Euronext Star Conference
Milan, March 21°, 2024
Frédéric SIPAHI – CEO
Benjamin CADIC – General Manager Air and Cooling
2
• FY 2023 Financials
• Filtration Disposal
• Sogefi Group Profile post Transaction
• Market Outlook 2024
AGENDA
3
FY 2023 Financials
01
4
Revenues at €1,627.9m
vs 1,543.4 in 2022
•
• EBITDA excluding non-235193.7m in 2022
EBITDA at € 221.4m
vs €195.1m in 2022
without acquisition of ATN and UK pension funds at 45m,
EBIT
• with higher growth in value excluding non-recurring (
FCF
1
at € 32.7m
vs €30.5m in 2022
Net debt end December
Net debt
1
at € 200.7
vs € 224.3m Dec. 2022
643157.8m
including -i.e. Mexico Suspensions disposal in Q4)
Net Income
• +9.1% at constant exchange (5.5% at current) benefiting of price increase related to pass-
though (+2.8%) and volume growth (+6.1%)
1
FCF and Net debt excluding IFRS 16
FY 2023: FINANCIAL HIGHLIGHTS
per share (
Divided Proposal
5
(**) Exchange rate impact net of Argentinian inflation
(*) Variances calculated at stable FX
FY 2023: EBIT PERFORMANCE BREAKDOWN VS 2022
Mainly for inflationary
pressures
6.5 %
of sales
4.6%
of sales
5.0 %
of sales
7.3 %
of sales
5.2m Exchange
differences and
4.5m one-off
Suspension
restructuring
6
Filtration Disposal
02
7
473.7
529.7
535.1
546.4
537.2
467.1
421.2
463.4
535.7
573.6
47.6
52.0
53.6
62.8
59.6
54.6
47.6
73.4
83.0
102.6
-20.0
30.0
80.0
130.0
180.0
230.0
280.0
330.0
380.0
430.0
480.0
530.0
580.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
SALES EBITDA
In 2023 Filtration generated the strongest results of the last 10 years
➢ performance, both in terms of sales and profitability, has reached its historical
highs, following the divestiture of certain unprofitable operations and a successful commercial
and operational improvement program, in a favorable business environment in aftermarket
(the most profitable segment)
10Y Result
FILTRATION: HISTORICAL FINANCIALS
Note: Historical data don’t include A&C Usa that is part of the filtration perimeter to be sold (2023 A&C Usa data: Sales € 22,7 m and Ebitda € 3,6 m, expected to run off over the next few years)
8
✓ February 23
rd
, 2024: Sogefi entered into a put option agreement with the US private equity fund Pacific
Avenue Capital Partners committed to acquire the Sogefi Filtration Business Unit.
✓ Next steps:
(i) works council consultation process completion (2-3 months as required by French law);
(ii) exercise of the put option by Sogefi and Signing of the Sale and Purchase Agreement;
(iii) Closing (expected within six months).
✓ Enterprise value: Euro 374 million
✓ Equity Value: estimated at approximately Euro 330 million to be settled entirely in cash (would be
determined at closing taking into account adjustments based on the Working Capital and the Net
Financial Position)
✓ Capital gain: of approximately Euro 130 million.
✓ Strategic rationale:
(i) value Filtration in a phase when the unit has achieved unprecedented results;
(ii) reduction powertrain component in the group's business portfolio;
(iii) to focus on the Suspension & Air&Cooling.
✓ Proceed allocation: a. 50% will be allocated to the reduction of the group's indebtedness; a. 50% the
Board of Directors will evaluate to propose its distribution.
FILTRATION DISPOSAL
9
Sogefi Group Profile post
Transaction
03
10
+40
years of
experience in
automotive
business
>1
Billions
of revenues
2023
14
countries
24
5
productions
plants
R&D centers
3 300
EMPLOYEES
2
Business
Lines
Air&Cooling
Suspensions
listed on
the Milan
Stock
Exchange
since 1986
AT A GLANCE
11
A stable shareholder structure and a long-term vision:
✓ Very fast global development
✓ Opening of new plants in India, China, Mexico and Eastern Europe.
