Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — FY2018 Earnings Presentation
51 slides from Forvia's earnings presentation, Feb 18, 2019
Slide 1: FY 2018 Results
February 18, 2019 FY 2018 RESULTS The full-year 2018 consolidated financial statements have been approved by the Board of Directors at its meeting held on February 15, 2019, under the chairmanship of Michel de Rosen. These financial statements have been audited. Operating income presented as All tar
Slide 2: Agenda
Agenda Patrick Koller 1 FY 2018 highlights Chief Executive Officer Michel Favre 2 Detailed review of FY 2018 Results Chief Financial Officer Patrick Koller 3 Strategic update Chief Executive Officer Patrick Koller 4 2019 guidance and next steps Chief Executive Officer FY 2018 Results – February 18,
Slide 3: Strong performance in 2018
Strong performance in 2018 Confirmation of resilient and pertinent business model Faurecia achieved a strong financial performance and met all 2018 financial targets Demonstrated resilience in the face of increasingly strong headwinds in H2 Strong order intake drives future profitable growth a
Slide 4: Faurecia met all FY 2018 financial targets and posted a strong performance
Faurecia met all FY 2018 financial targets and posted a strong performance Sales €17,525m Operating margin 7.3% of sales +7.0% at constant currencies with operating income up 10% at €1,274m +810bps above worldwide automotive production (Guidance was "At least +8% or at least 600bps above worldwi
Slide 5: Targets were achieved despite tougher than expected headwinds in H2 2018
Targets were achieved despite tougher than expected headwinds in H2 2018 Full-year production volume started to drop year-on-year in H2, as reflected in forecast changes during the year Worldwide production in 2018, which was expected to grow by c. 2% until mid-year, declined by 1.1%* vs. 2017 (
Slide 6: Continued improvement in performance over the past five years
Continued improvement in performance over the past five years SALES OPERATING MARGIN €17,525m 7.3% €16,962m 6.8% €15,466m €15,614m 6.2% 5.4% €13,775m 4.3% FY 2014* FY 2015* FY 2016* FY 2017 FY 2018 FY 2014* FY 2015* FY 2016* FY 2017 FY 2018 NET CASH FLOW EPS €528m €5.11 €435m €4.37 €333 m €3.28 €303
Slide 7: Another year of strong order intake secures future profitable growth
Another year of strong order intake secures future profitable growth ORDER INTAKE New Value Spaces (NVS) showing good start and representing lifetime sales three-year rolling more than 12% of 2018 order intake Commercial vehicles and HHP represented €1.2bn, giving market share growth from 17% to
Slide 8: Increasingly broad and diversified customer portfolio
Increasingly broad and diversified customer portfolio MASS MARKET OEMS PREMIUM OEMS CHINESE OEMS CV & HHP NEW ENTRANTS FY 2018 Results – February 18, 2019 8 New
Slide 9: Significant business conquest will fuel continued market share growth
Significant business conquest will fuel continued market share growth WORLDWIDE MARKET SHARE* GROWTH 2018 SOURCING DECISIONS** FROM 13.6% TO 14.1% FUELING FUTURE GROWTH 2017 Seating 2018 5% Incumbent lost 12% Conquest 10.8% 11.4% NVS 5% 12% Incumbent 55% 2017 Interiors 2018 won 55% Conquest 28% core
Slide 10: Agenda
Agenda Patrick Koller 1 FY 2018 highlights Chief Executive Officer Michel Favre 2 Detailed review of FY 2018 Results Chief Financial Officer Patrick Koller 3 Strategic update Chief Executive Officer Patrick Koller 4 2019 guidance and next steps Chief Executive Officer FY 2018 Results – February 18,
Slide 11: Strong performance in H2, despite a drop of 4.4% in worldwide automotive production
Strong performance in H2, despite a drop of 4.4% in worldwide automotive production Sales €8,533m Worldwide automotive production was down 4.4% Mostly impacted by Europe (-5.3%) and China (-12.0%) €8,417m €(148)m Faurecia’s sales were up 3.1% at constant currencies -1.8% +3.1% outperformance
Slide 12: Faurecia achieved a record year in 2018
Faurecia achieved a record year in 2018, thanks to strong growth in H1 and resilient performance in H2 Sales €17,525m Worldwide automotive production was down 1.1% Mostly impacted by Europe (-1.2%) and China (-4.6%) Faurecia’s sales were up 7.0% at constant currencies €16,962m €(631)m +7.0%
