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 |