A balanced approach of international development:
✓ Grow where market and technology grow
✓ Invest either in production sites or in R&D dedicated centres
Europe a key region: 17 plants, 3 R&D centers, presence in 7 European countries
China a remarkable growth: strategic region for e-mobility and in terms of market size
North and South America: strong presence with very dominant positions
India: a very fast development, we are monitoring very closely this region
A global offer and a real culture of innovation and development
✓ Accumulation of technological know-how in each region
✓ Transversalization
GLOBAL FOOTPRINT
12
DIVERSIFIED MARKETS
AUTOMOTIVE (84%)
HEAVY DUTY (11%)
OUT AUTOMOTIVE (5%)
13
• Chinese Pure electric OEMs
• North America pure electric OEMs
• New entrants LCV
• New entrants from other sectors
Legacy Customers
Development of Sogefi new Customers
New Entrants on the market
NEW ENTRANTS & CUSTOMER PORTFOLIO EVOLUTION
14
FY 2022
FY 2023
CUSTOMERS (% of sales)
After Filter disposal increased weight of Chinese OEMs (from 6.6% to 10.3%)
15
2023 SALES BY POWERTRAIN
21% of current Sales are for E-mobility
(Hybrid+FEV)
16
• Stabilizer bars
• Coil springs
• Torsion bars
• Leaf springs
• Precision springs
2023 SALES a. 1B Euro & EBITDA a. 10%
Main
Competitors
✓
Worldwide
N°2
• Manifolds
• Air ducts
• Coolant Pump
and outlet housing
• EV cooling modules
• EV cooling plates
€ 574 M
€ 487 M
17
A&C BL concluded new contracts :
✓ in North America for the supply of Cooling products for E-mobility platforms and Water Pump and
Manifolds for ICE vehicles.
✓ in China, all with E-mobility key players:
-In H1 a major order was awarded from BYD for a Plug-in-Hybrid platform
-To supply "Oil trees" used in EV cars to lubricate the gearbox.
These parts, traditionally in metal, are in plastic reducing weight and optimizing design and costs.
✓ in Europe for E-mobility Thermostat and air intake manifolds for ICE vehicles
Suspensions BL has been awarded:
✓ In China for the supply of stabilizer bars with an innovative local player, new entrant in the market, aiming to
become one of the main producers in the electric car market
✓ in Europe, mostly related to E-mobility (except for HD) for both: coil springs and stabilizer bars. For stabilizer
bars, one of the main contract is related to high-end electric SUVs
✓ in India for stabilizer bars for light commercial vehicles from an innovative new company aiming to become a
major EV market player in India
✓ in South America for coil/leaf springs and heavy stabilizer bars for passenger cars and commercial vehicles
(all related to ICE)
27% of
the awards
related to
E-mobility
45% of
the awards
related to
E-mobility
BUSINESS DEVELOPMENT
36% of 2023 Award are for E-mobility
18
49%
51%
Orders Pipeline
100%
Of which E-mobility
(74%)
70%
78%
BUSINESS QUOTATIONS PORTFOLIO
74% of current Quotations are for E-mobility
(December 2023)
19
A&C – BUSINESS LINE STRATEGY
✓ Consolidate A&C position in ICE and SOGEFI legacy customer base in Automotive
✓ Conquer E-Mobility market share with SOGEFI historical OEMs
✓ Extend A&C customer portfolio as E-Mobility is leaded by new players
✓ Conquer E-Mobility market share with non-OEMs customers
FROM > TIER 1 POWERTRAIN SUPPLIER OF ICE APPLICATION
TO > A GLOBAL E-MOBILITY PLAYER OF ENERGY MANAGEMENT
20
E-MOBILITY - NEW A&C PRODUCT LINE
Multi ports diverter Valve direct the
thermal flow for regulation
Cooling Module simplifying fluids routing to
motors, power units, batteries, heat
exchangers etc…
Thermal Management module manage
fluids routing with integrated electric pumps
made in house and valves into compact
modules
Cooling system components such
as manifolds up to cooling pipes
Electric Water Pump Small and light with
interface flexibility scalable from 100 to 200W
