Slide 1: Investor Presentation
Global supplier of control systems and control cables INVESTOR PRESENTATION __________________________________________ May 2024
Slide 2: Key Highlights
COFLE GROUP Key Highlights KEY POINTS DESCRIPTION • Secular trends driving increased total addressable 104 Growth market Farm Tractors ($bn) 1 • Global Farm Tractors Market Forecast to 2030 estimated growing with +5,1% 73,7 ($bn) Market size 2030E CAGR 2023-20301 2023 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 - 68%* AFTERMARKET - 32%* ▪ 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 Statutory Auditors Chairman Cofle SpA Chairman & CEO Giuseppe Rota Italy Walter Barbieri Auditor VP and Director Arturo Carcassola Alessandra Barbieri Auditor Director Ugo Palumbo Marco Facchin Assi Supplementary Auditor 80% 100% Cofle Do Brasil Nicola
Slide 7: Organization Chart
ORGANIZATION CHART Experienced multinational Management Team Walter Barbieri CEO Alessandra Barbieri Diego Galbussera Head of Group Comm. CFO & IRM Halil Bilgin Demet Benveniste Rosario Giuliana General Manager COFLE TK General Manager TABO HR Director > 20 years of experience > 20 years of experien
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: 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 11: 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 2 OE: Competitive advantage Global Growth Scenario 3 IAM: Only at an early stage of international scalability 4 Global Supply Chain 5 State of Art Crede
Slide 12: 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 Global Farm Tractors Market Forecast to 2030 Global Farm Tractors Market Production 104 2015 2021 2022 2023 Farm Tractors Market ($bn) Total 1.900.000 2.100.000 2.500
Slide 13: OE: Competitive Advantage
2 OE: COMPETITIVE ADVANTAGE The main competitive advantage for OE division is represented by its high level of verticalization which allows the company to increase its operating margins with respect to the competitors in the industry Water tank with Plastic welding electric pump Mould design and pro
Slide 14: IAM: Planning growth in the European aftermarket
3 IAM Planning growth in the European underpenetrated automotive Aftermarket 257 Average Age of the EU vehicle fleet European Market Size ($bn) 209 Aftermarket ($bn) 2025E 2021 IAM Brake Cables Market Size 2022 501 90 52 137 147 € mln 76 Total o/w € 14,6 mln Cofle 2023 Revenues Leveraging on Italian
Slide 15: Global Supply Chain
4 GLOBAL SUPPLY CHAIN 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 co
Slide 16: State of Art Credentials - OE
5 STATE OF ART CREDENTIALS - OE A highly prestigious and diversified customer base all over the world Agriculture Construction & Industrial Automotive New client 1 Long term relationship with Top Market Leaders in the world, ranging from CNH to AGCO and John Deere as undisputed proof of leadership.
Slide 17: State of Art Credentials - IAM
6 STATE OF ART CREDENTIALS - IAM From Top Aftermarket Manufacturers to Top Aftermarket distributors New client 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
Slide 18: Focus on R&D
7 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: French market and presence close to customers
UPDATE French market and presence close to customers BENELUX Cofle has been operating in the French market since 1980. Today, the French market represents a strategic point for future growth. Commercial presence in Paris Beauvais allows Cofle to closely monitor the industrial hub of the agricultural
Slide 21: OE New Projects Update
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 5,2 million euros (o/w 1,6 mln e
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 ELECTRICAL PARKING BRAKE (EPB) Electrical parking brake (EPB) is used to keep the vehicle motionless by applying the brakes of the vehicle. Electrical parking brake system is used to keep the vehicle stable while le
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 reco
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 sources • Study of new packaging to replace the use of plastic for all AM clients • Replacement of single-use wooden b
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 SOCIAL • Pursuing of the prevention project with free medical visits for employees in collaboration with 2024 LILT (Italian League for the 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 Contr Model" pursuant to Legislative Decree No. 231/2001* • Integrated Quality and Environment Mana
Slide 31: Sustainable Development Goals: Governance
Sustainable Development Goals GOVERNANCE • Increase in the share of •female presence Study and inclusionin of the ESG goals in the company remuneration systems of Managers 2024 • Gradual expansion of the sustainability reporting scope to fully cover the Group consolidation 31
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS 32
Slide 33: Group Sales by Division - FY 2023
GROUP SALES BY DIVISION – FY 2023 Sales Breakdown by division Market Diversification (FY 2021 – 2023) OE Division 2022 2023 Delta 60,6 AG 37,3 38,3 1,0 60 55,4 52,2 Automotive 0,4 1,6 1,2 50 19,6 16,6 Sport Cars 0,5 0,6 0,1 20,0 40 Others 0,6 0,5 -0,1 € mln 30 IAM Division 2022 2023 Delta 20 38,8 41
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS Cofle Total Revenues & Sales EBITDA IFRS 16 Adj. and EBITDA Margin 70 64,1 24,4 % 22,4 % 17,9 % 58,0 3,5 13,5 60 55,4 14 13,0 2,6 0,6 11,5 Main Events FY 2023: 3,2 1,0 12 50 0,4 ▪ + € 2 M labour costs in Turkey 1,2 10 ▪ + € 0,2 M strategic consulting 40 € mln (one-off item) € ml
Slide 35: Consolidated Net Working Capital
CONSOLIDATED NET WORKING CAPITAL Net Working Capital Analysis Net Working Capital (€mln) (€mln) NWC 2021 NWC 2022 NWC 2023 19,3 18,7 14,4 19,7 18,9 15,3 3,9 2,3 3,4 Other Current Liabilities Working Capital Other Current Assets 2021 2022 2023 -3,3 -3,0 -3,7 -4,1 -4,0 Working Capital Composition 2021
Slide 36: Fixed Assets and Capex
FIXED ASSETS AND CAPEX Tangible, Intangible and Financial Assets Consolidated Capex 2022 (€mln) Tangible Capex (€ 2,5) Intangible Capex (€ 0,8) • Equipment and machinery M€ 1,0 by Turkish • R&D M€ 0,6 by Cofle TK Fixed Assets • subsidiaries and 0,4 M€ by Cofle S.p.A. Industrial and commercial equipm
Slide 37: Net Financial Position FY 2021-2023
NET FINANCIAL POSITION FY 2021-2023 NFP IFRS 16 FY 2021-2023 NFP composition - debt (cash) (€) 2021 1H 2022 2022 2023 Long Term Financial Debts 9.348.695 7.867.844 10.301.703 4.762.629 Short Term Financial Debts 1.299.154 4.621.425 4.269.010 12.962.758 Cash and Cash Equivalents -15.493.769 -13.509.8
Slide 38: Cash Flow
CASH FLOW Net Financial Position Bridge FY22 to FY23 € 5,8 M Cash Outflow 38 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