Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the Sogefi full year 2020 results conference call. As a reminder, all participants are in listen- only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Mauro Fenzi, CEO of Sogefi. Please go ahead, sir. Thank you very much. Good afternoon, good morning. Before starting with the presentation of the 2020 full year, I would like to inform you, if you didn't see on the press, that I am today leaving Sogefi. This will be my last call with you on this subject. On the other side, here with me virtually, I have Frédéric Sipahi, who today took the chair of Sogefi. Before starting myself with the presentation, I would ask Frédéric to have a couple of minutes of introduction to all of you. Frédéric? Thank you so much, Mauro. First of all, thank you also, Mauro, for everything you have done these last 12 months for Sogefi. I am Frédéric Sipahi, 40 years old. I am at Sogefi for almost 10 years now. I had first part of career as controller, business unit controller, then CFO of Air and Cooling and Filtration, and then general manager of Air and Cooling, and the last two years, I was in charge of Air and Cooling and Filtration business units. Before joining Sogefi, I worked five years at Faurecia, and three years at Peugeot as controller. I am very excited to be with you today as a first. Thank you very much, and thank you again, Mauro. Thank you, Frédéric. Now we go straightforward to the point. I would like to start from slide number 4, which is reporting, as usual, the last quarter I like. Here, we are talking about quarter four of 2020, of course. Let's start with the revenues. The revenues achieved in the last quarter, EUR 364 million. A value which is very close to the last quarter of the previous year, 2019, even slightly above last year, two years quarter results. The increase has been driven in Sogefi mainly by three geographical areas. China from one side, thanks to the market recovery, which has been pretty fast and very effective. India, for a similar reason, and then North America as well. In North America, as you will see later on, is not only because of the market, but it's also because Sogefi is launching new projects that are delivering, in this period of time, revenues as well. Going to EBITDA. The EBITDA is EUR 39 million, slightly below the last quarter of 2019. Is 10.7% on sales versus 12.3% of the last quarter 2019. It's very useful to remember you that the EBITDA has been reached by a combination of a higher contribution margin, which in this challenging period has been a very good result, I think, and the lower fixed cost ratio, thanks to all the actions that we implemented last year to minimize the cost and the cash out. This has been balanced by higher restructuring charges, which are achieving EUR 13 million, but we are going to talk about this later. If you take the EBITDA without restructuring cost, the margin reached last year 15.4%, which is higher than the previous year result, which was 13.4%. Going at EBIT level, the quarter has shown a EUR 4 million positive result versus EUR 5.4 million same period 2019. If we exclude restructuring cost, the EBIT at quarter level would have been EUR 21 million, equivalent to almost 6% on the sales versus EUR 9.4 million equivalent to 2.6% in 2019. This, again, is a very positive result of the recovery of the company done in the last period of last year. At net income level, unfortunately, the result is negative, EUR 12 million, again, we have to keep in mind as well the restructuring cost, which affected the last quarter quite heavily. On the cash side, the free cash flow of the quarter has been +EUR 8.7 million versus EUR 9.9 million of the last quarter of 2019. The net debt went to EUR 291.3 million versus EUR 256 million end of 2019. We have to remember that in end of September, the net debt was almost EUR 300 million. There has been a recovery. If we jump to the next slide, which is slide number 5, we see the sales by geographical area. Again, we are talking about the last quarter. As you see from the table, we overperformed everywhere with different ratio. Slightly better in Europe. Very, I think, important overperformance in North America, and the same as well in South America and China. Going to the sales by business unit, which is slide number 6. We see again the last quarter. Air and Cooling did, at reported change, an increase of almost 7% with respect to the 2019 numbers. Air and Cooling reached EUR 113.6 million, with a very good and positive trend on the sales side. Filtration as well has been slightly below, but has been, again, positive as well, with a 4% reported change increase. Suspension, that I remember everybody, but we are going to talk about Suspension later on, is playing on a geographical footprint, which is mainly European driven, has been affected on this side by the market, and reported a sales in the last quarter of EUR 121.7, minus 4% with respect to last quarter of 2019. In slide seven, we decided to show again the comparison quarter by quarter with the different effect on the breakdown. You see that we had a 2.2 gap positive on sales. We have seen the sales volumes before. What is also very positive is that we had also a 1.3 positive effect on the variable cost. I remember again that the period has been very challenging because of the, I would say, the stop and go of the production and the availability of components and raw material. Fixed cost contributed, again, a positive way, EUR 3.5 million. On the write-downs, we had also contribution positive, almost EUR 5 million. As I said at the beginning, this has been balanced by the decision to go for restructuring, and this is a negative value of EUR 13 million. Having said that, I will leave Yann the task to drive you through slide 8. Thank you, Mauro. Page 8, revenue, as Mauro pointed out, up by 2%, as a reminder, plus 8.9% at constant exchange rates. Cost of sales, variable costs, we improved the ratio from 68.8% down to 68.4%. What's very relevant is a strong reduction of logistics costs, which are down more than two points versus Q4 of last year for a similar revenue. Mauro points out that Q4 was impacted by far higher restructuring costs. As you can see, EUR 17 million of restructuring costs, mainly related to the closure of a plant in Germany for Suspensions and the ongoing social plan in