Forvia Se · EURONEXT:FRVIA
Forvia — Q1 2024 Earnings Presentation
31 slides from Forvia's earnings presentation, Apr 18, 2024
Slide 1: Q1 2024 Sales
INTERNAL & PARTNERS Q1 2024 SALES APRIL 18, 2024 5acXjzUk
Slide 2: Agenda
INTERNAL & PARTNERS Q1 2024 01 REVIEW Agenda 02 & DEBT MANAGEMENT DISPOSAL PROGRAM 03 FY2024 GUIDANCE CONFIRMED 2 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 3: Q1 2024 Review
INTERNAL & PARTNERS 01 Q1 2024 REVIEW 3 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 4: Q1 2024 achievements contributing to POWER25 targets
INTERNAL & PARTNERS Q1 2024 ACHIEVEMENTS CONTRIBUTING TO POWER25 TARGETS +390bps €6.5bn 25% €1.2bn SUSTAINED SALES SOLID ORDER INTAKE, OF THE SECOND €1bn NEW ISSUANCES OUTPERFORMANCE UP €1bn VS. Q1 2023 DISPOSAL PROGRAM EXTENDING ALREADY ACHIEVED DEBT MATURITY 4 | 2024 Q1 Sales – April 18, 2024 5acX
Slide 5: Launch of EU-FORWARD project in February
INTERNAL & PARTNERS LAUNCH OF EU-FORWARD PROJECT IN FEBRUARY A FIVE-YEAR 2024-2028 PROJECT ADDRESS SPECIFIC OVERCAPACITIES TO REINFORCE COMPETITIVENESS IN EUROPE IN SOME FORVIA’S DIVISIONS IN EUROPE • Adapt to structural volume drop and accelerated electrification • Up to 10,000 jobs impacted over t
Slide 6: Other major recent events
INTERNAL & PARTNERS OTHER MAJOR RECENT EVENTS JOINT VENTURE BETWEEN FORVIA AND CHERY IN THE FIELD OF SMART AND SUSTAINABLE COCKPIT IN CHINA • Supply of the full cabin scope related systems and modules including seats, interiors and cockpit electronics with low CO2 emission materials and processes •
Slide 7: Robust order intake of €6.5 billion, €1 billion above Q1 2023
INTERNAL & PARTNERS ROBUST ORDER INTAKE OF €6.5 BILLION, €1 BILLION ABOVE Q1 2023 ELECTRONICS ASIA MAJOR AWARD Chinese Premium OEMs German OEM c.€2.3bn c.€3.6bn International Seating (>€1bn) OEMs COMMERCIAL SELECTIVITY CONSISTENT WITH AVERAGE PROFITABILITY ABOVE 7% AND REDUCED UPFRONT COSTS 7 | 2024
Slide 8: Automotive market stabilization despite slowdown in the pace of electrification
INTERNAL & PARTNERS AUTOMOTIVE MARKET STABILIZATION DESPITE SLOWDOWN IN THE PACE OF ELECTRIFICATION Q1 2024 FY 2024 OUTLOOK • Automotive production down 0.8% • Latest S&P estimate of LV production confirms • Slowdown in electrification in Europe volume of ~90 million • Sustained market growth in Chi
Slide 9: Sales of €6.5 billion, up 3.1% on an organic basis
INTERNAL & PARTNERS SALES OF €6.5 BILLION, UP 3.1% ON AN ORGANIC BASIS Outperformance of 390bps Reported sales growth of -1.7% €206m €(38)m €(281)m Organic growth of 3.1% -0.6% with all Business Groups €6,644bn +3.1% + Consolidation of HBBL -4.2% outperforming the market Lighting JV in China - Dispo
Slide 10: Seating and Interiors
INTERNAL & PARTNERS SEATING INTERIORS 30% of Group consolidated sales in the period 18% of Group consolidated sales in the period 2,036 1,976 1,188 1,196 Outperformance of c. 180bps Outperformance of c. 560bps Organic growth of 1.0% (+3.0% excluding exit of JIT Organic growth of 4.8% driven by stron
Slide 11: Clean Mobility and Electronics
INTERNAL & PARTNERS CLEAN MOBILITY ELECTRONICS 17% of Group consolidated sales in the period 16% of Group consolidated sales in the period 1,209 1,082 1,009 1,010 Outperformance of c. 760bps Outperformance of c. 390bps Organic growth of 6.8%, reflecting market share gains and Organic growth of 3.1%
