Sogefi S.p.a.MIL: SGF

February 28, 2025 – Full Year 2024 Results

· Issued by Sogefi S.p.a.

Full Year 2024 Results

February 28, 2025

Olivier PROUST - CFO

Maria Beatrice DE MINICIS - Head of Planning and Control

AGENDA

  • FY 2024 Results
  • A resilient business model and a Sustainable Transformation
  • Market Outlook 2025

FY 2024: FINANCIAL HIGHLIGHTS

Revenues at €1,022.3m

Vs 1,039.7 in 2023

EBITDA at € 125.3m

vs €107.8m in 2023

EBIT

Net Income

FCF1 at € 20.6m

vs -€12.8m in 2023

NFP (cash) at € 9.5m

vs € debt of 200.7m Dic '23

Dividend Proposal

  • -4.2%at constant exchange (-1.7% at current), mainly reflecting the market decline in Europe and North America. Selling prices substantially stable
  • Contribution margin € 297.4m vs € 288.4m in 2023 (up from 27.7% to 29.1%)
  • EBITDA excluding non-recurring: € 130.7 m vs € 119.9m in 2023
  • Fixed costs in value substantially stable vs 2023, despite inflationary pressures on labor costs in certain geographical areas
  • € 45.7m vs € 25.6m in 2023 (excluding non-recurring € 52.2m vs € 37.7m) thanks to the recovery of Suspensions margin

Net income of operating activities (Suspensions and A&C at € 18.0m vs € 6.4m in 2023). Net income including the Filter disposal effect at € 141.3m

Free Cash Flow positive at € 20.6m, up vs a negative of €12.8m in 2023. Improvement thanks to Suspensions turnaround and despite of lower use of factoring

Net debt end of December 2024 at € 9.5m vs a Net debt end December 2023 of € 200.7m. Extraordinary dividend of € 109.6m paid on July 24

  • 0.15 per shares (€ 17.8m). The dividend will be paid from 14 May 2025, subject to ex-dividend date on 12 May 2025 and "record date" on 13 May 2025.

1.

FCF and Net debt excluding IFRS 16

3

FY 2024 : SALES BY GEOGRAPHY

constant

reference

performance

weight

2023

2024

change

exchange

market

vs market

based on

€m

rates

production

(bps)

2024

Europe 27

609.1

556.6

-8.6%

-8.6%

-6.1%

-250

54.4%

North America

224.2

214.1

-4.5%

-3.6%

-1.4%

-220

20.9%

South America

84.6

121.0

43.0%

6.8%

2.7%

410

11.8%

Cina

107.4

115.7

7.8%

9.6%

3.8%

580

11.3%

India

17.7

16.7

-5.5%

-4.2%

3.9%

-810

1.6%

Intercompany

(3.3)

(1.7)

Total

1039.7

1022.3

-1.7%

-4.2%

-1.1%

-310

100.0%

  • -4.2% at constant exchange mainly reflecting the decline in Europe (-8.6%), a result affected by a difficult market (-6.1%)
  • China and South America overperforming the market

Source: Sogefi and S&P Global (IHS) data. Passenger cars and Light commercial vehicles only.

4

FY 2024 : SALES BY BUSINESS UNIT

constant

2023

2024

change

exchange

€m

rates change

Air&Cooling

465.4

457.4

-1.7%

-1.0%

Suspensions

574.5

564.6

-1.7%

-6.9%

Intercompany

(0.2)

0.3

Total

1039.7

1022.3

-1.7%

-4.2%

  • Suspensions reflecting the difficult market in Europe, especially in heavy duty (-23.5%) due to the conclusion of some contracts
  • Air and Cooling with better-than-market performance in Europe

5

OUR CUSTOMERS (% of sales)

FY 2023

German Premium and Chinese OEMs gaining shares

FY 2024

6

FY 2024 : EBIT PERFORMANCE BREAKDOWN VS 2023

5.1 %

of sales

4.5 %

3.6 %

of sales

of sales

2.5%

of sales

(*) Variances calculated at stable FX

(**) Exchange rate impact net of Argentinian inflation

7

.

FY 2024 : P&L

€m

2023

%

REVENUES

1,039.7

100.0%

CONTRIBUTION MARGIN

288.4

27.7%

Gross Fixed Costs

174.0

16.7%

Restructuring

1.8

0.2%

Exchange Differences

5.2

0.5%

EBITDA

107.8

10.4%

EBITDA excluding non-recurring

119.9

11.5%

D&A

77.9

7.5%

Write downs

4.2

0.4%

EBIT

25.6

2.5%

2024

%

1,022.3

100.0%

297.4

29.1%

Higher contribution margin thanks to Squeeze

management

174.2

17.0%

Stable fixed costs despite inflationary pressure on

4.3

0.4%

labor costs in certain geographical areas

(0.4)

0.0%

125.3 12.3%

130.7 12.8% Up 9%

  1. 7.6%
  1. 0.1%

45.7 4.5%

EBIT excluding non-recurring

37.7

3.6%

Financial results

14.8

1.4%

Income Tax

4.4

0.4%

Minority Interest

3.2

0.3%

NET INCOME OF OPERATING

6.4

0.6%

ACTIVITIES

Net income from discontinued

54.6

operations

NET INCOME

57.8

5.6%

52.2 5.1%

14.7 1.4%

  1. 1.3%
  1. 0.3%

18.0 1.8%

125.9

141.3 13.8%

Up 38.7%

Cash Interests down from € 16.7m to € 12.7m despite one-off connected to loans early repayment Higher taxes reflecting progression in pre-tax results

Includes:

• Filtration disposal capital gain(€ 122.4m), transaction costs, taxes and net profit up to end of May

• € 8.6m non-cash provisions related to Mexican

Suspensions (sold 4Q 2023) to guarantee customers

8

production continuity

FY 2024 : FREE CASH FLOW NEW PERIMETER

€m

2023

FUNDS PROVIDED BY OPERATIONS

92.0

Working Capital

-32.9

Capex (Tangible, Intangibles & IFRS15)

-68.4

Others

-1.8

FREE CASH FLOW (NET) EX DISPOSAL

(12.0)

NET FINANCIAL POSITION

200.7

FACTORING

55.8

2024

95.5

4.6

-72.8

Positively affected by Filtration's deconsolidation

2.9

(intercompany debt and working capital) for

30.3

around € 15m

9.5

After the dividends payment of € 136.7m and €

312.8 cash-in of the Filtration Disposal

(including taxes and costs)

48.8

Lower use of factoring

FCF and Net debt excluding IFRS 16

9

FY 2024: SUSPENSIONS

SALES (€m)

EBITDA (€m) excluding non-recurring

EBITDA Margin

8.6%

9.8%

  • 2024 down 6.9% at constant (-1.7% at current exchange and net of Argentina's inflation) mainly affected by the difficult market in Europe especially in heavy duty (-21.2% in FY 24, -27.7% in Q4)
  • Sales positive trend in China (+36.2% at constant exchange)
  • In South America sales up 6.8% while in India down 4.2% at constant exchange
  • EBITDA growth in absolute value and in %
  • 2024 contribution margin up in % (from 27.1% to 28.8%) and in value (+4.5 % vs 2023) thanks to squeeze management
  • Margin improvements thanks to the actions

implemented in Europe (concentration of production

capacity after footprint optimization and Romania

EBITDA positive in 2024)

10

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