Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — Investor Day (February 2021)
105 slides from Forvia's investor day presentation, Feb 22, 2021
Slide 1: New Perspectives
New Perspectives Patrick KOLLER, Chief Executive Officer
Slide 2: Agenda
Agenda 1 New Perspectives 2 Business Groups Profitable Growth 3 ESG Strategy Highlights 4 Financial Ambition 5 Takeaways & Q&A Session 2 ● Capital Markets Day – February 22nd, 2021
Slide 3: Agenda
Agenda 1 New Perspectives 2 Business Groups Profitable Growth 3 ESG strategy highlights 4 Financial ambition 5 Takeaways & Q&A Session 3 ● Capital Markets Day – February 22nd, 2021
Slide 4: Our strategy responds to the challenges of the automotive industry
Our strategy responds to the challenges of the automotive industry Societal pressure for climate change and sustainability Accelerating electrification through regulations and incentives ▸ Full electric vehicles (BEVs + FCEVs) could reach 30% in 2030 ▸ Massive investment in hydrogen value chain Deve
Slide 5: We are focused on two fast-growing areas
We are focused on two fast-growing areas Sustainable Mobility and Cockpit of the Future Sustainable Mobility Cockpit of the Future Solutions for ultra-low Solutions for personalized & zero emissions & connected experiences Addressable Addressable market market +9 % pa Addressable market +7 % pa €120
Slide 6: Our strategy is deployed through 14 product lines
Our strategy is deployed through 14 product lines Sustainable Mobility Cockpit of the Future ULTRA-LOW EMISSION SOLUTIONS ZERO EMISSION HYDROGEN SOLUTIONS SEAT STRUCTURE SYSTEMS COMPLETE SEATS COVERS AND COMFORT COMMERCIAL VEHICLES & INDUSTRY SUSTAINABLE & SMART MATERIALS CENTER CONSOLES INSTRUMENT
Slide 7: Hydrogen enables an optimized decarbonated energy supply
Hydrogen enables an optimized decarbonated energy supply Decarbonated Storage and Clean & low carbon Industry Energy: Electricity: electricity transportation H2 availability & mobility Growing demand Growing share requirement needs and affordability decarbonation Hydrogen energy DEMOGRAPHICS ENERGY
Slide 8: Hydrogen is gaining momentum around the world
Hydrogen is gaining momentum around the world 228 announced projects of which 25% are Clean hydrogen cost to fall by 60% by 2030 mobility projects USD/kg 6.0 5.0 ~65GW of electrolyzer capacity 4.0 -60% ~50Bn gap to be bridged Production Industry 3.0 Mobility H2 economy 2.0 Infrastructure 1.0 ▸ 30 co
Slide 9: Hydrogen mobility will accelerate rapidly
Hydrogen mobility will accelerate rapidly Step change in product performance … leading to significant adoption by 2030 and cost… Manage product cost Improve durability decrease & energy density ▸ Up to 500,000 commercial vehicles Cost reduction To become benchmark ▪ First segment to grow by 2025 by
Slide 10: Focused innovation with short time-to-market
Focused innovation with short time-to-market supported by strong ecosystem Advanced technologies boosted by innovation Best-in-class ecosystem ▸€607m innovation spend in last three years ▸ Early establishment of strong ecosystem to accelerate integration of competences and time-to-market ▸€1.1bn to
Slide 11: Continuous increase in order intake secures robust growth
Continuous increase in order intake secures robust growth ANNUAL ORDER INTAKE €27bn Enriched content per vehicle in each Business Group €26bn €26bn Strong growth with premium, Sales ambition electric and commercial vehicles ≥€24.5bn €25bn in 2025 Strategic positioning in China will drive doubling of
Slide 12: Strong profitable growth & cash generation from 2021
Strong profitable growth & cash generation from 2021 AVERAGE ANNUAL OUTPERFORMANCE1 >+500bps Sales Operating Margin (as a % of sales) Cash (as a % of sales) Building on leadership ≥€24.5bn positions to increase market share €17.8bn ≥€18.5bn Innovation to enrich content €14.7bn per vehicle 8% >8% 7.2
Slide 13: Key drivers for a sustainable and ambitious future
Key drivers for a sustainable and ambitious future 2 priorities: CO2 neutrality and gender diversity Strong Convictions and Values drive our sustainability initiatives and our inclusive culture ▸ Employee engagement index up 12 points in 2020 reaching 76% ▸ 33% female recruitment in 2020 vs. 26% in
Slide 14: Faurecia Seating
Faurecia Seating Eelco SPOELDER Executive Vice President, Seating Business Group ● Capital Markets Day – February 22nd, 2021
