Sogefi S.p.a. · MIL:SGF
Sogefi — FY2015 Earnings Presentation
25 slides from Sogefi's earnings presentation, Mar 1, 2016
Slide 1: 2015 Results and 2016 perspectives
2015 Results and 2016 perspectives Laurent Hebenstreit, CEO Yann Albrand, CFO Milano, March 1st 2016
Slide 2: Environment Trends & Sogefi Products
ENVIRONMENT TRENDS & SOGEFI PRODUCTS END USERS VEHICLES MANUFACTURERS SOGEFI - 3 Business Units USAGE COSTS / BENEFITS SUSPENSIONS FILTRATION • Vehicle total cost • Fuel economy VEHICLE SPRINGS CABIN AIR FILTERS • Less pollutants STABILIZER BARS • Less green house gases • Car sharing • Autonomous ca
Slide 3: Filtration Product Portfolio
FILTRATION PRODUCT PORTFOLIO EVAP AIR L SPIN ON AIR ENGINE AIR PLASTIC U LUBRICATION CANISTER FILTER BOX GAZOLINE B SYSTEMS FILTERS R I F F U I E C ECO ENGINE PLASTIC L A LUBRICATION DIESEL FUEL MODULES T MODULES I O N DUAL CLUTCH TRANSMISSION FILTER METALIC CRANKCASE VENTILATION DIESEL FUEL FILTERS
Slide 4: A&C Product Portfolio
A&C PRODUCT PORTFOLIO MANIFOLD TUBES A I R TOP COVER ENGINE AIR INTAKE SYSTEMS WATER WATER WATER PUMPS OUTLETS PIPES ENGINE COOLING SOGEFI GROUP 3
Slide 5: Suspensions Product Portfolio - Passenger Cars
SUSPENSIONS PRODUCT PORTFOLIO - PASSENGER CARS TORSION, STABILIZER BARS STRAIGHT BARS COIL SPRINGS SOGEFI GROUP 4
Slide 6: Suspensions Product Portfolio – Heavy Duty
SUSPENSIONS PRODUCT PORTFOLIO – HEAVY DUTY Leaf Springs Stabilinkers Stabilizer Bars Track adjusters, Coil Springs Antiroll, Straight Bars SOGEFI GROUP 5
Slide 7: 2015 Highlights and 2016 Perspectives
2015 HIGHLIGHTS AND 2016 PERSPECTIVES o Revenues up by 11.1% in 2015 at €1,5bn (+9.1% like-for-like) o Solid organic growth in Europe and North America o Outperforming market production in all geographical areas o EBITDA up by €6m despite an €8.3m reduction of capitalized expenses o Net debt reduced
Slide 8: Solid Growth in Europe and North America
SOLID GROWTH IN EUROPE AND NORTH AMERICA Sales by Region like for like for weight reported reported reference €m Q4 2015 Q4 2014 like 2015 2014 like based on change change market change* change* 2015 Europe 226.2 215.4 5.0% 4.1% 943.8 872.1 8.2% 7.1% 7.0% 63.0% North America 72.6 51.9 39.8% 37.6% 26
Slide 9: Well Balanced Client Mix
WELL BALANCED CLIENT MIX Sogefi top 10 clients - in % of total sales Ford FCA Renault/Nissan PSA Daimler GM Volkswagen/Audi BMW Toyota Autodistribution 10% 15% 2015 2014 In 2015 Sogefi started Suspensions production for Hyundai and Kia SOGEFI GROUP 8
Slide 10: Positive Contribution from All Business Units
POSITIVE CONTRIBUTION FROM ALL BUSINESS UNITS In € million Business Unit sales Revenue breakdown by Business Unit Air&Cooling Suspensions 558 536 507 474 27.2% 37.1% 374 409 Suspensions Filtration Air&Cooling 2014 2015 Filtration 35.7% reported like for like change change* Suspensions 10.1% 9.2% Fil
Slide 11: 2015 Results – P&L Highlights
2015 RESULTS – P&L HIGHLIGHTS 2014 % 2015 % vs PY (in €m) TOTAL NET SALES 1,349.4 1,499.1 11.1% GROSS MARGIN 455.5 33.8% 496.1 33.1% 8.9% PROFIT BEFORE INDIRECT EXPENSES 389.4 28.9% 419.9 28.0% 7.8% Gross indirect operating expenses (280.3) (294.0) 4.9% Internally made equipment 38.8 30.5 -8.3 Other
Slide 12: Capitalization / Amortization of Intangibles
CAPITALIZATION / AMORTIZATION OF INTANGIBLES Lowest capitalization since Air & Cooling acquisition in July 2011 45 40 35 30 25 20 39,2 38,8 34,1 15 30,5 27,3 21,2 22,7 10 18,4 18,6 12,5 13,4 5 10,3 0 2010 2011 2012 2013 2014 2015 capitalization amortization At constant capitalization in 2015: • Q4 2
Slide 13: 2015 Results – FCF Highlights
2015 RESULTS – FCF HIGHLIGHTS €m 2014 2015 Ebitda w/o non recurring 134,6 136,9 Net financial debt was reduced by Changes in net working capital 8,0 (2,7) € 17,4m in Q4 2015 to € 322.3m Capital expenditures (84,4) (81,6) versus € 339.7m at end September Other operating asset (liabilities) (2,6) 1,4
