Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — H1 2017 Earnings Presentation
39 slides from Forvia's earnings presentation, Jul 21, 2017
Slide 1: H1 2017 Results: A strong performance
H1 2017 RESULTS July 21, 2017 A strong performance The 2017 half-year consolidated financial statements have been approved by the Board of Directors at its meeting held on July 20, 2017, under the chairmanship of Michel de Rosen. These financial statements have been subject to a limited review by au
Slide 2: Agenda
Agenda Patrick Koller 1 H1 2017 highlights Chief Executive Officer Michel Favre 2 Review of H1 2017 Results Chief Financial Officer Patrick Koller 3 Upgraded FY2017 guidance Chief Executive Officer H1 2017 results - July 21, 2017 2
Slide 3: Agenda
Agenda Patrick Koller 1 H1 2017 highlights Chief Executive Officer Michel Favre 2 Review of H1 2017 Results Chief Financial Officer Patrick Koller 3 Upgraded FY2017 guidance Chief Executive Officer H1 2017 results - July 21, 2017 3
Slide 4: Our strategic priorities are fueling profitable growth
Our strategic priorities are fueling profitable growth Accelerating in Asia Market growth* Market growth* Market growth €25 billion €40 billion +1 million vehicles by 2030 by 2030 per year in China H1 2017 results - July 21, 2017 4 * Value-added sales
Slide 5: Building momentum in each of our strategic priorities
Building momentum in each of our strategic priorities Ambition 2025 Ambition 2025 Ambition 2022 Accelerating in Asia Value added sales New technologies for connected, 25% of Group sales in Asia c. €8bn versatile and predictive cockpit of the Future to bring an additional > € 5 billion VA s
Slide 6: Faurecia takes a 50.1% stake into Jiangxi Coagent
Faurecia takes a 50.1% stake into Jiangxi Coagent a Chinese leading company in infotainment and interior electronic solutions HMI & In-vehicle-Infotainment: Display, Voice recognition Radio & Navigation Smartphone applications Electronics plant in Jiangxi province for infotainment system &
Slide 7: Products covering the full scope of the cockpit of the future
Faurecia, Parrot Automotive and JFCE (Jiangxi Faurecia Coagent Electronics) products cover the full scope of the cockpit of the future Instrument Infotainment Connectivity Hardware, panel & Display Wi-Fi, blue tooth, software, system Smart Surfaces integration USB, TBox Jiangxi Faurecia Jiangxi Faur
Slide 8: Strong performance in H1
Strong performance in H1 Strong organic* growth of 8.5%, 550bps above worldwide automotive production (+3.0%, source: IHS June 2017) Value-added** sales to €8.6bn: +8.4% on a reported basis Significant improvement in profitability: Operating income up 20% to €587m Operating margin up 60b
Slide 9: Solid organic growth and significant improvement in profitability
Solid organic* growth and significant improvement in profitability Value-added sales in €m Operating income in €m 587 LV production +3.0% 8,585 +97 +8.5%* 7,922 490 6.2% % of VA sales 6.8% H1 2016 H1 2017 H1 2016 H1 2017 All regions and Business Groups contributed to strong sales growth and improved
Slide 10: Agenda
Agenda Patrick Koller 1 H1 2017 highlights Chief Executive Officer Michel Favre 2 Review of H1 2017 Results Chief Financial Officer Patrick Koller 3 Upgraded FY2017 guidance Chief Executive Officer H1 2017 results - July 21, 2017 10
Slide 11: H1 2017 – Key facts
H1 2017 – Key facts Sales As previously announced, since January 1, 2017, Faurecia reports on value-added sales, which are total sales, as reported in the consolidated financial statements, less monolith sales (a table in appendix details the reconciliation between total sales and value-added sa
Slide 12: Strong organic sales growth of 8.5% to €8.6bn
Strong organic* sales growth of 8.5% to €8.6bn, 550bps above worldwide automotive production growth (+3.0%; source: IHS June 2017) Value-added sales in €m H1 2017 vs. H1 2016 LV production +3.0% Variation Reported Currencies Scope Organic* 8,585 VA sales +8,4% +1.4% (1.5%) +8.5% +8.5%* 7,922 Group
Slide 13: Significant improvement in operating margin, up 60bps to 6.8%