Focus on
business
development
21
HIGH VOLTAGE SYSTEM - NEW A&C PRODUCT LINE
Batteries components to protect and retain
cells based on any specific customer needs we
design and produce
Power Electronics structural high voltage
solutions with coated plastic cover and
other integrated cooling options
Cooling plate for different size of
batteries with short development
timing &with innovative
process improving CO2 reduction
Lateral Cold Plate using hybrid welding
technology to reach and optimal cost
and weight optimization
Battery Housing from simple and
widespread technical concept to
immersive cooling
Focus on
business
development
22
SUSPENSION – BUSINESS LINE STRATEGY
✓ Load optimization through footprint optimization (closure of 2 plants: Germany in 2022, UK in
2023; Sale of Mexico in 2023) and volume massification
✓ Boosting technology by increasing process efficiency and flexibility
✓ Rationalising our material diversity, introduce new sources and increase competition within our
supplier portfolio
✓ Improving profitability with balanced (re)pricing agreements with our customers, tight cost
control and industrial upgrade
✓ Further developing our market shares on hybrid and EV platforms, as well as LCVS
Become a strong player in all commodities through profitable growth and industrial
excellence
Focus on cost
management
23
Product balancing
SUSPENSIONS – KEY FIGURES
5Y Sales and EBITDA evolution
20%
44%
5%
4%
21%
6%
Passenger Car - Coil Springs
Passenger Car - Stabilizer Bars
Passenger Car - Torsion Bars
Precision Springs
Heavy Duty
Others
• Sales back to pre-Covid level in 2022
• Sales 2023 +44% vs 2020
• EBITDA back to pre-Covid level in 2023
• Heavy Duty: 3 dedicated plants in Europe with strong
presence in premium customers
• Precision Springs: 3 dedicated plants, with a wide
range of business application and customers
(Automotive - Buildings - Power&Electric industrial)
550
400
458
548
574
8.6%
6.7%
5.9%
5.6%
8.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0
100
200
300
400
500
600
700
2019 2020 2021 2022 2023
Sales EBITDA (excluding non-recurring)
24
Front Coil
Springs
Rear Coil
Springs
Front
Stabilizer Bars
Rear
Stabilizer Bars
PASSENGER CARS – Coil Springs & Stabilizer Bars
25
Leaf Springs
Front
Coil Springs
Front
Stabilizer Bars
Progressive
Springs
SPECIFIC LCV PRODUCT RANGE
LCV Light Commercial Vehicles
26
EQS
EQE
5/7/8 Series
X2/X3/X7
IX2
Megane etech Scenic etech
Opel ecorsa
Fiat 500e
MERCEDES-BENZ
VOLKSWAGEN
Peugeot 208e
RSA
BMW
STELLANTIS
ID BUZZ
R5 etech
SUSPENSION EXPERTISE on BEVs
SOGEFI is supporting OEMs in this significant transition without compromising driving dynamics
27
Market Outlook 2024
04
28
At pre-covid level in
2024 thanks to
China and India
MARKET OUTLOOK
Expecting a tough
start of the year in
Europe
FY 2023 vs
FY 2022
Europe 27
12.5% -8.6% -3.2% -1.9% -14.6%
North America
9.5% 2.2% 1.0% 1.1% -3.0%
South America
3.5% -3.5% 2.7% 3.1% -6.8%
China
9.4% 7.1% 8.3% 0.1% 17.3%
India
6.3% 2.7% 3.1% 3.6% 34.2%
Total
9.4% 0.5% 2.4% -0.5% 0.8%
S&P Global (IHS) December 2023
Q1 2024 vs Q1
2023
FY 2024 vs FY
2019
FY 2024 vs FY
2023
Q2 2024 vs Q2
2023
29
• The visibility on the automotive market trend in 2024 remains reduced due to the uncertainties related
to the macroeconomic and geopolitical evolution. For 2024, S&P Global (IHS) expects global auto
production to decline 0.5% with Europe down 1.9%, China flattish and marginal grow in the other areas
• As regards raw materials and energy prices, the first 2024 months confirm a certain stability, already
recorded in the second part of 2023, but they remain exposed to volatility risks exacerbated by geo-
political tensions. Inflationary tensions also remain on labor costs in certain geographical areas.
