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 Parent Company Sogefi S.p.A. and the subsidiary Sogefi Gestion 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 20152 and 2016:

(in thousand of Euro) 2015
  Air&Cooling Suspensions Filtration Sogefi SpA / Sogefi Gestion. S.A.S. Adjustements Sogefi consolidated f/s
REVENUES            
Sales to third parties 413,806 556,758 528,441 45 - 1,499,050
Intersegment sales 1,458 1,257 1,229 29,689 (33,633) -
TOTAL REVENUES 415,264 558,015 529,670 29,734 (33,633) 1,499,050
RESULTS            
EBIT (1,217) 35,441 30,924 (13,100) (1,306) 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 250,068 420,642 333,112 642,567 (692,361) 954,028
Equity investments in associates - - - - - -
Unallocated assets - - - - 165,892 165,892
TOTAL ASSET 250,068 420,642 333,112 642,567 (526,469) 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 15,423 22,621 21,553 3,615 1,539 64,751

2) Please note that during the year 2016 the management reviewed the classification of the Filtration and Air&Cooling business segments, shifting the focus from production plant the product. As a result of this review, the classification of balances between business units is different from that used as at 31 December 2015.

(in thousand of Euro) 2016
  Air&Cooling Suspensions Filtration Sogefi SpA / Sogefi Gestion. S.A.S. Adjustements Sogefi consolidated f/s
REVENUES            
Sales to third parties 479,294 561,435 533,362 - - 1,574,091
Intersegment sales 942 1,371 1,699 25,986 (29,998) -
TOTAL REVENUES 480,236 562,806 535,061 25,986 (29,998) 1,574,091
RESULTS            
EBIT 23,277 35,611 25,104 (3,861) (5,624) 74,507
Financial expenses, net   (31,458)
Income from equity investment 3,975
Losses from equity invedtments (392)
Result before taxes 46,632
Income taxes (32,637)
Loss (profit) attributable to non-controlling interests (4,659)
NET RESULT 9,336
STATEMENT OF FINANCIAL POSITION          
ASSETS            
Segment assets 285,077 401,200 335,370 655,127 (720,521) 956,253
Equity investments in associates - - - - - -
Unallocated assets - - - - 151,431 151,431
TOTAL ASSET 285,077 401,200 335,370 655,127 (569,090) 1,107,684
LIABILITIES            
Segment liabilities 182,262 259,841 250,984 472,246 (246,718) 918,615
TOTAL LIABILITIES 182,262 259,841 250,984 472,246 (246,718) 918,615
OTHER INFORMATION            
Increase in tangible and intangible fixed assets 24,396 35,180 28,482 1,203 (200) 89,061
Depreciation, amortisation and writedowns 17,944 26,185 29,820 (12,537) 17,157 78,569


Please note that the Air&Cooling business unit figures include the net book value of the Systemes 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 relating to the claims discussed at “Critical estimates and assumptions”); the remaining adjustments arising from the Purchase Price Allocation of the Systemes Moteurs Group are posted in column "Adjustments".

Adjustments to “Intersegment sales” mainly refer to services provided by the Parent Company Sogefi S.p.A. and by subsidiary Sogefi Gestion 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. (later merged into Sogefi Italy S.p.A.) and its subsidiaries in the year 2000, and of the 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. (now included in Sogefi Italy 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 Systemes Moteurs Group.

“Depreciation, amortisation and writedowns” include writedowns of tangible (Euro 6,129 thousand) and intangible fixed assets (Euro 3,257 thousand) for the most part relating to European subsidiaries and the subsidiary Sogefi Filtration do Brasil Ltda. These assets were written down based on the recoverable amount of assets at year-end date.

 

Information on the main customers


Revenues from sales to third parties as at 31 December 2016 accounting for over 10% of Group revenues are shown in the following table:

(in thousands of Euro) 2016
Group Group BU Filtration BU Air&Cool. BU Suspensions
  Amount %      
Ford 197,999 13 51,534 70,617 75,848
Renault/Nissan 180,658 12 52,840 41,828 85,990
FCA/CNH Industial 177,489 11 90,532 43,368 43,589
PSA 169,721 11 51,269 58,004 60,448

 

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) 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

 

(in thousands of Euro) 2016
  Europe South America North America Asia Adjustments Sogefi consolidated f/s
TOTAL ASSETS 1,470,182 102,122 130,518 142,814 (737,952) 1,107,684