PRESS RELEASE
(Translation from the Italian original which remains the definitive version)
Pininfarina Group - First half 2020 Report
Evaluation of going concern following the Covid-19 pandemic
Outlook 2020
Cambiano, 3 August 2020 - The Board of Directors of Pininfarina S.p.A., chaired by Paolo Pininfarina, met today and approved the Group's interim financial report at 30 June 2020. The key financial figures of the Pininfarina Group as at the first six months of 2020 and 2019 are as follows:
(€/million) | H1 2020 | H1 2019 | 2019 | Variation* |
Revenue | 32.5 | 46.4 | -13.9 | |
Ebitda | -5.8 | 0.9 | -6.7 | |
Ebit | -7.4 | -1.9 | -5.5 | |
Loss for the period | -8.7 | -2.6 | -6.1 | |
Net Financial position (debt) | -14.9 | -7.3 | -12.0 | -2.9 |
Equity | 30.2 | 59.3 | 39.0 | -8.8 |
* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2019.
EBITDA is the operating profit or loss gross of amortisation, depreciation and provisions. EBIT is the operating profit or loss.
Pursuant to article 154-bis. 2 of the Consolidated finance act, the manager in charge of financial reporting, Gianfranco Albertini, states that the financial disclosures provided in this press release are consistent with the relevant documentation, ledgers and accounting records.
The Pininfarina Group, Coronavirus and the reference markets
In H1 2020, the global automotive market was adversely affected by two simultaneous factors:
-
the global automotive segment's difficulties that came into light in 2019 continued in the first half of
2020, with falling sales volumes and the subsequent strong pressure on profitability throughout the automotive supply chain. Manufacturers, struggling with large investments in new technologies (electric drive in particular), have reduced the part of cash flow destined for the development of traditional cars. Start-ups, engaged in the electric car sector, have been struggling to raise the funds necessary for the development of new vehicles, being therefore forced to downsize their initial projects or abandon the undertaken initiatives. - This negative situation was exacerbated in the first half of 2020 by the global spreading of Coronavirus pandemic. The development of new products has suffered a further slowdown while almost all the companies had to deal with serious cash problems caused by the collapse of the car sales market with negative effects on the supply chain.
The combined effects mentioned above have had a different weight on the Group companies and on the markets in which they operate.
The activities on the Chinese market, operated by Pininfarina Shanghai, has been heavily influenced by the health emergency especially in the first five months of the year. Starting from June, the situation gradually improved, also thanks to government incentives aimed at restoring the normal conditions of the sector as quickly as possible.
The German market, manned by Pininfarina Deutschland, has not undergone the discontinuity seen on the Chinese market but rather a progressive reduction of OEM's requests for engineering services or the delay of initiatives already decided.
The architecture and industrial design segments, managed by Pininfarina of America in the US market, do not currently seem to be adversely affected by Coronavirus.
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For Pininfarina Engineering, the struggling in contractualizing initiatives with adequate margins continues, given the reduction in requests for services on the international market (phenomenon started in H1 2019) and the simultaneous contraction in market prices.
Pininfarina S.p.A., in H1 2020, has experienced different situations depending on the service rendered. Wind Tunnel activities have been strongly reduced due to the inability to carry out tests with the presence of customers. Workshop activities were also blocked for a few months due to legal requirements. The situation is progressively improving with the reopening of activities and the progressive easing of the logistical constraints imposed on national and international economic operators.
Other activities such as design, architecture and industrial design have not undergone any overall reductions induced by Coronavirus, compared to forecasts.
Cash trend
In the comparison between the cash at the reporting date and the one at 31 December 2019 there is a decrease of about €3 million against an increase in bank overdrafts of about €0.6 million while the current banks' loans and borrowings decreased by about €1 million. Cash situation, although worsening compared to the previous year and considering the events of the H1 2020, is carefully monitored but seems currently not critical.
Referring to what has been commented several times in the 2019 Annual Report and Interim Financial Report at March 31, 2020, Pininfarina S.p.A. acted to boost its financial capacity so as to be able to support its group. The loan of €20 million signed with the Mahindra group on February 2020 increased the funds available for all types of needs, including those potentially deriving from important changes in the business induced by Coronavirus. At the reporting date the loan has not yet been used as the liquidity present in the Group companies is sufficient to guarantee normal operations. Lastly, as far as today objectively foreseeable, the liquidity reserves available in the Parent Company, considering the situation at the reporting date and the new financial resources guaranteed by Mahindra group, lead to consider the current market and its trend in the foreseeable future, not so negative as to create uncertainties about going concern.
