At June 30, 2020, the Group has financing in excess for € 194.2 million
Sogefi anticipates a similar excess end 2020
In H2 2020 no debt repayments are scheduled
As of June 20 all covenants were met
Currently discussion on-going with banks for new state-backed financing in France and Italy: the group expects to thereby secure medium-term financing for around € 100 million
14
Covid update
15 I
Covid update - Status
Safety:
Actions taken to protect
workforce
Plants:
All plants now open
Main actions:
Using all government
incentives + cost
efficiency
Expectation:
Customers plants are now
reopened
Travel limitations, "quarantine" for employees coming back from zones at risk
Massive use of smart working in all regions
Implemented all health safety means defined by local authorities
Production processes revised to implement safety rules
Internal production of safety masks for the workforce
As of today Sogefi has reopened all plants working with reduced volume (with the exception of China now running at speed)
Local government support is high in western Europe and not-existing in other regions (i.e. South America or India) where the situation was managed trough local union agreements
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
consulting firms estimating within a range -15/30% 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
19
2020 OUTLOOK
For H2 2020, IHS expects that, without a second outbreak of Covid-19, world production could be at -10% vs H2 2019. Market analysts forecasts, more cautiously, expect a world market reduction in a range between -15% and -30%
In this uncertain scenario, Sogefi has incorporated into its expectations for H2 2020 a world market scenario of around -20%, in which it expects to achieve a slightly positive EBIT, excluding restructuring costs, a significant reduction in the net loss vs H1 2020 and a slightly positive free cash flow
In light of the uncertain market outlook for the next few years, Sogefi has launched a plan for a significant reduction of fixed costs, which will be completed by the end of H1 2021, as well as actions to rationalize footprint and manage suppliers
At the end of June the 2020 the Company has financial resources in excess of its current needs and it does not foresee an increase in its debt by year end
In view of market uncertainties and anticipating the natural expiry of existing loans, Sogefi has started negotiations with its current financial partners to renew loans and enter into new medium-term loans for a total value of around € 100 million
20
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
21
DISCLAIMER
o
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.
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
Any reference to past performance of the SOGEFI Group shall not be taken as an indication of future performance.
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 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 13:35:09 UTC
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