SEGMENT INFORMATION

With regard to the business segments, information concerning the two Divisions – Engine Systems and Suspension Components – is provided below. As of December 31, 2011, the Engine Systems Division encompasses the former "Filter Division" – a designation used until December 31, 2010 – as well as the Systèmes Moteurs Group; the two segments have been aggregated for the purpose of presentation because they deal with closely related products and are placed under the same management team. Figures for the Holding Company Sogefi S.p.A. and subsidiary Sogefi Purchasing S.a.S. are also provided for the purpose of reconciliation with consolidated values.

The tables below provide the Group’s income statement and statement of financial position figures for 2010 and 2011:

(in thousands of Euro)	2010
	Engine Systems Division	Suspension Components Division	Sogefi SpA / Sogefi Purch. SaS	Adjustments	Sogefi consolidated f/s
REVENUES
Sales to third parties	464.044	460.644	-	-	924.688
Intersegment sales	1.089	988	16.903	(18.955)	25
TOTAL REVENUES	465.133	461.632	16.903	(18.955)	924.713
RESULTS
EBIT	19.430	27.546	(5.053)	(150)	41.773
Financial expenses, net					(9.554)
Income from equity investments					200
Losses from equity investments					-
Result before taxes					32.419
Income taxes					(11.570)
Loss (profit) attributable to non-controlling interests					(2.028)
NET RESULT					18.821
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	298.279	411.944	420.153	(485.956)	644.420
Equity investments in associates	-	-	-	-	-
Unallocated assets	-	-	-	94.896	94.896
TOTAL ASSETS	298.279	411.944	420.153	(391.060)	739.316
LIABILITIES
Segment liabilities	184.859	257.530	256.444	(173.919)	524.914
TOTAL LIABILITIES	184.859	257.530	256.444	(173.919)	524.914
OTHER INFORMATION
Increase in tangible and intangible fixed assets	16.631	19.146	250	(0)	36.027
Depreciation, amortisation and writedowns	20.946	24.605	474	151	46.176

 

(in thousands of Euro)	2011
	Engine Systems Division	Suspension Components Division	Sogefi SpA / Sogefi Purch. SaS	Adjustments	Sogefi consolidated f/s
REVENUES
Sales to third parties	610.361	546.594	-	1.430	1.158.385
Intersegment sales	1.144	1.130	18.567	(20.841)	-
TOTAL REVENUES	611.505	547.724	18.567	(19.411)	1.158.385
RESULTS
EBIT	23.013	44.139	(8.190)	551	59.513
Financial expenses, net					(12.680)
Income from equity investments					-
Losses from equity investments					-
Result before taxes					46.833
Income taxes					(18.941)
Loss (profit) attributable to non-controlling interests					(3.156)
NET RESULT					24.736
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	475.064	422.275	591.760	(644.123)	844.976
Equity investments in associates	-	-	-	-	-
Unallocated assets	-	-	-	150.931	150.931
TOTAL ASSETS	475.064	422.275	591.760	(493.192)	995.907
LIABILITIES
Segment liabilities	287.130	268.311	438.514	(212.940)	781.015
TOTAL LIABILITIES	287.130	268.311	438.514	(212.940)	781.015
OTHER INFORMATION
Increase in tangible and intangible fixed assets	27.855	27.293	1.602	(0)	56.750
Depreciation, amortisation and writedowns	27.586	24.171	5.982	(5.401)	52.338

 

Please note that the Engine Systems Division include the book value of the Systèmes Moteurs Group, whereas the other adjustments for its Purchase Price Allocation Group are posted in column "Adjustments".
The adjustment to “Sales to third parties” reflects provision for product warranties utilised; the relating fair value was booked to accounts during the Purchase Price Allocation process in connection with the Systèmes Moteurs Group acquisition, after receiving debit notes for product warranties.
Adjustments to “Intersegment sales” mainly refer to services provided by the Holding Company Sogefi S.p.A. and by the subsidiary Sogefi Purchasing S.a.S. to other Group companies (see note 40 for further details on the nature of the services provided). This item also includes intersegment sales between the Engine Systems Division and the Suspension Components Division.
Adjustments to “EBIT” refer to provisions for product warranties utilised, margin on Systèmes Moteurs Group inventories (equal to the difference between the fair value of acquired assets and their production cost determined on change of control date) released, depreciation on the fixed assets revaluations resulting from the acquisition of 40% of Sogefi Rejna S.p.A. and its subsidiaries in the year 2000 and of the Systèmes Moteurs Group in 2011.
In the Statement of Financial Position, the adjustments to "Segment assets" refer to the consolidation entry of investments in subsidiaries and intercompany receivables.
Adjustments to “Unallocated assets” mainly include the goodwill and the fixed assets revaluations resulting from the acquisitions of: the Allevard Ressorts Automobile group, 40% of Sogefi Rejna S.p.A., the Filtrauto group, 60% of Sogefi M.N.R. Filtration India Private Ltd and the Systèmes Moteurs group.

“Depreciation, amortisation and writedowns” include writedowns of tangible and intangible fixed assets for the amount of Euro 3,478 thousand, Euro 3,416 thousand of which originate from the current reorganisation of the Llntrisant site of subsidiary Sogefi Filtration Ltd. The assets of the British subsidiary were written down based on the fair value of assets at year-end date, which amounts to zero.

Note that “Non-current assets held for sale” (Euro 744 thousand as of December 31, 2011) refer to the “Suspension Components Division”.

The following tables provide a breakdown of the Group's income statement and statement of financial position figures by geographical area "of origin" for the years 2010 and 2011, based on the country of the company which made the sales or which owns the assets.
The breakdown of revenues by geographical area "of destination", in other words with regard to the nationality of the customer, is analysed in the directors' report and in the notes to the Income Statement.

(in thousands of Euro)	2010
	Europe	South America	North America	Asia	Adjustments	Sogefi consolidated f/s
REVENUES
Sales to third parties	673,191	219,530	12,835	19,132		924,688
Intersegment sales	21,799	880	16	1	(22,671)	25
TOTAL REVENUES	694,990	220,410	12,851	19,133	(22,671)	924,713
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	1,072,048	125,104	18,134	36,573	(607,619)	644,420
Equity investments in associates
Unallocated assets					94,896	94,896
TOTAL ASSETS	1,072,048	125,104	18,134	36,573	(512,723)	739,316
OTHER INFORMATION
Increase in tangible and intangible fixed assets	24,294	6,981	1,061	4,283	(592)	36,027
Depreciation, amortisation and writedowns	35,650	6,423	946	1,042	2,115	46,176

 

(in thousands of Euro)	2011
	Europe	South America	North America	Asia	Adjustments	Sogefi consolidated f/s
REVENUES
Sales to third parties	821,797	245,044	64,938	25,175	1,431	1,158,385
Intersegment sales	24,112	555	325	1,662	(26,654)	-
TOTAL REVENUES	845,909	245,599	65,263	26,837	(25,223)	1,158,385
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	1,408,970	128,155	66,374	52,801	(811,324)	844,976
Equity investments in associates
Unallocated assets					150.931	150.931
TOTAL ASSETS	1,408,970	128,155	66,374	52,801	(660,393)	995,907
OTHER INFORMATION
Increase in tangible and intangible fixed assets	34,735	11,318	3,041	8,775	(1,119)	56,750
Depreciation, amortisation and writedowns	44,605	6,975	2,303	1,974	(3,519)	52,338

Note that revenues from sales to third parties as of December 31, 2011 account for over 10% of Group revenues refer to: PSA (13.3% of total revenues) and Renault/Nissan (11.3% of total revenues).