Slide 13: Solid sales growth at constant currencies in all regions
Solid sales growth at constant currencies in all regions Strong increase in operating income in all regions EUROPE (51% of Group sales) NORTH AMERICA (25% of Group sales) ASIA (19% of Group sales) SOUTH AMERICA (4% of Group sales) Sales €8,858m Sales €3,257m Sales Sales Outperformance 660bps Outperf
Slide 14: Solid sales growth and improved operating margin in all three Business Groups
Solid sales growth at constant currencies and improved operating margin in all three Business Groups SEATING (43% of Group sales) INTERIORS (31% of Group sales) CLEAN MOBILITY (26% of Group sales) Sales Sales Sales €7,438m Outperformance 870bps Outperformance 710bps €5,472m Outperformance 830bps Inc
Slide 15: Operating income up 10% to €1,274m
Operating income up 10% to €1,274m Operating margin up 50bps to 7.3% of sales in €m FY 2017 FY 2018 Change Sales 16,962.1 17,524.7 +3.3% Gross margin improved by 50bps including sales and lease-back operations broadly offsetting Cost of sales (14,842.4) (15,248.8) +2.7% other one-off expenses rela
Slide 16: Strong rise in net income (Group share), up 17% to €701m
Strong rise in net income (Group share), up 17% to €701m In €m FY 2017 FY 2018 Change Operating income reflected strong operating Sales 16,962.1 17,524.7 +3.3% leverage ex-currency growth +7.0% Amortization of intangible assets in 2018 included: Operating income 1,157.6 1,273.9 +10.0% €(6.7)m
Slide 17: Net cash flow up 21% to €528m
Net cash flow up 21 % to €528m, in line with target to be above €500m In €m FY 2017 FY 2018 Change Operating income 1,157.6 1,273.9 +8.3% EBITDA up €190m or +9.7%, mainly reflecting increased Depreciation and amortization, of which: 793.3 866.7 profitability • Amortization of R&D intangible assets
Slide 18: Strong financial structure and flexibility
Strong financial structure and flexibility Low financing cost, long maturity and Clarion financing secured In 2018, Faurecia continued to strengthen its financial structure and flexibility, while extending debt maturity and improving economic conditions; average long-term cost of financing below 3
Slide 19: Proposed dividend of €1.25 per share, up 14% year-on-year
Proposed dividend of €1.25 per share, up 14% year-on-year Faurecia will propose to shareholders a dividend DIVIDEND PER SHARE of €1.25 per share €1.25* It will be payable in cash early June 2019, €1.10 subject to approval at the Annual Shareholders’ Meeting to be held in Nanterre on May 28, 2019
Slide 20: Agenda
Agenda Patrick Koller 1 FY 2018 highlights Chief Executive Officer Michel Favre 2 Detailed review of FY 2018 Results Chief Financial Officer Patrick Koller 3 Strategic update Chief Executive Officer Patrick Koller 4 2019 guidance and next steps Chief Executive Officer FY 2018 Results – February 18,
Slide 21: Four megatrends disrupting the automotive industry
Four megatrends disrupting the automotive industry CONNECTED AUTONOMOUS RIDE-SHARING ELECTRIFIED New electronic Powertrain mix shifting Creation of new user New business models architecture and new rapidly towards increased experiences and new actors technology players electrification FY 2018 Result
Slide 22: Faurecia's strategy is aligned with megatrends offering significant market opportunities
Faurecia’s strategy is aligned with megatrends offering significant market opportunities SUSTAINABLE MOBILITY COCKPIT OF THE FUTURE Solutions for powertrain electrification and zero emissions Solutions for a connected, versatile and predictive cockpit ADDRESSABLE ADDRESSABLE MARKET €51 bn in 2030 MA
Slide 23: Accelerating in New Value Spaces with short time-to-market
Accelerating in New Value Spaces with short time-to-market SUSTAINABLE MOBILITY COCKPIT OF THE FUTURE Profitable growth driven by fast-growing Long term vision for connected, versatile and market segments predictive cockpit through short term systems Technologies for hybrid passenger vehicles
Slide 24: Clarion acquisition accelerates Cockpit of the Future strategy
Clarion acquisition accelerates Cockpit of the Future strategy ADVANCED DRIVER ASSISTANCE CONNECTIVITY SOLUTION LOW SPEED AUTONOMOUS DRIVING IN-VEHICLE-INFOTAINMENT CLOUD SERVICES INTUITIVE HMI SOLUTIONS DEVELOPING UNINTERRUPTED SAFETY AND SECURITY ADVANCED AUDIO SYSTEMS CREATING A SEAMLESS WORLD IN
