SEGMENT INFORMATION

With regard to the business segments, information concerning the two Divisions – Engine Systems and Suspension Components – is provided below. Figures for the Holding Company Sogefi S.p.A. and the 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 2011 and 2012:

(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	611,791	546,594	-	-	1,158,385
Intersegment sales	1,144	1,130	18,567	(20,841)	-
TOTAL REVENUES	612,935	547,724	18,567	(20,841)	1,158,385
RESULTS
EBIT	24,443	44,139	(8,190)	(1,905)	58,487
Financial expenses, net					(12,680)
Income from equity investments					-
Losses from equity investments					-
Result before taxes					45,807
Income taxes					(18,605)
Loss (profit) attributable to non-controlling interests					(3,156)
NET RESULT					24,046
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	499,638	422,275	591,760	(629,178)	884,495
Equity investments in associates	-	-	-	-	-
Unallocated assets	-	-	-	151,666	151,666
TOTAL ASSETS	499,638	422,275	591,760	(477,512)	1,036,161
LIABILITIES
Segment liabilities	310,767	268,311	438,514	(195,633)	821,959
TOTAL LIABILITIES	310,767	268,311	438,514	(195,633)	821,959
OTHER INFORMATION
Increase in tangible and intangible fixed asset	27,855	27,293	1,602	-	56,750
Depreciation, amortisation and writedown	27,586	24,171	5,982	(4,375)	53,364
(*) Some 2011 values have been restated following the conclusion of the Purchase Price Allocation process of Systèmes Moteurs S.A.S.. Please see Note 2 "Consolidation principles and accounting policies" for additional details.

 

(in thousands of Euro)	2012
	Engine Systems Division	Suspension Components Division	Sogefi SpA / Sogefi Purch. SaS	Adjustments	Sogefi consolidated f/s
REVENUES
Sales to third parties	791,683	527,550	-	-	1,319,233
Intersegment sales	940	1,054	20,099	(22,093)	-
TOTAL REVENUES	792,623	528,604	20,099	(22,093)	1,319,233
RESULTS
EBIT	39,000	32,312	(6,148)	(2,389)	62,775
Financial expenses, net					(16,474)
Income from equity investments					-
Losses from equity investments					-
Result before taxes					46,301
Income taxes					(13,771)
Loss (profit) attributable to non-controlling interests					(3,205)
NET RESULT					29,325
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets	524,073	416,152	571,748	(642,899)	869,074
Equity investments in associates	-	-	-	-	-
Unallocated assets	-	-	-	153,221	153,221
TOTAL ASSETS	524,073	416,152	571,748	(489,678)	1,022,295
LIABILITIES
Segment liabilities	317,884	256,843	431,470	(199,197)	807,000
TOTAL LIABILITIES	317,884	256,843	431,470	(199,197)	807,000
OTHER INFORMATION
Increase in tangible and intangible fixed assets	46,592	30,311	9,294	(1,807)	84,390
Depreciation, amortisation and writedowns	35,676	24,545	6,349	(3,320)	63,250

Please note that the Engine Systems Division includes the book value of the Systemes Moteurs Group (which do not include fair value adjustments to net assets from the Purchase Price Allocation) and the adjustments for its Purchase Price Allocation relating to provision for product warranties reversed (contingent liabilities recognised during the Purchases Price Allocation process); the remaining adjustments for its Purchase Price Allocation are posted in column "Adjustments".
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.

The adjustments to “EBIT" refer to depreciation and amortisation linked to the revaluation of assets resulting from the acquisition of 40% of Sogefi Rejna S.p.A. and its subsidiaries in the year 2000 and of Systemes Moteurs Group in the year 2011.

In the Statement of Financial Position, the adjustments to the item "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 Systemes Moteurs Group.

“Depreciation, amortisation and writedowns” include writedowns of tangible and intangible fixed assets for the amount of Euro 4,850 thousand, Euro 3,208 thousand of which originate from the current reorganisation of the Llantrisant site of subsidiary Sogefi Filtration Ltd and Euro 1,535 thousand refer to subsidiary Allevard Sogefi U.S.A. Inc. and reflect plant for the manufacture of stabilizer bars no longer used.
These assets were written down based on the fair value of assets at year-end date, which amounts to zero.

Note that revenues from sales to third parties as of December 31, 2012 account for over 10% of Group revenues refer to: PSA (12.9% of total revenues), Ford (11.8% of total revenues) and Renault/Nissan (11.3% of total revenues).

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.

The breakdown of assets by geographical area is as follows:

(in thousands of Euro)	2011 (*)
	Europe	South America	North America	Asia	Adjustments	Sogefi consolidated f/s
TOTAL ASSETS	1,408,970	128,155	66,374	52,801	(620,139)	1,036,161
(*) Certain values as at December 31, 2011 were redetermined after the completion of the Purchase Price Allocation process in connection with the Systèmes Moteurs S.A.S. acquisition.

 

(in thousands of Euro)	2012
	Europe	South America	North America	Asia	Adjustments	Sogefi consolidated f/s
TOTAL ASSETS	1,367,211	124,948	101,619	74,468	(645,951)	1,022,295