In the reference period, Pininfarina S.p.A. and Pininfarina Engineering S.r.l. has not benefited from loans that were part of the measures in support of companies approved by the Italian government or that can be disbursed by the banking system. The subsidiary Pininfarina of America Corp. has received a bank loan, as part of the financial concessions put in place by Small Business Administration to counter the pandemic, of approximately €0.3 million.
Pininfarina S.p.A. Financial debt
Pininfarina S.p.A. has continued and still continues, without particular cash strains, to meet its obligations, including those relating to the ongoing debt rescheduling agreement (2016-2025) with certain lending institutions. This agreement provides for a single financial covenant to be respected, i.e. a consolidated net equity value of not less than €30 million, compliance or non-compliance with the covenant is assessed at 31 March of each year until the loan expires. At 31 March 2020 the contractual obligation was respected, the figure at 30 June appears to be still within the compliance threshold even though it is not relevant for contractual purposes. Should the minimum equity threshold be exceeded, the agreement would not be automatically terminated, as there are specific remedies in place and the lending institutions can waive their right to take action. The Mahindra Group granted a surety that is enforceable if the company fails to meet its obligations under the rescheduling agreement.
Evaluation of going concern following the Covid-19 pandemic
With regard to the effects of the current health emergency (Coronavirus) on the outlook of the Pininfarina Group and, thus, on whether the company's separate financial statements and the group's consolidated financial statements can be prepared on a going concern basis, we note the following:
- at the reporting date, the Group, despite detecting reductions in activity and/or cancellation of orders due to Coronavirus (in particular on the Chinese, German and U.S. markets), has not overall endured worsening effects in economic or financial terms such as to show a performance substantially dissimilar to the expectations preceding the spread of the virus. Taking into consideration the parameter of the
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PRESS RELEASE
consolidated value of production, it is estimated that in H1 2020 the Covid-19 effect weighed about €9 million compared to expectations. The impact of the health emergency, as mentioned above, had a different weight depending on the reference markets, in fact about 40% of the reduction is attributable to Chinese market, about 20% to Germany and about 6% to United States. For the remaining 34%, these are services produced in Italy, with reference to a variety of markets and customers, who have not been realized because of the lockdown period in Italy, the closure of borders and customers' corporate policies
- concerning the travel ban - which effectively prevented the commercial and operational activities. Expectations for the full year 2020 - compared to the expectations drawn up prior to the occurrence of the health emergency - indicate a total recovery for activities carried out in Italy, a worsening of the German market, a trend in line with the first half as regards the United States and a marked improvement in Chinese activities. Again with respect to pre-Covid expectations, the loss in value of production forecast for the whole 2020 settles at around €15 million (of which around €9 million in the first half of the year).
As regards the operating result (difference between value of production and production costs) at 30 June 2020 - compared to expectations - the effects of the reduction in the value of production in some markets was offset by the reduction in operating costs which made possible to reduce overall losses in the first half of approximately €1 million, while for the full year 2020 a deterioration of the pre-Covid forecast of around €0.9 million is expected;
- the Parent Company has acquired the financial resources necessary to support the Group's liquidity needs in the foreseeable future as outlined above;
- it is believed that going concern - in the economic context that the automotive segment is experiencing, further worsened by the effects induced by the current health emergency - involves significant challenges in terms of sales volume as well as costs and prices for obtaining contracts. All measures have been put in place to limit the absorption of operating cash and possible actions for containing costs such as:
- the intensification of commercial contacts with current and potential clients, also in new ways, exploiting the potential of Web;
- the greater use of outsourcing - where feasible - in all business segments, using external resources to cover the need for productive hours induced by the expected increase in volumes, with a significant reduction in average production costs;
- contractual application of downpayment where possible, in order to make the trend of incoming and outgoing cash flows more balanced;
- redefinition of the cost structure and simplification of processes also through the reduction of manpower (direct and indirect) considered excessive in relation to the potential of the current market and in the medium term. This action, which is necessary to achieve the objectives of the "plan" and return to operational marginality, is now in a phase of "suspension" due to the government restrictions in place as a result of Covid-19.
