Sogeclair S.A. — Investor Presentation 2023

Sep 6, 2023

RESULTS FOR H1 2023

SOGECLAIR, CARBON-FREE MOBILITY TECHNOLOGIST

SOGECLAIR IS A FAMILY COMPANY LISTED ON EURONEXT GROWTH PARIS

OBJECTIVES OF THE ONE SOGECLAIR PLAN

STRATEGY

» GLOBAL TECHNOLOGY PROVIDER FOR SAFER AND LESS-CONSUMING MOBILITIES

MEANS

• » DEVELOP THE SKILLS AND KNOW-HOW OF OUR EMPLOYEES
• » ANALYZE CUSTOMER NEEDS
• » BE AGILE AND ADAPT TO MARKET NEEDS
• » FOCUS ON OUR STRENGTHS
• » ORGANIZE BUSINESS SYNERGIES
• » INVEST IN TRAINING AND COLLABORATIVE WORK TOOLS
• » INNOVATE AND DELIVER

RESULTS

• » CUSTOMER SATISFACTION
• » FINANCIAL RESULTS
• » EMPLOYEE DEVELOPMENT AND RETENTION
• » EXTRA-FINANCIAL PERFORMANCE

KEY FIGURES

In

€

M

EBITDA at 6.1 % of turnover

CA

KEY FIGURES

TO NOTE

• » COVID DEBT REPAYMENT: 3.1 €M
• » WCR +3.6 €M at 93 DAYS (+1.4€ M EXCLUDING COVID SOCIAL DEBT REPAYMENT)
• » INVESTMENTS: 1.4 €M
• » DIVIDENDS: 3.0 €M
• » NEW BANK PARTICIPATIVE LOAN: 10 €M

FINANCIAL DEBT AND GEARING

millions €	H1 2023	Gearing	H1 2022
Total Shareholders' equity	56 8 ,	-	57 1 ,
(w/o debt IFRS16) * Net	12 6 ,	1% 22 ,	3 7 ,
Of which State-guaranteed loans	5 1 ,		6 9 ,
Of which Bank loan participative	10 0 ,
IFRS 16	2 6 ,	6% 4 ,	4 1 ,
Defferal of social debts	3 6 ,	6 4% ,	8 0 ,
Total restated debt net	18 8 ,	33 17% ,	15 8 ,
Cash available	15 8 ,	-	21 7 ,
** debt excluding Gross IFRS 16	27 5 ,	-	23 4 ,

* Net Debt includes bank loans, current and non current qualified pre-payments reduced with Cash and cash equivalents

** Gross Debt includes bank loans and current qualified pre-payments

Any differences are due to rounding

IN SYNTHESIS

H1 2023 ACCOUNTS

in K€	H1 2023	H1 2022	Variation 2023-2022
Turnover	72 576	67 557	5 020 +
EBITDA	4 396	2 263	2 133 +
Operating Income	274	304 -1	578 1 +
Result Net	-892	854 -1	962 +
debt Net (including qualified and IFRS16 pre-payment, deferral of social deadlines)	18 843	15 781
of wich qualified pre-payment	1 190	2 594
of which Bank loan participative	10 000
of which IFRS 16	2 634	105 4
of which deferral of social deadlines	3 635	7 968

EXTRA-FINANCIAL PERFORMANCE CRITERIA

SOCIAL :

» HEALTH AND SAFETY CONDITIONS AT WORK » PREVENTION OF PSYCHOSOCIAL RISKS » INTERNAL & EXTERNAL PROFESSIONAL TRAINING » DEVELOPING SKILLS AND TALENT » ATTRACTIVENESS AND RETENTION » DIVERSITY AND EQUAL OPPORTUNITY	» COMMITMENT TO AN ECO-RESPONSIBLE APPROACH (RECYCLING, CONSUMPTION OF FLUIDS AND PAPER, MOBILITY POLICY, ) » PREVENTION OF ENVIRONMENTAL RISKS (IMPACT ANALYSIS OF DESIGNED AND/OR MANUFACTURED PRODUCTS, ECO-DESIGN, ) » RESPONSIBLE PURCHASING POLICY
SOCIETAL:	MISCELLANEOUS:
» TRANSPARENCY AND ETHICS IN BUSINESS RELATIONS (RESPECT FOR HUMAN RIGHTS, FIGHT AGAINST	» SECURITY OF INFORMATION SYSTEMS
CORRUPTION AND INSIDER TRADING, )

