Sogefi S.p.a. · MIL:SGF
Sogefi — Investor Presentation (March 2015)
27 slides from Sogefi's investor presentation, March 2015
Slide 1: March 2015
March 2015
Slide 2: Slide 2
Slide 3: Sogefi in the World
SOGEFI IN THE WORLD 42 PRODUCTION SITES 16 COMMERCIAL SITES 21 COUNTRIES SOGEFI GROUP 2
Slide 4: Competitive Positioning: Engine Systems
COMPETITIVE POSITIONING Engine Systems Amongst the world leaders Aftermarket joint leadership in key engine components technologies in the European and Mercosur premium segment Sogefi Estimates SOGEFI GROUP 3
Slide 5: Competitive Positioning: Suspensions
COMPETITIVE POSITIONING Suspensions 1st producer in 2nd producer in Rapidly growing in Asia MERCOSUR Europe Sogefi Estimates SOGEFI GROUP 4
Slide 6: Supplying Top Vehicles in Europe
SUPPLYING TOP VEHICLES IN EUROPE • Sogefi Engine Systems are present on 8 of the 10 best seller Passenger Cars in Europe in 2014 • Sogefi Suspensions are in 6 of the top 10 vehicles in Europe in 2014 OIL MODULE INTAKE MANIFOLD TURBO PARTS DIESEL MODULE OIL FILTRATION MODULE COOLANT PIPE TURBO OUTLET
Slide 7: Supplying Top Vehicles in South America
SUPPLYING TOP VEHICLES IN SOUTH AMERICA • Sogefi Engine Systems are present on 8 of the 10 best seller Passenger Cars in Brazil + Argentina in 2014 • Sogefi Suspensions are in 9 of the top 10 vehicles in Brazil + Argentina in 2014 AIR INTAKE SYSTEM AIR INTAKE SYSTEM AIR INTAKE SYSTEM OIL FILTER / FU
Slide 8: Supplying Premium Platforms
SUPPLYING PREMIUM PLATFORMS OIL MODULE OIL MODULE OIL MODULE OIL MODULE INTAKE MANIFOLD OIL MODULE STAB. BARS STAB. BARS COILS SPRINGS STAB. BARS AIR INTAKE SYSTEM FERRARI 599 AIR INTAKE MANIFOLD COILS SPRINGS PORSCHE CAYENNE MULSANNE BENTLEY MERCEDES SLK AIR INTAKE MANIFOLD MERCEDES GLK INTAKE MANI
Slide 9: Rebalancing Customers and Regions
REBALANCING CUSTOMERS AND REGIONS (Based on FY 2014 data) Sogefi Group main Customers* Breakdown by region Ford Renault/Nissan 4% 6% 6% PSA FCA/CNH Industrial 14% 15% 16% GM 17% 14% 16% Daimler Volkswagen/Audi 2014 Asia BMW 2013 NAFTA Volvo Mercosur Toyota 64% 65% 62% Europe DAF/Paccar Man Caterpill
Slide 10: Market Trends: Europe, a Hub for Engine Production and Design
MARKET TRENDS: EUROPE, A HUB FOR ENGINE PRODUCTION AND DESIGN 25% of the engines manufactured in Europe 28 are exported to other regions of the world 35% of the exported engines serve NAFTA markets (amounts in ‘000 pcs) RUSSIA Engine Vehicle 2015 515 1394 2014 553 1770 EU28 JAPAN/KOREA Engine Vehicl
Slide 11: Market Trends: Cars and LCVs Production by Region
MARKET TRENDS CARS and LCVs PRODUCTION BY REGION Leveraging on international market growth opportunities: Nafta, China and India (amounts in ‘000 pcs) IHS 03 2015 2013 2014 2015 YoY 2016 2017 2018 2019 2020 CAGR 15/20 WORLD 84,747 87,382 89,037 1.9% 92,241 95,435 98,158 100,887 102,999 3.0% EUROPE 1
Slide 12: Facilities to Exploit Opportunities in NAFTA
3 FACILITIES TO EXPLOIT OPPORTUNITIES IN NAFTA 3 plants well positioned to serve all major local manufacturers +16.1% revenue growth* in 2014 • New Engine System plant in Mexico opened in 2013 • West Virginia • Canada Key Products for the successful light truck market: • Air Intake manifolds • Oil f
Slide 13: Expected Strong Growth in China
EXPECTED STRONG GROWTH IN CHINA Leverage on relationship with Western and selected local players +41.8% revenue growth in ASIA in 2014 2 plants opened in 2014 in Wujiang at constant exchange rates Suspensions: tubular and stabilizer bars serving mainly BMW, Daimler, FCA, Ford and PSA FORD FOCUS PSA