Therefore, in view of the above, in order to evaluate the use of the going concern assumption, directors have taken into account the following:
- visibility of existing and potential projects portfolio in light of commercial contacts with clients indicating the possibility of reaching pre-Covid targets;
- existence of adequate financial resources available and already approved by Mahindra group to cope with the expected period of strong contraction which the company and the Group were already facing pre-Covid, as well as useful for the implementation of the cost repositioning actions planned in the Group's strategic directives;
- existence of the first-demand Mahindra group guarantee on the financial debt, taking into account the covenant and the provision for non-compliance on the 31 March 2021 (verification date);
- possibility of resorting to the support measures provided by the government for the management of direct and indirect excess labor, pending the possibility of implementing the cost reduction plans provided according to the Group strategic guidelines.
Considering the above, management can reasonably expect that the Company has sufficient resources available to continue its operations for the foreseeable future, as provided for by the IFRS. Due to the above reasons, the directors deem it correct to prepare the Interim Financial Report on a going concern basis.
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PRESS RELEASE
Operating and financial performance
The most significant issues that arise from a comparison of the H1 2020 and H1 2019 consolidated financial figures include the decrease in revenue and the deterioration of profitability (the Group recognised an operating loss and a loss for the period). Equity at the reporting date decreased compared to 31 December 2019, mainly due to the loss for the period. The Group recorded net financial debt worsening due to the reduction of available liquidity compared to 2019.
Specifically, revenue came to €32.5 million for the reporting period compared to €46.4 million for the corresponding period of 2019 (-30%).
The gross operating loss amounts to €5.8 million, compared to the gross operating profit of €0.9 million for the first six months of 2019. The operating loss came to €7.4 million compared to an operating loss of €1.9 million in the corresponding period of the previous year.
Net financial expense for €0.9 million increased compared to from €0.5 million for the first six months of 2019. The deterioration is mainly due to the absence in 2020 of the positive parent's cash management that characterized the first half of 2019.
The loss before taxes amounts to €8.4 million (pre-tax loss of €2.4 million in H1 2019), while the loss for the period totals €8.7 million, compared to the €2.6 million loss recorded in the first half of 2019.
The net financial position is negative of €14.9 million compared to net financial debt of €12 million at 31 December 2019 (negative for €7.3 million at 30 June 2019).
Equity decreased from €39 million at 31 December 2019 to €30.2 million (€59.3 million at 30 June 2019) mostly as a result of the loss for the period.
The headcount increased by 5 units from 689 at 30 June 2019 to 694 at the reporting date.
Support measures and benefits which the Group had access to
In compliance with ESMA recommendations, published with the Public Statement ESMA 32-63-972 of 20 May 2020, the benefits and support measures to which the Group has had access and the measures to which it intends to access are illustrated below:
- In Italy, the "Cassa Integrazione Guadagni ordinaria - Covid" (Ordinary Redundancy Fund) was adopted by Italian companies and affected n. 151 employees for a total amount of 21.902 hours.
- In Germany, the "Cassa Integrazione Guadagni" (Redundancy fund) has involved an average of 47 people for a total of 14.515 hours.
- In USA, the subsidiary Pininfarina of America Corp. received a loan of approximately €0.3 million, at a rate of 1% per annum and with a monthly repayment, starting from January 2021 for 18 months.
For H2 2020, it is expected to continue using the social safety nets that will be proposed by the government both in Italy and Germany.
The key financial figures of the parent, Pininfarina S.p.A., are summarised below:
(€/million) | H1 2020 | H1 2019 | 2019 | Variation* |
Revenue | 17.3 | 23.5 | -6.2 | |
Ebitda | -3.7 | -0.5 | -3.2 | |
Ebit | -5.9 | -2.3 | -3.6 | |
Loss for the period | -6.7 | -2.3 | -4.4 | |
Net financial position (debt) | -8.6 | -1.9 | -6.6 | -2.0 |
Equity | 48.6 | 69.4 | 55.3 | -6.7 |
* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2019.
EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.
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PRESS RELEASE
Events after the reporting period
There are no significant events that occurred after the reporting date.
Outlook for 2020
Based on the current situation of the business sectors where the Pininfarina Group operates, its outlook for 2020 is a fall in revenue compared to 2019, along with an operating loss and a loss for the year.
Contacts:
Pininfarina:
Gianfranco Albertini, C.F.O. and Investor Relations, Phone 011.9438367
Francesco Fiordelisi, Corporate communication, Phone 335.7262530, f.fiordelisi@pininfarina.it
Carolina Mailander Comunicazione:
Carolina Mailander, carolina.mailander@cmailander.it
Stella Casazza, Phone 349.3579552, stella.casazza@cmailander.it
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PRESS RELEASE
RECLASSIFIED FINANCIAL STATEMENTS (*)
- The reclassified financial statements group the figures presented in the legally-required statements to improve their understanding, without however changing their presentation logic.