Filtration France. As pointed out, this gives a better result in EBITDA if we take out the restructuring cost, far better than in previous year. D&A is slightly down, write-down also down versus the same quarter of last year. EBIT, excluding restructuring, more than three points above last year. We have to take the hit, but you can see that the ongoing performance of the company is improving. Financial results, we are slightly heavier. Income tax, it doesn't happen often that we have very low income tax charge. The really important factor is the last but one line, which is the net income from discontinued operations. We have sold Sogefi Filtration do Brasil Ltda at the end of 2020, and we also have sold our filtration plant in Spain in January 2021. These are the impacts of the two operations. As a result of which, between the discontinued operations and the restructuring cost, we end up this quarter with a net loss of EUR 12 million versus EUR 5 million last year. Moving on to slide nine. In terms of cash flow generation, you can see that we ended up the quarter, usually Q4 is a good quarter for Sogefi, slightly lower than last year for Q4, but this is an exceptional year, and we had a very good recovery in Q3. As you can see, we have a less favorable impact in working cap, and we see that as well on a full year basis. We compensated the shortfall in funds provided by operations by more focused CapEx investments. Thank you very much, Yann. Now we go to the full year. We go to slide 11. At full year level, the revenues were slightly above EUR 1.2 billion. In 2019, it was EUR 1.464 billion. It is down 17.8% on a reported basis, and at the constant exchange rate, it is down 14.2%. You will see later in the next slide that, in any case, we overperformed in all the regions. For example, in Europe, we went at -18.1% at constant exchange rate versus a market underperforming at -23.3%. At EBITDA level, full year, EUR 137.6 million against EUR 177.4 million last year. Also here, we need to see that at percentage level, 2020 was very close to 2019. We are talking about 11.4% in 2020 against 12.1% of 2019. The volume negative impact has been again here mitigated by reducing the gross fixed cost. On the other side, at full year, we have more than EUR 30 million restructuring cost. I remember you that in 2019, the same cost category was EUR 9 million. Here, we did an exercise. We excluded restructuring on EBITDA. In this case, in 2020, we reached 14% against a 12.7% in 2019. A much better percentage on EBITDA if we exclude the restructuring impact. At EBIT level, again, at full year, we went at 7.2% against 48.4% in 2019. In this case, of course, the volumes, so the revenues impacted the number, and the also non-recurring charges, as we said, went in the same direction as well. On the net income level, we closed the year with EUR -23.2 versus EUR 8.3 end of 2019. We are again to highlight a couple of points here. The tax charges are, in this case, EUR -3.6 million against EUR 13.5 negative value in 2019. As Yann highlighted before, there is also the impact of the sale of Brazil and the Spanish plant, which are impacted for an amount which is very close to EUR 15 million, versus EUR 8 million of 2019. On the free cash flow, here we talk about EUR -34.1 million, we have to highlight, if you remember, that the last quarter on the free cash flow level went positive, like the third quarter of last year. The net debt closed at EUR 291.3 million, versus EUR 256 million of 2019. Here, we were end of September at EUR 300 million on the net debt side. I would like to go to slide 12. Slide 12 is just summarizing the actions, the highlights of 2020. About the footprint optimization, has been already mentioned, affected mainly filtration business, because we are talking about two locations producing filtration products. We did, like we mentioned before, an action plan last year, which has been executed to reduce the fixed cost as well, either using the social tools where available in the countries applicable, like also using permanent reduction actions where possible. On the financing side, probably you remember already the presentation of the last quarter, we secured the medium term financing needs of the company, but we will have a slide later on to talk about this point. I confirm again, after having said this in the last calls, that we decide to protect the investment for suspension on the Eastern Europe perimeter to be more competitive very soon on the market. This has not been affected by the emergency of last year. We did also efforts to protect the new powertrain technologies developments, mainly in air cooling, in order to be on the market in the right spot, and to offer solutions that are in line with the market trend. Of course, I'm talking about EV, and I'm talking about hybrid cars and powertrains. We can go, I think, on slide 13. Here, we see the sales by geographical area full year. We overperformed in all the geographical areas, also at a full-year level. Europe, in this case, has been over-performing pretty well. North America, South America, and China as well, even better. I remember you that on Europe, Sogefi, at group level, is doing revenues for almost 60, 62% of the full revenues. We go to the next slide, which is slide 14. As usual, I present you the trend customer by customer year-on-year. Every time, I remind you that the development time of our products are pretty long, the effects of the order acquisition are coming usually two, three years later. The trend is going the direction that I discussed with you the last calls. We have the German premium brands, like Daimler, BMW, which are growing, as you see, already considering 2019, and the U.S. brands like Ford and GM doing the same, with a very positive trend. Going to the sales by business unit, which is slide 15. At full year, Air and Cooling went at EUR 362 million, against EUR 426, almost, of 2019. At constant exchange rate is -11%, Filtration -8.1%, and Suspension, for the reason I told you, went at -22.7% on a year-by-year comparison level. On the business awards, I'm going to page 16 now. Also here, I have to confirm what I told you already during the last quarter call, that Sogefi in 2020 signed new contracts in line with the previous years. Despite of COVID, the order acquisition didn't suffer. The second bullet is, I already