SEGMENT INFORMATION


OPERATING SEGMENTS

In compliance with the provisions of IFRS 8, the following information is provided by operating segments (business segments) and performance indicators that play a key role in the Group's strategic decisions.

As the analysis by business segments is given higher priority in the decision-making process, the analysis by geographic areas is not presented.

Business segments

With regard to the business segments, disclosures concerning the three business units: Air&Cooling, Suspensions and Filtration are 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 2014 and 2015:

(in thousands of Euro) 2014
  Air&Cooling Suspensions Filtration Sogefi S.p.A. / Sogefi Purc h. S.A.S. Adjustments Sogefi consolidated f/s
REVENUES            
Sales to third parties 372,001 505,343 472,047 - - 1,349,391
Intersegment sales 2,311 1,266 1,662 27,403 (32,642) -
TOTAL REVENUES 374,312 506,609 473,709 27,403 (32,642) 1,349,391
RIEULTS            
EBIT 14,219 18,206 28,398 (7,123) (5,429) 48,271
Financial expenses, net   (28,818)
Income from equity investment -
Losses from equity investment -
Result before taxes 21,453
Income taxes (13,058)
Loss (profit) attributable to non-controlling interests (4,756)
NET RESULT 3,639
STATEMENT OF FINANCIAL POSITION          
ASSETS            
Segment assets 254,682 415,632 320,034 629,887 (700,230) 920,005
Equity investment in associates - - - - - -
Unallocated assets - - - - 172,199 172,199
TOTAL ASSETS 254,682 415,632 320,034 629,887 (582,031) 1,092,204
LIABILITIES            
Segment liabilities 159,470 289,284 218,623 482,035 (237,994) 911,418
TOTAL LIABILITIES 159,470 289,284 218,623 482,035 (237,994) 911,418
OTHER INFORMATION            
Increase in tangible and intangible fixed assets 21,917 25,865 29,510 11,140 (4,025) 84,407
Depreciation, amortisation and writedowns 14,167 23,149 19,223 2,645 2,000 61,184

 

(in thousand of Euro) 2015
  Air&Cooling Suspensions Filtration Sogefi SpA / Sogefi Purch. S.A.S. Adjustements Sogefi consolidated f/s
REVENUES            
Sales to third parties 407,293 556,758 534,954 45 - 1,499,050
Intersegment sales 1,988 1,257 1,489 29,689 (34,423) -
TOTAL REVENUES 409,281 558,015 536,443 29,734 (34,423) 1,499,050
RESULTS            
EBIT (2,522) 35,441 32,228 (13,100) (1,305) 50,742
Financial expenses, net   (32,778)
Income from equity investment -
Losses from equity invedtments -
Result before taxes 17,964
Income taxes (12,913)
Loss (profit) attributable to non-controlling interests (3,931)
NET RESULT 1,120
STATEMENT OF FINANCIAL POSITION          
ASSETS            
Segment assets 267.423 420,642 333,112 642,567 (716,023) 947,721
Equity investments in associates - - - - - -
Unallocated assets - - - - 172,199 172,199
TOTAL ASSET 267,423 420,642 333,112 642,567 (543,824) 1,119,920
LIABILITIES            
Segment liabilities 163,710 292,604 213,364 489,914 (230,068) 929,524
TOTAL LIABILITIES 163,710 292,604 213,364 489,914 (230,068) 929,524
OTHER INFORMATION            
Increase in tangible and intangible fixed assets 21,640 22,661 36,415 2,210 (1,283) 81,643
Depreciation, amortisation and writedowns 16,589 22,621 20,387 3,615 1,539 64,751

Please note that the Air&Cooling Business Unit figures include the net book value of the Systèmes Moteurs Group coming from local financial statements – in other words, not including the fair value adjustment of net assets after the Purchase Price Allocation performed in 2011 – but only the adjustments related to the measurement of product warranty provisions (contingent liabilities booked during the PPA); the remaining adjustments arising from the 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 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 business units. Intersegment transactions are conducted according to the Group's transfer pricing policy.

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 the Systèmes 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 (now merged into Sogefi-MNR Engine Systems India Pvt Ltd) and Systèmes Moteurs Group.

“Depreciation, amortisation and writedowns” include writedowns of tangible and intangible fixed assets for the amount of Euro 357 thousand, of which Euro 243 thousand relate to the French subsidiary S. ARA Composite S.A.S.; Euro 114 thousand reflect development projects of subsidiary Sogefi-MNR Engine Systems India Pvt Ltd. that cannot be recovered.

These assets were written down based on the recoverable value of assets at year-end date, which is considered to be zero.

 

Information on the main customers

Revenues from sales to third parties as of December 31, 2015 accounting for over 10% of Group revenues are shown in the following table:

(in thousands of Euro) 2015
Group Group BU Filtration BU Air&Cool. BU Suspensions
  Amount %      
Ford 200,262.6 13,4 48,981.2 68,812.4 82,469.0
FCA/CNH Industial 179,600.6 12,0 80,873.4 53,203.3 45,523.9
Renault/Nissan 175,317.0 11,7 50,396.3 45,229.7 79,691.0
PSA 166,413.0 11,1 53,869.9 52,779.0 59,764.2

 

Information on geographic areas

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 following table shows a breakdown of total assets by geographical area of origin:

(in thousands of Euro) 2014
  Europe South America North America Asia Adjustments Sogefi consolidated f/s
TOTAL ASSETS 1,458,305 111,324 114,342 115,911 (707,678) 1,092,204

 

(in thousands of Euro) 2015
  Europe South America North America Asia Adjustments Sogefi consolidated f/s
TOTAL ASSETS 1,439,944 92,635 138,228 136,111 (686,998) 1,119,920