The terms "EBITDA" and "EBIT" as used in the reclassified financial statements are the "operating profit or loss", gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions, and "operating profit or loss" presented in the IFRS financial statements, respectively.
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PRESS RELEASE
PININFARINA GROUP
Reclassified income statement
(€'000)
Data at | |||||
H1 2020 | % | H1 2019 | % | Variation | |
Revenue for sales and services | 31,636 | 97.47 | 43,736 | 94.24 | (12,100) |
Change in finished goods | 27 | 0.08 | 6 | 0.01 | 21 |
Other revenue and income | 794 | 2.45 | 2,667 | 5.75 | (1,873) |
Revenue | 32,457 | 100.00 | 46,409 | 100.00 | (13,952) |
Net gains on the sale of non-current assets | 947 | 2.92 | - | - | 947 |
Materials and services (*) | (14,860) | (45.79) | (17,907) | (38.58) | 3,047 |
Change in raw materials | 180 | 0.55 | 43 | 0.09 | 137 |
Value added | 18,724 | 57.69 | 28,545 | 61.51 | (9,821) |
Labour cost (**) | (24,568) | (75.69) | (27,647) | (59.58) | 3,079 |
Gross operating profit (loss) | (5,844) | (18.01) | 898 | 1.93 | (6,742) |
Data at
2019
85,301
(17)
5,114
90,398
(34)
(37,076)
(32)
53,256
(54,996)
(1,740)
Amortisation and depreciation | (2,097) | (6.46) | (2,386) | (5.14) | 289 | (4,918) | |
(Additions to)/utilisation of provisions and impairment losses | 506 | 1.56 | (423) | (0.91) | 929 | (12,711) | |
Operating loss | (7,435) | (22.91) | (1,911) | (4.12) | (5,524) | (19,369) | |
Net financial expense | (945) | (2.91) | (504) | (1.08) | (441) | (1,469) | |
Share of loss of equity-accounted investees | 7 | 0.02 | (19) | (0.04) | 26 | (2) | |
Loss before taxes | (8,373) | (25.80) | (2,434) | (5.24) | (5,939) | (20,840) | |
Income taxes | (318) | (0.98) | (207) | (0.45) | (111) | (2,235) | |
Loss for the period | (8,691) | (26.78) | (2,641) | (5.69) | (6,050) | (23,075) | |
- | - | - | - | - | |||
- Materials and services are net of utilisations of the provisions for product warranties and risks (€92.3 thousand and €33.5 thousand for 2019 and 2020, respectively).
(**) Labour cost is net of utilisations of the restructuring provision (€184.5 thousand for 2019 and non-use for 2020).
As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the condensed interim consolidated financial statements with those in the reclassified schedules is provided below:
- Materials and services include raw materials and components, other variable production costs, external variable engineering services, exchange gains and losses and other expenses.
- Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and equipment and investment property.
- (Additions to)/utilisation of provisions and impairment losses include additions to/utilisation of provisions, impairment losses and inventory write-downs.
- Net financial expense comprises net financial expense and dividends.
