Sogeclair S.A. — Investor Presentation 2024

Mar 13, 2024

RESULTS 2023

SOGECLAIR, CARBON-FREE MOBILITY TECHNOLOGIST

OBJECTIVES OF THE ONE SOGECLAIR PLAN

STRATEGY

GLOBAL TECHNOLOGY PROVIDER FOR SAFER AND MORE SUSTAINABLE MOBILITY

MEANS

• ANALYZE & SHARE CUSTOMER NEEDS INTERNALLY

• LEVERAGE GROUP'S KEY SKILLS & TRAIN EMPLOYEES

• ADHERE TO THE INVESTMENT PLAN

• OFFER BROADER SERVICE OFFERINGS

• ACCELERATE IN DIGITAL PROFESSIONS

• TRANSFER KNOWLEDGE BETWEEN REGIONS AND BUSINESS UNITS

• INNOVATE AND DELIVER

RESULTS

• INVESTMENTS BASED ON INTERNAL MARKET STUDIES

• CREATION OF THE SOGECLAIR ACADEMY

• RIGOROUS PROJECT MONITORING

• GROUP-WIDE OFFERING OF SOLUTIONS

• INTERNAL MOBILITY ENABLING KNOWLEDGE TRANSFER BETWEEN MARKETS AND REGIONS

• BETTER-TARGETED R&D INVESTMENT OF €12 MILLION

ACHIEVEMENTS 2023

ET CROISSANCE

	GOVERNANCE	> SEPARATION OF THE ROLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER (MAY 2023)
	EURONEXT GROWTH	> TRANSFERT FROM EURONEXT TO EURONEXT GROWTH (JULY 2023)
	GLOBAL HR MANAGEMENT	> INTERNATIONAL JOB POSTING > INTRA-GROUP MOBILITY (GEOGRAPHICAL, JOBS, SECTORS) > REINFORCED SHARING OF CORPORATE CULTURE
	STRUCTURATION ON GROUP OPERATIONS	> COMPLIANCE, COMMUNICATION, PURCHASING, IT TOOLS & DIGITALIZATION PROCESS UNIFORMIZATION > EXPAND PRODUCT AND SERVICE OFFERINGS IN ALL ZONES
	STRUCTURATION 'PPR' FINANCING INTERNE	> SUBSCRIPTION OF A 'PPR' LOAN FOR 10 €M (4 YEARS DIFFERED PAIEMENT + 4 YEARS REIMBURSEMENT)

KEY FIGURES

2023 TURNOVER: 148 M€, UP BY 9,7%

DIVIDEND 2023: 0.94 €, UP BY 4,4%

10,5 12,6 16,7 2021 2022 2023 CA EBITDA at 11,3 % of turnover In € M +32,3%

NET RESULT at 3,2 % of turnover

KEY FIGURES

FINANCIAL DEBT AND GEARING

€ millions 2023 Gearing 2022 Total Shareholders' equity 62,3 - 60,7 Bank debt (w/o IFRS16) 26,0 - 19,9 Qualified pre-payments 1,2 - 2,5 Cash available 16,7 - 16,0 Net debt (w/o IFRS16) 10,6 16,98% 6,4 Defferal of social debts 1,6 - 5,7 Net debt (w/o IFRS16, incl. Social debts) 12,2 19,53% 12,1 IFRS 16 10,2 - 4,2 Total restated net debt 22,4 35,88% 16,3

Any differences are due to rounding

TO NOTE

• COVID DEBT REPAYMENT: 5,9 M€

• WCR +3,8 €M AT 96 DAYS (-0,4 €M W/O COVID DEBT REPAYMENT)

• UNMOBILIZED CUSTOMER: 41,1 €M

• INVESTMENTS: 1,7 €M

• IFRS16 : LEASE RENEWALS

  • PARIS REGION : +3,1 M€
  • IN CANADA : +1,7 M€
  • IN TOULOUSE : +3,5 M€

• DIVIDENDS: 3,0 €M

• SUBSCRIPTION OF A 'PPR' LOAN: 10 €M

2023 ACCOUNTS

En K€	2023 2023	2022 2022	Variation Variation 2023-2022
Turnover CA	148 041 148 041	134 929 134 929	2023-2022 + 13 112 + 13 112
EBITDA	16 664	12 594	+ 4 070
EBITDA	16 664	12 594	+ 4 070
Operating Income	6 884	4 711	+ 2 173
Résultat Opérationnel	6 884	4 711	+ 2 173
Net Result	4 710	2 574	+ 2 135
Résultat Net	4 710	2 574	+ 2 135
Total restated net debt	22 354	16 292	+ 6 061
Dette nette Totale retraitée	22 354	16 292