Slide 25: Creation of a new Business Group headquartered in Japan
Creation of a new Business Group headquartered in Japan TIMELINE FAURECIA CLARION ELECTRONICS Regulatory authorities approvals obtained Regrouping Clarion, Parrot Automotive and Coagent Tender offer launched on January 30 9,200 employees, including 1,650 engineers Closing expected in March
Slide 26: Agenda
Agenda Patrick Koller 1 FY 2018 highlights Chief Executive Officer Michel Favre 2 Detailed review of FY 2018 Results Chief Financial Officer Patrick Koller 3 Strategic update Chief Executive Officer Patrick Koller 4 2019 guidance and next steps Chief Executive Officer FY 2018 Results – February 18,
Slide 27: Increased resilience through structural initiatives and agility
Increased resilience through structural initiatives and agility allowing increased investment in innovation for New Value Spaces GROUP INITIATIVES ALREADY UNDERWAY ADDITIONAL RESILIENCE ACTIONS “Global R&D Power” focusing on reducing R&D Operational flexibility through direct and indirect hourly
Slide 28: In 2019, Faurecia should outperform automotive production by between 150 and 350bps
In 2019, Faurecia should outperform automotive production by between 150 and 350bps Significant outperformance of above 800bps in 2017 and 2018 2019 sales outperformance is impacted by the one-off effect of the end of production of two Seating programs in North America and Europe (representing c
Slide 29: FY 2019 guidance
FY 2019 guidance* In the current uncertain and volatile environment, our assumption is that worldwide automotive production should be down 1% in 2019 vs. 2018, with a difficult H1 and H2 resuming growth On this basis, our FY 2019 guidance is as follows: Sales Profitability Net cash flow FY 2019
Slide 30: Financial communication agenda
Financial communication agenda By the end of March 2019 Closing of the Clarion acquisition April 23, 2019 Q1 2019 sales announcement July 23, 2019 H1 2019 results announcement October 17, 2019 Q3 2019 sales announcement November 26, 2019 Capital Markets Day in Paris, presenting: Strategic roadmap
Slide 31: Key takeaways
Key takeaways Strong performance in 2018 despite headwinds in H2 demonstrating resilience and agility Accelerated business development for Cockpit of the Future and Sustainable Mobility Differentiating business model with short time-to-market for new technologies and increased content per vehi
Slide 32: Appendices
FY 2018 RESULTS Appendices 32
Slide 33: FY 2018 Results Key Facts
FY 2018 Results Key Facts IMPACT FROM IFRS15 IMPLEMENTATION In 2017, Faurecia had already partly anticipated IFRS15 through the presentation of sales as "Value-added sales", i.e. "Total sales" minus "Monoliths", for which Faurecia operates as an agent In addition, as from January 1, 2018, with t
Slide 34: 2017 sales restated for IFRS15 implementation (1/2)
2017 sales restated for IFRS15 implementation (1/2) 2017 SALES RESTATED FOR IFRS15 IMPLEMENTATION AT GROUP LEVEL As reported during the fiscal year 2017 (in €m) Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Product sales 3,917.7 3,893.3 3,474.9 3,986.5 15,272.4 R&D and Tooling 308.1 465.5 315.4 600.8 1,68
Slide 35: 2017 sales restated for IFRS15 implementation (2/2)
2017 sales restated for IFRS15 implementation (2/2) 2017 SALES RESTATED FOR IFRS15 IMPLEMENTATION BY REGION & BUSINESS GROUP IFRS15 proforma (in €m) Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Seating 1,786.6 1,850.1 1,611.5 1,881.0 7,129.2 Interiors 1,297.9 1,327.7 1,173.6 1,568.1 5,367.4 Clean Mobilit
Slide 36: 2017 operating income restated for IFRS15 implementation
2017 operating income restated for IFRS15 implementation 2017 OPERATING INCOME RESTATED FOR IFRS15 IMPLEMENTATION BY REGION & BUSINESS GROUP As initially reported IFRS 15 proforma Operating income (in €m) H1 2017 H2 2017 FY 2017 H1 2017 H2 2017 FY 2017 Seating 202.7 208.2 410.9 199.9 204.5 404.4 Int
Slide 37: H2 2018 sales by Business Group
H2 2018 sales by Business Group Restated Currency effect Growth ex-currencies Reported Sales (in €m) H2 2017 value % value % H2 2018 % Seating 3,492.5 -60.7 -1.7% 224.7 6.4% 3,656.5 4.7% of which bolt-ons 174.5 5.0% Interiors 2,741.7 -57.2 -2.1% -62.3 -2.3% 2,622.2 -4.4% of which bolt-ons 85.2 3.1%