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PININFARINA GROUP | ||||||
Reclassified statement of financial position | ||||||
(€'000) | ||||||
Data at | Data at | |||||
30.06.2020 | 31.12.2019 | Variation | 30.06.2019 | |||
Net non-current assets (A) | ||||||
Net intangible assets | 6,084 | 6,092 | (8) | 7,691 | ||
Net property, plant and equipment and investment property | 39,828 | 40,481 | (653) | 50,292 | ||
Right-of-use assets | 5,283 | 5,785 | (502) | 7,063 | ||
Equity investments | 861 | 854 | 7 | 837 | ||
Total A | 52,056 | 53,212 | (1,156) | 65,883 | ||
Working capital (B) | ||||||
Inventories | 566 | 360 | 206 | 457 | ||
Contract assets | 4,625 | 4,617 | 8 | 5,334 | ||
Net trade receivables and other assets | 32,089 | 40,004 | (7,915) | 35,388 | ||
Assets held for sale | - | 1,819 | (1,819) | - | ||
Deferred tax assests | 539 | 839 | (300) | 3,011 | ||
Trade payables | (16,075) | (19,638) | 3,563 | (15,668) | ||
Contract liabilities | (12,685) | (14,624) | 1,939 | (14,043) | ||
Provisions for risks and charges | (2,525) | (3,452) | 927 | (568) | ||
Other liabilities (*) | (8,563) | (7,864) | (699) | (7,963) | ||
Total B | (2,029) | 2,061 | (4,090) | 5,948 | ||
Net invested capital (C=A+B) | 50,027 | 55,273 | (5,246) | 71,831 | ||
Post-employment benefits (D) | 4,928 | 4,243 | 685 | 5,185 | ||
Net capital requirements (E=C-D) | 45,099 | 51,030 | (5,931) | 66,646 | ||
Equity (F) | 30,248 | 39,001 | (8,753) | 59,337 | ||
Net financial position (G) | ||||||
Non-current loans and borrowings | 25,524 | 24,840 | 684 | 28,074 | ||
Net current financial position | (10,673) | (12,811) | 2,138 | (20,765) | ||
Total G | 14,851 | 12,029 | 2,822 | 7,309 | ||
Total as in E (H=F+G) | 45,099 | 51,030 | (5,931) | 66,646 |
- "Other liabilities" include the following items: deferred tax liabilities, other financial liabilities, current tax liabilities and other
liabilities.
PININFARINA GROUP
Net financial position (debt)
(€'000)
Data at | Data at | ||||
30.06.2020 | 31.12.2019 | Variation | 30.06.2019 | ||
Cash and cash equivalents | 17,187 | 20,115 | (2,928) | 13,177 | |
Current assets held for trading | - | - | - | 13,806 | |
Current bank overdrafts | (1,793) | (2,368) | 575 | (1,043) | |
Lease liabilities | (1,083) | (1,298) | 215 | (1,537) | |
Loans and borrowings - related parties | - | - | - | - | |
Current portion of bank loans and borrowings | (3,638) | (3,638) | - | (3,638) | |
Net current financial position | 10,673 | 12,811 | (2,138) | 20,765 | |
Non-current loans and receivables - third parties | - | - | - | - | |
Non-current loans and receivables - related parties | 550 | 550 | - | 550 | |
Non-current held to maturity investments | - | - | - | - | |
Non-current lease liabilities | (4,759) | (4,990) | 231 | (5,434) | |
Non-current bank loans and borrowings | (21,315) | (20,400) | (915) | (23,190) | |
Non-current loans and borrowings | (25,524) | (24,840) | (684) | (28,074) | |
NET FINANCIAL DEBT | (14,851) | (12,029) | (2,822) | (7,309) |
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PININFARINA S.p.A.
Reclassified income statement
(€'000)
Data at | Data at | ||||||
H1 2020 | % | H1 2019 | % | Variation | 2019 | ||
Revenue from sales and services | 17,105 | 98.75 | 22,753 | 96.78 | (5,648) | 44,699 | |
Change in finished goods | 27.00 | 0.16 | 6 | 0.03 | 21 | (17) | |
Other revenue and income | 188.00 | 1.09 | 751 | 3.19 | (563) | 2,581 | |
Revenue | 17,320 | 100.00 | 23,510 | 100.00 | (6,190) | 47,263 | |
Net gains on the sale of non-current assets | 22 | 0.13 | - | - | 22 | ( 34) | |
Materials and services (*) | (11,840) | (68.36) | (13,601) | (57.85) | 1,761 | (27,068) | |
Change in raw materials | 180 | 1.04 | 43 | 0.18 | 137 | (32) | |
Value added | 5,682 | 32.81 | 9,952 | 42.33 | (4,270) | 20,129 | |
Labour cost (**) | (9,378) | (54.15) | (10,483) | (44.59) | 1,105 | (21,648) | |
Gross operating loss | (3,696) | (21.34) | (531) | (2.26) | (3,165) | (1,519) | |
Amortisation and depreciation | (919) | (5.30) | (1,303) | (5.54) | 384 | (2,630) | |
(Additions to)/utilisation of provisions and impairment (losses) and gains | (1,247) | (7.21) | ( 496.00) | ( 2.11) | (751) | (10,186) | |
Operating loss | (5,862) | (33.85) | (2,330) | (9.91) | (3,532) | (14,335) | |
Net financial expense | (753) | (4.34) | 173 | 0.73 | (926) | (579) | |
Share of lossof equity-accounted investees | 7 | 0.04 | (19) | (0.08) | 26 | (2) | |
Loss before taxes | (6,608) | (38.15) | (2,176) | (9.26) | (4,432) | (14,916) | |
Income taxes | (46) | (0.27) | (105) | ( 0.44) | 59 | (1,633) | |
Loss for the period | (6,654) | (38.42) | (2,281) | (9.70) | (4,373) | (16,549) | |
- Materials and services are net of utilisations of the provisions for product warranties and risks (€92.3 thousand and €33.5 thousand for 2019 and 2020, respectively).
