Slide 1: H1 2019 Results
July 23, 2019 H1 2019 RESULTS The 2019 half-year consolidated financial statements have been approved by the Board of Directors at its meeting held on July 22, 2019, under the chairmanship of Michel de Rosen. These financial statements have been subject to a limited review and the external auditors
Slide 2: Agenda
Agenda Patrick Koller 1 H1 2019 highlights Chief Executive Officer Michel Favre 2 Review of H1 2019 results Chief Financial Officer Patrick Koller 3 Confirmed FY2019 targets Chief Executive Officer H1 2019 Results – July 23, 2019 2
Slide 3: Resilient sales, profitability and cash generation
Resilient sales, profitability and cash generation Sales outperformance of 420bps Sales €8,991m €8,972m in a challenging environment Clarion €150m €8,822m Growth ex-currencies and ex-Clarion @ -2.8%* vs. worldwide automotive production @ -7.0%** Above the high end of the guidance range of 15
Slide 4: Resilience through additional measures in H1 2019
Resilience through additional measures in H1 2019 Flexibility through direct ADDITIONAL and indirect RESILIENCE headcount ACTIONS Operating income management Reduction of c. 6% of headcount year-on-year for the three historical BGs (-17% in China) 13 (14) €647m (99) 14 €646m (1) €645m 85 Reduc
Slide 5: Strong momentum in order intake and transformation strategy
Strong momentum in order intake and transformation strategy Order intake on track for another strong year and acceleration in New Value Spaces Major awards for Interiors and Seating for Premium OEMs Commercial vehicles gaining momentum Significant award for HHP in Marine business Increasin
Slide 6: Faurecia Clarion Electronics: Smart Cockpit Electronics and software integration
Faurecia Clarion Electronics Smart Cockpit Electronics and software integration A new Business Group regrouping Clarion, Parrot Automotive and Coagent and integrating Covatech and Creo Dynamics technologies Five product lines with strong growth potential through leveraging synergies Cockpit Do
Slide 7: Faurecia Clarion Electronics Product Lines
Faurecia Clarion Electronics Product Lines COCKPIT DOMAIN IMMERSIVE SOUND INTERIOR MONITORING DISPLAY ADAS CONTROLLER SYSTEMS SYSTEMS TECHNOLOGIES Cockpit Domain Exciter Near Infrared / S-shaped Rear view Controller Thermal cameras Display Smart Headrest Surround view Rear Seat Radars & other sensor
Slide 8: Faurecia Clarion Electronics: organization and integration plan for rapid synergies
Faurecia Clarion Electronics An organization and integration plan for rapid synergies Organization combining Faurecia and Clarion competences to be fully deployed by September 1 Atsushi Kawabata EVP Jean-Paul Michel Deputy EVP Nik Endrud Nicolas Diehl Benjamin Thoma Hiroshi Murakami Display North
Slide 9: Agenda
Agenda Patrick Koller 1 H1 2019 highlights Chief Executive Officer Michel Favre 2 Review of H1 2019 results Chief Financial Officer Patrick Koller 3 Confirmed FY2019 targets Chief Executive Officer H1 2019 Results – July 23, 2019 9
Slide 10: H1 2019 figures - Notable facts
H1 2019 figures - Notable facts Fourth new Business Group “Faurecia Clarion Electronics” as from January 1, 2019, including: Coagent, consolidated as from January 1, 2018 and previously classified within “Interiors” Parrot Automotive, sales consolidated as from January 1, 2019 Clarion, conso
Slide 11: H1 2019 Results: Resilient sales and profitability
H1 2019 Results Resilient sales and profitability Sales Sales growth ex-currencies* proved resilient with an €8,991m €82m €(252)m outperformance of 420bps vs. worldwide automotive +0.9% €8,972m €150m production including: -2.8% +1.7% Positive effect of €164m (or +1.8%) from bolt-ons Vs. automoti
Slide 12: Europe: Sales outperformance and resilient profitability
Europe (50% of Group sales) Sales outperformance of 180bps and resilient profitability Sales Sales of €4,531m, down 4.2% on a reported basis, including: €4,730m €(31)m Limited negative currency effect of -0.7% €(181)m -0.7% (mainly the TRY vs. the euro) Clarion scope effect of €13m (+0.3%) -3.
