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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 - 01/26 03:47:11 am
1.132 EUR   -1.22%
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Sogefi S p A : May 27, 2020 – Star Conference 2020

05/27/2020 | 02:03am EST

STAR CONFERENCE 2020

Milano - May 27, 2020

Mauro FENZI - Chief Executive Officer

Yann ALBRAND - Chief Financial Officer

Stefano CANU - Investor Relations

Agenda

1

2

3

4

Overview

Q1 2020 Results

Covid update

Perspectives

2 I

Overview

3 I

Group profile

  • Automotive company created in Listed in Milano Stock Exchange STAR Segment
  • Strong Entrepreneurship DNA and flexibility developed through:
    • a series of strategic moves
    • tight cost control
    • lean organization
  • Revenues at € 1,5m in 2019
  • Present in 23 countries with 41 plants, 10 development centers and 6,800 employees
  • Multi product portfolio focused on Powertrain and Body Components

4

3 Global Businesses

Suspensions

MAIN

o Stabilizer Bars

o Coil Springs

PRODUCTS

€ 1,519M

€ 550M

2019 Sales

36%

o o o o

Filtration

Air & Cooling

Oil Filters

o Manifolds

Engine Air Filters

o Coolant Pumps

Fuel Filters

o Coolant Outlet

Cabin Air Filters

Housings

€ 546M

€ 421M

36%

28%

5

Sogefi Customers

CARS

AFTERMARKET

TRUCKS

2 WHEELERS

3 WHEELERS

MAIN BRANDS

6

Sales by key client

Q1 2019

Q1 2020

5%10%

7

Hybrid Powertrain

Volume Effect

New Product

Air & Cooling

Manifold

Coolant

Coolant Outlet

Pump

+ E Pump

Housing

Battery Pack

Filtration

coolant Manifold

High performance

Oil Filter

Engine Air

Fuel Filter

Coolant Valve

Cabin Air Filter

E-Axle/E-transmission

Battery/E-Motor and

Filters

Coolant Filter

Power electronic Filters

8

BEV Powertrain

Volume Effect

New Product

Air & Cooling

Battery Pack Coolant

Manifold Module

Coolant Module

Filtration

E-Axle/E-

Coolant Filter

Coolant

transmission Filters

Electric

Coolant Outlet

High performance

Battery/E-Motor and

Coolant Pump

Housing

Valve

Cabin Air Filter

Power electronic Filters

9

FCEV Powertrain

New Product

Air & Cooling

Electric Coolant

Coolant Outlet

Pump

Housing

Coolant Valve

Hydrogen

Manifold

Filtration

Fuel Cell Air

Filter

Fuel Cell

Water

High performance

Battery/E-Motor and

Filters

Separator

Cabin Air Filter

Power electronic Filters

10

Businesses awarded and new agreement on EV vehicles

Customer

Swedish

OEM

French OEM

German

OEM

Other OEMs

Technology Geo/SOP

Product

Hybrid

Motor

China

(2019)

Coolant

Pump

BEV

Europe

Battery Pack

Cooling

(2021)

Manifold

BEV

Europe

Coolant

(2019)

Module

FCEV

Hydrogen

Nafta

intake

(2021)

manifold &

exhaust

VolumesDescription

  • Distribute the coolant to the motor
  • Distribute coolant in the battery pack (thermal regulation of the battery)
  • Distribute the coolant to the battery, the electric motor and the power electronics
  • Hydrogen, Air and Cooling components

BEV Hybrid Lion E Mobility and Sogefi entered into an agreement, combining Lion's technology in Light

EV joint dev Battery, Battery Management Systems and Module design with Sogefi's industrial capability in engineering and manufacturing of high tech automotive cooling components, as well as access to global sales and distribution capabilities.

11

Supplying premium customers & models

FERRARI 488

PORSCHE TAYCAN

AUDI A6

MASERATI QUATTROPORTE

BMW X series 1 to 5

MERCEDES A/ B/ CLA / C

VOLVO XC90

PORSCHE CAYENNE

CORVETTE

ID CROZZ

BMW series 8

TIGUAN E

12

Selective investments to improve competitiveness

Air & Cooling

Filtration

Suspensions

59

68

60

58

Capex 51

In M EUR

2015

2016

2017

2018

2019

ROMANIA

2018: A&C

2019-2022 : Suspensions

CHINA

MEXICO

MOROCCO

2017: Suspensions

2016

2017-2018

13

Q1 2020 Results

14 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

15

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 Morocco 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

16

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

17

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

3.5%

2.9%

18

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

19

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

20

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

21

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%

22

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

23

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

24

Covid update

25 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 closed within 18 and 30 of March
  • As of today Sogefi, with the exceptions of South America and India, has reopened (partially) NAFTA plants. EMEA plants to restart beginning of June.
  • China is running at speed
  • 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) 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.
  • China to reach "pre Covid" volumes by June
  • Nafta is ramping up fast
  • EMEA slow speed reopening beginning of June

26

Covid update - Plants situation & incentives/agreements

Europe

(61% of sales)

North America

(19% of sales)

France

↑↑↑

USA

↑↑

Italy

↑↑↑

Canada

↑↑

Asia

Slovenia

(with few

↑↑↑

(10% of sales)

Mexico

Closing March 23 / 26

Others

exceptions)

↑↑↑

China

Currently reopening

Closing March 8 / 27

India

Currently reopening

China reopened March 16

India closed March 23

Plants

Governments'

Union

South America

Status

Incentives

Agreements

(11% of sales)

Closed

↑↑↑

High

↑↑↑

Brazil

Open partially

↑↑

Middle

↑↑

Argentina

Open

Low

March 19 Argentina

March 30 Brazil

27

Perspectives

28 I

Market production evolution

IHS Forecast

(May 2020)

€m

2Q 2020E

FY 2020E

Europe

-70.4%

-24.0%

North America

-70.4%

-25.1%

South America

-83.4%

-29.7%

Asia

-14.5%

-18.0%

- of which China

-1.5%

-15.8%

Total

-48.0%

-21.2%

Source: Sogefi e IHS data

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

29

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 and managing production activity, and lastly, 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 starting 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

30

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

31

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.

32

Disclaimer

Sogefi S.p.A. published this content on 27 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2020 06:02:03 UTC


© Publicnow 2020
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Financials
Sales 2020 1 209 M 1 464 M 1 464 M
Net income 2020 -29,7 M -36,0 M -36,0 M
Net Debt 2020 375 M 454 M 454 M
P/E ratio 2020 -4,91x
Yield 2020 -
Capitalization 135 M 164 M 164 M
EV / Sales 2020 0,42x
EV / Sales 2021 0,37x
Nbr of Employees 6 284
Free-Float 42,6%
Chart SOGEFI S.P.A.
Duration : Period :
Sogefi S.p.A. Technical Analysis Chart | SO | IT0000076536 | MarketScreener
Technical analysis trends SOGEFI S.P.A.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 4
Average target price 1,15 €
Last Close Price 1,15 €
Spread / Highest target 9,08%
Spread / Average Target 0,35%
Spread / Lowest Target -8,38%
EPS Revisions
Managers and Directors
NameTitle
Mauro Fenzi Chief Executive Officer & General Manager
Monica Mondardini Chairman
Yann Albrand Group Chief Financial Officer
Rodolfo de Benedetti Director
Roberta di Vieto Independent Director
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