1、Hungry for capital How automotive suppliers can capitalize on the benefits of ESG financingOctober 2022Strategy&|Hungry for capital 2ESG strategy and transformation are more important than ever for automotive suppliers seeking to seize financial benefits and prepare for growth.”Sebastian Jursch,Dire

2、ctor,ESG Leader Automotive,PwC Strategy&Germany Executive summary Automotive suppliers have lost market capitalization of 25%since 2017 Continuous rise in net debt to more than double the levels of 2021 Cost of capital has increased,reflected in downgraded credit ratings Leaders in ESG ratings reduc

3、e their cost of debt by 0.6-0.9pp Growing ESG financing landscape with 12%p.a.observed,especially in EU However,on average only 1 out of 10 suppliers take advantage of ESG financing optionsAutomotive suppliers hunger for capital at expensive ratesESG performance has positive financial impact ESG top

4、 performers elevate ESG to a top priority for the C-level Defining ambitious targets and KPIs is crucial for reporting and equity Launching ESG transformation is unavoidable to prepare for growthTo grasp ESG potential,automotive suppliers have to act nowStrategy&|Hungry for capital 3123Strategy&|Hun

5、gry for capital 4What is the current financial situation of automotive suppliers?1Strategy&|Hungry for capital 51 Representing average of 20 leading automotive suppliers from Europa,Asia and Americas Source:Strategy&analysisThe automotive supplier sector has lost ground versus other industries,makin

6、g access to capital challenging+60%+42%-25%Market capitalization(index 100)5020015010006/201706/201806/201906/202006/202106/2022MSCI all countriesMSCI industrialsAutomotive averageCovid crisisGeopolitical crisisEnergy crisisInflationPlus ongoing challenges,i.e.:labor crisis climate changeStatus quo: