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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Sogefi S.p.A.    SO   IT0000076536

SOGEFI S.P.A.

(SO)
  Report
Delayed Quote. Delayed Italian Stock Exchange - 01/18 09:53:55 am
1.168 EUR   -1.68%
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Sogefi S p A : April 21, 2020 - Q1 2020 Financial Results

04/20/2020 | 10:21pm EST

Q1 2020 RESULTS

Milano - April 21th, 2020

Mauro FENZI - Chief Executive Officer

Yann ALBRAND - Chief Financial Officer

Stefano CANU - Investor Relations

Agenda

1

2

3

Q1 2020 Results

Covid update

Perspectives

2 I

Q1 2020 Highlights

Revenues at €350,2m

vs. €389.9m in Q1 2019

EBITDA at € 34.9m

vs. €41.3m in Q1 2019

EBIT at € 3.7m

vs. €11.3m in Q1 2019

Net Income at € -5.6

vs. € 1.6m end Q1 2019

FCF1 at -€ 0.4m

vs. €-1.6m in Q1 2019

Net debt1 at € 256.7

vs. € 256.2m end of 2019

1. FCF and Net debt excluding IFRS 16

  • Down 10.2% on a reported basis and -8.8% at constant exchange rate (overperforming the market by 1591 bps)
  • In YTD February at constant exchange rates +1.0%, thanks to the good performance of all geographic areas except for China, in March at -30%
  • 10.0% on sales vs 10.6%in PY.
  • In YTD February at 11.4% vs 9.6% thanks to Suspensions improvement, March at 6.2%
  • 1.1% on sales in Q1 2020 vs 2.9% on sales in Q1 2019. Q1 2020 affected by € 5.3m of negative exchange rate effect (North and South America).
  • March € -4.9m due to the higher % incidence on revenues of fixed costs and despite € 3m of first cost efficiency measures
  • After tax charges for 2.5 million vs 3.6 million in Q1 2019
  • Free Cash Flow - € 0.4 million vs €-1.6m in Q1 2019
  • Net debt down to € 256.7 vs € 256.2m end of 2019 and € 262.1m end March
    2019

3

Revenues by Geographical Area

reported

constant

reference

performance

weight

Q1 2019

Q1 2020

exchange

market

vs market

based on

change

€m

rates

production

(bps)

Q1 2020

Europe

244.3

222.4

-9.0%

-9.0%

-21.3%

1230

63.5%

North America

74.1

72.7

-1.9%

-4.0%

-10.8%

680

20.8%

South America

37.6

29.0

-22.8%

-3.1%

-16.3%

1320

8.3%

Asia

36.1

27.9

-22.7%

-22.8%

-44.7%

2190

8.0%

- of which China

17.2

11.8

-31.2%

-30.9%

-49.5%

1860

3.4%

Intercompany

(2.2)

-1.8

Total

389.9

350.2

-10.2%

-8.8%

-24.4%

1560

100.0%

Overperforming the market by 1560

bps due to overperformance in

Europe (new Marocco plant and

Aftermarket) and USA (new SOPs)

Source: Sogefi and IHS data. Passenger cars and Light commercial vehicles only. Europe is Europe 28 and Asia is China + India

4

Revenues by Business Unit

reported

constant

performance

Q1 2019

Q1 2020

exchange

vs market

change

rates change

(bps)

€m

Air&Cooling

108.9

100.0

-8.2%

-8.7%

1570

Filtration

134.8

134.7

0.0%

1.8%

2620

Suspensions

147.0

116.3

-20.9%

-18.5%

590

Intercompany

(0.8)

(0.8)

Total

389.9

350.2

-10.2%

-8.8%

1560

5

Sales by client

Q1 2019

Q1 2020

5%10%

6

Q1 2020 EBIT performance breakdown - Sogefi Group - €m / % sales

3.5%

2.9%

7

Improving profitability up to February

Jan-February

%

Jan-February

%

March 2019

%

March 2020

%

2019

2020

TOTAL NET SALES

254.7

255.6

135.2

94.6

EBITDA

24.4

9.6%

29.0

11.4%

16.9

12.5%

5.9

6.2%

EBIT

4.4

1.7%

8.6

3.4%

6.9

5.1%

(4.9)