(**) Labour cost is net of utilisations of the restructuring provision (€184.5 thousand for 2019 and non-use for 2020).
As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the condensed interim consolidated financial statements with those in the reclassified schedules is provided below:
- Materials and services include raw materials and components, other variable production costs, external variable engineering services, exchange gains and losses and other expenses.
- Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and equipment and investment property.
- (Additions to)/utilisation of provisions and impairment losses include additions to/utilisation of provisions, impairment losses and inventory write-downs.
- Net financial expense comprises net financial expense and dividends.
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PININFARINA S.p.A.
Reclassified statement of financial position
(€'000)
Data at | Data at | |||||
30.06.2020 | 31.12.2019 | Variation | 30.06.2019 | |||
Net non-current assets (A) | ||||||
Net intangible assets | 5,514 | 5,450 | 64 | 7,151 | ||
Net property, plant and equipment and investment property | 32,771 | 33,122 | (351) | 41,019 | ||
Right-of-use assets | 197 | - | 197 | 228 | ||
Equity investments | 22,238 | 22,231 | 7 | 22,214 | ||
Total A | 60,720 | 60,803 | (83) | 70,612 | ||
Working capital (B) | ||||||
Inventories | 566 | 360 | 206 | 457 | ||
Contract assets | 1,477 | 954 | 523 | 1,264 | ||
Net trade receivables and other assets | 25,206 | 30,094 | (4,888) | 25,781 | ||
Assets held for sale | - | 290 | (290) | - | ||
Deferred tax assets | - | - | - | 1,280 | ||
Trade payables | (11,621) | (13,145) | 1,524 | (12,488) | ||
Contract liabilities | (8,879) | (9,658) | 779 | (7,398) | ||
Provisions for risks and charges | (2,081) | (867) | (1,214) | (568) | ||
Other liabilities | (4,547) | (3,950) | (597) | (4,050) | ||
Total B | 121 | 4,078 | (3,957) | 4,278 | ||
Net invested capital (C=A+B) | 60,841 | 64,881 | (4,040) | 74,890 | ||
Post-employment benefits (D) | 3,661 | 2,978 | 683 | 3,537 | ||
Net capital requirements (E=C-D) | 57,180 | 61,903 | (4,723) | 71,353 | ||
Equity (F) | 48,553 | 55,269 | (6,716) | 69,419 | ||
Net financial position (G) | 0 | |||||
Non-current loans and borrowings | 16,212 | 18,309 | (2,097) | 21,057 | ||
Net current financial position | (7,585) | (11,675) | 4,090 | (19,123) | ||
Total G | 8,627 | 6,634 | 1,993 | 1,934 | ||
Total as in E (H=F+G) | 57,180 | 61,903 | (4,723) | 71,353 | ||
PININFARINA S.p.A.
Net financial position (debt)
(€'000)
Data at | Data at | ||||
30.06.2020 | 31.12.2019 | Variation | 30.06.2019 | ||
Cash and cash equivalents | 12,993 | 17,036 | (4,043) | 9,335 | |
Current assets held for trading | - | - | - | 13,806 | |
Lease liabilities | (147) | (100) | (47) | (100) | |
Loans and borrowings - related parties | (1,683) | (1,683) | - | (340) | |
Current portion of bank loans and borrowings | (3,578) | (3,578) | - | (3,578) | |
Net current financial position | 7,585 | 11,675 | (4,090) | 19,123 | |
Non-current loans and receivables - third parties | - | - | - | - | |
Non-current loans and receivables - related parties | 5,111 | 2,191 | 2,920 | 2,203 | |
Non-currentheld-to-maturity investments | - | - | - | - | |
Non-current lease liabilities | (228) | (130) | (98) | (130) | |
Non-current bank loans and borrowings | (21,095) | (20,370) | (725) | (23,130) | |
Non-current loans and borrowings | (16,212) | (18,309) | 2,097 | (21,057) | |
NET FINANCIAL POSITION (DEBT) | (8,627) | (6,634) | (1,993) | (1,934) | |
D I R E Z I O N E C O M U N I C A Z I O N E E I M M A G I N E - W W W . P I N I N F A R I N A . C O M - I N F O @ P I N I N F A R I N A . C O M
PRESS RELEASE
Related party transactions - Pininfarina Group
The table below, which is presented pursuant to Consob communication no. DEM/6064293 of 28 July 2006, summarises related party transactions, including intragroup transactions. These transactions were carried out at market conditions, consistent with the nature of the goods exchanged or services provided. They were neither atypical nor unusual for the purposes of the above-mentioned communication.