Slide 15: Seating is a recognized innovative leader
Seating is a recognized innovative leader with strong potential for future growth Frames & mechanisms Complete seats Market leader Top 3 ▸Modular & scalable solutions ▸Strong vertical integration ▸Full comfort solutions for global platforms ▸Strong craftmanship (massage, heating & venting) ▸Leading
Slide 16: Profitable growth drivers: Seating Business Group
Profitable growth drivers Seating Business Group ❶ ENRICHING SEAT VALUE Personalized experiences Modularity Sustainable materials & recyclability ❷ COMPLETE PORTFOLIO OF SOLUTIONS ADDRESSING ALL VEHICLE SEGMENTS ❸ ACCELERATED GROWTH ESPECIALLY IN NORTH AMERICA AND CHINA Optimum product mix Customer
Slide 17: Strong differentiators to enrich seat value
❶ Strong differentiators to enrich seat value PERSONALIZATION MODULARITY SEAT FOR THE PLANET Enhanced occupant experience through Reconfigurable cockpit Sustainable materials, smart comfort and wellness systems ensuring safety in all positions recyclability and energy savings Faurecia content per ve
Slide 18: Modular platforms for frames and mechanisms address all use cases
❶ Modular platforms for frames and mechanisms address all use cases 75 PATENTS IN 2020 Our innovative platforms address mobility trends Growth through increase in platform content Safety enhancement ▸Smart actuators for personalization ▸Integrated belt-to-seat frame ▸Partnership with ZF 25% of vehic
Slide 19: Innovative solutions to enhance occupant experience
❶ Innovative solutions to enhance occupant experience for Cockpit of the Future 85 PATENTS IN 2020 Our innovative solutions for comfort and wellness… …increase content per vehicle Sensing >80% ▸Postural monitoring ▸Fatigue and stress detection ▸Occupant detection system innovation projects lead to c
Slide 20: Seat for the Planet
❶ Seat for the Planet Differentiation through sustainable materials and lifecycle management Cover materials Design for lifecycle ▸Bio-sourced ▸Modular seat design ▸Recycled PET ▪ Easy disassembly ▸Bio-coated ▪ Lifetime extension ▸Refurbishing/recyclability ▸Potential for upgrading Foams & plastics
Slide 21: Optimum product mix with strong market outperformance
❷ Optimum product mix with strong market outperformance Frames and mechanisms Complete seats Sales outperformance Sales outperformance +750bps1 +500bps1 2020 2022e 2025e 2020 2022e 2025e Operating margin above Seating average Continued vertical integration Massified footprint and standardized proces
Slide 22: Outperforming the market on premium vehicle segments
❷ Outperforming the market on premium vehicle segments Higher penetration in D and E premium 40% of 2020 order intake segments with higher content per vehicle with plug-in hybrid and electric vehicles 2020-2025 CAGR Recent awards Market volume production Faurecia JIT volume Next Audi e-tron +17% +12
Slide 23: Doubling sales in North America and China by 2025
❸ Doubling sales in North America and China by 2025 Market share gains in North America Market share gains in China with improved profitability through customer diversification ▸ +1,100 bps market outperformance 2020-2025 ▸ +1,000 bps market outperformance 2020-2025 ▸ 85% of sales on SUVs and pick-u
Slide 24: Seating strong profitable growth & market outperformance
Seating strong profitable growth & market outperformance Sales outperformance Main drivers and improved profitability ▸ Enriching seat value Sales Operating Margin (as a % of sales) >€9.5bn ▸ Accelerated growth especially in North America €7.5bn and China €7.0bn ≥7.5% €5.6bn ▸ Operational excellence
Slide 25: Seating key takeaways
Seating key takeaways Faurecia among market leaders in a growing and structured market ▸ Global frame platforms & mechanisms (#1) ▸ Complete seats (#3) with potential for market share gains Strong sales acceleration, reaching >€9.5bn in 2025, +c. 600bps1 outperformance ▸ Doubling sales in North Amer
Slide 26: Faurecia Interiors
Faurecia Interiors Patrick POPP Executive Vice President, Interiors Business Group ● Capital Markets Day – February 22nd, 2021
Slide 27: Interiors accelerated its transformation in 2020
Interiors accelerated its transformation in 2020 through integration of SAS and increased focus on core product lines Instrument panels Door panels Center consoles SAS Interior Modules Market leader Market leader #3 Market co-leader ▸Preferred OEM partner ▸Design & manufacturing ▸Systems integration
