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 |