantag
Slide 14: Top Credentials – OEM
4 Top Credentials – OEM A highly prestigious and diversified customer base all over the world 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 takes at least 2 years to be included in the supplier lis
Slide 15: Top Credentials – AM
5 Top Credentials – AM 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) 15
Slide 16: Focus on innovation to anticipate next future trends
6 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 17: Update
UPDATE 17
Slide 18: Update: Cofle France S.A.S. Bureau Commercial
UPDATE COFLE FRANCE S.A.S. BUREAU COMMERCIAL The investment’s objective is to be directly present in the French market, an area in which Cofle Group is already present, and to intensify commercial activities in Spain, Portugal, Maghreb and Benelux, areas that present important potential in terms of
Slide 19: OEM New Projects Update: INEOS
OEM NEW PROJECTS UPDATE INEOS Cofle technology is aboard the new off-road Ineos Grenadier 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
Slide 20: OEM New Projects Update Off Road Products
OEM NEW PROJECTS UPDATE OFF ROAD PRODUCTS SOME EXAMPLES OF MECHATRONICS APPLICATIONS Development of innovative electronic products that represent an upgrade of the control system E-POWER SHUTTLE E-THROTTLE PEDAL MICRO PUSHBUTTON E-HAND THROTTLE E-CLUTCH E-KNOB FOR GEARSHIFT E-KNOBS NANO PUSHBUTTON 2
Slide 21: OEM New Projects Update Off Road Products
OEM NEW PROJECTS UPDATE OFF ROAD PRODUCTS SPECIAL SWITCHES KNOBS AND PCB ELECTRICAL WIRE ASSEMBLY ALL EFFECT SENSOR COMPLEX ARMREST SUPPORT «ALL IN HOUSE» PLASTIC ESTHETICAL TREAMS MECHANICAL STRUCTUR 21 Source: Top Management Cofle S.p.A.
Slide 22: AM New Products Update
AM NEW PRODUCTS UPDATE ALL-IN-HOUSE BRAKE HOSES PRODUCTION EPB PROJECT In 2022 there was a big increase in the selling of the new brake hoses Full Year 2022: € 585 thousands 22 Source: Top Management Cofle S.p.A.
Slide 23: OEM New Logistic Plant
OEM NEW LOGISTIC PLANT Around 3.500 sq.m. just in proximity of Autostrada A4, a few minutes from the Headquarters, between Milano e Bergamo. Operational from 11/2023. It will host the OEM Logistic Division 23 Source: Top Management Cofle S.p.A.
Slide 24: 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. FOCUS: Manufacturers for the OEM market of the following products: Electronic sensors; Control units; Joysticks. OEM Target must have th
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 26: Group's Top Line & Breakdown by Division
GROUP’S TOP LINE & BREAKDOWN BY DIVISION Cofle FY Sales’ Breakdown by division Cofle 1Q Sales’ Breakdown by division 2019FY 2020FY 2022 – 1Q 34% 44% 48% € 37,8 M 52% € 37,0 M € 14,3 M 56% 66% OEM AM OEM AM OEM AM 2021FY 2022FY 2023 – 1Q 30% 33% 38% € 52,2 M € 55,4 M € 17,1 M 62% 67% 70% OEM AM OEM A
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS Cofle Total Revenues & Sales EBITDA IFRS 16 Adj. and EBITDA Margin (€mln) 58,0 (€mln) Total 13,5 13,0 55,4 Revenues 37,0 7,8 28,7 8,0 22,4% 6,8 28,8 52,2 55,4 24,4% 27,1% 37 23,7% 27,5 27,5 21,5% 2020 2021 2022 1H 2021 1H 2022 2020 2021 2022 1H 2021 1H 2022 Sales Sales EBIT and
Slide 28: Consolidated Net Working Capital
CONSOLIDATED NET WORKING CAPITAL Net Working Capital Analysis Net Working Capital (€mln) (€mln) NWC 2019 NWC 2020 NWC 2021 NWC 2022 19,3 12,0 12,3 14,4 19,6 15,3 13,2 13,8 NWC increase in 2022 is mainly due to: ▪ a growing exposure towards OEM clients (with higher DSO comparing to AM 2,9 2,5 2,3 3,4
Slide 29: Fixed Assets and Capex
FIXED ASSETS AND CAPEX Tangible, Intangible and Financial Assets Consolidated Capex 2021 (€mln) Fixed Assets Tangible Capex Intangible Capex (€mln) 7,0 (€ 3,4 – 69%) (€1,5 – 31%) € 4,9 4,5 4,2 3,8 3,4 3,0 3,0 Consolidated Capex 2022 (€mln) 0,9 0,9 0,7 0,3 Financial Intangible Capex 0,1 Investments (
Slide 30: Net Financial Position 2019/2021/2022 – 1H 2021 / 1H 2022
NET FINANCIAL POSITION 2019/2021/2022 – 1H 2021 / 1H 2022 NFP IFRS 16 2019/2021 & 1H 2021 / 1H 2022 Composition of Net Financial Position (€) 2019 2020 1H 2021 2021 1H 2022 2022 Long Term Financial Debts 5.614.765 8.681.003 11.223.583 9.348.695 7.867.844 10.301.703 Short Term Financial Debts 3.911.9
Slide 31: Cash Flow
CASH FLOW Net Financial Position Bridge FY21 to FY22 (€/mln) Other non monetary items ∆NWC ∆ funds D&A NFP FY21 NFP FY22 Dividend distributions EBIT Taxes Interest Expenses/ (Income) Net CF before dividends Net Capex Cash Outflow of 2,8 M Net Cash Flow before dividends 31 Source: Cofle’s management
Slide 32: www.cofle.com
WWW.COFLE.COM investor@cofle.it info@cofle.it Headquarters Via del Ghezzo 54 Trezzo sull’Adda (MI) Italy +39 02920020201