Slide 14: Update on the Quality Claims
UPDATE ON THE QUALITY CLAIMS Claims by 2 car manufacturers related to Cooling products developed by Systèmes Moteurs (SM) before its sale to Sogefi (July 2011) Legal procedure against the supplier of the defective sub-part initiated by SM in 2012 at the Chateauroux Court in France In June 2012
Slide 15: Focus on Quality: Back to Basics
FOCUS ON QUALITY: BACK TO BASICS Action plan for an increased focus on quality Introduction of a new mindset at all company levels All managers MBO to include Quality KPIs All people to get at least one Quality objective at their own level Increase detection and reactivity for customer claim
Slide 16: Focus on Raw Materials
FOCUS ON RAW MATERIALS 1) Action plan for savings on Raw Materials Use of alternative raw materials Improve pricing through negotiations Develop supplier network Partner with a limited number of suppliers Low cost / Best cost sourcing 2) Limit and mitigate negative impact of raw materials
Slide 17: New Lean Organization
NEW LEAN ORGANIZATION “Lean”, therefore lighter, simpler Central functions are reduced from 7 to 3: Finance, Information Systems and Administration and less expensive Innovation et Product Marketing Human Resources BEFORE OCTOBER 1st 2015 CEO CEO L. HEBENSTREIT L. HEBENSTREIT Finance Legal Fin
Slide 18: New Product Oriented Organization
NEW PRODUCT ORIENTED ORGANIZATION Three product Business units Direct purchasing within business units North America Region to support all three business units Enhance synergies and best practices sharing Develop new business opportunities BEFORE OCTOBER 1st 2015 CEO CEO L. HEBENSTREIT L. HEBE
Slide 19: Focus on Indirect Costs
FOCUS ON INDIRECT COSTS Gross indirect costs on sales Action plan for savings on indirect costs Structure costs reduction Cost rationalization New, lean, product-oriented organization 21,8% 20,9% New plants designed more 20,7% 20,8% 20,1% efficiently 19,6% Capacity expansion in low cost co
Slide 20: Investing for Profitable Growth
INVESTING FOR PROFITABLE GROWTH Tangible investments In € million 60 4,0% 3,5% 50 3,0% 40 2,5% 30 2,0% 1,5% 20 1,0% 10 0,5% 0 0,0% 2010 2011 2012 2013 2014 2015 Tangibles % on sales 2015 Sogefi investments priorities: increase production capacity improve processes industrialize new products
Slide 21: Investments for Profitable Growth: New Plant in Mexico
INVESTMENTS FOR PROFITABLE GROWTH NEW PLANT IN MEXICO € 17m investment at Monterrey in a new plant serving all three Business units 16,000 m2 of total covered surface € 60m of additional sales after start up phase 3D Rendering Building completion as of mid February Suspensions building Filtration an
Slide 22: Sogefi's Production in North America
SOGEFI’S PRODUCTION IN NORTH AMERICA Target sales in Mexico and United States Co-localization of facilities maximizes synergies in management, back office and taxes 20% Possibility to expand the building from Daimler BMW 16,000 m2 to 25,000 m2 Ford (Hermosillo) Total surface of 45,600 m2 80%
Slide 23: 2016 Outlook
2016 OUTLOOK In 2016 the global car market is expected to increase by 2.5%. Sogefi expects to continue the positive trends in North America, China and India. In Europe after the important business expansion seen in 2015, the company expects a more modest growth, while in South America market conditi
Slide 24: Contacts
CONTACTS Yann Albrand, Group CFO Laura Pennino, Investor Relations SOGEFI Via Flavio Gioia, 8 20149 Milano – Italia Tel: 39 02 4675 0214 Fax: +39 02 43511348 Mail: ir@sogefigroup.com SOGEFI GROUP 23
Slide 25: Disclaimer
DISCLAIMER • This document has been prepared by SOGEFI S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. • For further details on the SOGEFI Group. reference should be made to publicly available information. including the Annual Report. the Semi