Cofle S.p.a. · MIL:CFL
Cofle — Investor Presentation (December 2024)
38 slides from Cofle's investor presentation, December 2024
Slide 1: Investor Presentation
Global supplier of control systems and control cables INVESTOR PRESENTATION __________________________________________ December 2024
Slide 2: Key Highlights
COFLE GROUP Key Highlights KEY POINTS DESCRIPTION • Secular trends driving increased total addressable 145,4 Growth market Farm Tractors ($bn) 1 • Global Farm Tractors Market Forecast to 2031 estimated growing with +8,9% 73,7 ($bn) Market size 2031E CAGR 2023-20311 2023 Global Presence • We are wher
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 Claudio Viscardi Diego Galbussera Head of Group Comm. Group CFO AFC Italy & IRM Halil Bilgin Demet Benveniste General Manager COFLE TK General Manager TABO > 20 years of experience > 20 years of expe
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 2031 Global Farm Tractors Market Production 145,4 2015 2021 2022 2023 Farm Tractors Market ($bn) Total 1.900.000 2.100.000 2.5
Slide 13: OE: Competitive Advantage
2 OE: COMPETITIVE ADVANTAGE The main competitive advantage for OE division is represented by its high level of verticalization which allows the company to increase its operating margins with respect to the competitors in the industry Water tank with Plastic welding electric pump Mould design and pro
Slide 14: IAM: Planning growth in the European underpenetrated aftermarket
3 IAM Planning growth in the European underpenetrated automotive Aftermarket 257 Average Age of the EU vehicle fleet European Market Size ($bn) 209 Aftermarket ($bn) 2025E 2021 IAM Brake Cables Market Size 2022 501 90 52 Brake Cables 137 Clutch Cables 147 Gear Shift Cables € mln 76 Total Brake Hoses
Slide 15: Global Supply Chain
4 GLOBAL SUPPLY CHAIN Strategically positioned to boost long term expansion BENELUX Integrated facilities and platforms in the key areas of the world Cofle S.p.A. Cofle TK Otomotiv Cofle France Cofle Tabo ITALY Cofle do Brasil Cofle Taylor India SPAIN Ltda. PORTUGAL Production Only Distribution Sale
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: IAM New Products Update
IAM NEW PRODUCTS UPDATE All-In-House production to maintain high margins ELECTRONIC PARKING BRAKE (EPB) Thanks to this innovation, for which Cofle has already filed patents, and considering the expected increase in demand over the coming years, Cofle estimates a revenue growth of approximately 10 mi
Slide 21: OE New Projects Update: INEOS
OE NEW PROJECTS UPDATE INEOS Cofle technology is aboard the new off-road Ineos Grenadier Cofle provides Transfer Case Manual Shifter and Cables, which enables the unlocking of the differential to vary power distribution to each individual wheel, as well as the engagement and disengagement of low gea
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 assemb
Slide 24: 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 24
Slide 25: ESG
ESG ENVIRONMENTAL SEE OUR VIDEOS HERE Cofle ESG (youtube.com) 25
Slide 26: 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 27: ESG: Social
ESG SOCIAL • 100% of employees on permanent contracts • 4.360 training hours in 2023 • Selection and evaluation of suppliers with environmental, ethical and social criteria • 90% of suppliers from Cofle SpA have certifications • 0% Rate of injuries with serious consequences • Projects for the sustai
Slide 28: 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 29: ESG: Governance
ESG GOVERNANCE • Corporate Code of Ethics • Adoption of "Organizational, Management, and Con Model" pursuant to Legislative Decree No. 231/2001* • Integrated Quality and Environment Management System in compliance with UNI EN ISO 9001 and 14 standards • Internal Dealing procedure • Procedure for Ins
Slide 30: 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 30
Slide 31: Financial Highlights
FINANCIAL HIGHLIGHTS 31
Slide 32: Group Sales by Division – HY 2024
GROUP SALES BY DIVISION – HY 2024 Sales Breakdown by division Market Diversification (HY 2022 – 2024) OE Division 1H 23 1H 24 Delta AG 18,8 17,3 -1,5 Automotive 0,8 1,2 0,4 Sport Cars 0,3 0,4 0,1 Others 0,5 0,4 -0,1 IAM Division 1H 23 1H 24 Delta Brake Cables 6,8 8,2 1,4 Gearshift Cables 0,7 1,2 0,5
Slide 33: Financial Highlights
FINANCIAL HIGHLIGHTS Cofle Total Revenues & Sales EBITDA IFRS 16 Adj. and EBITDA Margin 23,7 % 17,5 % 13,8 % Main Events 1H 2024: ▪ + € 0,9 M labour costs in Turkey ▪ OE Agri Tech Market worldwide slowdown EBIT and EBIT Margin * Net Income and Net Income Margin 16,7 % 8,8 % 4,1 % 11,8 % 2,6 % -6,6 %
Slide 34: Consolidated Net Working Capital
CONSOLIDATED NET WORKING CAPITAL Net Working Capital Analysis Net Working Capital (€mln) (€mln) NWC 2022 NWC 2023 NWC 1H 2024 19,7 18,9 22,0 Other Current Liabilities Working Capital Other Current Assets 2022 2023 1H 2024 Working Capital Composition (€mln) DSO ~86 ~75 ~73 DIO ~140 ~150 ~167 Accounts
Slide 35: Fixed Assets and Capex
FIXED ASSETS AND CAPEX Tangible, Intangible and Financial Assets Consolidated Capex 2023 Tangible Capex (€ 6,8) (€mln) • New Plant in Trezzo sull’Adda M€ Intangible Capex (€ 1,7) 3,3 by Cofle S.p.A. • Industrial and commercial • R&D M€ 0,7 by Cofle TK Fixed Assets • equipment M€ 1,3 by Cofle S.p.A.
Slide 36: Net Financial Position FY 2021 - 1H 2024
NET FINANCIAL POSITION FY 2021- 1H 2024 NFP IFRS 16 FY 2021- 1H 2024 NFP composition - debt (cash) (€) 2021 2022 2023 1H 2024 Long Term Financial Debts 9.348.695 10.301.703 4.762.629 5.058.994 Short Term Financial Debts 1.299.154 4.269.010 12.962.758 14.333.351 Cash and Cash Equivalents -15.493.769
Slide 37: Cash Flow
CASH FLOW Net Financial Position Bridge FY23 to HY24 € 5,3 M Cash Outflow 37 Source: Management Accounts 2022 – 1H 2024
Slide 38: www.cofle.com
WWW.COFLE.COM investor@cofle.it info@cofle.it Headquarters Via del Ghezzo 54 Trezzo sull’Adda (MI) Italy +39 02920020201