• In this scenario, the Group constantly monitors trends in the various geographical areas, seeking fair
agreements with all customers on sales prices
•
2024 the Sogefi Group expects - for all three divisions that currently make up the group - a low-single
digit revenue growth, higher than forecasts for the automotive market, and a profitability, excluding non-
recurring charges, at least in line with that recorded in 2023
• In the event of Filtration division deconsolidation, on continuity of perimeter (Suspensions and Air &
Cooling), the same evolution of revenues is expected, with an improvement in operating profitability
and a positive net result
MARKET OUTLOOK
30
• This document has been prepared by SOGEFI S.p.A. for information purposes only and for use in presentations
of the Group’s results and strategies.
• For further details on the SOGEFI Group. reference should be made to publicly available information. including
the Annual Report, the Semi-Annual and Quarterly Reports.
• Statements contained in this document, particularly the ones regarding any SOGEFI Group possible or assumed
future performance are or may be forward looking statements and, in this respect, they involve some risks and
uncertainties.
• Any reference to past performance of the SOGEFI Group shall not be taken as an indication of future
performance.
• This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of
it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
DISCLAIMER
32
APPENDIX
33
2022 2023
change
constant
exchange
rates
reference
market
production
performance
vs market
(bps)
weight
based on
2023
Europe 27 890.9 980.1 10.0% 10.2% 12.5% -229 60.2%
North America 331.5 351.3 6.0% 10.5% 9.5% 105 21.6%
South America 108.0 84.6 -21.7% -2.2% 3.5% -575 5.2%
Cina 115.6 107.4 -7.1% 0.5% 9.4% -895 6.6%
India 104.5 111.9 7.1% 15.6% 6.3% 925 6.9%
Intercompany (7.1) (7.6)
Total 1543.4 1627.9 5.5% 9.1% 9.4% -28 100.0%
• +9.1% at constant exchange benefiting of price increase related to
pass-thought
• In China underperformance in a volatile market mainly due to an
unfavorable customer / product mix
• Overperforming vs market in India
Source: Sogefi and S&P Global (IHS) data. Passenger cars and Light commercial vehicles only.
FY 2023: SALES BY GEOGRAPHY
34
Suspension growth foster by Europe and India
A&C driven by North America
FY 2023: SALES BY BUSINESS UNIT
2022 2023
change
constant
exchange
rates change
Air&Cooling
464.0 487.3 5.0% 8.9%
Filtration 535.7 573.6 7.1% 9.3%
Suspensions
548.0 574.5 4.8% 9.5%
Intercompany (4.3) (7.5)
Total
1543.4 1627.9 5.5% 9.1%
35
€m FY 2022 % FY 2023 %
REVENUES 1,543.4 100.0% 1,627.9 100.0%
CONTRIBUTION MARGIN 423.6 27.4% 477.7 29.3%
Gross Fixed Costs 229.7
14.9%
248.0
15.2%
Restructuring 8.7
0.6%
3.7
0.2%
Exchange Differences 1.1
0.1%
5.2
0.3%
EBITDA 195.1 12.6% 221.4 13.6%
EBITDA excluding non-recurring 193.7 12.5% 235.6 14.5%
D&A 115.8 7.5% 112.1 6.9%
Write downs 1.6
0.1%
4.1
0.3%
EBIT 70.5 4.6% 105.2 6.5%