EXTRA-FINANCIAL PERFORMANCE CRITERIA

SOCIAL :	ENVIRONMENTAL :
» ATTRACTIVENESS AND RETENTION » DIVERSITY AND EQUAL OPPORTUNITY » LAUNCH OF THE SOGECLAIR ACADEMY » DETAILED ANALYSIS OF EMPLOYEE EXPECTATIONS » PROMOTING SKILLS AND TALENTS	» COMMITMENT TO AN ECO-RESPONSIBLE APPROACH (THERMOPLASTIC WASTE RECYCLING PROJECTS, ENERGY EFFICIENCY PLAN, ANALYSIS OF OUR GEOGRAPHICAL FOOTPRINT) » ENVIRONMENTAL RISK PREVENTION (IMPACT ANALYSIS OF DESIGNED AND/OR MANUFACTURED PRODUCTS, ECODESIGN, ETC.)
	» RESPONSIBLE PURCHASING POLICY
SOCIETAL :	DIVERS :
» TRANSPARENCY AND ETHICS IN BUSINESS RELATIONS (RESPECT FOR HUMAN RIGHTS, FIGHT AGAINST CORRUPTION AND INSIDER TRADING, ) » PROTECTION OF PERSONAL DATA » EMPLOYEE COMMITMENT TO SOCIAL INITIATIVES	» ENHANCED INFORMATION SYSTEMS SECURITY » DEPLOYMENT OF COMMON DIGITAL TOOLS (CRM, ERP) » DEPLOYMENT OF COMMON BRAND IDENTIFIERS (INTRANET, EMAIL, BRANDS)

TURNOVER

BUSINESS GROWTH DRIVEN BY EUROPE AND NORTH AMERICA, A MAJOR GROWTH DRIVER IN THE ONE SOGECLAIR 2030 PLAN

BY SECTORS

© Sogeclair 2024 – All rights reserved – CONFIDENTIAL ALL BUSINESSES BENEFITED FROM GROWTH, WITH THE EXCEPTION OF THE AUTOMOTIVE AND SPACE SECTORS, WHICH POSTED A SLIGHT DECLINE

BY OFFER

BY CUSTOMERS

SOGECLAIR / RESULTS 2023 / 13/03/2024 AIRBUS AND BOMBARDIER INCREASE PRODUCTION RATES DASSAULT REMAINS STABLE, ENGINEERING ACTIVITIES ARE TRANSFERRED TO MANUFACTURING ENGINEERING

9

SOGECLAIR TURNOVER AND RESULTS BY GEOGRAPHIC AREA

America € millions	2023	2022
Turnover	33 396	27 063
EBITDA	2 558	-965
Operating Income	947	-1 981

Europe / Africa
€ millions	2023	2022
Turnover	108 453	102 107
EBITDA	11 775	11 490
Operating Income	6 196	6 443

• CROSS-FUNCTIONAL INVESTMENTS IN DIGITALIZATION, CSR, COMMUNICATIONS, LEGAL, PURCHASING, ETC.

• REBUILDING MANAGEMENT AND SALES TEAMS IN AUTOMOTIVE SIMULATION

• SUPPORT FOR COMMERCIAL AIRCRAFT PRODUCTION RAMP-UP
  -

€ millions 2023 2022 Turnover 6 186 5 753 EBITDA 1 105 1 429 Operating Income 292 1 074 Asia Pacific

+17,9%

APPOINTMENT OF A COUNTRY MANAGER IN INDIA

• CONFIRMED REBOUND IN AIRCRAFT INTERIORS PRODUCTION (HIGHER PRICES AND VOLUMES)

• EXPANSION OF SIMULATION PRODUCT OFFERING

• TRANSFER OF AEROSTRUCTURE EXPERTISE

MARKET FOCUS

MECHANICAL ENGINEERING

-

© Sogeclair 2024 – All rights reserved – CONFIDENTIAL

11 SOGECLAIR / RESULTATS S1 2023 / 3/13/2024

MARKET FOCUS - ENGINEERING (1/3) MECHANICAL ENGINEERING MARKET

*Not including military aviation

OFFERINGS

• TECHNICAL ASSISTANCE (AT)

• WORK UNIT (UO)

WORK PACKAGE (WP

• SPACE INNOVATION: THERMAL MECHANICAL ARCHITECTURE, INDUSTRIALIZATION, PROCESSES, MATERIALS, DATA EXPLOITATION

• DIGITALIZATION & DECARBONIZATION (ROBOTIZATION, ADDITIVE MANUFACTURING, BIG DATA, IA...)

