Sogeclair S.A. — Earnings Release 2022

Mar 15, 2023

SOGECLAIR

Blagnac, France, March 15th 2023-5.35pm, Montreal, Canada

ANNUAL RESULTS FOR 2022

Consolidated turnover: €134.9M, +11.5% (Like-for-file perimeter and exchange rate basis: +8.1%)

EBITDA(1) = €12.6M, +20.1%

Equity = €60.7M

Dividend = 0.90 € per share

SOGECLAIR, supplier of innovative solutions with high added value for a safer and less-consuming mobility announces today its financial results for the year ended December 31, 2022.

The Board of Directors met on March 09, 2023 has approved the financial statements for the year ended December 31, 2022. The audit procedures on the annual accounts have been carried out.

As announced and despite a negative base effect in the 4th quarter, activity grew by 11.5%, EBITDA increased significantly by +20.1%. The net result was penalized by the financial result which represents a difference of €1.45M compared to 2021 (exchange rate).

In €M	2022	2021	2022 / 2021
Turnover	134.9	121.0	+11.5%
EBITDA(1)	12.6	10.5	+20.1%
As % of turnover	9.3%	8.7%
Operating income	4.7	4.1	+14.3%
As % of turnover	3.5%	3.4%
Net Result	2.6	3.4	-23.8%
Including group share	2.0	2.6	-25.2%

(1) Operating result – other operating income and charges + amortization expenses and operating provisions

HIGHLIGHTS OF THE YEAR:

• The deployment of the "ONE SOGECLAIR" organization in 3 Business Units: Engineering, Solutions and Conseil (newly created activity),
• The strong recovery of commercial aviation and the good performance of business aviation,
• The refund of more than 3/4 of the State guaranteed loans taken out in 2020 following the health crisis.

By geographical area: within the framework of the ONE SOGECLAIR organization, the geographical areas, which are the main sources of operational decisions, are intended to serve our different Business Units by profession.

	Europe Africa	America	Asia Pacific
Turnover	102.1	27.1	5.8
EBITDA	11.5	-1.0	1.4
Operating income	6.4	-2.0	1.1

Differences are due to the holding company and rounding

By Business Unit:

	Engineering	Solutions	Conseil
Turnover	71.8	62.1	1.0
EBITDA	6.1	5.9	-0.1
Operating income	5.1	0.5	-0.0

Differences are due to the holding company and rounding

COMMERCIAL EVENTS AND PARTNERSHIPS:

• Engineering Business Unit (support for manufacturers in the development, processes and product life cycle)
• Winning of the EMES³ referencing of Airbus (all entities) for 5 years (2023-2028),
• Bombardier's Diamond supplier label for the second consecutive year,
• Strong involvement in the Dassault Falcon 10X (development and manufacturing engineering),
• 1st contract with the Boeing Group,
• Winning of a contract for the ES-19 electric-powered aircraft from Heart Aerospace.

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♦ Solutions Business Unit (equipment manufacturer)
- After Renault in 2017 and Dassault Systèmes in 2021, UTAC-CERAM has joined the capital of AVSimulation (15%) to accelerate the development of vehicle testing in a virtual environment,
- Transformation of the Savannah plant into a service center,
- Tension on supplies.

♦ Conseil Business Unit (audit, consulting in materials, product and project performance, digital and connected industry)
- Newly created activity,
- Significant orders in the aeronautics and space industry with manufacturers, equipment suppliers and their supply chain (France, Canada, Germany).

PROFITABILITY AND FINANCIAL STRUCTURE

Operating profitability grew faster (+14.3%) than turnover (+11.5%) despite the additional costs of the large simulators (€2.9 million for the year) and the closure of the Savannah plant.

The financial result includes a negative exchange rate difference of €1 million, compared with a positive difference of €0.43 million in 2021.

Shareholders' equity stood at €60.7 million and financial debt at €16.3 million increased under the combined effect of:
- The decrease of the Covid social debt by 4.3M€ (to 5.7M€),
- The resumption of the historical dividend policy at €2.8M,
- The reinforcement of investments which increased by 0.9M€,
- The growth of the WCR due to the growth of activity.

The R&D effort has been maintained at a high level of over 10% of turnover (€13.7 million).

DIVIDEND PROPOSAL

On March 9, 2023, the Board of Directors decided to propose a stable dividend of €0.90 per share to the Annual General Meeting of May 11, 2023.

PERSPECTIVES

SOGECLAIR is driven by markets expected to grow over the next 5 years. The multidisciplinary expertise (mechanical, mechatronic, software and systems) and the geographical areas will increase their synergies to offer customers solutions in line with their own challenges for safer and less-consuming transport.

Thanks to its technological investments, SOGECLAIR anticipates a new year of growth in 2023.

Performance is expected to increase under the combined effect of the passing on to customers of price increases, the revenues of the large automobile simulators and the strengthening and optimization of purchases.

Next announcement: turnover for Q1 2023, on May 03th 2022 after closing of the Stock Market

About Sogeclair

Supplier of innovative, high added-value solutions for safer and more efficient mobility, SOGECLAIR brings its skills in high-quality engineering and production to a broad range of cutting-edge sectors, notably aeronautics, space, vehicle, rail and defense. Supporting its customers and partners from the design and simulation stages through to the end of the product's lifetime, all along the production chain through to entry into service, the collaborators are working worldwide to offer a high quality, proximity service to all its customers.

SOGECLAIR is listed on Euronext Paris – Compartment C – Indice Euronext® Family Business -Code ISIN: FR0000065864 / (Reuters SCLR.PA – Bloomberg SOG.FP)

Contacts: Philippe ROBARDEY, President & CEO / Olivier PEDRON, Chief Officer Operating / +33(0)5 61 71 70 33

Press contact: Louise-Marie Thabard / SOGECLAIR Communication / louise-marie.thabard@sogeclair.com / +336 75 95 12 20