Significant improvement in operating margin, up 60bps to 6.8% Operating income in €m H1 2017 operating margin up 60 bps yoy 587 Operating margin on value-added sales +97 improved by 60 bps to 6.8%, representing a rise of €97m (up 20% in value) 490 This mainly reflected an improvement in: Net R
Slide 14: Europe (50% of Group sales)
Europe (50% of Group sales) Profitability up 20bps to 6.2%, leveraging operational efficiency Value-added sales in €m SALES 4,295 Value-added sales up 2.7% on an organic* basis +2.7%* 4,203 (up 2.2% reported), outperforming European LV production growth (+1.2%, source: IHS June 2017) Limited neg
Slide 15: North America (28% of Group sales)
North America (28% of Group sales) Profitability up 50bps to 5.9%, thanks to improved industrial efficiency Value-added sales in €m SALES 2,401 Value-added sales up 10.0% on an organic* basis (up 7.9% 2,225 +10.0%* reported), outperforming North American LV production growth (-0.5%, source: IHS Ju
Slide 16: Asia (16% of Group sales)
Asia (16% of Group sales) Strong double-digit profitability and doubled sales with Chinese OEMs Value-added sales in €m SALES 1,378 Value-added sales up 16.9% on an organic* basis +16.9%* (up 16.6% reported), outperforming Asian LV production growth 1,181 (+4.6%, source: IHS June 2017) In China,
Slide 17: South America (5% of Group sales)
South America (5% of Group sales) Sales boosted by the JV with FCA; back to profitability Value-added sales in €m SALES 388 +56.6%* Value-added sales up 56.6% on an organic* basis (up 78.0% reported), outperforming South American LV production growth 218 (+15.0%, source: IHS June 2017) The conso
Slide 18: Faurecia Seating (42% of Group sales)
Faurecia Seating (42% of Group sales) Strong growth of 8.9%* and profitability up 30bps to 5.6% Value-added sales in €m SALES 3,633 +8.9%* Value-added sales up 8.9% on an organic* basis 3,299 (up 10.1% reported), outperforming worldwide automotive production (+3.0%, source: IHS June 2017) Double
Slide 19: Faurecia Clean Mobility (27% of Group sales)
Faurecia Clean Mobility (27% of Group sales) Strong growth of 6.6%* and profitability up 70bps to 10.1% Value-added sales in €m SALES 2,287 Value-added sales up 6.6% on an organic* basis (up 8.7% reported), 2,104 +6.6%* outperforming worldwide automotive production (+3.0%, source: IHS June 2017)
Slide 20: Faurecia Interiors (31% of Group sales)
Faurecia Interiors (31% of Group sales) Strong growth of 9.5%* and profitability up 60bps to 5.7% Value-added sales in €m SALES Value-added sales up 9.5% on an organic* basis (up 5.8% reported), 2,664 outperforming worldwide automotive production (+3.0%, source: 2,517 +9.5%* IHS June 2017) Scope
Slide 21: Double-digit growth in net income, up 28% to €314m
Double-digit growth in net income (Group share), up 28% to €314m In €m H1 2016 H1 2017 Change Value-added sales 7,921.7 8,584.7 8.4% Operating income 490,3 586.7 (margin as % of VA sales) (6.2%) (6.8%) +60bps Operating leverage: 15% on VA sales Restructuring & other non-recurring operating inc. an
Slide 22: Net debt reduced by 56% year-on-year, to €414m
Net debt reduced by 56% year-on-year, to €414m In €m H1 2016 H1 2017 Change Operating income 490.3 586.7 20% Depreciation and amortization 323.5 351.6 EBITDA 813.8 938.3 15% EBITDA up €124m or +15%, reflecting profitability Change in WCR 75.4 73.3 Positive WCR change thanks to tight control of a
Slide 23: Sound financial structure
Sound financial structure Over 70% of gross debt is financed through the financial markets: €700m bonds issued in 2015, maturity June 2022 (callable June 2018) @ 3.125% €700m bonds issued in June 2016, maturity June 2023 (callable June 2019) @ 3.625% No significant long-term debt repayment b
Slide 24: Agenda
Agenda Patrick Koller 1 H1 2017 highlights Chief Executive Officer Michel Favre 2 Review of H1 2017 Results Chief Financial Officer Patrick Koller 3 Upgraded FY2017 guidance Chief Executive Officer H1 2017 results - July 21, 2017 24
Slide 25: Market outlook points to automotive production growth of around 2% in 2017