Slide 13: North America: Sales impacted by EoP in Seating but improved profitability
North America (26% of Group sales) Sales impacted by significant EoP in Seating but improved profitability Sales Sales of €2,289m, up 2.5% on a reported basis, including: €150m €(140)m Positive currency effect of +6.7% (mainly the USD vs. the euro) -6.3% €47m €2,289m +6.7% Clarion scope effect
Slide 14: Asia: Sales outperformance; resilient margin @ 10%
Asia (19% of sales) Sales outperformance despite challenging environment; resilient margin @ 10% Sales €1,716m Sales of €1,716m, up 11.2% on a reported basis, including: €90m Positive currency effect of +1.0% (mainly the CNY and the THB vs. the euro) +5.8% Clarion scope effect of €90m (+5.8%)
Slide 15: South America: Sales outperformance and strong improvement in profitability
South America (4% of Group sales) Sales outperformance of 1,030bps and strong improvement in profitability Sales Sales of €345m, down 5.2% on a reported basis, including: Strong negative currency effect of -12.6% €363m €(46)m (mainly the ARS and the BRL vs. the euro) €1m €345m €26m +0.2% Sales
Slide 16: Seating: Sales outperformance despite the two EoPs
Seating (41% of Group sales) Sales outperformance despite the two EoPs and improved profitability @ 6% Sales Sales of €3,640m, down 3.7% on a reported basis €29m €(170)m €3,781m Including limited positive currency effect of +0.8% +0.8% (mainly the USD vs. the euro) -4.5% Sales growth ex-curren
Slide 17: Interiors: Sales outperformance; profitability > 6%
Interiors (30% of Group sales) Sales outperformance in a challenging environment; profitability > 6% Sales Sales of 2,746m, down 1.8% on a reported basis Including limited positive currency effect of +0.5% €15m €(64)m €2,796m (net effect of the USD and the TRY vs. the euro) +0.5% -2.3% €2,746m
Slide 18: Clean Mobility: Solid sales growth and improved profitability
Clean Mobility (26% of Group sales) Solid sales* growth and improved profitability Sales Sales of 2,351m, down 0.4% on a reported basis €39m €(48)m Including positive currency effect of +1.6% (mainly attributable €2,360m +1.6% -2.0% €2,351m to the USD vs. the euro partly offset by the BRL and th
Slide 19: Faurecia Clarion Electronics: First reporting of the new Business Group
Faurecia Clarion Electronics First reporting of the new Business Group includes only two months of Clarion Sales €235m Sales of €235m, included: €61m for Coagent €23m for Parrot Automotive, consolidated as from Jan. 1, 2019 Clarion €150m €150m for Clarion, consolidated as from April 1, 201
Slide 20: Resilient operating margin despite challenging environment
Resilient operating margin despite challenging environment in €m H1 2018 H1 2019 Change Sales 8,991 8,972 -0.2% ex-currency growth* -2.8% Cost of sales (7,828) (7,747) -1.0% Gross margin improved by 80bps, reflecting % of sales (87.1%) (86.3%) improved operations and resilience actions Gross margi
Slide 21: Net income reflecting higher restructuring and Clarion-related costs
Net income reflecting higher restructuring and Clarion-related costs in €m H1 2018 H1 2019 Change Resilient operating margin at 7.2% of sales Demonstrating solid operating leverage in a tough context Operating income (before amort. of acquired intangible assets) 647 645 -0.4% Including a dilut
Slide 22: Solid net cash flow at €257m, up year-on-year
Solid net cash flow at €257m, up year-on-year in €m H1 2018 H1 2019 Change EBITDA up €110m or +10.4%, mostly due to the Operating income 647 645 -0.4% application of IFRS16 as of January 1, 2019 Depreciation and amortization, of which: 414 526 Capex broadly stable year-on-year - Amortization of
Slide 23: Sound financial structure and strong financial discipline
Sound financial structure and strong financial discipline NET DEBT VARIATION (€M) LONG TERM DEBT MATURITY PROFILE (€M) Opening net debt Net debt as reported at reported at Dec. 31, 2018 June 30, 2019 1000 Schuldschein 900 and other bank loans Senior Notes (478) IFRS 16 impact 800 700 1st application
Slide 24: Agenda
Agenda Patrick Koller 1 H1 2019 highlights Chief Executive Officer Michel Favre 2 Review of H1 2019 results Chief Financial Officer Patrick Koller 3 Confirmed FY2019 targets Chief Executive Officer H1 2019 Results – July 23, 2019 24
Slide 25: Faurecia market assumptions for H2 and FY 2019
