Slide 1: FY 2020 Results: Agility, Resilience
FY 2020 RESULTS Agility Resilience NEW RECORD ORDER INTAKE MARKET REBOUND IN 2021 February 22, 2021
Slide 2: Agenda
Agenda 1 2020 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 2 ● FY 2020 Results - February 22nd, 2021
Slide 3: Agenda
Agenda 1 2020 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 3 ● FY 2020 Results - February 22nd, 2021
Slide 4: 2020 Highlights
2020 Highlights Agility & Resilience to face the Covid-19 crisis, supported by best-in-class “Safer and Stronger Together” protocol Strong recovery in H2 with all targets* overachieved ▸ Sales of €8.5bn (vs. target of at least €8bn) ▸ Operating margin of 6.1% (vs. target of at least 5.5%) and EBITDA
Slide 5: Increased customer satisfaction drives new record order intake
Increased customer satisfaction drives new record order intake 3-year rolling order intake (lifetime sales) Total Customer Satisfaction program delivering ▸ 40 Customer Recognition Awards of which GM Supplier of the Year for Interiors North €72bn America and Special Recognition Award from Ford €68bn
Slide 6: Market rebound expected in 2021
Market rebound expected in 2021 Faurecia’s current assumption for 2021 automotive production is conservative at 76.6m vehicles WORLDWIDE AUTOMOTIVE PRODUCTION ▸ +8% vs. the 70.7m produced in 2020 95 000 91,6 ▸ vs. IHS Markit forecast of 80.9m, +14% vs. 2020 90,5 90 000 Uncertainties in H1 likely to
Slide 7: 2021 guidance reflects strong operating leverage and solid cash flow generation
2021 guidance reflects strong operating leverage and solid cash flow generation Guidance based on worldwide automotive production estimated at 76.6 million vehicles* (+8% vs. 2020) Strong operating leverage thanks to resilience actions lowering breakeven of operations Back to solid net cash flow gen
Slide 8: Agenda
Agenda 1 2020 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 8 ● FY 2020 Results - February 22nd, 2021
Slide 9: Q4 2020 organic sales almost flat vs. Q4 2019
Q4 2020 organic sales almost flat vs. Q4 2019 In Q4, product sales (excluding Tooling & Prototypes) were up 2% on an organic basis Q1 sales Q2 sales Q3 sales Q4 sales -19.7% -50.0% -7.0% -0.3% o/w product sales o/w product sales o/w product sales o/w product sales 10% -15.2% -53.5% -6.7% +2.0% 0% -1
Slide 10: Strong recovery in H2 2020
Strong recovery in H2 2020 H2 2020 sales €8,796m €(330)m €(307)m €324m €8,484m -3.7% -3.5% +3.7% WW auto WW auto prod. vs. automotive production prod. 42.0m* growth* of -0.3% 41.9m* H2 2020 operating income Recurring cost actions = €66m €638m €(133)m €19m €47m €(6)m €565m €(45)m €520m of which: €(16
Slide 11: A highly resilient performance in FY 2020
A highly resilient performance in FY 2020 FY 2020 sales €17,768m €(373)m €(3,483)m €741m €14,654m -2.1% WW auto -19.6% +4.2% WW auto prod. vs. automotive production prod. 85.3m* 70.7m* growth* of -17.2% FY 2020 operating income Resilience actions = €601m €1,283m €(1,417)m (o/w recurring cost actions
Slide 12: Seating and Interiors
Seating Interiors 38% of Group sales 31% of Group sales FY 2019 H1 2020 H2 2020 FY 2020 FY 2019 H1 2020 H2 2020 FY 2020 6,973 Sales (€m) 2,270 3,289 5,560 5,370 Sales (€m) 1,922 2,622 4,544 YoY reported -37.6% -1.3% -20.3% YoY reported -30.0% -0.1% -15.4% YoY organic -37.2% 1.2% -18.9% YoY organic -
Slide 13: Clean Mobility and Clarion Electronics
Clean Mobility Clarion Electronics 26% of Group sales 5% of Group sales FY 2019 FY 2019 H1 2020 H2 2020 FY 2020 H1 2020 H2 2020 FY 2020 (9 months) 4,654 Sales (€m) 1,647 2,177 3,823 771 Sales (€m) 331 396 727 YoY reported -30.0% -5.4% -17.8% YoY reported 41.0% -26.2% -5.8% YoY organic -29.5% -0.8% -
Slide 14: Europe and North America
Europe North America 47% of Group sales 25% of Group sales FY 2019 H1 2020 H2 2020 FY 2020 FY 2019 H1 2020 H2 2020 FY 2020 8,641 Sales (€m) 3,027 3,945 6,972 4,483 Sales (€m) 1,475 2,157 3,632 YoY reported -33.2% -4.0% -19.3% YoY reported -35.6% -1.7% -19.0% YoY organic -36.1% -7.5% -22.5% YoY organ
Slide 15: Asia and South America
Asia South America 24% of Group sales 3% of Group sales FY 2019 H1 2020 H2 2020 FY 2020 FY 2019 H1 2020 H2 2020 FY 2020 3,766 Sales (€m) 1,470 2,058 3,528 696 Sales (€m) 157 242 398 YoY reported -14.3% 0.4% -6.3% YoY reported -54.6% -31.3% -42.8% YoY organic -23.2% 2.8% -9.1% YoY organic -42.1% -6.8
Slide 16: Gross margin of 12.2% and operating margin of 6.1% in H2
Gross margin of 12.2% and operating margin of 6.1% in H2 2019 in €m H1 2020 H2 2020 2020 Change 17,768 Sales 6,170 8,484 14,654 -17.5% organic change -35.4% -3.5% -19.6% (15,286) Cost of sales (5,740) (7,452) (13,192) -13.7% Cost of sales at 87.8% in H2 2020 (vs. 93.0% in H1), close to FY 2019 level