Slide 28: Profitable growth drivers: Interiors Business Group
Profitable growth drivers Interiors Business Group ❶ TECHNOLOGY LEADERSHIP & OPERATIONAL EXCELLENCE Complex process expertise Footprint specialization, massification & digital Leadership in sustainable and smart materials ❸ GROWTH IN HIGH-VALUE ❷ INCREASED CONTENT PER VEHICLE MARKETS AND SEGMENTS Sm
Slide 29: Increased competitiveness driven by process excellence
❶ Increased competitiveness driven by process excellence Specialization/Standardization Massification Digitalization ▸ Optimization of number of ▸ Average sales per plant from €90m ▸ Number of parts manufactured manufacturing processes from 80 in in 2019 to >€120m in 2025 with a data-connected proce
Slide 30: Interiors for the Planet
❶ Interiors for the Planet Market & technology leadership in sustainable materials Creation of new product line to accelerate development of bio-sourced and recyclable materials providing significant weight, energy and CO2 reduction NAFI family NFPP family >€1bn 31 Weight saving CO2 saving Sales pat
Slide 31: SAS: a leader in interior modules
❷ SAS: a leader in interior modules with strong expertise in diversity management and logistics services Systems Complexity Just-in-time integration management network ▸Cockpit component ▸Diversity management, ▸ Management integration into single high safety and quality of Just-in-time shipping inte
Slide 32: Market-driven innovations
❷ Market-driven innovations to enrich content for the Cockpit of the Future Airvent integration Radiant panel Interior lighting Deco-control Bar ▸New architecture driving ▸Thermal comfort with ▸ Lighting integrated ▸ Solution for premium design freedom carbon film & multi-layer into any surface mate
Slide 33: Strong growth potential through increased content per vehicle
❷ Strong growth potential through increased content per vehicle with further growth after 2025 through function integration Instrument Panel Door panel AVERAGE FAURECIA CPV 2020 €140 €1501 Interior lighting ▸ Dynamic lighting €10-30 ▸ Surface lighting €30-60 Smart switches / Deco-control ▸ Deco-cont
Slide 34: Strong momentum on fast-growing high-value segments
❸ Strong momentum on fast-growing high-value segments ATTRACTIVE Strong growth in premium & electric vehicles Recent awards PREMIUM MARKET MERCEDES S-CLASS €5.5bn €1.0bn SALES €2.3bn Premium Interiors 2020 market 26% of global market VW ID6 2020 2025e Premium: €680 CPV ▸Market share gain EV: €455 CP
Slide 35: Strong growth in North America
❸ Strong growth in North America through customer diversification ATTRACTIVE Strong growth Recent awards PREMIUM MARKET CADILLAC LYRIQ GMC ACADIA €6bn €1.3bn SALES €2.2bn Interiors market 29% of global market 2020 2025e VOLVO XC90 AUDI Q5 €570 CPV ▸Customer diversification vs. €350 Faurecia average1
Slide 36: Interiors profitable growth, outperforming the market
Interiors profitable growth, outperforming the market Sales outperformance Main drivers and improved profitability Sales Operating Margin (as a % of sales) ▸ Increasing content per vehicle and differentiation through function integration €6.5bn and sustainable materials €5.4bn €5.5bn €4.5bn ≥7.5% ≥7
Slide 37: Interiors key takeaways
Interiors key takeaways Market leader on instrument panels (#1), door panels (#1) and center consoles (#3) and interior module assembly Accelerating growth to reach €6.5bn in 2025, outperforming market by c.+400bps1 ▸ Record order intake in 2020 of €7.4bn ▸ Enriching content per vehicle driven by au
Slide 38: Faurecia Clarion Electronics
Faurecia Clarion Electronics Jean-Paul MICHEL Executive Vice President, Clarion Electronics Business Group Keyvan KARGAR Vice President, Sales & Programs, Clarion Electronics ● Capital Markets Day – February 22nd, 2021
Slide 39: Clarion Electronics integration is now completed
Clarion Electronics integration is now completed Roadmap for cost competitiveness €2.5bn order intake in 2020 on track ahead of ambition ▸€80m savings target achieved CLARION ELECTRONICS ORDER INTAKE (€bn) ▪ -40% indirect labor 2.5 ≥2.5 2.3 2.1 ▪ R&D efficiency improved by 63% 1.9 1.9 Low-cost engin
Slide 40: Profitable growth drivers: Clarion Electronics Business Group