Faurecia market assumptions for H2 and FY 2019 We assume worldwide automotive production to be down c. 4% in 2019 vs. 2018 In China, Q3 2019 should still be penalized by destocking of CN5 vehicles, while Q4 2019 should benefit from gradual ramp up of CN6 vehicles and low base of comparison WORLD
Slide 26: Confirmed FY 2019 guidance, demonstrating increased resilience
Confirmed FY 2019 guidance, demonstrating increased resilience With the assumption of worldwide automotive production down c. 4% in 2019 vs. 2018, we confirm our full-year 2019 targets*: SALES PROFITABILITY NET CASH FLOW FY 2019 sales at constant FY 2019 operating income FY 2019 net cash flow curr
Slide 27: Appendices
H1 2019 RESULTS Appendices H1 2019 Results – July 23, 2019 27
Slide 28: Calendar
Calendar September 10, 2019 Deutsche Bank Auto Conference (Frankfurt) September 12, 2019 Kepler Cheuvreux 2019 Autumn Conference (Paris) October 17, 2019 Q3 2019 sales announcement November 26, 2019 Capital Markets Day in Paris, presenting: Strategic roadmap and medium-term objectives for the new
Slide 29: Impacts from IFRS 16 implementation
Impacts from IFRS 16 implementation IFRS16 is the new standard on leases, Main impacts on 2019 consolidated financial with first application on January 1, 2019 statements are the following: All lease contracts are accounted in the balance In m€ sheet through: P&L H1 2019 Operating income +13 •
Slide 30: Definitions of terms used in this document
Definitions of terms used in this document Sales growth Faurecia’s year-on-year sales evolution is made of three components: A “Currency effect”, calculated by applying average currency rates for the period to the sales of the prior year, A “Scope effect” (acquisition/divestment), And “Growt
Slide 31: H1 2019 sales by Business Group
H1 2019 sales by Business Group Sales Reported Currency effect Growth ex-currencies* Clarion scope effect** Reported (in €m) H1 2018 value % value % value % H1 2019 % Seating 3,781 29 0.8% -170 -4.5% 3,640 -3.7% of which bolt-ons 106 2.8% Interiors 2,796 15 0.5% -64 -2.3% 2,746 -1.8% of which bolt-o
Slide 32: H1 2019 sales by Region
H1 2019 sales by Region Sales Reported Currency effect Growth ex-currencies* Clarion scope effect** Reported (in €m) H1 2018 value % value % value % H1 2019 % Europe 4,730 -31 -0.7% -181 -3.8% 13 0.3% 4,531 -4.2% of which bolt-ons 31 0.7% North America 2,232 150 6.7% -140 -6.3% 47 2.1% 2,289 2.5% As
Slide 33: H1 2019 operating income by Business Group
H1 2019 operating income by Business Group Operating income (in €m) H1 2018 H1 2019 Change Seating 221.5 219.1 -1.1% % of sales 5.9% 6.0% +10bps Interiors 167.6 170.8 +1.9% % of sales 6.0% 6.2% +20bps Clean Mobility 255.3 254.7 -0.2% % of sales 10.8% 10.8% stable Faurecia Clarion Electronics 2.8 0.2
Slide 34: H1 2019 operating income by Region
H1 2019 operating income by Region Operating income (in €m) H1 2018 H1 2019 Change Europe 305.3 295.0 -3.4% % of sales 6.5% 6.5% stable North America 135.4 152.9 +12.9% % of sales 6.1% 6.7% +60bps Asia 179.7 171.0 -4.8% % of sales 11.6% 10.0% -160bps South America 11.8 18.5 +56.7% % of sales 3.3% 5.
Slide 35: 2018 sales by quarter with Coagent presented separately from Interiors
2018 sales by quarter with Coagent presented separately from Interiors Sales (in €m) Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Seating 1,817 1,964 1,743 1,914 7,438 Interiors (restated for Coagent) 1,358 1,438 1,185 1,382 5,363 Clean Mobility 1,106 1,254 1,061 1,194 4,615 Coagent 34 20 26 30 109 (to b
Slide 36: Research and development costs
Research and development costs in €m H1 2018 H1 2019 Research and development costs, gross (558) (638) Capitalized development costs 405 440 of which in inventory 99 118 of which in intangible assets (a) 306 322 Cf. Note 5.3 of Financial Statements Research and development costs, net (153) (198) Amo
Slide 37: Contact & share data
Contact & share data Investor Relations Share Data Bloomberg Ticker: EO:FP Marc MAILLET Reuters Ticker: EPED.PA Tel: +33 1 72 36 75 70 Datastream: F:BERT E-mail: marc.maillet@faurecia.com ISIN Code: FR0000121147 Anne-Sophie JUGEAN Tel: +33 1 72 36 71 31 E-mail: annesophie.jugean@faurecia.com Bonds I
Slide 38: Safe Harbor Statement
Safe Harbor Statement This report contains statements that are not historical facts but rather forward-looking statements. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions identify these forward
Slide 39: H1 2019 Results – July 23, 2019
H1 2019 Results – July 23, 2019 39