TI Fluid Systems plc. (Formerly TI Automotive Limited) Business Report FY ended Dec. 2019
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of change (%) |
Factors | |
| Net Sales | 3,411.1 | 3,472.8 | (1.8) | 1) |
| Adjusted EBITDA | 497.8 | 484.3 | 2.8 | 2) |
| Sales by Division | ||||
| Fluid Carrying Systems | 1,917.6 | 2,026.7 | (5.4) | 3) |
| Fuel Tank and Delivery Systems | 1,493.5 | 1,446.1 | 3.3 | 4) |
Factors
1) Net Sales
-The Company’s net sales in the fiscal year ended December 31, 2019, was EUR 3,411.1 million, a decrease of 1.8% from the previous fiscal year. Excluding foreign currency exchange effects, the Company's sales decreased by 3.5%. Sales decreased across all of the Company’s operating regions except for Latin America, primarily due to decreased light vehicle production volumes. New business launches, particularly in the Fuel Tank and Delivery Systems division, helped to partially offset decreased sales.
2) Adjusted EBITDA
-In the fiscal year ended December 31, 2019, the Company had an adjusted EBITDA of EUR 497.8 million, which increased by 2.8% over the previous year. Despite decreased net sales, the Company had a higher EBITDA margin through the adoption of IFRS 16, creating a EUR 37.2 million benefit by reversing operating lease charges.
3) Fluid Carrying Systems
-The Company’s sales in the Fluid Carrying Systems division in the fiscal year ended December 31, 2019 decreased by 5.4% from the previous year to EUR 1,917.6 million. Despite an increase in sales due to positive currency exchange effects, sales in the division decreased primarily due to decreased production in China and unfavorable product mix in North America.
4) Fuel Tank and Delivery Systems
-Sales in the Company’s Fuel Tank and Delivery Systems division increased by 3.3% over the previous year to EUR 1,493.5 million in the fiscal year ended December 31, 2019. The increase in sales came primarily from new business wins, particularly due to the trend towards fuel efficiency and reduced evaporative emissions, leading to increased sales of plastic fuel tanks.
Contracts
-In 2019, the Company won a contract with a Japanese OEM to supply plastic fuel tanks for vehicles in North America. The Company is expected to produce approximately 710,000 fuel tanks across the lifetime of the contract. A significant number of these fuel tanks will be installed in hybrid electric vehicles.
-The Company will provide blow‑molded plastic fuel tanks for Karma Automotive’s luxury electric vehicle program. The Company’s industry leading technology allows the low weight plastic tanks to handle the high vapor pressures that are created in extended range electric vehicles like those being produced by Karma. Starting next fall, the tank will be part of a new Karma luxury electric vehicle, representing the global introduction of the Company’s unique double molded tank for hybrid electric vehicle applications. This innovative plastic tank already being used by pre-production validation vehicles weighs significantly less than steel tanks and also tolerates fuel vapor pressurization up to 500 mbar, allowing optimization of the vehicle’s full electric operating range driving mode. (From a press release on January 22, 2019)
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Total | 76.8 | 76.2 | 76.6 |
R&D Facilities
-As of 2019, the Company has four global technology centers.
R&D Activities
-The Company’s primary research and development activities are focused on engineering, prototyping, validation and testing related to new products and product enhancements, with particular emphasis on hybrid and electric vehicle applications.
Patents
-As of 2019, the Company has 1,100 issued and pending patents.
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Total | 119.4 | 115.8 | 118.8 |
Investments outside U.S.
<Morocco>
-The Company developed a new manufacturing facility in Tangier, Morocco, to produce thermal products for battery electric vehicles. This will help support two contracts which the Company had won in 2018 for high-volume thermal product programs for battery electric vehicle platforms. The facility spans 7,700 square meters, and will expand the Company’s capabilities and capacity for extruded products. The new facility is the Company’s second location in Morocco.