Profitable growth drivers Clarion Electronics Business Group ❶ IMPROVEMENT IN COST COMPETITIVENESS Headcount productivity R&D competitiveness / offshoring Footprint optimization Bill of Materials ❷ INNOVATION DRIVEN THROUGH 3 PRODUCT LINES ❸ GROWTH MOMENTUM − Cockpit Electronics Strong order intake
Slide 41: Focus on 3 product lines
❷ Focus on 3 product lines for customer experience, digital convenience and advanced safety COCKPIT ELECTRONICS DISPLAY TECHNOLOGIES ADVANCED DRIVER ASSISTANCE SYSTEMS ▸In-Vehicle Infotainment/media dock ▸Display systems focused on large ▸Vision Systems ▸Parking Systems ▸HMI systems & multiple displ
Slide 42: Cockpit Electronics enhancing occupant experience
❷ Cockpit Electronics enhancing occupant experience ADDRESSABLE Infotainment ECU MARKET Apps Store HMI Systems €22bn 2025 Cockpit Market Size monitoring system Remote tuner +9% 2020-2025 Active noise control Market CAGR 42 ● Capital Markets Day – February 22nd, 2021
Slide 43: In-Vehicle-Infotainment
❷ In-Vehicle-Infotainment Our Cockpit Electronics core product Ambition Faurecia key differentiators Scalable "ESSENTIAL" platform ▸ From >10 platforms to one single modular platform in 15 months ▸ Addressing 80% of the market ▸ Multi-OS compatible (Linux/Android) ▸ 40% product cost reduction vs. pr
Slide 44: Cockpit Monitoring System
❷ Cockpit Monitoring System Cockpit Electronics emerging market segment leveraging Cockpit of the Future Ambition Faurecia key differentiators SENSE THINK ACT Data acquisition Data processing User Services ▸Competitive sensors ▸Data and sensor fusion ▸System architecture adapted to services ▪ Infrar
Slide 45: Our high growth & profitability segments
❷ Our high growth & profitability segments Cockpit Electronics Remote Tuner Active Noise Control Apps Store Ambition Ambition Ambition ▸Market leader with >20% market ▸Top 3 player for electrified vehicles ▸#1 automotive “pure player” share by 2025 with 20% market share by 2025 by 2025 Differentiato
Slide 46: Display Technologies
❷ Display Technologies Display systems ADDRESSABLE Focus on large and multiple displays MARKET €19bn Cockpit integration 2025 Market Size (of which €6bn large and multiple displays Advanced image processing & energy efficiency +12% 2020-2025 Market CAGR 46 ● Capital Markets Day – February 22nd, 2021
Slide 47: Focus on large and multiple displays
❷ Focus on large and multiple displays Ambition Our differentiating capabilities address 50% of display value ▸ Global platform screen kit ▸ Leadership in optical bonding ▸ Integrated features ▸ Immersive (ambient light sensor, and customizable image sensor) ▸ Modular Advanced Cockpit LCM1 Assembly
Slide 48: Display technologies
❷ Display technologies Differentiation boosted by technology ecosystem approach A Faurecia company since 2019 A Faurecia company since April 2020 Advanced material and optical bonding expertise Advanced image processing First SOP with Daimler in Aug 2020 Optical bonding by injection 30% more brightn
Slide 49: Advanced Driver Assistance Systems (ADAS)
❷ Advanced Driver Assistance Systems (ADAS) Safety & convenience Addressable market Surround view ADDRESSABLE & autonomous parking ECU MARKET Algorithms and applications €5bn 2025 addressable low-speed ADAS market Sensors Ultrasonic, cameras, etc. +20% 2020-2025 e-Mirrors Market CAGR 49 ● Capital Ma
Slide 50: Maintain leadership in fusion-based parking systems
❷ Maintain leadership in fusion-based parking systems Ambition Faurecia key differentiators Best-in-class parking performance TrenzADAS for best ▸Camera-based sensor fusion customer experience ▸Integration of ultrasonic ECU Advanced parking use cases Cost-competitive ▸Reverse assist platform Maintai
Slide 51: Maintain leadership in vision systems
❷ Maintain leadership in vision systems and enter emerging e-Mirror segment Ambition Faurecia differentiators for surround view and e-Mirror systems Proprietary design cameras Optimized integration in cluster Maintain leadership (1 megapixel) leading to significant savings (15% market share today) o
Slide 52: Acceleration across geographies and product lines
❸ Acceleration across geographies and product lines Rapid growth outside Japan Balanced product mix Diversified customer base SALES PER GEOGRAPHY SALES PER PRODUCT LINE MAJOR CUSTOMERS €2.5bn €2.5bn 20% 44% 12% 33% 21 32% €0.7bn €0.7bn 17% 11% 57% 27% 35% 8 22% 24% 45% 21% 2020 2025e 2020 2025e 2019
Slide 53: Clarion Electronics turnaround on track & 2025 targets confirmed
