DELFINGEN INDUSTRY : Solid growth of +9.5% in 2023 revenue

PRESS RELEASE

Anteuil, 05 February 2024

Solid growth of +9.5% in 2023 revenue

DELFINGEN INDUSTRY (DELFINGEN), a global automotive supplier and leader in on-board network protection solutions and fluid transfer tubes, today announced its revenue for Q4 2023 and full-year 2023.

In €M unaudited		Q4					12M
		2022	2023	Δ	Δ organic		2022	2023	Δ	Δ organic1
Mobility		89.0	91.9	+3.2%	+5.5%		357.2	386.9	+8.3%	+10.3%
Industry		14.2	15.9	+12.4%	+1.5%		59.9	69.8	+16.4%	+5.4%
Total		103.2	107.8	+4.5%	+4.9%		417.1	456.7	+9.5%	+9.6%

Revenue up +4.5% in Q4 2023

In Q4 2023, DELFINGEN posted revenue growth of +4.5% to €107.8M, including a currency effect of -3.3% linked to the unfavourable change in the €/$ exchange rate over the quarter and a scope effect of +2.8% linked to the acquisitions in early April 2023 of REIKU GmbH in Germany and AHN Chem Co. Ldt in Korea.

On a like-for-like basis, revenue was up +4.9%.

Sales from the Mobility market amounted to €91.9M, up +3.2% (+5.5% on a like-for-like basis). After record activity in October, the fourth quarter was characterised by a slowdown in activity in November and December, particularly in North & South America as a result of the UAW's strike movements, with high exposure to the Celaya plant in Mexico. While auto production continued to grow in the fourth quarter, December saw a sharp slowdown in Europe (-5.2%) and to a lesser extent in North America (-1.6%).

Sales in the Industrial market, a source of diversification of the Group's activities, returned to growth at €15.9M, i.e. +1.5% on a like-for-like basis, and +12.4% with the integration of REIKU.

2023 revenue of €456.7M, up +9.5%

Revenue for 2023 totalled €456.7M, up +9.5% (+9.6% on a like-for-like basis). Excluding the exchange rate effect of -2.3% linked to the unfavourable change in the €/$ exchange rate over the year, and including a scope effect of +2.1%, revenue came to €466.2M, up +11.8% (compared with guidance of €465M).

Over the period, the two businesses, Mobility and Industrial, contributed to the annual performance with respective growth of +8.3% and +16.4% (+10.3% and +5.4% on a like-for-like basis).

The Textile business also confirmed its potential as a growth driver for the Group, with revenue of €80.0M in 2023, up +22.6% compared with 2022.

Thanks to its strategic reference positions with the main global cable manufacturers, and despite the slowdown observed at the end of the year, DELFINGEN continued to outperform the global automotive market in 2023 (+1 pt), driven by the Asia (+8.3 pts) and North & South America (+2.6 pts) regions while continuing to streamline the product portfolio in Europe.

Analysis of consolidated revenue by geographical area

In 2023, all regions posted sustained increases, despite the slowdown in the automotive market recorded at the end of the year:

In €M unaudited		Q4					12M
		2022	2023	Δ	Δ organic		2022	2023	Δ	Δ organic
Europe - Africa		46.7	51.5	+10.2%	+6.1%		193.6	215.4	+11.3%	+8.8%
North & South America		42.5	42.1	-0.9%	+4.6%		174.1	184.7	+6.1%	+8.8%
Asia		14.1	14.3	+1.5%	+1.9%		49.4	56.6	+14.6%	+15.9%
Total		103.2	107.8	+4.5%	+4.9%		417.1	456.7	+9.5%	+9.6%

Adjustment of the 2023 recurring operating margin target to take account of year-end conditions in the automotive market

Despite an increase in revenue over the financial year, DELFINGEN is adjusting its recurring operating margin target for 2023 to around 6%, compared with the initial target of 6.5%. This revision of the target is linked to the lowest activity at the end of the year. Current operating income is nevertheless expected to be up 30% compared to 2022.

In terms of financial structure, the Group expects the HY1 to generate positive free cash flow and reduce its working capital requirement over the full year. Combined with the reduction in its current debt (excluding the acquisitions of REIKU GmbH and AHN Chem Co. Ltd), DELFINGEN is thus continuing to strengthen its financial structure.

Next event:

2 April 2024: publication of 2023 results (after market close)

About DELFINGEN (www.delfingen.com)

DELFINGEN is a global leader in on-board network protection solutions and fluid transfer tubes in the mobility and industry markets.

A family-owned company dating back more than 70 years, the Group has 4,000 employees and a global presence that ensures proximity to its customers, with 42 offices in 22 countries on four continents: North & South America, Europe, Africa and Asia.

DELFINGEN is at the heart of the new challenges of mobility today and tomorrow: electrification, connectivity, autonomous driving, safety and environmental standards.

DELFINGEN is listed on the Euronext Growth Paris market (FR0000054132 - ALDEL) and is a member of the MiddleNext association.

DELFINGEN Christophe CLERC Executive Vice President - Finance cclerc@delfingen.com T. +33 (0)1 81 70 37 00

SEITOSEI.ACTIFIN Investor Relations Benjamin LEHARI benjamin.lehari@seitosei-actifin.com T. +33 (0) 1 56 88 11 25

SEITOSEI.ACTIFIN Press Relations Isabelle DRAY isabelle.dray@seitosei-actifin.com T. +33 (0)1 56 88 11 29

“Safe Harbor” statement

Although DELFINGEN's Management believes that the expectations reflected in such forward-looking statements are reasonable at the time of publication of this document, investors are cautioned that forward-looking information and statements are subject to various elements, risks and uncertainties, many of which are difficult to predict and generally beyond the control of DELFINGEN, that could cause actual results and developments to differ materially from those expressed in or projected by the forward-looking statements.

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