EBIT excluding non-recurring 76.4 4.9% 119.4 7.3%
Financial results 18.8
1.2%
20.1
1.2%
Income Tax 19.1
1.2%
17.5
1.1%
Minority Interest 1.6
0.1%
3.2
0.2%
NET INCOME OF OPERATING
ACTIVITIES
31.0 2.0% 64.4 4.0%
Net income from discontinued
operations
(1.4) (6.7)
NET INCOME 29.6 1.9% 57.8 3.5%
Contribution margin up thanks to commercial
discipline
Up 21.6% excluding non-recurring
FY 2023: P&L
Up 56.3% excluding non-recurring
Disposal of Suspensions plant in Mexico
36
Contribution margin up in value and in %
Up 16.8% excluding non-recurring
+4.1% at constant exchange (+2.9% volume
and +1.2% pricing)
Including 2.4m of financial income (valuation
of dollar-linked bond instruments held to hedge
the Argentine Peso devaluation)
Including positive one-offs
€m Q4 2022 % Q4 2023 %
REVENUES 384.6 100.0% 375.3 100.0%
CONTRIBUTION MARGIN 102.0 26.5% 116.7 31.1%
Gross Fixed Costs 56.3
14.6%
61.7
16.4%
Restructuring 0.8
0.2%
1.7
0.5%
Exchange Differences 6.3
1.6%
3.5
0.9%
EBITDA 43.5 11.3% 47.5 12.7%
EBITDA excluding non-recurring 47.5 12.3% 55.5 14.8%
D&A 28.9 7.5% 27.1 7.2%
Write downs 0.6
0.2%
4.4
1.2%
EBIT 6.6 1.7% 16.0 4.3%
EBIT excluding non-recurring 17.9 4.7% 24.0 6.4%
Financial results 5.2
1.4%
3.7
1.0%
Income Tax 4.0
1.0%
-0.7
-0.2%
Minority Interest 0.5
0.1%
0.8
0.2%
NET INCOME OF OPERATING
ACTIVITIES
(3.1) -0.8% 12.2 3.3%
Net income from discontinued
operations
(0.3) (0.3)
NET INCOME (3.4) -0.9% 12.0 3.2%
Q4 2023: P&L
37
€m 2022 2023
FUNDS PROVIDED BY
OPERATIONS
128.3 158.8
Working Capital -11.9 -27.4
Capex (Tangible, Intangibles &
IFRS15)
-98.8 -96.9
Others 12.9 -1.8
FREE CASH FLOW (NET) 30.5 32.7
NET DEBT 224.3 200.7
FACTORING 101.7 91.2
FCF and Net debt excluding IFRS 16
FY 2023: FREE CASH FLOW
Reflecting lower use of factoring, ATN
acquisition and cash-out for UK pension
2022 benefiting of positive payables
effect
Factoring decreased despite of revenues
growth
38
Figures as of December 31st 2023
FY 2023: DEBT PROFILE
• 49% Gross MT Debt with
fixed rate
39
SALES (
• EBITDA higher than last year in absolute value and in
% despite repricing effect dilution
• Contribution margin up in % and in value (+18.6% vs
2022)
• Margin improvement in Europe thanks to the
commercial and costs efficiencies actions
implemented
EBITDA (excluding non-recurring
• 2023 up 9.5% (+4.5% at current exchange)
thanks to good performance in Europe (+12.3%),
India (+21.0%) and repricing
5.6% 8.6%
EBITDA Margin
FY 2023: SUSPENSIONS
40
• In 2023 up 8.9% (+5.0% at current exchange) thank
to a strong performance in NAFTA (+12.4%)
• In China, the performance below the market is
mainly due to an unfavorable customer/product mix
• EBITDA margin slightly down, dilution due to price
increase offsetting the higher raw material costs
• Margin reflecting different product and geo mix
• Contribution margin up 1.3% vs 2022
17.3%
17.0%
EBITDA Margin
EBITDA (excluding non-recurring SALES (
FY 2023: AIR&COOLING
41
Environment, Social and Governance
13 ESG KPI’s
defined with 2025
target