presented this last time, we got from a premium German OEM for Air and Cooling, a relevant order on the manifold side. This is very important for two reasons. One, is because it's strengthening the leadership of the division in this technology. Second, is also using aluminum, which is the new trend for most of the OEMs. It's really confirming the good trend of the business unit. On the same business unit, almost 25% of the order acquisition are for hybrid and full electric applications. The suspension business got a very key order from a North American full EV OEM. The suspension business is getting a relevant portion of orders on the same type of technologies, which are hybrid and full electric. On slide 17, we show again the same EBIT comparison between 2019 and 2020, with the breakdown. Of course, the volumes affected pretty heavily the EBIT side on this year, reaching EUR 85 million gap. Also at full year, so not only the last quarter, but this is also at full year level, fixed cost actions amounting at EUR 44 million and efficiency on variable costs, which are amounting at almost EUR 6 million, have been able to balance partially the gap we had on sales. Write-downs are positive of EUR 12 million, restructuring, we talked about, are affecting EUR 17 million on the opposite side, the gap analysis between the two years. Yann, you want to comment the P&L? Page 18, we are not going to hide it was a tough year, with sales down 18%, especially after Q2, which was ugly. If you remember, we had sales down by 56% in Q2. The company reacted fast, and we have described to you in previous calls. All the efforts which were made, and thank you, Fred, for the work you did in Suspensions and Cooling, because these are where most of the action took place, and the action to reduce gross fixed costs. You can see that the gross fixed costs went down more than the sales. All the restructuring plan is aimed at lowering the break-even point of the company by fixing our industrial footprint. All in all, of course, less EBITDA than last year, but if you exclude the restructuring cost, as Mauro pointed out, 14% EBITDA versus 12.7% last year. Really preparing for the future, and you will see that more obviously quarter by quarter. Same in terms of write-downs, because when you clean up your operations and decide to optimize your footprint, we have to do some write-downs. You can see we had EUR 13.6 million of write-downs. That's to say more than EUR 4 million more than in the previous year. All in all, EBIT, excluding restructuring, still below last year at 3.1% versus 3.9%. As you will see, we've done far better in the second half of the year. Financial results above last year, which is to say it is a cost for us, but we took all the financing we could in the midst of the crisis, and now we are safe with medium-term financing, which I describe later on. Saving on income tax, I could have done without, because we pay less income tax because we have less revenue. What is important is the split of the net income, because you can see we ended the year with a net loss of EUR 35 million, of which EUR 15.5 links to discontinued operations. This no longer will be with us last year. The net income of operating activities is a loss of quasi EUR 20 million, but after EUR 30 million of restructuring and EUR 13.6 million of write-down. If you move to slide 19, I think it says more. Slide 19, it shows how ugly the first half of the year was. Sales very much down with an impacting fact both on EBITDA and EBIT. As a reminder, we closed the first half with a negative EBIT of EUR 12 million. Even with restructuring, we had a loss in terms of EBIT. Very difficult second quarter, especially like most companies in the automotive. Q3, far better. Although the volumes were not yet totally there. You can see that EBIT, excluding restructuring, was at 6.7%. As a reminder, last year on a full-year basis, 2019, we closed at 3.9. 6.7 in Q3, 5.8 in Q4. As I said before, all the company was focused on improving its operational performance and preparing for a future which still is uncertain. That's to say we are preparing the company to fight against volumes which probably will remain lower than pre-COVID for a while. I believe that the EBIT level before restructuring show that we are going in the right direction. Net income, as you can see in terms of operating activities, that is to say the Sogefi of tomorrow, a loss of EUR 21 million in the first half and slightly positive in the second half. Free cash flow, of course, the first half was ugly. A cash burn without IFRS 16 of EUR 71 million, a good recovery of EUR 28 million in Q3, and still a good performance in Q4 with cash generation of EUR 9 million. If we go to slide 20, this is the cash flow on a full-year basis. Of course, the first line tells you everything. Less volume, it means less funds generated by the operations. We fought against this cash drain by reducing our CapEx. You have seen we reduced our CapEx by EUR 20 million versus the previous year. Despite the investments, we haven't touched the investment of the new suspension plant in Eastern Europe. This plan is key for restoring the profitability of Suspensions, this was safeguarded. Nonetheless, overall, a saving of EUR 20 million versus the previous year. What you can see is that the main impact, all in all of the year, is a working cap impact. Mainly, we carry less suppliers at the end of the year than in previous year. On the other hand, as you can see, the level of factoring is quite similar than it was at the end of last year. All in all, a free cash flow pre IFRS 16, which is a cash burn of EUR 34 million, but you can see EUR 32 million from the working cap, and I believe we shall recover this negative impact in the coming years. At the end of the day, we end the year with a net debt of EUR 291 million versus EUR 256 million last year, but after a good recovery in the second half of the year. If I move to page 21, as I said before, the top priority was to secure new financing. As you know, in October of last year, we signed and cashed EUR 175 million of new loans, medium-term loans. These are loans with final expiry in 2026. At the end of 2020, the group has committed lines in excess of EUR 340 million. This is not an unusual surplus. As a reminder, EUR 100 million of those EUR 340 will be used when we repay