Clarion Electronics turnaround on track & 2025 targets confirmed Sales to reach €2.5bn in 2025 Main drivers Profitability close to Group average by 2025 ▸Cost competitiveness Sales Operating Margin (as a % of sales) ▪ Headcount productivity €2.5bn ▪ R&D competitiveness ▪ Footprint optimization €1.4b
Slide 54: Clarion Electronics key takeaways
Clarion Electronics key takeaways Clarion Electronics integration completed in 18 months ▸ >€80m savings in 2020 ▸ €2.5bn order intake in 2020 vs. €2.1bn targeted ▸ Breakeven achieved in 2020 despite challenging environment Sales more than double between 2019 and 2025 to reach €2.5bn with profitabil
Slide 55: Faurecia Clean Mobility
Faurecia Clean Mobility Mathias MIEDREICH Executive Vice President, Clean Mobility Business Group Yves ANDRES Senior Vice President, Clean Mobility Europe Division ● Capital Markets Day – February 22nd, 2021
Slide 56: Clean Mobility focuses on leadership in 3 product lines
Clean Mobility focuses on leadership in 3 product lines to ensure profitable growth in the short, medium and long term Ultra-low Emissions Ultra-low Emissions Zero Emissions for Passenger Vehicles for Commercial Vehicles and Industry Hydrogen Solutions ▸Consolidate #1 position ▸Reach #1 position ▸Be
Slide 57: Accelerated momentum for powertrain electrification
Accelerated momentum for powertrain electrification drives assumption of 30% electric vehicles in 2030 GLOBAL POWERTRAIN MIX (Passenger & light commercial vehicles) 2% Electrification acceleration post-2025 driven 3% 9% 10% by regulations, TCO and infrastructure. 28% 32% 2% fuel cell in 2030 represe
Slide 58: Profitable growth drivers: Clean Mobility Business Group
Profitable growth drivers Clean Mobility Business Group ❶ REINFORCING LEADERSHIP POSITION IN ULTRA-LOW EMISSIONS FOR PASSENGER VEHICLES Increased content per vehicle for hybrid powertrains Operational excellence ❸ HYDROGEN AS A GAME Strong cash generation CHANGER Strong momentum for hydrogen ❷ BECOM
Slide 59: Content per vehicle boosted by depollution constraints
❶ Content per vehicle boosted by depollution constraints, new regulations, acoustics and space Illustration on PHEV New architectures Innovation Driving content per and constraints required to meet objectives vehicle increase -85% depollution €270 objectives vs. Euro 6d Low temperature increases Cle
Slide 60: Clean Mobility well positioned on fast-growing passenger vehicle segments
❶ Clean Mobility well positioned on fast-growing passenger vehicle segments with higher content per vehicle Pure ICE Mild hybrid Plug-in hybrid 2020 market share 25% 26% 36% Market volume CAGR 2020-2030 -3% +25% +19% €270 €200 €190 €195 €175 €180 €185 €170 €170 Content per vehicle 2021 2025 2030 202
Slide 61: Faurecia secures strong positions in engine platforms
❶ Faurecia secures strong positions in engine platforms with long lifetime and hybrid configurations Recent awards with start of production between 2021 and 2023 SPA2 MPC HE R4 EMP2v4 M254 G 262 HE 2.0L petrol 1.5/2.0/2.3L petrol 2.0L petrol 1.6/1.2L petrol 2L 4cyl petrol 1.5L petrol 230K 440K 410K
Slide 62: Aggressive fixed cost reduction plan
❶ Aggressive fixed cost reduction plan to deliver €100m savings in 2022 as a first step Digital Processes Automation Standardization Massification ▸ Artificial Intelligence ▸ AGVs and robots ▸ Standard Equipment ▸ From 7 to 11 large Visual Inspection (Welding-Cells) plants (>€150m sales) +25% sales/
Slide 63: Sustained sales and profitability with strong cash generation
❶ Sustained sales and profitability with strong cash generation Ultra-low emissions for passenger vehicles Sustained sales Main drivers even with 30% electric vehicles in 2030 €4.2bn €4.2bn ▸Growing content for hybrid vehicles €4.1bn €3.8bn €3.4bn ▸Strengthening leadership position ▸Operational exce
Slide 64: Ultra-low emissions for commercial vehicles & industry
❷ Ultra-low emissions for commercial vehicles & industry Content per vehicle to increase by 2030 driven by new regulations China on-highway CN6 deployment 2019 2025 North America, Europe 2030 China off-highway and China ultra-low NOx Faurecia average CPV1 €400 €480 €615 BHARAT 6 ADDITIONAL ULTRA-LOW
Slide 65: Major on-highway awards achieved in every region