Slide 17: Back to profit in H2 despite increased restructuring expense
Back to profit in H2 despite increased restructuring expense 2019 in €m H1 2020 H2 2020 2020 Change 17,768 Sales 6,170 8,484 14,654 -3,114 Drop in net income of €969m mainly organic change -35.4% -3.5% -19.6% reflected drop in operating income 1,283 Operating income (114) 520 406 -877 after GW amort
Slide 18: Strong cash flow generation in H2 offsets H1 cash consumption
Strong cash flow generation in H2 offsets H1 cash consumption 2019 in €m H1 2020 H2 2020 2020 Change EBITDA at 13.8% in H2 2020 > FY 2019 1,283 Operating income (114) 520 406 -877 Capex contained to €479m in 2020 1,121 Depreciation and amortization, of which: 623 650 1,273 vs. €685m in 2019 438 - Am
Slide 19: Significant deleveraging in H2 driven by strong cash generation
Significant deleveraging in H2 driven by strong cash generation 2019 in €m H1 2020 H2 2020 2020 Change No dividend paid in 2020 due to the 2,404 EBITDA 509 1,170 1,679 -725 extraordinary context of the Covid-19 crisis (vs. a dividend of €1.25 per share 13.5% % of sales 8.3% 13.8% 11.5% paid in 2019)
Slide 20: Tight management of liquidity and financial flexibility
Tight management of liquidity and financial flexibility while protecting a sound financial structure Long-term liquidity resources by maturity at Dec 31, 2020 Financial flexibility highly restored (proforma €190m tap issue of January 2021) 1 600 ▸ Issuance of €1bn new bonds in July 2020 to refinance
Slide 21: Proposed dividend of €1 reflects confidence in new perspectives
Proposed dividend of €1 reflects confidence in new perspectives Return to paying a dividend in 2021 resumes Faurecia’s sustainable and progressive dividend path, consistent with historical practices €1.25 €1.10 Proposed dividend of €1 per share* €1.00 to be paid in June 2021 €0.90 This reflects: €0.
Slide 22: Agenda
Agenda 1 2020 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 22 ● FY 2020 Results - February 22nd, 2021
Slide 23: Key Takeaways
Key Takeaways In 2020, Faurecia continued to deploy its strategy ▸ New record intake of €26bn ▸ Acceleration of our hydrogen mobility solution activities ▸ Strong ESG commitment focused on CO2 neutrality and Gender diversity While achieving a very resilient performance ▸ Profitability recovery in H2
Slide 24: Appendices
Appendices ● FY 2020 Results - February 22nd, 2021
Slide 25: Financial calendar
Financial calendar February 22 Capital Markets Day, at 1:30pm CET April 19 Q1 2021 Sales, before market hours May 31 Annual Shareholders’ Meeting July 26 H1 2021 Results, before market hours October 26 Q3 2021 sales, before market hours 25 ● FY 2020 Results - February 22nd, 2021
Slide 26: Operating leverage
Operating leverage Sales (in €m) Operating income (in €m) 2019 17,768 2019 1,283 Currency effect -373 (a) Volume impact -1,476 (c) Organic -3,483 (b) Resilience actions 661 (d) Scope effect 741 Scope & other 3 2020 before one-offs 471 One-offs -65 2020 14, 654 2020 406 Operating leverage in 2020 (c+
Slide 27: Research & Development costs
Research & Development costs FY 2020 CASH FLOW STATEMENT P&L In €m FY 2019 FY 2020 In €m FY 2019 FY 2020 In €m FY 2019 FY 2020 Operating income 1,283 406 R&D Sales 712 604 Depreciation and amortization 1,121 1,273 o/w amortization of R&D intangible assets 438 509 o/w change in impairment of R&D asse
Slide 28: Definitions of terms
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 “Growth
Slide 29: Definitions of terms
Definitions of terms used in this document > Operating income Operating income is the Faurecia group’s principal performance indicator. It corresponds to net income of fully consolidated companies before: ▸ Amortization of intangible assets acquired in business combinations; ▸ Other non-recurring op
Slide 30: Investor Relations: Contact & Share Data
Share Data Bloomberg Ticker: EO:FP INVESTOR RELATIONS Reuters Ticker: EPED.PA Datastream: F:BERT ISIN Code: FR0000121147 Marc MAILLET Tel: +33 1 72 36 75 70 E-mail: marc.maillet@faurecia.com 23-27, avenue des Champs Pierreux Bonds ISIN Codes 92000 Nanterre (France) 2025 bonds: XS1785467751 2026 bond
Slide 31: Disclaimer
Disclaimer Important information concerning forward looking statements This presentation contains certain forward-looking statements concerning Faurecia. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future Faurecia’s r
Slide 32: Faurecia inspiring mobility
‘Faurecia inspiring mobility