-5.2%

Profitability improvement up

March affected by Covid, the major drop

to February thanks to good

in volumes affected margin also taking

result in Europe

into account the technical time needed to

implement cost containment actions

8

Suspensions

Sales (€m)

EBIT (%)

• Down 20.9% (-18.5% at constant

• EBITDA margin up from 7.9% to

exchange)

9.4% benefiting lower material

• Nord America sales up

costs

• EBIT margin reflecting higher

• China -38.7%

incidence of depreciation

Suspensions

9

Suspensions - Indicative steel prices evolutions €/ton

Source: Indexed number. Base is the price of the steel in EURO/tn (actual price paid by SOGEFI for one type of steel)

Suspensions10

Filtration

Sales (€m)

EBIT (%)

  • Stable revenues (+1.8% at constant exchange)
  • The activity recorded growth in Europe thanks to Morocco and to Aftermarket
  • Sales sustainably stable in North and South America

Filtration

  • Negative exchange rate effect of - € 3.2m mainly in South America
  • Decline in India
  • EBIT at 1.3% without Morocco start up costs

11

Air & Cooling

Sales (€m)

EBIT (%)

  • Down 8.2% (-8.7% at constant exchange)
  • Major decline in China but overperforming the market thanks to new SOPs
  • Higher EBIT in Europe was more than offset by the lower profitability in the other areas due to volume decline
  • Negative exchange rate effect for € 3.3 millions (North America)

Air & Cooling

12

Q1 2020 P&L - Sogefi Group - €m / % sales

€m

Q1 2019

%

Q1 2020

%

EBITDA

41.3

10.6%

34.9

10.0%

EBIT

11.3

2.9%

3.7

1.1%

Financial results

6.3

1.6%

6.8

1.9%

Income Tax

3.6

0.9%

2.5

0.7%

Minority Interest

1.2

0.3%

0.0

0.0%

NET INCOME OF

0.3

0.1%

(5.6)

-1.6%

OPERATING ACTIVITIES

Net income from

1.3

0.3%

0.0

0.0%

Fraize plant contribution in 2019

discontinued operations

NET INCOME

1.6

0.4%

(5.6)

-1.6%

13

Q1 2020 FCF Highlights - Cash Flow generation

  • Figures excluding IFRS16

€m

Q1 2019

Q1 2020

FUNDS PROVIDED BY OPERATIONS

32.2

23.2

Working Capital

(10.6)

(2.0)

of which 4.3m for new

Tangible Capex

(8.9)

(11.1)

plants

Intangibles & IFRS15

(17.5)

(14.3)

Others

3.2

3.8

FREE CASH FLOW (NET)

(1.6)

(0.4)

NET DEBT

262.1

256.7

Factoring at € 96.3m end March 2020 vs € 94.2m end 2019 vs € 114.1m end March 2019

14

Financial Position

  • In November Sogefi completed the issuance of a € 75m non-convertible unsecured bond (coupon 3%, mature in November 2025)
  • At March 31, 2020, the Group has financing in excess for € 298 million (of which €
    125 banks lines not utilized) in relation to which all the conditions are met and therefore available for use on simple request
  • In Q2 2020 is scheduled the repayment of the Euro PP and a tranche of the US
    PP (both issued in 2013) for a total amount of € 37.5 million

15

Covid update

16 I

Covid update - Takeaways

Safety:

Actions taken to protect

workforce

Plants:

Most of plant close within

18 / 30 March

Main actions:

Using all government

incentives + cost

efficiency

Expectation:

Some customers plants are expected to reopen

  • China travel ban and travel limitations, "quarantine" for employees coming back from zones at risk
  • Reducing visits from customers/suppliers, wide spreads use of smart working
  • Implemented all health safety means defined by local authorities
  • Closing plants/ offices involving unions all countries (only exception Argentina)
  • Worldwide (excluding China) most of plants close within 18 and 30 of March
  • As of today Sogefi has closed almost all plants with the exception (partially) of USA and China (closed in February and reopened March 16)
  • Of the 6.800 employees ~85% are in «technical unemployment. Local government support is high in western Europe and not-existing in other regions (i.e. South America or India)
  • In addition taking all necessary steps to manage the crisis by assessing liquidity, containing cash-out by reducing costs and investments that are not strictly necessary.
  • At the moment it is assumed that some plants of Sogefi's main customers may reopen in North America and Europe in May