Commercial | Financial | Operating | Financial | ||||||||||||
Assets | Liabilities | Assets | Liabilities | Revenue | Expense | Income | Expense | ||||||||
Signature S.r.l. | 25,232 | 4,461 | 550,000 | - | 25,232 | 20,238 | - | - | |||||||
Tech Mahindra Ltd | 27,164 | 369,850 | - | - | 85,050 | 308,340 | - | - | |||||||
Tech Mahindra GmbH | 26,819 | - | - | - | 111,367 | - | - | - | |||||||
Mahindra&Mahindra Ltd | 422,680 | 3,846 | - | - | 1,603,728 | - | - | - | |||||||
PT Mahindra Accelo Steel Indonesia | - | - | - | - | 45,246 | - | - | - | |||||||
Mahindra North America Technical Center | 53,589 | - | - | - | 127,459 | - | - | - | |||||||
Automobili Pininfarina GmbH | 482,795 | 2,212,922 | - | - | 4,704,558 | - | - | - | |||||||
Total | 1,038,279 | 2,591,079 | 550,000 | - | 6,702,640 | 328,578 | - | - | |||||||
Intragroup transactions include:
- Signature S.r.l.: loan agreement, purchases and sales of goods with Pininfarina S.p.A.;
- Tech Mahindra Ltd: services agreements in favor of Pininfarina Engineering S.r.l; services agreements with Pininfarina Engineering S.r.l., Pininfarina Deutschland GmbH and Pininfarina of America Corp.;
- Tech Mahindra Gmbh: lease agreement for equipped office premises and services agreement with Pininfarina Deutschland GmbH;
- Mahindra & Mahindra Ltd: brand licence agreement and engineering services agreements with Pininfarina S.p.A. and Pininfarina Engineering S.r.l.;
- PT Mahindra Accelo Steel Indonesia: design services agreement with Pininfarina S.p.A.;
- Mahindra North America Technical Center: services agreement with Pininfarina Engineering S.r.l.;
- Automobili Pininfarina Gmbh: design and engineering agreement with Pininfarina S.p.A..
In addition to the above figures:
-
legal assistance activity provided to the parent by Studio Starclex - Studio Legale Associato
Guglielmetti, related to Romina Guglielmetti (director of Pininfarina S.p.A.), for €9,000.
On 26 September 2018, Pininfarina Engineering S.r.l. signed an engineering services agreement with Mahindra & Mahindra Ltd ("M&M") for the development of a project to design the upper body systems of the body shell, integration of the body shell with the main operating systems and achievement of the performance requested of a new Mahindra vehicle based on its new platform.
Pininfarina Engineering S.r.l. will receive a fee of €10,583,172 for its services to be provided over roughly 16 months. This fee qualifies the transaction as a "major transaction" pursuant to the relevant legislation. The services provided are part of the "company's normal business activities" and are rendered on an arm's length basis. At the reporting date, services provided to the customer totalled €10,583,172. The project as of 30 June 2020 has ended.
The parent, Pininfarina S.p.A., signed five design and engineering services agreements with Automobili Pininfarina GmbH ("AP") on 29 June 2018, 26 March 2019, 31 May 2019, 22 July 2019 and 9 December 2019, respectively, for the development of a project to design the interior and exterior of a new car, to design the upper body systems of the body shell, integration of the body shell with the main operating systems and achievement of the performance requested of a new AP vehicle based on its new platform.
D I R E Z I O N E C O M U N I C A Z I O N E E I M M A G I N E - W W W . P I N I N F A R I N A . C O M - I N F O @ P I N I N F A R I N A . C O M
PRESS RELEASE
The parent will receive a total fee of €20,510,227 for its services to be provided under the above contracts from June 2018 to December 2020. This fee qualifies the transaction as a "major transaction" pursuant to the relevant legislation. The services provided are part of the "company's normal business activities" and are rendered on an arm's length basis. At the reporting date, services provided to the customer totalled €15,715,919, €1,454,286 of which in the first six months of 2020.