❷ Major on-highway awards achieved in every region primarily conquest business Recent on-highway awards On-highway market share with start of production between 2021 and 2023 evolution ambition North America Europe India China 2020 2025e 19% 28% ▸#1 medium and heavy- ▸#1 heavy- duty platform ▸#1 med
Slide 66: Profitable growth to become market leader
❷ Profitable growth to become market leader Ultra-low emissions for Commercial Vehicles & Industry Sales to more than double to reach €1.3bn Main drivers in 2025 Commercial vehicles Industry (Hug Engineering) ▸Content per vehicle €2.1bn €1.3bn ▸Market share gains in Europe and China €0.6bn €0.7bn €0
Slide 67: H2 availability and affordability drives €17bn market in 2030
❸ H2 availability and affordability drives €17bn market in 2030 with 2.5m passenger and commercial vehicles Fuel cell market drivers Fuel cell addressable market 2030 Tanks 2030 Average 2030 value hydrogen vehicle -powered Stacks €17bn production Storage vehicles Stacks sytems Passenger & light comm
Slide 68: High entry barriers
❸ High entry barriers accelerate hydrogen market consolidation High barriers to entry… … lead to a market becoming structured around a few players Complex technical know-how Mastery of several fields of expertise Global Tier 1s OEMs Specialists in products and process Scale effect mandatory Hydrogen
Slide 69: Faurecia and its joint venture Symbio
❸ Faurecia and its joint venture Symbio address 75% of the fuel cell value chain % of total Hydrogen Storage System (HSS) Fuel Cell Stack System Auxiliaries value 40% 35% 25% INTERFACES MEMBRANE ENDPLATE ELECTRIC COOLING, AIR FUEL OTHER BIPOLAR AND VALVE ELECTRODE + OTHER & COMPRESSOR, CELL TANK COM
Slide 70: Industrializing technical innovation in hydrogen storage systems
❸ Industrializing technical innovation in hydrogen storage systems and services Product Range Key Features Commercial vehicle systems ▸Full hydrogen storage delivery EC79 Homologation ▸> 7% hydrogen weight efficiency ▸Competitiveness through best- Pilot line and state- in-class carbon fiber cost and
Slide 71: Michelin & Faurecia: unique complementary competences
❸ Michelin & Faurecia: unique complementary competences for fuel cell systems ▸2,000 engineers with unique expertise in fluid dynamics, ▸20 years of advanced R&D catalysts, and system design Technology on stacks and fuel cell systems and ▸#1 automotive buyer of know-how ▸600 material engineers stain
Slide 72: Acceleration of customer activity
❸ Acceleration of customer activity RFI/RFQ and pre-development paving the way for strong 2021 order intake Passenger & light commercial Commercial vehicles Off-road & stationary vehicles Activity with 5 OEMs Activity with 6 OEMs Activity with 12 OEMs in Europe and North America in Europe, North Ame
Slide 73: Sales ambition: €500m by 2025 and >€3.5bn in 2030
❸ Sales ambition: €500m by 2025 and >€3.5bn in 2030 Zero emission hydrogen solutions Strong order intake target Comforting our sales ambition 2021 TARGETED 2022 2025 2030 ORDER INTAKE1 Total Sales €50m €500m >€3.5bn €500m Tanks €30m €300m >€2.0bn With leading OEMs Stacks and balanced between (100% S
Slide 74: Key takeaways: Zero emission hydrogen solutions
❸ Key takeaways Zero emission hydrogen solutions Hydrogen mobility is a €17bn market of 2.5 million vehicles in 2030 Faurecia is uniquely positioned to become a leader in hydrogen mobility across the value chain ▸ Automotive DNA with key R&D and industrialization capabilities ▸ Strong sales and R&D
Slide 75: Clean Mobility profitable growth driven by 3 product lines
Clean Mobility profitable growth driven by 3 product lines in the short, medium and long term Sustained sales growth Main drivers Sales Operating Margin (as a % of sales) €0.2bn €1.5bn Non-consolidated Non-consolidated ▸ Growing content per vehicle €8.4bn for passenger cars and commercial vehicles €
Slide 76: Clean Mobility key takeaways
Clean Mobility key takeaways 3 product lines ensure profitable growth in the short, medium and long term Faurecia will reinforce its leadership in ultra-low emission technologies for passenger and commercial vehicles ▸ Cash generated by ultra-low emissions will fuel acceleration in hydrogen mobility
Slide 77: ESG Highlights
ESG Highlights Nolwenn DELAUNAY Executive Vice President, Group General Counsel Rémi DAUDIN Vice President, Sustainable Transformation ● Capital Markets Day – February 22nd, 2021
Slide 78: Agenda