the convertible bond in May of 2021. Thank you very much, Yann. As usual, we cover the business units. If you don't mind, we go to slide 23. As usual, we start with Suspensions. On the sales side, on the left, we see the reduction between 2019 and 2020. We have already seen it in the previous slides. We are talking about a -22.7% at constant exchange. Again, I remember you that the geographical footprint on which Suspensions is operating has been, last year, much more difficult than the others, because we are talking about mainly Europe, and the second area is South America, which has been strongly affected by the volume reduction. Nevertheless, on the right, you see the EBITDA of the business unit excluding restructuring. You see that the business unit has been able to keep the same fair percentage, compared to the previous year, 2019, which is 9%. This has been really possible for many reasons. One of it is the material cost that up to year-end were in the favorable direction. Restructuring, I think we talked it already. The new Romania plant, again, has been protected, and on the EBITDA level, unfortunately, has a negative input of EUR 2.5 million. Then on the total gross cost, we have to remember that the business unit was operating last year with the EUR 22.9 million, which has been a decrease compared to the previous year. Unfortunately, an increase in percentage year-on-year because of the volumes decline we had. Now if you don't mind, Frédéric, maybe you can talk about filtration and Air and Cooling. Sure. Slide 24, we can start by filtration. As you can see, the sales are down by 8% at constant exchange rate. This performance is thanks mainly to our aggressive attitude on OEM and aftermarket, which helped us to recover the loss on the OEM markets. We had also a major decline on the South American market and in Yan, mainly in the quarter 3 and quarter 4. When we look at the percentage of EBITDA excluding restructuring, you can see that in percentage, we have been able to increase by 2% with decreasing volumes. What does it mean? It means that we have flexed much more the fixed cost and also improved our profitability and gross margin, much better than the decrease of sales. The good news, the decrease on fixed costs that you can see of EUR 20 million, is done, as Mauro mentioned, with some structural actions. Sorry, contractual actions that the social help we get from the government and the country. We have implemented long-term and medium-term reductions, that will help us as a carryover in the coming year, in the coming months, and the coming quarters. On filtration, we have been very aggressive during this tough period on the fixed cost reduction, in order to restart with a lower break even in the coming years. When we look at the slide 25 for Air and Cooling, the decrease of sales is at 11% at constant exchange rate. In Europe and North America, we have been, of course, impacted by the COVID. In China, we recovered everything we lost in the first quarter of 2020, and we have done much better sales than 2019, by almost 25%, mainly thanks to new businesses we acquired in the last years on the cooling part of the business unit. The EBITDA, we have been able to improve one more time at 19%, thanks to a strong reduction of the fixed costs, again, and also a good profitability on the programs that we acquired. The EBIT is at 5.4 versus 5.8 in 2019. Of course, to amortize the depreciation is more difficult with lower sales. Thank you very much. That's it for Air Cooling. Thank you, Mauro. Thank you very much, Frédéric. As usual, the last couple of slides are talking about the future. I will go to slide 27. As usual, we show in this slide the last IHS forecast. Here, because the situation is changing month by month, so it makes sense to highlight, we are talking about February, so the last forecast IHS did, February 2021. On the left, you see the comparison between the full year 2020 and the last quarter of the year. You see the recovery pretty well in this slide. While on the right side, you see the forecast of IHS year by year, measure with respect to the previous year. Let's talk first of all about the current year, which is 2021. Before going to this number, I remember you, and I will remember you as well in the next slide, that the visibility on the market, by the way, still remains pretty challenging because of the situation. COVID is not over, unfortunately. IHS is, on 2021, forecasting a recovery which will be quite important on North America. You know pretty well that North America is a very dynamic market. They suffered a lot during COVID, but if you look at the recovery last year in the third quarter, in the last quarter, has been impressive. They say that the recovery will continue, that there is a 25%, 24% positive improvement with respect to 2020. If you go to the comparison between 2021 and 2019, North America is forecasted to be at recovery level at the end of the year. This is not happening on the other two regions, which are Europe and South America. Unfortunately, both of them are expected to be well below the 2019 levels in 2021. Europe, at 10% negative, and South America at almost 8% negative. South America, as you see on the left side, has been strongly impacted by COVID on the market. You see that among the regions has been the worst last year on the market side. The recovery should be, as you see, quite aggressive, but nevertheless, they will not reach the same level 2019 at the end of the year. A different picture, of course, is on China. China, as you see, already recovered, if you want, almost everything at the year-end last year, so the recovery will continue, and on this side is accounted, is showing even a slight increase 2021 on 2019 because they are talking about 1% more. If you see the coming years, of course, the visibility, it is what it is. When we talk about 2022, 2023, 2024, it's much more difficult to be right, I would say. Nevertheless, also here, the recovery is expected to continue in 2022, almost in all the regions. While in 2023 and 2024, the recovery in Europe and in North America is expected to be less effective. In South America, the recovery will continue also in 2023, while in 2024 is expected to be a little bit less positive. China is expecting to grow 4% year-on-year in the coming three years on the period we are talking