Slide 38: H2 2018 sales by region
H2 2018 sales by region Restated Currency effect Growth ex-currencies Reported Sales (in €m) H2 2017 value % value % H2 2018 % Europe 4,192.5 -55.5 -1.3% -8.9 -0.2% 4,128.1 -1.5% of which bolt-ons 37.1 0.9% North America 2,122.0 57.7 2.6% 62.4 2.9% 2,242.2 5.7% Asia 1,558.0 -18.3 -1.2% 174.7 11.2% 1
Slide 39: H2 2018 operating income by Business Group
H2 2018 operating income by Business Group Operating income (in €m) H2 2017 H2 2018 Change Seating 204.5 227.0 11.0% % of sales 5.9% 6.2% Interiors 148.2 155.1 4.7% % of sales 5.4% 5.9% Clean Mobility 222.2 244.6 10.1% % of sales 10.2% 10.8% Group 574.9 626.7 9.0% % of sales 6.8% 7.3% FY 2018 Result
Slide 40: H2 2018 operating income by region
H2 2018 operating income by region Operating income (in €m) H2 2017 H2 2018 Change Europe 253.4 260.7 2.9% % of sales 6.0% 6.3% North America 116.5 154.3 32.4% % of sales 5.5% 6.9% Asia 179.8 187.3 4.2% % of sales 11.5% 10.9% South America 6.8 12.7 86.8% % of sales 1.7% 3.6% RoW 18.4 11.7 -36.4% % o
Slide 41: FY 2018 sales by Business Group
FY 2018 sales by Business Group Restated Currency effect Growth ex-currencies Reported Sales (in €m) FY 2017 value % value % FY 2018 % Seating 7,129.2 -236.6 -3.3% 545.4 7.6% 7,438.0 4.3% of which bolt-ons 224.6 3.2% Interiors 5,367.4 -219.9 -4.1% 324.2 6.0% 5,471.7 1.9% of which bolt-ons 160.2 3.0%
Slide 42: FY 2018 sales by region
FY 2018 sales by region Restated Currency effect Growth ex-currencies Reported Sales (in €m) FY 2017 value % value % FY 2018 % Europe 8,502.8 -106.8 -1.3% 462.2 5.4% 8,858.2 4.2% of which bolt-ons 55.9 0.7% North America 4,473.2 -206.8 -4.7% 207.8 4.6% 4,474.2 0.0% Asia 2,932.9 -84.6 -2.9% 408.9 13.
Slide 43: FY 2018 operating income by Business Group
FY 2018 operating income by Business Group Operating income (in €m) FY 2017 FY 2018 Change Seating 404.4 448.5 10.9% % of sales 5.7% 6.0% Interiors 299.8 325.6 8.6% % of sales 5.6% 6.0% Clean Mobility 453.4 499.8 10.2% % of sales 10.2% 10.8% Group 1,157.6 1,273.9 10.0% % of sales 6.8% 7.3% FY 2018 R
Slide 44: FY 2018 operating income by region
FY 2018 operating income by region Operating income (in €m) FY 2017 FY 2018 Change Europe 524.0 565.9 8.0% % of sales 6.2% 6.4% North America 249.6 289.7 16.1% % of sales 5.6% 6.5% Asia 339.2 367.0 8.2% % of sales 11.6% 11.3% South America 12.8 24.6 92.2% % of sales 1.6% 3.4% RoW 32.0 26.7 -16.6% %
Slide 45: FY 2018 detailed contribution from bolt-ons to sales
FY 2018 detailed contribution from bolt-ons to sales Sales (in €m) Business Group Region Q1 2018 Q2 2018 H1 2018 Q3 2018 Q4 2018 H2 2018 FY 2018 Hug Engineering Clean Mobility Europe 18.8 18.8 16.7 20.4 37.1 55.9 BYD Seating Asia 0.0 63.2 71.6 134.8 134.8 JV with Wuling Seating Asia 23.1 27.0 50.1 1
Slide 46: R&D capitalization restated for IFRS15 implementation
R&D capitalization restated for IFRS15 implementation Cash flow statement P&L statement FY 2017 FY 2017 FY 2017 FY 2018 FY 2018 FY 2018 In €m restated restated In €m restated Operating income 1 157,6 1 273,9 R&D Sales 653,1 663,3 Depreciation and amortization 793,3 866,7 o/w am ortization of R&D int
Slide 47: Impact of IFRS16 on 2019 opening balance sheet
Impact of IFRS16 on 2019 opening balance sheet IFRS16 is the new standard on lease All lease contracts are accounted for in the balance sheet with a « Right to Use » the asset as an asset and a corresponding debt representing the obligation to pay the future leases The first application of IFR
Slide 48: Market share methodology
Market share methodology Market Share based on Faurecia sales (without commercial vehicles) divided by market size in value Market size in value is based on IHS Markit production volume multiplied by average content per car on a car segment & region Market scope: all passenger cars and light v
Slide 49: Contact & share data
Contact & share data Investor Relations Share Data Marc MAILLET Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA 23-27, avenue des Champs Pierreux Datastream: F:BERT 92000 Nanterre ISIN Code: FR0000121147 France Tel: +33 1 72 36 75 70 Bonds ISIN Codes Fax: +33 1 72 36 70 30 E-mail: marc.maillet@faure
Slide 50: 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 51: Faurecia
‘Faurecia inspiring mobility