Slide 1: Investor Presentation
Global supplier of engineered systems for major vehicle manufacturers in the agriculture sector INVESTOR PRESENTATION __________________________________________ Update in September 2023
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 industrial one • The Group aims at • Set up of production activities in Turkey expanding further its • At that time
Slide 5: Cofle Group Today
COFLE GROUP TODAY ITALY – OE Logistic Plant TURKEY – TK 1 OE Plant TURKEY – TK 2 OE Plant ITALY – HQ & Plant PRODUCTION PLANT ALL-IN-HOUSE 6 in 4 countries PRODUCTION REPRESENTATIVE OFFICE Pricing power thanks Plant Description 2 (France/China ) • Plant description Cofle’s real estate • Leased • Pla
Slide 6: Group Structure & Governance
GROUP STRUCTURE & GOVERNANCE Board of Directors Chairman & CEO Walter Barbieri Cofle SpA Director Italy Alessandra Barbieri Director Silvio Benedetti Independent Director 80% 100% Cofle Do Brasil Enrico Mambelli Tabo Otomotiv A.S. Ltda Director Sergio Buoncristiano Cofle TK Otomotiv 87% 76,5% Cofle
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 27
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: 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 11: OE: 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 Global Farm Tractors Market Forecast to 2031 Global Farm Tractors Production 2021 145,4 Farm Tractors Market ($bn) ~ 2,1 mln units 85,12 size ($bn) 2031 Global Farm T
Slide 12: IAM: Growth in the 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 13: 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 14: State of Art Credentials - OE
4 STATE OF ART CREDENTIALS - OE 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 supp
Slide 15: 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) 15
Slide 16: 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 17: Update
UPDATE 17
Slide 18: 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 19: 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 20: OE New Projects Update: Off Road Products
OE NEW PROJECTS UPDATE Off Road Products – Specific projects for two customers 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 N
Slide 21: OE New Projects Update: Mechatronic & Electronic Applications
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 22: 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 23: 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. Operational from 11/2023. It will host the OE Logistic Division 23
Slide 24: SDG Mapping
SDG MAPPING 6 out of 17 SDGs have been considered primary to achieve before the end of 2024 ▪ Start of the prevention project ▪ Study of new packaging to with free medical visits for replace the use of plastic for all employees in collaboration with AM clients LILT (Italian League for the Fight agai
Slide 25: ESG Performance
ESG PERFORMANCE ▪ 8,4% total energy consumption ▪ 100% of employees on ▪ Code of Ethics per revenues (2021 vs. 2020) permanent contracts ▪ Integrated Quality and ▪ 44,7% electricity from renewable ▪ 41,5% share of women on Environment Management sources [-29 t CO2e issued in 2021] total employees Sy
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS 26
Slide 27: Group Sales by Division - Update 1H 2023
GROUP SALES BY DIVISION – Update 1H 2023 Sales Breakdown by division Sales Breakdown by division (FY 2019 – 2022) (1H 2022 VS 1H 2023) 2019FY 2020FY 2022 – 1H 32% 44% 48% € 37,8 M 52% € 37,0 M € 27,5 M 56% 68% OE IAM OE IAM OE IAM 2021FY 2022FY 2023 – 1H* 30% 38% 33% € 52,2 M € 55,4 M € 32,2 M 62% 7
Slide 28: 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 28,8 8,0 22,4% 6,8 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 29: 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 30: 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 0,9 0,9 (€mln) 0,7 0,1 0,3 Financial Intangible Capex Investments (
Slide 31: Net Financial Position FY 2019-2022
NET FINANCIAL POSITION FY 2019-2022 NFP IFRS 16 FY 2019-2022 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 3.911.922 2.912.042 838.937 1.299.154 4.621.42
Slide 32: 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 32 Source: Management Accounts
Slide 33: www.cofle.com
WWW.COFLE.COM investor@cofle.it info@cofle.it Headquarters Via del Ghezzo 54 Trezzo sull’Adda (MI) Italy +39 02920020201