about. Which is the outlook on 2021 we see at Sogefi? We had a very strong recovery, as you have seen, in the last two quarter of the year. This should not really be considered too much positive for the future because the visibility, as we discussed, is very low. Still, the COVID rules are, even if vaccinations are starting and give a little bit of, from this point, hope for the coming months, but the visibility is also quite difficult because some lockdowns could be implemented, for example, in Europe pretty soon. In the last couple of months, additionally, the raw material availability and price has been very unstable. We have seen difficulties in having the material in quality on time in some areas, also the price is showing a very nervous trend in the last period of time. On top of it, you know, I think that the automotive market today is also affected at the customer level by the availability of a very small component, but very key for the car, which is a semiconductor. This semiconductor is very difficult to be found. Some of our customers are showing some difficulties in keeping the production rates in all the plants for all the models as expected. This is also combined with the last difficulty, which is transportation, so logistics, mainly from, I would say from China, from Asia to Europe and North America, mainly. Today's very difficult to be fast and effective in transportation as well. On the other side, as you have seen, HS is forecasting around this year, pretty important. Sogefi has been, again, quite careful, because as incorporated into the expectations, of course, an higher market with respect to 2020, but still lower globally than 2019. I think that what is very important to highlight, as Yann and Frédéric said before, we implemented actions in all the business units in order to lower the fixed cost. This will, of course, help this year, even if maybe the volumes will not be at the level expected. This would be, I think, very conservative and important to remind you. Of course, having said that, Sogefi is expecting to return in 2021 into a full year positive result. Now, I think we went through all the slides of the presentation. I think we are on time. As usual, I leave the last part of the call to the questions you may have on this challenging year. Thank you very much. Excuse me. This is the conference call operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Monica Bosio of Intesa Sanpaolo. Please go ahead. Good afternoon, everyone, and thanks for taking my question, and nice to meet you, Frédéric, and hi, Mauro and Yann. The first question is on the outlook. I know that it's very difficult to make projections for 2021, with a + 13% increase in car production, the first question is: Do you expect to perform at least in line with the car market production trend? The second one is on the EBITDA margin, 15.3% in the last quarter of 2020 and 14% in the entire 2020. I know that in 2021, the group will have to face raw material prices increases, transportation cost increases, bottlenecks from the chip in the sector. Can you give just a rough idea of what could be the EBITDA margin before restructuring in 2020? Can we take as a proxy the 2020 level, or maybe raw materials will penalize more than this? The very last, can you give us an indication about the potential restructuring charges in 2021? Thank you very much. Ciao, Monica. Ciao. Ciao, Mauro. I try to reply on the three questions. About the outlook. As I said, Monica, the outlook today is, and the visibility is pretty low. The situation is getting a little bit better with respect, of course, to the peak of crisis last year. On the other side, we are adding challenges on challenges, Monica, because the lack of material at OEM level has been a new point coming out, as you probably know, in the last, I would say, four, six weeks. By the way, we don't have visibility on when this problem will be really over, because it's a very critical component, going to the electronics of the engines. There are very few producer globally that can do it. What we did on the outlook has been, Monica, to be as usual, quite conservative on the volumes. We did improve it, of course, with respect to last year. What is more important, and we go to the second question, that we protected the EBITDA with real actions on costs. There are actions on cost, Monica, that are giving a positive feedback along the current year. Because are running at the moment. The trend of cost will improve month by month. With this, we are quite, I would say, confident to deliver a good result year end. In the need visibility, in my case, it is what it is, because to be honest, as I said, the lack of components is a new point, which was not known until six weeks ago. About the last question. On restructuring, Monica. As you may have seen, we have done our homework in 2020. We have booked EUR 30 million of restructuring costs, as a result of which, for the time being, we do not plan to have much in terms of restructuring costs in terms of P&L in 2021. Probably, a lower level than in usual years. Lower than in, obviously, 2020 is not a reference year, but lower than the previous years? Yes. Okay. Sorry, the line is a little bit noisy, and I cannot hear you well. No, Monica, it should be below EUR 5 million next year. Okay. Thank you very much. I come back to the queue. Thank you. Thank you, Monica. The next question is from Martino De Ambroggi of Equita. Please go ahead. Thank you. Good afternoon, everybody. The first question is on the strategy. We saw a couple of divestitures, small, but loss-making. Should we expect any additional similar action going forward? This is on the strategy. The second is on the issue you already commented. Steel, plastic, transportation costs. Could you remind us what is the coverage policy you are able to exploit? I remember steel, you are able to recover it, but with some lag, and in any case, not 100%, and probably the same for plastics. Ciao, Martino. Mauro speaking. Let's go to the sales we did last, but also this year, because spin has been executed in January. At the moment, on 2021, we are not forecasting any other sales, like the ones you have seen. On the other side, I do not exclude them, in principle, but in our forecast, we didn't include any additional actions like this. About the coverage, I don't know if I got 100% your