Comer Industries (AO) | Buy | Not a common equipment maker: sharp, fast and ambitious

Research evidence excerpt

Comer Industries (AO) | Buy | Not a common equipment maker: sharp, fast and ambitious

sition of Waltersheid (2021) brought an immediate effect (6-12 months), while for Nabtesco,

they will be fully visible in 18-24 months. Commercial synergies will mainly stem from the ability to sell to Comtesco's Asian

clients the broader Comer's industrial equipment product portfolio (ex hydraulics). Comer has been active in China since 2018,

and it knows the Asian market well.

M&A approach: Comer's top management believes they have the courage (Waltersheid: 2x the size of the company) and they are

able to take actions to integrate the acquired companies and extract synergies.

Segment rebalancing: With the Comtesco deal, the industrial segment has exceeded the weight of agriculture, with a 60/40%

split.

OEMs' outsourcing: OEMs produce some transmission components and systems internally, but the trend of outsourcing is

continuing, which is supporting the volumes of suppliers. Comer has no plans to diversify into power transmissions for defence

vehicles.

Production footprint: with 15 plants spread across different continents, Comer boasts proximity to OEM customers, which for a

components maker is proving important, even more so in the current geopolitical scenario. Once a tender for a new platform has

been won, Comer's and the OEMs R&D work together to co-design.

KEPLER CHEUVREUX and the issuer have agreed that KEPLER CHEUVREUX will produce and disseminate investment research on the said issuer as a service to the issuer

IMPORTANT. Please refer to the back of the report for important keplercheuvreux.com

This research is the product of Kepler Cheuvreux, which is authorized

information and disclosures. and regulated by the Autorité des Marchés Financiers in France.