17

Covid update - Plants situation & government's incentives

Europe

(61% of sales)

North America

(19% of sales)

France

↑↑↑

USA

↑↑

Italy

↑↑↑

Canada

↑↑

Asia

Slovenia

↑↑↑

(10% of sales)

Mexico

Progressive closing

Others

↑↑↑

China

within 23 / 26 of March

Progressive closing

India

within 18 / 27 of March

China reopened March 16,

India closed March 23

South America

Plants Status

Government's' Incentives

(11% of sales)

Closed

↑↑↑ High

Brazil

Open partially

↑↑

Middle

Argentina

Open

Low

Closing March 19

Argentina, March 30 Brazil

18

Perspectives

19 I

Market production evolution

€m

Europe

North America

South America

Asia

  • of which China Total

IHS Forecast (April 2020)

2Q 2020E

FY 2020E

-57.2%-24.0%

-67.7%-25.1%

-73.1%-29.7%

-20.8%-17.1%

-11.7%-15.8%

-44.4%-21.2%

Primary brokers, institutes,

consulting firms estimating within

  1. range -20/25% depending on different scenarios

Source: Sogefi and IHS data. Passenger cars and Light commercial vehicles only. Europe is Europe 28 and Asia is China + India

20

2020 OUTLOOK

  • In an environment with extremely limited visibility, the most recent sector sources are estimating that world car production may fall by between 20% and 25% in 2020 according to different scenarios as to the effects of Covid-19
  • Indeed at present all the elements that contribute to the formulation of forecasts for the year remain totally uncertain: the evolution of the pandemic, the decisions to be made by the authorities on the subject of resuming production activity, today in lockdown, and lastly, following the possible startup of activity, the reaction of demand, in a context of the deep recession that could affect various parts of the world. At present the circumstances described above make any forecast that the company could make highly uncertain
  • The group is focused on doing all it can to manage the crisis: it has put in place actions to reduce costs and limit as far as possible current costs and investments that are not strictly necessary, it regularly assesses liquidity positions, keeping the Board of Directors informed, liaising with its financial partners, and is preparing to start operating again, introducing higher safety standards for personnel and cost flexibility in relation to volumes that will be affected by circumstances for a certain period of time
  • However, both for the period of closure and the first months after business starts up again there will be significant economic losses that will also be reflected in an increase in net debt

21

CONTACTS

Yann Albrand, Group CFO Stefano Canu, Investor Relations

SOGEFI

Via Ciovassino, 1/a

20121 Milano - Italia

Tel: +39 02 46750214

Fax: +39 02 43511348

Mail: ir@sogefigroup.com

22

Any reference to past performance of the SOGEFI Group shall not be taken as an indication of future performance.

DISCLAIMER

o This document has been prepared by SOGEFI S.p.A. for information purposes only and for use in presentations of the Group's results and strategies.

o For further details on the SOGEFI Group. reference should be made to publicly available information. including the Annual Report. the Semi-Annual and Quarterly Reports.

o Statements contained in this document. particularly the ones regarding any SOGEFI Group possible or assumed future performance are or may be forward looking statements and in this respect they involve some risks and uncertainties.

o

o This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

23

Disclaimer

Sogefi S.p.A. published this content on 21 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2020 02:20:10 UTC


© Publicnow 2020
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Sales 2020 1 209 M 1 458 M 1 458 M
Net income 2020 -29,7 M -35,8 M -35,8 M
Net Debt 2020 375 M 452 M 452 M
P/E ratio 2020 -5,09x
Yield 2020 -
Capitalization 140 M 169 M 169 M
EV / Sales 2020 0,43x
EV / Sales 2021 0,38x
Nbr of Employees 6 284
Free-Float 42,6%
Chart SOGEFI S.P.A.
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Sogefi S.p.A. Technical Analysis Chart | SO | IT0000076536 | MarketScreener
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Number of Analysts 4
Average target price 1,15 €
Last Close Price 1,19 €
Spread / Highest target 5,22%
Spread / Average Target -3,20%
Spread / Lowest Target -11,6%
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Mauro Fenzi Chief Executive Officer & General Manager
Monica Mondardini Chairman
Yann Albrand Group Chief Financial Officer
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