question, Martino. I try to reply, then you tell me if I was right or wrong. If you talk about the raw material fluctuation costs versus the customers, there are, of course, contracts in our business, depending on the customer and the project itself. Most of them are covered. Of course, the coverage you need to discuss with the customer, and some of them are automatic, but some of them need some effort. It's a difficult period for everybody, including our customers, so the discussions are, unfortunately, these last couple of months, on the table almost every day, Martino, because the price fluctuation is pretty dynamic in this period of time. I don't know if I replied, Martino. Yeah, if I may, just a very rough indication on what could be the percentage of raw material costs covered by automatic adjustments, although with some time lag, and what is the uncovered percentage, very roughly? Martino, it's very difficult to give you this indicator, because contract by contract, the type of coverage is different. There are gray areas, too. Most of them are covered, by the way, Martino. Okay. It's also a difficult period as well, because also the customers are suffering the same issues. Yeah. That's clear. If I may, a question for Frédéric. Welcome. Being responsible for the Filtration and the Air and Cooling, what is the normalized profitability in, let's say, normal time, once they will be back for these two divisions in the medium term? Thank you for the question, and nice to meet you, too. It's quite difficult to answer because what was normalized before 2020, I'm not sure the norm will stay the same after the COVID situation and after 2020. I think it would have been very easy for me to answer before 2020. Right now, the norm is very difficult to evaluate. Why? Basically, the normalized profitability is based on the acceptance of the company to get some business at one profitability or to let go some businesses when you don't reach this profitability. Right now it's very difficult to estimate the impact of the COVID crisis, plus all the CO2 regulations, the electrical car race, the hybrid cars that are coming, and what will be the impact on the profitability of the customers and de facto, the pushback that will be on us and on our shoulders. What I can see is everything what Mauro said is totally right. It will be our business model. In 2021, we will have crisis of supply chain, crisis of material to solve. I think we will be able to manage the situation. At one point, there will be a stabilization, both of the shortage and the prices. Right now, the first one we are preparing is to, let's say, to be able to have a squeeze neutral, means if the materials are increasing, to get back as much and as quick as possible from the customers. As we said before, we have done a lot of work from the fixed cost point of view in 2020. There will be a carryover on 2021, but we will not benefit from all the helps we get from the government in 2020. We are missing this in 2021, and we will need to get it from actions. I don't know if 2021 will be the year where we can beat in Air and Cooling and Filtration in percentage what we have done. A good target for me could be to keep the percentage we have been able to do in 2020 with much higher sales, which de facto will convert in EBIT. I'm sorry, I don't answer with a sharp figure. Why? I have been appointed a few hours ago, so give me a few weeks and a few months before fixing the standard profitability of the group and the business units. Second, we are in a very, let's say, strange period where everything we knew is changing. I don't see that, let's say, of course it may be a risk, but I see more opportunities than risk in all the change that I foresee. Okay. When you talk about it's difficult to repeat the same profitability of last year for the Air and Cooling, are you referring to margin as a percentage on sales or in absolute terms? No, not in absolute. I was speaking in percentage. De facto in absolute terms, we will be helped in theory by the recovery of the volumes. In Air and Cooling, if you look at 19% of EBITDA, of course we can always look for a few points more, or maybe we can have a few point less. When I say a few, it's 0.5, 0.5. The real question, for example, of Air and Cooling, I think is not if we can have 20% or if we will have 18%, is trying to keep in percentage the same profitability, what we can invest from an R&D CapEx point of view in order to prepare the future within three years, four years, when the electrification or hybridization will increase. That's what I'm doing for a few years now in Air and Cooling. It's not just to deliver a correct percentage year after year. It's also invest and prepare the future, which is very important in our business as you know, especially in the engine side. Thank you. If I may, very quick question on CapEx projections. Yann, I don't know if we have a figure. I'm sorry. I don't have the answer right now for the group. In CapEx, we cut very sharply in 2020. We believe we shall be roughly at the same level in 2021. Okay, thank you. Mauro, all the best. Thank you very much, Martino. The next question is from Alexandre Rabardy of Kepler. Please go ahead. Yes, good afternoon. Thank you for taking my questions. I have three, please. The first one relates to the color that you gave on the electric vehicle order intake. I appreciate the color. Could you please give us the split between what is pure EVs versus what is PHEVs? That would be the first. The second one is on the fixed cost savings. When I look at the bridge, I see that you had savings of EUR 44 million. How much of that can we expect to be carried over into 2021? The final question is about the tax rate. Which tax rate could we expect for 2021? Thank you. Ciao, Alexandre. Mauro speaking. About EV and pure EV with respect to hybrids. For the time being, the amount we are talking about pure EV is pretty low. We are talking about a few points percent. It's also tough to give you a reply, because when we talk about this, sometimes, many, for example, when we talk about customers with the same platform with EV and hybrid solutions. Sometimes we don't know really very well the final split of the products we deliver between hybrid and full electric. On suspension is even more difficult because maybe the same suspension is working for traditional