• SUSTAINABILITY CRITERIA, ECO-DESIGN & RECYCLING

• TECHNOLOGICAL INNOVATION (MODELING, SIMULATION, AUGMENTED REALITY...)

• PRODUCTION RATES (AIRCRAFT, SATELLITES, LAUNCHERS)

• CHANGES BY 2030 > DIGITALIZATION & AUTOMATION > SUSTAINABILITY (ZERO EMISSIONS BY 2035) > SOVEREIGNTY > INTEGRATION OF INFORMATION AND COMMUNICATION TECHNOLOGIES (ICT) > EVOLUTION OF BUSINESS MODELS (AGILITY, INNOVATION, BROADER SERVICE OFFERINGS) > TECHNOLOGICAL BREAKTHROUGHS APPLICATIONS > STRUCTURE > INTERIOR (AIRCRAFT) > EMBEDDED SYSTEMS > DESIGN > DYNAMIC CALCULATION > THERMAL CALCULATION

  • STATIC CALCULATION
    -

  • SOFTWARE DEVELOPMENT

12 SOGECLAIR / RESULTATS S1 2023 / 3/13/2024 © Sogeclair 2024 – All rights reserved – CONFIDENTIAL DYNAMIC MARKETS REQUIRING SPECIALIST EXPERTISE

GROWTH DRIVERS

PACKAGE

MARKET FOCUS - ENGINEERING (2/3) AEROSPACE ENGINEERING SUPPORT

MARKET FOCUS - ENGINEERING (3/3)

PERSPECTIVES

ONE SOGECLAIR PLAN

IMPROVEMENT PROFITABILITY IS SUPPORTED BY

• LARGE CAR SIMULATORS: INAUGURATION OF SIMULATOR ROADS BY RENAULT

• REPERCUTION OF PRICE INCREASES ON CUSTOMERS

• STRENGTHENING AND OPTIMIZING PURCHASING

• RIGOROUS BUSINESS APPROVAL PROCESS

• AN INVENTORY REDUCTION POLICY

• COHERENCE OF R&D POLICY

APPENDIX

AVERAGE MARKET EVOLUTION (HORIZON 2027)

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 BY +3.5% / 2019 AMERICAN TRAFFIC UP BY +13.3% / 2019	PRODUCTION MAINTAINED OR INCREASEDGROWING IMPORTANCE OF LESSORS
RAILWAY	+3%	STATE INCENTIVES AND MARKET DEMAND ROAD CONGESTION	ALL SEGMENTS (INFRASTRUCTURE, EQUIPMENT, SIGNALLING, CONTROL, TRAINING)
SPACE	+12%	RUSSIAN-UKRAINIAN CONFLICT & LAUNCH SITES WIDESPREAD SOVEREIGNTY NEW SPACE	GROWING NEEDS FOR DATA AND VOICE STREAMS CIVIL AND MILITARY APPLICATIONS ENGINEERING AND PRODUCT NEEDS OF NEW ENTRANTS
DEFEENSE	+5%	UKRAINIAN CONFLICT. GEOPOLITICAL TENSIONS EUROPEAN PROJECTS.	GROWING MARKET FOR ROBOTS AND DRONES. FRENCH LPM MINARM OF €413M OVER 5 YEARS.
AUTOMOTIVE	+1,7%	REGULATORY EVOLUTION, PARTICULARLY IN THE EU DECREASE IN AMERICA AND THE EU. INCREASE IN ASIA	SLOWDOWN IN AUTONOMOUS VEHICLES MORE MATURE ASIAN MANUFACTURERS
DECARBONIZING TRANSPORT	+21%	GOVERNMENT REGULATIONS DEMAND FOR LOW-CARBON VEHICLES FOSSIL FUEL PRICES	ENGINEERING AND PRODUCT NEEDS OF ESTABLISHED PLAYERS AND NEW ENTRANTS OPPORTUNITIES FOR AVIATION (CLEAN AVIATION), RAIL (SHIFT-TO-RAIL), AND AUTOMOTIVE INDUSTRY