ENVIRONMENTAL:

TURNOVER

AIRBUS AND BOMBARDIER INCREASE THEIR PRODUCTION RATES DASSAULT IS IN DECLINE DUE TO THE END OF F10X DEVELOPMENT

SOGECLAIR TURNOVER AND RESULT BY GEOGRAPHICAL AREA OF SUBSIDIARIES

America
millions €	2023 H1	2022 H1
Turnover	16 088	11 699
EBITDA	908	-1 476
Operating Income	398	-1 923

/ Africa Europe
millions €	H1 2023	H1 2022
Turnover	52 942	52 847
EBITDA	2 440	3 020
Operating Income	-113	839
result Non current	-112	-12

• ❖ Cross-functional investments in digitalization, CSR, communications, legal affairs, purchasing, etc.
• ❖ Rebuilding management and sales teams in automotive simulation
• ❖ Support for commercial aircraft production ramp-up

❖	Clear recovery	in aircraft	interiors	business

Asia Pacific
millions €	H1 2023	H1 2022
Turnover	3 544	3 008
EBITDA	449	199
Operating Income	337	21

+17,9% ❖ Progressive improvement

+9,0%

ENGINEERING BU

COMMERCIAL AVIATION +12,3% BUSINESS AVIATION +3,1%

• » GROWTH IN COMMERCIAL AVIATION
• » SUSTAINED ACTIVITY FOR BUSINESS AVIATION
• » WIN NEW CUSTOMERS WITH ALSTOM, GKN AEROSPACE, CT INGENIEURE GMBH, ASCENDANCE FLIGHT TECHNOLOGIES

-

-

-

SOLUTIONS BU

SOLUTIONS BU SUCCESSES - 47,9% OF GROUP TURNOVER

DELIVERY OF THE LATEST GENERATION OkSyGen® RAIL SIMULATION HEART

• COMMERCIAL SUCCESSES (SIMULATED COCKPIT EQUIPMENT,
• REFERENCE SUPPLIER FOR CAE)

RESTORATION OF CABINE AERO ACTIVITIES IN NORTH FIRST PROTOTYPES OF THERMOPLASTIC DOORS FOR BOEING AMERICAN ON A PRODUCTION SITE

FIRST RELEASE FOR SCANeR NEXT (AUTOMOTIVE SIMULATION SOFTWARE) IN BETA VERSION

PARTNERSHIP AGREEMENT WITH NEXTER AND SALE OF 2 PHOBOS ROBOTS

• » EXCELLENT PERFORMANCE OF SIMULATED EQUIPMENTS AND SYNTHETIC ENVIRONMENT SOFTWARE
• » POSITIVE OPERATING INCOME FOR THE FIRST HALF YEAR FOR AERONAUTICAL EQUIPMENT, STRONG GROWTH IN NORTH AMERICA (+89% in H1 2023 vs 2022)
• » PROMISING R&D RESULTS IN THE RAIL AND AUTOMOTIVE SIMULATION SEGMENTS

CONSEIL BU

CONSEIL BU SUCCESSES - 0,7% OF GROUP TURNOVER

ADDITIVE MANUFACTURING NEW PROJECTS STRUCTURING THE BUSINESS (HYDEA PLACEMENT AS EQUIPMENT SUPPLIER - TEST BENCH, H2TECH HEX FOR H2 MOTOR)

SUPPORTING INDUSTRY 4.0 AND DIGITAL TRANSFORMATION FOR CCA

A350 TIME-TO-MARKET EXTENSION IN PARTNERSHIP WITH ARCHERY (H1 2023)

DIGITAL TWIN GAIN WITH BRIDGESTONE IN SPAIN IN PARTNERSHIP WITH DASSAULTSYSTEMS

€ millions	H1 2023
Turnover	0.5
EBITDA	-0.2
% of turnover	NS

• » CONTINUITY OF BUSINESS OVER H1 2023
• » PROJECTS IN FRANCE, IN CANADA, IN SPAIN
• » STRUCTURING AND DEVELOPPING THE ACTIVITY FOR 2024+