and EV and hybrid vehicles altogether. It's growing pretty well, it's growing pretty faster. I have to say that what we are learning is that also the suspension business is somehow affected by the electrification because, of course, they are not impacted like Air and Cooling and filtration, but some of the solution needed for full electric and hybrid for the suspension, mainly for the stabilizer bars, are quite different, especially the traditional vehicles. About the second question and the third one, Yann, if you can. Alexandre, good afternoon. As Frédéric pointed out, in the first two quarters of the crisis, we were helped by the government incentives, so much like those in Italy, so similar schemes, which are not going to be there forever. When you look at recurring savings, they tend to increase in the last part of the year because in the last quarter, we didn't benefit as much from temporary incentives as we did in Q2 and Q3. Overall, let's say that on EUR 54 million cost savings, we estimate that roughly 26%, 27% of them are recurring. Yeah. Maybe we have to tell also one additional information. On the last quarter we present, so quarter four, we used in very few cases, the social tools. If you look at the last quarter, you see a quarter where Cassa Integrazione and Chômage Technique have been used very limited. As a result of which, when you look at the cost savings in Q4, roughly is 50% structural and 50% non-structural. Yeah. In order to answer your last question, we used to have an unusual tax rate, which is unusual this year, but for other reasons. As you may have seen, when we are going for footprint rationalization, of course, we go for the loss-making operations. Our tax rate is going to improve because we are disposing of loss-making entities. I'm not sure we'll be at 30% next year, but we are aiming at it. Okay. That's very clear. Thank you very much. Mauro, all the best. Thank you very much. welcome, Frédéric. Thank you. Thank you. Thank you. The next question is from François Robillard of Intermonte. Please go ahead. Hi. Good evening, everyone. Welcome, Frédéric, and hi, Mauro, as well, and Yann. Most of my questions have been taken already. Can you just come back on the last question from Alexandre on the target tax rate? I didn't hear the number quite well. Second question was Romanian plant. It's going to start to be effective quite soon. When do you expect it to run at 100% run rate? If we connect the dots as well with the various messages you gave on targets for 2021, so footprint optimization, and you mentioned as well that you will not be able to replicate, so the furlough measures like Cassa Integrazione or Chômage Technique. If we connect the dot a bit on this one, does it mean that we can expect some actions on suspension plans in 2021? Thank you. I start- You start with taxation. With taxation, François. As I said, we are shooting for the loss-making operations, one of which was Filtration Brasil. As we dispose of loss-making operations, we are going to significantly improve our tax rate. The objective is to be, as soon as possible, around a 30% tax rate. François, I go to the second and third question. Romanian plant. François, I don't know if you know that the plant we have in Oradea is starting production. For the first two customers, German customers, at the end of the year, I'm talking about the end of 2021. The plant is preparing itself in order to start production between November and December this year. Next year, 2022, will not be at full speed because there will be a ramp-up. We expect to have a full speed the year after, so in two years. The Romanian plant, today, as I said, is under commissioning. COVID, unfortunately, pushed the team into some challenges because, as you know, also Romania has been affected by COVID pretty heavily, mainly in the last period of time. I would like also to take the opportunity to say that the team did a great job in keeping the timing of development and also the prototype phases with the customers in place in this challenging time. The last point, the reply would be yes. Thank you very much. The next question is from Davide Meloni of Trade Use. Please go ahead. Yes. Good afternoon, everyone. I have a question about the debt repayment in 2021. In the balance sheet disclosed on your website, the current portion of medium long-term debt is EUR 170 million. I think that most part includes the bond which will expire in May and should be refinanced by EUR 100 million. However, there are other EUR 70 million expiring in 2021. Looking at the cash flow, both in 2020, that of course, was affected by the COVID, but also in 2019, the cash flow generated by the operations was almost fully absorbed by the CapEx. Since I have understood that also in 2021, the CapEx, your planning should be around, or over EUR 100 million. How do you think you face such a reimbursement? I don't know, maybe with the contribution of shareholders or something else. Good afternoon, Davide. With the current financing, we see absolutely no issue of financing in 2021. We even have visibility covering 2022 without taking new financing. The next question is from Roland Koning of Value-Holdings. Please go ahead. Yes, good afternoon from my side. Thanks for taking my questions. I have two. One is just an update and a follow-up question on the Romanian plant question. As you showed in your presentation, Romania had a negative EBITDA contribution of EUR -2.5 million. Will this be a bit higher in this year in the face of the ramp-up for the start of production in Q4? Or will it be lower? The second question is a bit of special question. Maybe can you give an update on your Light Battery project with Lion E-Mobility and when we'll see their meaningful sales and earnings contribution for the group? Thanks a lot. Mauro speaking, Roland. Thank you for your question. Let's start with the first one, which is Romania. The Romanian number we showed in the slide is in the gap bridge between 2019 and 2020. It is not really, I would say, represented EBITDA of Romania. It's showing the difference between previous year and this year. Romania is in the middle of the development phase today, and the revenues are, unfortunately, very low. It was already forecasted like this, and will go on until year-end. We will have the revenues from the first ramp-ups, but was already