Market outlook points to automotive production growth of around 2% in 2017 In H1, worldwide automotive production grew by 3.0%* In H2: Europe should continue to post robust growth (after +1.2% in H1*) and we assume FY 2017 to post a 2% to 3% growth vs. FY 2016 Continued soft landing in North
Slide 26: Upgrade of FY 2017 guidance
Upgrade of FY 2017 guidance driven by strong performance in H1 and expectations of continuous improvement in H2 2017 2017 2017 2017 Value-added Operating Net cash Earnings sales growth margin flow per share Previous guidance Previous guidance Previous guidance Previous guidance (as announced Feb. 9,
Slide 27: Confirmed 2018 ambitions
Confirmed 2018 ambitions H1 2017 performance and upgraded outlook for FY 2017 confirm that Faurecia is fully on track to achieve its profitable growth trajectory Growing at a sustained pace, outperforming the market Improving profitability Generating more cash-flow Increasing earnings per
Slide 28: Next events
Next events 12 – 24 September 2017 Faurecia’s presence at the IAA in Francfort 7- 12 January 2018 First participation at CES Las Vegas H1 2017 results - July 21, 2017 28
Slide 29: Appendices
H1 2017 RESULTS Appendices 29
Slide 30: Calendar
Calendar September 12-24, 2017 October 12, 2017 Faurecia’s presence at the IAA Q3 sales announcement in Francfort (after market hours) January 7-12, 2018 February 16, 2018 First participation FY 2017 results announcement at CES Las Vegas (before market hours) H1 2017 results - July 21, 2017 30
Slide 31: Value-added sales by region
Value-added sales by region H1 2016 Currencies Scope Organic* H1 2017 VA sales €m €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 Europe 4,203.4 -21.5 -0.5% 113.3 2.7% 4,295.2 2.2% North America 2,225.3 71.0 3.2% -117.2 -5.3% 222.0 10.0% 2,401.1 7.9% Asia 1,181.3 -3.2 -0.3% 199.5 16.9% 1
Slide 32: Value-added sales by Business Group
Value-added sales by Business Group H1 2016 Currencies Scope Organic* H1 2017 VA sales €m €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 Seating 3,299.4 41.4 1.3% 292.2 8.9% 3,633.0 10.1% Clean Mobility 2,104.4 44.1 2.1% 138.8 6.6% 2,287.3 8.7% Interiors 2,517.9 23.7 0.9% -117.2 -4.7% 2
Slide 33: Reconciliation of Value-added sales & Total sales
Reconciliation of Value-added sales & Total sales H1 2016 Currencies Scope Organic* H1 2017 VA sales €m €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 €m vs. H1 2016 Value-added sales 7,921.7 109.2 1.4% -117.2 -1.5% 671.0 8.5% 8,584.7 8.4% Catalytic Converter Monoliths 1,609.9 15.1 0.9% 85.0 5.3% 1,71
Slide 34: Profitability by region
Profitability by region H1 2016 H1 2017 Operating income Change €m €m Europe 254.1 266.0 4.7% % of VA sales 6.0% 6.2% North America 119.9 141.1 17.7% % of VA sales 5.4% 5.9% Asia 139.5 159.8 14.6% % of VA sales 11.8% 11.6% South America -16.2 5.9 -136.5% % of VA sales -7.4% 1.5% RoW 5.4 13.9 157.1%
Slide 35: Profitability by Business Group
Profitability by Business Group H1 2016 H1 2017 Operating income Change €m €m Seating 175.6 202.7 15.4% % of VA sales 5.3% 5.6% Clean Mobility 198.4 231.6 16.8% % of VA sales 9.4% 10.1% Interiors 128.7 152.4 18.4% % of VA sales 5.1% 5.7% IFRS5 adjustment -12.4 0.0 Group 490.3 586.7 19.7% % of VA sal
Slide 36: Cash flow reconciliation
Cash flow reconciliation Cash flow reconcilation in €m H1 2016 H1 2017 Net Cash Flow (reported) 204.7 210.5 Acquisitions of investments and business (net of cash & cash equivalent) (25.8) 22.6 Proceeds from disposal of financial assets (1.0) Acquisitions of treasury stocks (24.0) (40.0) Other change
Slide 37: Contact & share data
Contact & share data Investor Relations Share Data Marc MAILLET Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA 2, rue Hennape Datastream: F:BERT 92735 Nanterre ISIN Code: FR0000121147 France Tel: +33 1 72 36 75 70 ADR Data Fax: +33 1 72 36 70 30 Ticker: FURCY E-mail: marc.maillet@faurecia.com Ratio
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: Faurecia inspiring mobility
‘Faurecia inspiring mobility