MARKET FOCUS

Market focus: simulation 1/2

Simulation market addressed by SOGECLAIR (€M)

CAGR 22-28

❖ Offers

• Product
  • Software
  • Simulator equipment
  • Physical simulator
• Service
• Maintenance

❖ Applications

• Equipment
• Functionality
• System
• System of system
• Operator

❖ Growth drivers:

• Faster development
• Financial savings compared to physical testing & use (incl JN)
• Integrity of simulated scenarios and traceability
• Possibility of replay (training)
• Reduced carbon footprint

❖ Changes planned between now and 2028

• Acceleration and generalization of recent technological developments (digital twins, big data, AI)

• Increasing complexity of systems, often involving multiple sensors (EO, IR, radar, LIDAR, acoustic imaging, etc.)

• Emergence of embedded generative AI or resident simulation systems

• Ability to create test conditions for systems in the virtual world
• Development and qualification of complex information systems, only possible in a totally virtualized environment involving:
  • Control of input databases
  • System virtualization (digital twin)
  • Generation of relevant and correlated operating models

Competitive and fast-moving markets

Market focus: simulation 2/2 ❖ SOGECLAIR's current situation

Commercial Simulation evolution in Sogeclair

• Top 3 in their respective markets
• Independent activities with a combined team of 100 developers
• Different technical and architectural choices
• Limited use of AI
• Historically competitive niche markets
• Critical size in the process of being acquired, in particular to create value (threshold effect, multiple structural costs) and reduce operating costs
• High-quality/fidelity hardware manufacturing capacity

❖ SOGECLAIR's future position 2024-2026: Deployment of the strategic plan

• Organization
  • Organizational simplification
  • Collaborative working tools
  • Pooling resources and accelerating R&D
  • Refocusing activities around the most profitable businesses and adjacent sectors
  • Targeted M&A policy
• Product
  • Evolution from a highly competitive human perception luring simulation market to a more complex, high added-value simulation.
  • Differentiation by offering a complete service with hardware
  • Compatible and integrable software tools to ensure digital continuity

2026-2030: N°1 of targeted markets

A strategy of combined investment in technologies with high barriers to entry and high added value

PERSPECTIVES

SEGMENT	CAGR 23-27 (YOY)	RECENT EVOLUTION	ANTICIPATED CONSEQUENCES
COMMERCIAL AVIATION	+5%	GLOBAL TRAFFIC BACK TO 2019 LEVELS	SCHEDULED INCREASE IN DELIVERIES AIRBUS LEADERSHIP
BUSINESS AVIATION	+5%	EUROPEAN TRAFFIC UP +3.5%/2019 US TRAFFIC UP +13.3%/2019	PRODUCTION MAINTAINED OR EVEN INCREASED INCREASING WEIGHT OF LESSORS
RAIL	+3%	STATE INCENTIVES AND MARKET DEMAND CONGESTION OF ROADWAYS	ALL SEGMENTS (INFRASTRUCTURE, EQUIPMENT, SIGNALING, CONTROL, TRAINING)
SPACE	+12%	RUSSIAN-UKRAINIAN CONFLICT & LAUNCH SITES GENERALIZED SOVEREIGNTY NEW SPACE	INCREASING NEEDS FOR DATA AND VOICE FLOWS CIVIL AND MILITARY APPLICATIONS ENGINEERING AND PRODUCT NEEDS OF NEW COMMERS
DEFENSE	+5%	UKRAINIAN CONFLICT. GEOPOLITICAL TENSIONS EUROPEAN PROJECTS	GROWING MARKET FOR ROBOTS AND DRONES. FRENCH MINARM LPM OF €413MD OVER 5 YEARS.
VEHICLE	+1,7%	EVOLUTION OF REGULATIONS, ESPECIALLY IN THE EU DECREASE IN AMERICA AND EU. INCREASE IN ASIA	AUTONOMOUS VEHICLE SLOWDOWN MORE MATURE ASIAN MANUFACTURERS
DECARBONIZATION OF TRANSPORT	+21%	GOVERNMENT REGULATIONS DEMAND FOR LOW-CARBON VEHICLES FOSSIL FUEL PRICES	ENGINEERING AND PRODUCT NEEDS OF HISTORICAL PLAYERS AND NEW ENTRANTS OPPORTUNITIES FOR AVIATION (CLEAN AVIATION), RAIL (SHIFT-TO-RAIL) AND AUTOMOTIVE