forecasted like this at the beginning of 2020. About Lion, I think maybe on this also Frédéric can step in. I start saying that the collaboration with Lion E-Mobility is a very good collaboration. Air and Cooling is working with them since, I would say, more than one year and a half. We started with the collaboration, helping each other. We are helping them on the industrialization side because they have limited experience, maybe in automotive, not only. They are helping us because of the new technology, and, I would say, giving us an opportunity to sell this product to our current customer portfolio. It's a good collaboration, as I said. The company is growing, is growing in technology maturity, and is growing also in attention from the customers. My best forecast, but then Frédéric can step in, is that this year will be a key year to decide what to do together. Frédéric, do you want to add? Yeah, I share what Mauro says. It's a great company. I know them for a bit more than two years, in fact, because I met the chairman of Lion E-Mobility when he was at Rimac, and then we had good relations, and he went to Lion E-Mobility. We know very well the shareholder, too. My teams are working with Lion E-Mobility on a daily basis, both in Europe but also now in the other side of the world, in USA. I am confident about the technology of Lion. They start to have really good contacts with the customers, and for sure, I would say that the months to come will be key in the collaboration with Lion and Sogefi. As it is becoming more and more concrete with the customers, for sure, it's one important point that we will look how to continue to work with Lion E-Mobility, how to collaborate. I trust their technology and their product. The fit between the teams are very good. Sometimes when you collaborate with another company, here we are speaking about a young technological company, I would say, compared to an automotive company, sometimes you can have a gap of culture and egos start to fight and so on, then the collaboration is dead from day one. Here, what has been very good is that myself, I have very good relations with the top management, but also all my teams from a technical point of view, have a very good match with the Lion team. I'm sure from that, we will have a good energy to develop this business side in the coming month. Okay, great. Many thanks for your answers and all the best for the future. Thank you so much. Thank you. The next question is from Gabriele Gambarova of Banca Akros. Please go ahead. Yes. Good afternoon to everybody. One question again on the fixed costs. EUR 215 million in 2020, with a good carryover on the 2021 and other actions like the one on the German plant. I was wondering if you can provide us, provide me, a target you have in mind in absolute terms for this number. These EUR 215 million of fixed costs, how they may evolve in 2021? Gabriele, it is not, again, easy to give you this target. As I said, the plan has been prepared, I don't know if you attended already the other calls, in last year, during the period of between May and June, I would say. Between May and June, we prepared the plan in order to lower the fixed cost year by year with actions. Every three months, the plan is revised and supported by additional actions which are running in this period of time with also confidential actions, too. It's not, from this standpoint, feasible to give you a target. For sure, the company is doing a great job in this respect, Gabriele, because the actions are starting giving really, and you see this from the last quarter of last year, the first results, even if are the beginning of the phase. We started the actions, as I said, I would say after August last year. If I may add, Gabriele. Yeah. What's important is the ratio between gross fixed costs and net sales. We have reduced this ratio in 2020 versus the previous year. We have benefited from local incentives. Our objective is to further reduce this ratio in the coming years, not to increase it, because gross fixed costs, they are variable in a way. The more volumes you have to produce, the more things you have to put in your plant. Our objective is to keep on reducing year by year the ratio to the sales, and this is our objective for 2021. Okay. Thank you. Thank you, Yann and Mauro. Very helpful. Second question from my side, and the last one is on net working capital. There was this cash drain of EUR 32 million. Do you think it's doable to recover it already in 2021 with this, let's say, rate of recovery, of rebound IHS is forecasting or it is too optimistic? We are in a world of uncertainties. You've seen it, the outlook. It's common to see there are many uncertainties. I believe the starting point for 2021 in terms of working capital is a good one, especially on the supplier side. We have reduced the balance of our suppliers more than usual. I think this should give us a good head start in 2021. I'm not sure we'll recover all that amount, but we should recover part of it. Okay. Thank you very much, and all the best tomorrow, and welcome, Frédéric. Thank you. Thank you, Gabriele. For any further questions, please press Star and one on your telephone. The next question is a follow-up from Davide Meloni over at Trade Use. Please go ahead. Yeah, sorry. I had a problem with my microphone. I couldn't reply. Yann, thanks for your feedback. I could hear your feedback, but I didn't understand it. I didn't understand how do you plan to face a EUR 70 million debt repayment in 2021. Davide, as pointed out in the presentation, at the end of 2020, we have an excess of committed lines of EUR 340 million, of which EUR 100 million will go with the repayment of the convertible bonds. You can see that even with the repayments which are scheduled in 2021, we have ample space. For the time being, we don't see any issue in 2021 and limited ones in 2022, even assuming we don't take new financing. Okay. You think you will use your headroom currently available? We have a lot of headroom at the end of 2020, which we'll start using in 2021. Thank you. Gentlemen, there are no more questions registered at this time. Very well. Again, I take, as usual, the opportunity to thank you for your time and the attention you pay on the company. A special bye-bye from my side to all of you. Bye-bye. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.