Agenda Sustainability roadmap 1 Nolwenn DELAUNAY Ambitious program for the planet 2 Rémi DAUDIN Independent governance and new shareholder base 3 Nolwenn DELAUNAY 78 ● Capital Markets Day – February 22nd, 2021
Slide 79: Our strong Convictions are at the heart of our culture
Our strong Convictions are at the heart of our culture and drive our sustainability strategy Environmental Power issues pose a Diversity must have serious challenge is a strength a counterbalance for humanity Short-term The world Companies thinking is in a state must have jeopardizes of permanent a
Slide 80: A clear sustainability roadmap
A clear sustainability roadmap Respect for the planet Responsible business practices Responsible employer ▸CO2 neutral in operations ▸Business ethics ▸Safety as 1st priority CO2 neutral for scopes 1 & 2 by 2025 100% of employees trained FR1t <1.2 by 2025 on the Code of Ethics ▸Eco-design in products
Slide 81: Fostering an inclusive culture for gender diversity
Fostering an inclusive culture for gender diversity Focus on female recruitment, training and 2025 development 2020 TARGET ▸ 33% female recruitment in 2020 vs. 26% in 2018 % of female M&Ps1 25% 30% Training on inclusive culture for all managers % female in top 300 16% 24% managers Gender diversity i
Slide 82: Agenda
Agenda Sustainability roadmap 1 Nolwenn DELAUNAY Ambitious program for the planet 2 Rémi DAUDIN Independent governance and new shareholder base 3 Nolwenn DELAUNAY 82 ● Capital Markets Day – February 22nd, 2021
Slide 83: Our approach towards CO2 neutrality
Our approach towards CO2 neutrality We embarked on … with 2 key milestones… … across 3 streams 1 journey... By 2025 CO2 neutral in operations Operations Eco-design By 2030 CO2 neutral for controlled emissions1 Compensation (in value chain) With a focus on high reputational credibility 1. excluding u
Slide 84: CO2 neutral in operations by 2025
CO2 neutral in operations by 2025 Partnership with Schneider Electric for speed and technology Roadmap validated SCOPES 1 & 2 as compared to 2019 reference Electricity reduction Use less (saving) Eliminate Heat 920 ktCO2 reduction Internally produced Use better (renewable) Power Purchase 2020 2021 2
Slide 85: Eco-design for reducing emissions in products in all Business Groups
Eco-design for reducing emissions in products in all Business Groups Roadmap validated SCOPE 3 Lightweight Use less Eliminate Architecture & modularity >4 Mt CO2 22 Green manufacturing 12 -4.2%/y Use better Recycled content 9.5 5.1 2019 2030 2050 Bio-sourced materials Scope 3 controlled Scope 3 unco
Slide 86: Value chain governance to achieve ambition
Value chain governance to achieve ambition Driving the change to make the transformation happen Suppliers In-house OEMs Sustainability Anticipate Early plans on score suppliers Internal “shadow” price ▸Prototypes of CO2 Calculate CO2 ▸Raw Material through “costing” tool Engage managers ▸Innovation K
Slide 87: Avoiding CO2 emissions through innovation & circular economy
Avoiding CO2 emissions through innovation & circular economy Energy savings Display consumption, exhaust heat recovery… 30% CO2 avoided Extended >26 Mt Zero emissions life CO2 avoided1 technologies Electronic repair lab… Fuel Cell & H2 Storage 50% CO2 100% CO2 avoided avoided 1. Life Cycle Assessmen
Slide 88: Commitments for the planet
Commitments for the planet COMMITMENTS KPI 2019 2025 2030 CO2 emissions scopes 1&2: Mt CO2eq 0.92 ~0 Environment-friendly Energy intensity: MWh/€ million of sales 117 -20% in operations Waste intensity: Tons/€ million of sales 15 >-10% CO2 emissions Scope 3: Mt CO2 equivalent 8.6 -46% Eco-design for
Slide 89: Agenda
Agenda Sustainability roadmap 1 Nolwenn DELAUNAY Ambitious program for the planet 2 Rémi DAUDIN Independent governance and new shareholder base 3 Nolwenn DELAUNAY 89 ● Capital Markets Day – February 22nd, 2021
Slide 90: Increased independence and strong commitment of Board of Directors
Increased independence and strong commitment of Board of Directors 82%* independent Board Members Changes in the Board A diverse, international, (versus 61.5%* in 2019) composition enhancing multidisciplinary Board its independence of Directors ▸ Departure of three Board ▸ 13 Board Members, includin
Slide 91: Increased free float and diversified shareholder base