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

APPENDIX 1 : CONSOLIDATED INCOME STATEMENT

INCOME STATEMENT (in K€)		2022
	2023
Turnover	148 041	134 929
Other operating income	7 657	9 109
Purchases consumed and production stocked	-68 084	-60 868
Employee expenses	-69 278	-67 686
Taxes and duties	-1 232	-1 137
Amortisation and depreciation charges	-9 489	-7 995
Other expenses	-440	-1 754
Current Operating result	7 175	4 599
Result on disposal of consolidated participations	0	-71
Profit on disposal of fixed assets	-151	61
Exceptional reversals	0	0
Exceptional depreciations	0	184
Other current operating income and expenses	-152	-69
Operating result before income from equity method affiliates	6 872	4 704
Operating result	6 884	4 711
Income from cash and cash equivalents	-490	-434
Cost of gross financial debt	-848	-601
Cost of net financial debt	-1 338	-1 035
Other financial incomes and expenses	94	58
Profit before taxes	5 640	3 734
Income tax	-930	-1 159
Consolidated net profit	4 710	2 574
Attributable to Group share	3 100	1 977
Attributable to Non-controlling interests	1 610	597

APPENDIX 2: CONSOLIDATED BALANCE SHEET - ASSETS

ASSETS (in K€)	2023	2022
Goodwill	13 242	13 360
Net intangible assets	11 004	9 056
Net tangible assets	12 253	8 315
Investments in associates and joint ventures	170	159
Financial assets	3 050	2 804
Deferred tax assets	7 514	7 329
Non-current assets	47 232	41 024
Inventories	16 119	13 256
Trade receivables	51 909	50 497
Other receivables	24 485	22 896
Cash and cash equivalents	18 898	18 617
Current assets	111 410	105 265
TOTAL ASSETS	158 642	146 289

APPENDIX 3: CONSOLIDATED BALANCE SHEET - LIABILITIES

LIABILITIES (in K€)	2023	2022
Share capital	3 205	3 205
Share premium	8 924	8 924
Own shares	-978	-745
Reserves and accrued profits	37 342	36 867
Group share	48 493	48 251
Non-controlling interests	13 812	12 444
Total Shareholders' equity	62 305	60 695
Non-current provisions	3 164	3 020
Non current qualified pre-payments	501	998
Other financial liabilities	26 189	14 990
Other non current debt	0	0
Other liabilities	241	244
Deferred taxes	0	21
Non current liabilities	30 095	19 273
Current qualified pre-payments	681	1 480
Current part of non-current financial liabilities	10 080	9 105
Other financial liabilities	2 215	2 637
Current provisions	116	246
Trade payables	19 000	18 033
Social and tax liabilities	23 191	25 458
Other current liabilities	10 940	9 362
Current liabilities	66 242	66 320
TOTAL EQUITY LIABILITIES	158 642	146 289

APPENDIX 4: CONSOLIDATED ANALYSIS BY GEOGRAPHIC AREA

INCOME STATEMENT by Geographical Area (in K€)	Europe Africa		America Asia-Pacific	Holding	GROUP
Turnover	108 453	33 396	6 186	6	148 041
Other operating income	7 133	152	360	12	7 657
Purchases consumed and production stocked	-49 943	-12 204	-2 502	-3 435	-68 084
Employee expenses	-43 194	-17 395	-4 659	-4 030	-69 278
Taxes and duties	-897	-49	-26	-260	-1 232
Amortisation and depreciation charges	-5 213	-1 602	-816	-1 857	-9 489
Other expenses	-9 777	-1 342	1 746	8 933	-440
Current Operating result	6 562	956	288	-631	7 175
Profit on disposal of fixed assets	-131	-10	4	-14	-151
Other current operating income and expenses	-246			94	-152
Operating result before income from equity method affiliates	6 185	947	292	-551	6 872
Share of net profit/(loss) from associates and joint ventures	11				11
Operating result	6 196	947	292	-551	6 884

IN THE CONTEXT OF THE ONE SOGECLAIR ORGANIZATION, THE PERFORMANCE MEASURED ABOVE CORRESPONDS TO THE LOCATION OF OUR SUBSIDIARIES BY GEOGRAPHICAL ZONE AND NOT ACCORDING TO THE GEOGRAPHICAL LOCATION OF OUR CUSTOMERS. THIS EXPLAINS THE GAP BETWEEN OUR CUSTOMERS' SALES BY GEOGRAPHIC ZONE (SALES FIGURES COMMUNICATED) AND THOSE PRESENTED ABOVE FOR SUBSIDIARIES LOCATED IN EACH GEOGRAPHIC ZONE.

