Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION May 2023
Slide 2: Cofle Group: Snapshot
COFLE GROUP: Snapshot One global player, two divisions: OEM and Aftermarket (AM) OEM DIVISION - 70%* AFTERMARKET DIVISION - 30%* CORE BUSINESS CORE BUSINESS CABLES FOR THE CONTROL SYSTEMS AUTOMOTIVE AND CABLES FOR FARM Cofle Brand products AFTERMARKET TRACTORS Third-Party Brand Cofle Brand Clients b
Slide 3: 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 4: Cofle Group Today
COFLE GROUP TODAY ITALY (HQ) – Plant & Logistic Center TURKEY – TK 1 OEM Plant TURKEY – TK 2 OEM Plant PRODUCTION PLANT Plant Foto 6 in 4 countries REPRESENTATIVE OFFICE Plant description Plant Description Plant Description 2 (Usa ) • Leased • Leased • Leased • 5.000 sqm • 2.000 sqm • 2.000 sqm WHAR
Slide 5: 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 91,9%
Slide 6: 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 7: 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 bonnet cables 7
Slide 8: 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 BRAKE HOSES AM DIVISION EPB PULLER CABLES EPB SYSTEMS 8
Slide 9: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Key factors behind the success of an Italian multinational company 1 OEM: Exceptionally sound path to growth on a global scale Global Growth 2 AM: Only at an early stage of international scalability Scenario 3 Strategically positioned to boost long term expansion 4 Top Cred
Slide 10: Exceptionally sound path to growth on a global scale
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 Farm tractors installing Cofle’s (Units in mln) 85,5 systems in 2020 worldwide Farm Tractors Market ($bn) size 66,7 ~150k ($bn
Slide 11: Only at an early stage of international scalability
Only at an early stage of international scalability Planning growth in the European underpenetrated automotive Aftermarket Source: Acea Auto, «Average age of the EU motor vehicle fleet, by vehicle type» (2021); The Boston Consulting Group, «At the crossroads: The European Aftermarket in 2030», (2021
Slide 12: Strategically positioned to boost long term expansion
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 advantage
Slide 13: Top Credentials – OEM
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 list
Slide 14: Top Credentials – AM
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) 14
Slide 15: Update
UPDATE 15
Slide 16: Update: Cofle France S.A.S.
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 17: 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 18: 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, based on two specific projects for two customers E-POWER SHUTTLE E-THROTTLE PEDAL MICRO PUSHBUTTON E-HAND THROTTLE E-CLU
Slide 19: 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 19 Source: Top Management Cofle S.p.A.
Slide 20: AM New Products Update
AM NEW PRODUCTS UPDATE BRAKE HOSES EPB PROJECT In 2021 there was a big increase in the selling of the new brake hoses: € 416 thousands. Full Year 2022: € 585 thousands Source: Top Management Cofle S.p.A. 20
Slide 21: 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. Operational from 11/2023. It will host the OEM Logistic Division 21 Source: Top Management Cofle S.p.A.
Slide 22: 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 23: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 29 Source: Cofle’s management
Slide 30: www.cofle.com
WWW.COFLE.COM investor@cofle.it info@cofle.it Headquarters Via del Ghezzo 54 Trezzo sull’Adda (MI) Italy +39 02920020201