Slide 14: A Growing Player in India
A GROWING PLAYER IN INDIA Well positioned to serve all major local manufacturers +41.8% revenue growth in ASIA in 2014 with plants in: at constant exchange rates • Pune: Engine Systems + Suspensions • Bangalore: Engine Systems • New Delhi: Engine Systems New Delhi 2 Products: • Air filter systems •
Slide 15: Heavy Duty Main Customers
HEAVY DUTY MAIN CUSTOMERS Serving leaders through the world In the heavy duty business, Sogefi is: • Leading player in suspensions in Europe • Joint leader in air filtration (Engine Systems) in South America • Co-leader for Aftermarket in South America, European aftermarket entered in 2013 SOGEFI GR
Slide 16: Supplying Also Railways, Agri + Construction Equipment
SUPPLYING ALSO RAILWAYS, AGRI + CONSTRUCTION EQUIPMENT SOGEFI GROUP 15
Slide 17: Innovations
SOGEFI«- INNOVATIONS 16 SOGEFI GROUP
Slide 18: Engine System: Main Trends in Place
ENGINE SYSTEM: MAIN TREND IN PLACE DIRECT IMPACT ON SOGEFI’S PRODUCT PORTFOLIO CO2 reduction Emission Global platforms Regulations Local Markets Trends Description • Fuel efficiency / • “Clean Air” regulations • Having the same engine Global warming push: support Pollutant Emission running worldwide
Slide 19: Downsizing of Engines
DOWNSIZING OF ENGINES A CLEAR TREND FOR THE COMING YEARS Segmentation by engine size Engine size Diesel (on total) (mln engines) CAGR 2013-20 8,4% 0,4% Engine size Gasoline (on total) -1,4% • Small engines (up to 1.6lt) will represent around 50% of the total market with a 8,4% CAGR in 2013-20. By 20
Slide 20: Suspensions: Key Market Trends
SUSPENSIONS: KEY MARKET TRENDS Global platforms Weight reduction Trends Utilization of same car platform on Search for fuel efficiency pushing to Description a global base continuous weight reduction Production of Global platforms will progressively grow to about 30% of the worldwide market
Slide 21: Suspension Innovation: Weight Reduction
SUSPENSION INNOVATION: WEIGHT REDUCTION Tube Stabilizer Bars with Variable Composite Coil Springs Cross Sections Fiber Glass reinforced plastic Coil Springs (FRP) Steel tube stabilizer with locally variable internal and/or external diameters along the length of the piece Up to 50% of weight reductio
Slide 22: Aftermarket - Main Trends
AFTERMARKET - MAIN TRENDS EUROPEAN CAR PARC GETS OLDER 2010 2011 2012 2013 2014 28% 31% ECON 33% 35% 35% 34% IAM 33% 33% 34% 35% OES 38% 36% 31% 30% 34% 0-4 years (OES) 5-9 years (IAM premium) 10+ years (IAM premium) In Europe the OES market declined strongly in the recent years. Big potential for t
Slide 23: Financials
SOGEFI«- FINANCIALS 22 SOGEFI GROUP
Slide 24: 2014 - Results Highlights
2014 - RESULTS HIGHLIGHTS (€m) FY 2013 FY 2014 YOY FY 2014 RESULTS KEY DRIVERS Revenues 1.335 1.349 1,1% •The growth reported in North America and in Asia and the aftermarket business supported the revenue increase, that Excluding forex effect 4,7% grew, at the same exchange rates, +4.7% EBITDA pre-
Slide 25: High Financial Flexibility
HIGH FINANCIAL FLEXIBILITY Net Financial position as of 31/12/2014 Debt Refinancing €m • In May 2014 Sogefi placed a €100m equity-linked bond – 7-year maturity 133,5 – Yearly coupon set at 2% – Initial price for conversion set at €5.3844 437,8 – Used principally to refinance the Company’s 304,3 exis
Slide 26: Contacts
CONTACTS Giancarlo Coppa, 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 25
Slide 27: 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