APPENDIX 5: CONSOLIDATED ANALYSIS BY SECTOR

INCOME STATEMENT by Sector (in K€)	Engineering	Conseil	Solution	Holding	GROUP
Turnover	74 153	934	72 948	6	148 041
Other operating income	1 088	834	5 724	12	7 657
Purchases consumed and production stocked	-29 952	-790	-33 906	-3 435	-68 084
Employee expenses	-35 524	-1 310	-28 415	-4 030	-69 278
Taxes and duties	-418	-21	-533	-260	-1 232
Amortisation and depreciation charges	-1 143	- 7	-6 481	-1 857	-9 489
Other expenses	-4 498	-91	-4 783	8 933	-440
Current Operating result	3 706	-452	4 553	-631	7 175
Profit on disposal of fixed assets	-33	- 4	-100	-14	-151
Other current operating income and expenses	160	8	-414	94	-152
Operating result before income from equity method affiliates	3 833	-447	4 038	-551	6 872
Share of net profit/(loss) from associates and joint ventures			11		11
Operating result	3 833	-447	4 050	-551	6 884

APPENDIX 6: CASH FLOW STATEMENT

CONSOLIDATED CASHFLOW STATEMENT (in K€)	2023	2022
Consolidated net profit (including minority interests)	4 710	2 574
+/- Depreciation, amortisation and provisions (excluding current assets)	8 593	7 389
-/+ Unrealised gains and losses related to fair value movements	-39	-30
+/- Income and expenses related to stock options and employee benefits	69	19
-/+ Profit / loss on disposal of assets and others	306	-61
-/+ Dilution profits and losses	-88	371
+/- Share of net profit/(loss) from associates and joint ventures	-11	- 7
	-3 246	-3 276
Cash flow from operations after cost of net financial debt and tax	10 294	6 979
+ Cost of net financial debt (excluding non-cash items) (1)	1 086	565
+/- Tax expense (including deferred tax)	930	1 159
Self-financing capacity before net finance costs and tax (A)	12 311	8 703
- Tax paid (B)	-2 885	- 7
+/- Variation in working capital requirements (C )	-3 813	-8 773
= NET CASH FLOW FROM OPERATING ACTIVITIES (D) = (A + B + C)	5 613	-77
- Acquisition-related disbursements on tangible and intangible assets	-1 686	-2 060
+ Disposal-related proceeds on tangible and intangible assets	316	125
+/- Acquisition of companies, net of cash acquired		79
+/- Variation in loans and advances granted	-127	846
= NET CASH FLOW FROM INVESTING ACTIVITIES (E)	-1 497	-1 010
-/+ Buyback and sale of own shares	-233
- Dividends and interim dividends paid	-3 021	-3 052
- paid to the parent company shareholders	-2 748	-2 755
- paid to the integrated company minority interests	-273	-297
+ Increase in loans	12 906	2 189
- Repayment of borrowings and lease liabilities	-11 596	-9 408
- Net finance costs (including lease liabilities)	-1 444	-465
-/+ Other financial costs	4
= NET CASHFLOWS FROM FINANCING AND CAPITAL ACTIVITIES (F)	-3 384	-10 735
+/- Impact of changes in foreign exchange rates on cash and cash equivalents (G)	-25	112
= NET CHANGE IN CASH AND CASH EQUIVALENTS (D + E + F + G)	706	-11 711

TELEPHON NUMBER +33 (0)5 61 71 70 00

SOGECLAIR 7 avenue Albert Durand CS 20069 – 31703 Blagnac Cedex France

25 SOGECLAIR / RESULTS 2023 / 13/03/2024

© Sogeclair 2024 – All rights reserved – CONFIDENTIAL