Increased free float and diversified shareholder base At spin-off, free float will increase to 85% (from 53% at December 31st, 2019) FAURECIA SHAREHOLDING STRUCTURE FAURECIA SHAREHOLDING STRUCTURE AT CLOSURE OF FCA-PSA MERGER AT SPIN-OFF 13.3% Under lock-up for 6 months: STELLANTIS Other ▪ Exor: 5.5
Slide 92: Launch of an employee shareholding plan post spin-off
Launch of an employee shareholding plan post spin-off An opportunity to engage employees in Faurecia’s future development Non-dilutive plan through share buyback program of max. 2% of share capital will give total employee shareholding of up to 2.6% 15 countries (around 90% of employees) Reservation
Slide 93: Financial Ambition
Financial Ambition Michel FAVRE, Chief Financial Officer ● Capital Markets Day – February 22nd, 2021
Slide 94: Underlying worldwide automotive production assumptions
Underlying worldwide automotive production assumptions Faurecia’s assumptions are slightly more IHS Markit Faurecia conservative than IHS Markit 91.6 92.0 ▸ 82.3m LVs in 2022 (vs. IHS Markit @ 85.0m) 90.9 ▸ 90.9m LVs in 2025 (vs. IHS Markit @ 92.0m) 85.4 85.0 Recovery >15% over the two-year period 8
Slide 95: Sales 2022 target and 2025 ambition by Business Group
Sales 2022 target and 2025 ambition by Business Group CAGR c. +11% Average annual outperformance > +500bps ≥ €24.5bn Strong growth for Seating CAGR 2020-2025 c. 3.5x ▸ Strong average outperformance > +600bps c. +13% over the period 2020-2025 ≥ €18.5bn €17.8bn 2020-2025 CAGR c. +9% Growth of Interior
Slide 96: Sales 2022 target and 2025 ambition by region
Sales 2022 target and 2025 ambition by region ≥ €24.5bn Strong double-digit sales growth in Asia and North America 30% ▸ Asia: 2020-2025 CAGR of c. 15% ≥ €18.5bn €17.8bn ▸ North America: 2020-2025 CAGR > 10% €14.7bn 26% 21% 25% High single-digit sales growth in Europe 24% 25% 25% ▸ 2020-2025 CAGR of
Slide 97: Drivers for operating margin improvement
Drivers for operating margin improvement Volume growth driven by: ▸ Market recovery ▸ Outperformance (Annual order intake ≥ €25bn as from 2019 + CPV increase) GROUP ▸ Increased profitability of new business >8% 8% 7.2% Significant reduction of cost structure to reach an operating margin of 8% in 202
Slide 98: Profitability 2022 target and 2025 ambition
Profitability 2022 target and 2025 ambition EBITDA of c. €3.6bn in 2025 exceeding 14.5% of sales c. €3.6bn >€2.7bn €2.4bn €1.7bn > 8% 8% >sales of 8% of8% sales of sales 7.2% of sales of7.2% sales of sales 2019 2020 2022e 2025e Op. income D&A 98 ● Capital Markets Day – February 22nd, 2021
Slide 99: Transforming profitable growth into strong cash generation
Transforming profitable growth into strong cash generation Selectivity in Capex ≤ 3.5% of sales as from 2021 Strict rules for R&D capitalization ▸ Only development costs specifically sold to customers are capitalized ▸ Capitalized amounts are amortized as costs of sales along related revenue recogni
Slide 100: A clear cash allocation strategy
A clear cash allocation strategy €1.25 Dividends €1.10 €1.00** Covid-19 crisis & share repurchases* €0.90 c. 40% €0.65 c. 60% €0.35 Bolt-ons & deleveraging 2015 2016 2017 2018 2019 2020 2021 Confirmed net cash flow allocation strategy Dividend policy for a fair shareholder remuneration ▸40% to divid
Slide 101: Financial policy and ongoing deleveraging
Financial policy and ongoing deleveraging Long-term liquidity resources by maturity at Dec 31, 2020 Financial policy focused on: (proforma €190m tap issue of January 2021) ▸ Limiting exposure to bank credit (bonds = 73% of LT gross debt*) 1 600 ▸ Constantly optimizing debt cost and maturity 1 400 ▪
Slide 102: Back to strong profitable growth & cash generation from 2021
Back to strong profitable growth & cash generation from 2021 2021 GUIDANCE 2022 TARGETS 2025 AMBITION Worldwide auto production est. @ c. 76.6m Worldwide auto production est. @ c. 82.3m Worldwide auto production est. @ c. 90.9m Sales ≥ €16.5bn Sales ≥ €18.5bn Sales ≥ €24.5bn incl. scope & currency e
Slide 103: Takeaways and Q&A
Takeaways and Q&A ● Capital Markets Day – February 22nd, 2021
Slide 104: Key Takeaways
Key Takeaways Strategy focused on the Cockpit of the Future and Sustainable Mobility confirms its potential for strong sustainable profitable growth ▸ All 2022 targets confirmed ▸ More than +500 bps average annual sales outperformance 2020-2025 to reach close to €25bn sales in 2025 ▸ Cumulated net c
Slide 105: Faurecia inspiring mobility
‘Faurecia inspiring mobility