SOGECLAIR'S MARKETS OF ACTIVITY EXPECTED TO GROW OVER THE NEXT 5 YEARS

ONE SOGECLAIR PLAN

THE IMPROVEMENT IN PROFITABILITY WILL BE SUPPORTED BY:

• » MAJOR AUTOMOTIVE SIMULATORS: A VERY SIGNIFICANT FIRST MILESTONE HAS BEEN PASSED WITH THE SUCCESSFUL RECEPTION OF ROADS IN THE FIRST QUARTER.
• » PASSING ON PRICE RISES TO CUSTOMERS: SUCCESSES IN THE FIRST HALF, NEGOTIATIONS UNDER WAY.
• » STRENGTHENING AND OPTIMISING PURCHASING: A STRONGER TEAM HAS BEEN SET UP AND THE FIRST SUPPLIER CONTRACTS HAVE BEEN RENEGOTIATED AND SECURED OVER THE MEDIUM TERM.
• » RIGOROUS BUSINESS APPROVAL PROCESS
• » STOCK REDUCTION POLICY

APPENDIX

APPENDIX 1: CONSOLIDATED INCOME STATEMENT

APPENDIX 2: CONSOLIDATED BALANCE SHEET - ASSETS

One
	SOGECLAIR

(in K€) ASSETS	H1 2023	H1 2022	2022
Goodwill	13	14	13
	374	005	360
intangible Net assets	7 804	8 039	9 056
tangible Net assets	6 740	8 562	8 315
in associates and joint Investments ventures	163	158	159
Financial	3	2	2
assets	021	663	804
Deferred tax assets	6 863	7 358	7 329
Non-current	37	40	41
assets	965	784	024
Inventories	15	10	13
	493	715	256
Trade	53	46	50
receivables	275	575	497
Other	24	21	22
receivables	607	731	896
Cash and cash equivalents	21 415	23 791	18 617
Current	114	102	105
assets	790	812	265
TOTAL	152	143	146
ASSETS	755	597	289

APPENDIX 3: CONSOLIDATED BALANCE SHEET - LIABILITIES

One
	SOGECLAIR

(in K€) LIABILITIES	H1 2023	H1 2022	2022
Share capital	3 205	3 205	3 205
Share premium	8 924	8 924	8 924
shares Own	-978	-745	-745
profits and accrued Reserves	33 729	34 859	36 867
Group share	880 44	46 243	48 251
Non-controlling interests	11 922	10 882	12 444
Total Shareholders' equity	56 802	57 125	60 695
provisions Non-current	2 654	3 281	3 020
qualified Non current pre-payments	898	1 979	998
Other financial liabilities	21 371	17 737	14 990
Other debt non current	0	89	0
Other liabilities	286	241	244
Deferred taxes	26	0	21
liabilities Non current	25 235	23 328	19 273
qualified Current pre-payments	292	614	1 480
of financial liabilities Current part non-current	8 470	9 121	9 105
Other financial liabilities	5 592	2 062	2 637
Current provisions	243	287	246
Trade payables	20 657	16 828	18 033
Social and liabilities tax	24 408	27 195	25 458
Other liabilities current	036 11	037 7	9 362
Current liabilities	70 717	63 144	66 320
TOTAL EQUITY LIABILITIES	152 755	143 597	146 289

APPENDIX 4: CONSOLIDATED ANALYSIS BY GEOGRAPHICAL AREA

()ne
	SOGECLAIR

by Geographical (in K€) INCOME STATEMENT Area	June 2023 Europe Africa	2023 June America	2023 June Asia-Pacific	2023 June Holding	2023 June GROUP
Turnover	52 942	16 088	3 544	3	72 576
Other operating income	2 027		15	13	2 056
Purchases consumed and production stocked	-25 992	875 -5	-1 547	-1 092	-34 505
Employee expenses	-21 763	-8 648	-2 336	-1 898	-34 645
and duties Taxes	-343	-26	- 5	-135	-508
and depreciation charges Amortisation	-2 445	-511	-109	-620	-3 685
Other expenses	-4 431	-631	778	3 706	-578
result Operating Current	- 5	397	340	-22	710
Profit disposal of fixed assets on	-143				-143
Other and operating income current expenses	31	1	- 3	-327	-298
result before from method affiliates Operating income equity	-117	398	337	-349	270
profit/(loss) Share of from and associates joint net ventures	4				4
Operating result	-113	398	337	-349	274