On 25 July 2019, Pininfarina Engineering S.r.l. signed an engineering services agreement with Mahindra & Mahindra Ltd ("M&M") for the development of a project to design the upper body systems of the body shell, integration of the body shell with the main operating systems and achievement of the performance requested of a new vehicle.
Pininfarina Engineering S.r.l. will receive a fee of €3,950,000 for its services to be provided over roughly 14 months. This fee qualifies the transaction as a "major transaction" pursuant to the relevant legislation. The services provided are part of the "company's normal business activities" and are rendered on an arm's length basis. Services provided to the customer at the reporting date totalled €2,942,092.
Directors' and statutory auditors' fees
(€'000) | H1 2020 | H1 2019 | |
Directors | 275 | 477 | |
Statutory Auditors | 55 | 53 | |
Total | |||
330 | 530 | ||
Related party transactions - Pininfarina S.p.A.
Commercial | Financial | Operating | Financial | ||||||||||||
Assets | Liabilities | Assets | Liabilities | Revenue | Expense | Income | Expense | ||||||||
Signature Srl | 25,232 | 4,461 | 550,000 | - | 25,232 | 20,238 | - | - | |||||||
Pininfarina Engineering S.r.l. | 2,619,028 | 711,903 | 3,060,291 | 1,683,087 | 490,607 | 2,941,467 | 19,214 | - | |||||||
Pininfarina Deutschland GmbH | 19,500 | - | 1,500,959 | - | 19,500 | 2,156 | 5,323 | - | |||||||
Pininfarina Shanghai Co. Ltd | 631,233 | - | - | - | 338,704 | 18,138 | - | - | |||||||
Pininfarina of America Corp. | 130,675 | - | 217,473 | 3,881 | - | - | |||||||||
Tech Mahindra Ltd | 26,271 | - | - | - | 79,605 | - | - | - | |||||||
Mahindra&Mahindra Limited | 3,578 | 3,846 | - | - | 173,024 | - | - | - | |||||||
Pt Mahindra Accelo Steel Indonesia | - | - | 45,246 | ||||||||||||
Automobili Pininfarina GMBH | 482,795 | 2,212,922 | - | - | 4,626,241 | - | - | - | |||||||
Total | 3,938,312 | 2,933,132 | 5,111,250 | 1,683,087 | 6,015,632 | 2,985,880 | 24,537 | - | |||||||
Intragroup transactions include:
- Signature S.r.l.: loan agreement and purchases of goods;
- Pininfarina Engineering S.r.l.: lease for the equipped premises, secondment agreements, cost sharing agreement and services agreements, loan agreement;
- Pininfarina Deutschland GmbH: loan agreement and services agreement;
- Pininfarina Shanghai Co Ltd: services agreement, secondment agreement and cost sharing agreement;
- Pininfarina of America Corp.: secondment agreement and cost sharing agreement;
- Tech Mahindra Ltd: services agreement and recharge of costs incurred by Pininfarina S.p.A. on the company's behalf;
D I R E Z I O N E C O M U N I C A Z I O N E E I M M A G I N E - W W W . P I N I N F A R I N A . C O M - I N F O @ P I N I N F A R I N A . C O M
PRESS RELEASE
- Mahindra & Mahindra Ltd: brand licence agreement;
- Pt Mahindra Accelo Steel Indonesia: design services agreement;
- Automobili Pininfarina Gmbh: design and engineering services agreement.
In addition to the above figures, Studio Starclex - Studio Legale Associato Guglielmetti, related to Romina Guglielmetti (director of Pininfarina S.p.A.), provided legal assistance to the company for €9,000.
Directors' and statutory auditors' fees
(€'000) | H1 2020 | H1 2019 | |
Directors | 275 | 477 | |
Statutory Auditors | 50 | 50 | |
Total | 325 | 527 | |
The total fees to Pininfarina S.p.A.'s key management personnel approximate €0.5 million for the first six months of 2020.
D I R E Z I O N E C O M U N I C A Z I O N E E I M M A G I N E - W W W . P I N I N F A R I N A . C O M - I N F O @ P I N I N F A R I N A . C O M
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Pininfarina S.p.A. published this content on 03 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2020 17:51:02 UTC