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
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.
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
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