APPENDIX 5: CONSOLIDATED ANALYSIS BY SECTOR

(in K€) by INCOME STATEMENT Sector	June 2023 Engineering	June 2023 Conseil	June 2023 Solution	June 2023 Holding	June 2023 GROUPE
Turnover	37 284	507	34 783	3	72 576
Other operating income	37	348	1 657	13	2 056
Purchases consumed and production stocked	227 -15	-431	-17 755	092 -1	-34 505
Employee expenses	-17 798	-596	-14 352	-1 898	-34 645
and duties Taxes	-184	- 9	-181	-135	-508
and depreciation charges Amortisation	-480	-25	-2 562	-620	-3 685
Other expenses	-2 020	-10	-2 254	3 706	-578
Operating result Current	1 612	-215	-665	-22	710
Profit disposal of fixed assets on			-143		-143
Other and operating income current expenses	33	-	- 4	-327	-298
result before from method affiliates Operating income equity	1 645	-215	-812	-349	270
profit/(loss) Share of from and associates joint net ventures			4		4
Operating result	1 645	-215	-808	-349	274

APPENDIX 6: CASHFLOW STATEMENT

(in K€) CONSOLIDATED CASHFLOW STATEMENT	2023 H1	2022 H1	2022
(including interests) Consolidated profit minority net	-892	-1 854	2 574
+/- Depreciation , amortisation and provisions (excluding assets) current	3 549	3 617	7 389
-/+ Unrealised and losses related fair value gains to movements	-15	-15	-30
+/- and expenses related stock and employee benefits Income options to			19
-/+ / Profit loss on disposal of and others assets	164	- 3	-61
-/+ Dilution profits and losses	11	776	371
+/- profit/(loss) Share of from and associates joint net ventures	- 4	- 6	- 7
Cash flow from after of financial debt and operations cost net tax	2 777	2 514	10 256
of financial debt (excluding non-cash items) (1) + Cost net	383	223	565
+/- expense (including tax) deferred Tax	743	715	159 1
(A) Self-financing capacity before finance and net costs tax	3 904	3 452	980 11
(B) paid - Tax	- 3	1 171	- 7
+/- working capital (C ) Variation in requirements	-3 599	-3 553	-8 773
(D) = (A + C) = NET CASH FLOW FROM OPERATING ACTIVITIES + B	301	1 070	3 199
- Acquisition-related disbursements on tangible and intangible assets	-1 421	-2 045	-5 336
+ Disposal-related proceeds on tangible and intangible assets	280	26	125
+/- of of cash acquired Acquisition companies , net		79	79
received + Interest
+/- loans and advances granted Variation in	-78	1 025	846
+ Investment received grants	77
(E) CASH FLOW FROM INVESTING ACTIVITIES = NET	142 -1	-915	286 -4
received from shareholders for capital increase + Sums
-/+ Buyback and sale of own shares	-233
- Dividends and dividends paid interim	-3 021	-2 963	-3 052
- paid the company shareholders to parent	-2 748	-2 755	-2 755
- paid the integrated company minority interests to	-273	-208	-297
loans + Increase in	10 790	1 889	2 189
of borrowings and lease liabilities - Repayment	-6 080	-4 897	-9 408
finance (including lease liabilities) - Net costs	-753	-186	-465
-/+ Other financial costs
(F) CASHFLOWS FROM FINANCING CAPITAL ACTIVITIES = NET AND	704	-6 156	-10 736
+/- (G) of changes in foreign exchange on cash and cash equivalents Impact rates	-20	39	112
(D + G) = NET CHANGE IN CASH AND CASH EQUIVALENTS + E + F	-157	-5 962	-11 713