[Gen-AI Analysis] Sogefi S.p.A. Business Report FY ended 2013 - MarkLines Automotive Information & Gen-AI Platform

Sogefi S.p.A. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Sales revenues	1,335.0	1,319.2	1.2	1)
EBIT	69.1	63.4	9.0	-
Engine Systems Division
Sales revenues	818.6	792.6	3.3	2)
EBIT	45.7	39.0	17.2	-
Suspension Component Division
Sales revenues	518.6	528.6	(1.9)	-
EBIT	35.7	32.3	10.5	-

Factors
1) Overall Sales
-Revenues for FY ended December 31, 2013 increased by 1.2% year-on-year. The key in achieving this was the good performance on non-European markets, especially North America and Asia, where revenues grew by 24.5% and 27.1% respectively year-on-year.

-Non-European countries account for 36% of the total revenues of the Group.

-The Group performed well in South America, where revenue growth would have been higher than in the reference market.

2) Sales for Engine Systems Division
-Revenues for FY ended December 31, 2013 increased by 3.3% year-on-year. The business group benefited from business growth in non-European markets - in the USA, China and India.

New Factory

Opened new filter system factory in Pune, India.
At the new factory in Monterrey, Mexico, the Company started engine system parts production for Chrysler, GM and Ford V8 engines.

Plant Restructuring

-In February 2014, Allevard Rejna Suspension S.A., one of the Company's subsidiary of Suspension component division, announced a plan to shut down its Lieusaint plant (France) as part of its capacity downsizing plan.

Contracts

-In 2013, the Company received a contract of oil modules on V6 and V8 engines of Porsche "Cayenne".
-In 2013, the Company received a contract of oil modules on V8 engines of Audi "A6" and "A8".
-The Company received a first contract of coil spring and stabilizer bar for Hyundai "HB" in Brazil. Delivery will start in Q3/2014.

Contracted situation by geographic area
<Europe>

Engine system parts: Adopted by 8 of the 10 most sold passenger cars in Europe in 2013.
Suspension parts: Adopted by 6 of the top 10 vehicles in Europe in 2013.

Engine system parts: Adopted by 9 of the 10 most sold passenger cars in Brazil & Argentina in 2013.
Suspension parts: Adopted by 8 of the top 10 vehicles in Brazil & Argentina in 2013.

Number 1 Air intake manifold's supplier in North America.
Air intake system: Adopted by 8 of the top 20 best seller cars in North America with a strong presence in the V6 and V8 engines.

<China>

Leverage on relationship with Western customers.
Aim to achieve over USD 100 million of revenues in 2017.

<India>

Adopted by 3 of the 8 top selling vehicles in 2013.
Diesel fuel filters: Adopted by 4 of the 7 top selling utility vehicles in 2013.

Awards

-In 2013, The Company awarded by GM for "2013 Supplier of the Year".

R&D

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	35.0	35.9	26.1

Collaborative Development

-The Company in partnership with Solvey co-develops the demonstration and validation of an innovative on-board automatic fuel additives storage and dosing system for diesel vehicles.

Product Development

Fuel Additive Storage and Dosing System for Diesel Vehicles
-Integrating Diesel fuel filter and Additive tank and Dosing in one unit. Weight & volume savings are up to 3.5kg and up to 60% respectively.

Active Multi-Ways Valves
-Active distribution of the coolant according to the thermal needs in 3 outlets thanks to a single actuator and an integrated temperature sensor. Key benefits are reducing friction losses and quicker availability of the Start-Stop system. CO2 emission can be reduced by up to 3%. Start of serial production is scheduled in June 2013.

Active Coolant Pump Modules
-A Coolant Pump Module with a proportional valve in the water pump outlet controlled by an electric actuator make it possible to get optimal water flow to the engine needs. CO2 emission can be reduced by up to 3.5%. Start of serial production is scheduled in 2016.

Air Intake Manifold with integrated Water Charged Air Cooler (WCAC)
-Integrating the Air Intake Manifold and the Cooler makes it possible to get best air-flow distribution cylinder by cylinder. Series production is schedule in 2016.

Investment Activities

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall (Purchase of tangible assets)	36.0	45.2	36.3

-Constructed 2 plants in Wujiang (China), one for producing suspension components and the other for engine systems.
-Inaugurated a plant in Pune (India) for producing engine systems.
-Expanded the plant in Monterrey (Mexico).