Slide 12: Lighting and Lifecycle Solutions
INTERNAL & PARTNERS LIGHTING LIFECYCLE SOLUTIONS 15% of Group consolidated sales in the period 4% of Group consolidated sales in the period 994 280 273 922 Outperformance of c. 210bps Excluding currency effect, growth of 9.8% mainly driven Organic growth of 1.1% mainly reflected: by the consolidatio
Slide 13: Strong outperformance in North America and Europe
INTERNAL & PARTNERS STRONG OUTPERFORMANCE IN NORTH AMERICA AND EUROPE EMEA In €m EMEA Americas Asia Group 440bps outperformance in Europe ex. Russia • Limited organic decline in Europe (-0.3%) and +17.5% organic growth in the RoW Regional auto. prod. YoY* -1.6% +0.3% -0.9% -0.8% • Low to high single
Slide 14: Confirmed strong growth outlook in Asia while China impacted in H1 2024
INTERNAL & PARTNERS CONFIRMED STRONG GROWTH OUTLOOK IN ASIA WHILE CHINA IS IMPACTED IN H1 2024 BY TEMPORARY SLOWDOWN TEMPORARY SLOWDOWN IN CHINA ACCELERATION IN REST OF ASIA STRONG GROWTH OUTLOOK • Organic growth of -2.5% • Organic growth of 5.3% • Consolidation of HBBL JV in Lighting vs. LV product
Slide 15: Asset Disposal Program & Debt Management
INTERNAL & PARTNERS 02 ASSET DISPOSAL PROGRAM & DEBT MANAGEMENT 15 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 16: Second €1bn asset disposal program gathering pace
INTERNAL & PARTNERS SECOND €1BN ASSET DISPOSAL PROGRAM GATHERING PACE FURTHER SIMPLIFICATION OF THE GROUP’S PORFOLIO DELEVERAGING BEYOND • Other assets for disposal THE POWER25 NET DEBT / similar to the first program: equity in joint ventures, ADJ. EBITDA OBJECTIVE LEFT TO BE DONE c. €750m non-core
Slide 17: Extended group average maturity through active debt management
INTERNAL & PARTNERS EXTENDED GROUP AVERAGE MATURITY THROUGH ACTIVE DEBT MANAGEMENT €1,200m of new debt issued in Q1 2024 BREAKDOWN OF GROSS DEBT BY MATURITY • €1,000m of a dual tranche senior bond In €m At the end of 2023 New projected debt maturity profile • €500m June 2029 at 4.96%* • €500m June 2
Slide 18: 2024 Guidance Confirmed
INTERNAL & PARTNERS 03 2024 GUIDANCE CONFIRMED 18 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 19: 2024 Guidance
INTERNAL & PARTNERS 2024 GUIDANCE SALES OPERATING MARGIN NET CASH FLOW NET DEBT/ADJ. EBITDA between between €27.5bn and 5.6% and ≥2023 LEVEL ≤1.9x in value at December 31, 2024* €28.5bn 6.4% of sales (reminder: €649m) *Including cash proceeds related to the disposal of HELLA’s stake in BHTC THIS GUI
Slide 20: On track to POWER25 ambition
INTERNAL & PARTNERS ON TRACK TO POWER25 AMBITION The group reiterates its FY2025 objectives, as presented at the CMD held in November 2022 SALES OPERATING MARGIN NET CASH FLOW NET DEBT/ADJ. EBITDA c. €30bn >7% of sales 4% of sales <1.5x at December 31, 2025 THESE OBJECTIVES Were based on average Ass
Slide 21: Appendices
INTERNAL & PARTNERS APPENDICES 21 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 22: EU-FORWARD estimated restructuring costs and savings
INTERNAL & PARTNERS EU-FORWARD ESTIMATED RESTRUCTURING COSTS AND SAVINGS ESTIMATED RESTRUCTURING COSTS EU-FORWARD SAVINGS RAMP-UP IN THE CASH FLOW STATEMENT (IN €M) 2024-2025 2026-2028 2024-2028 In €m (rounded figures) combined combined combined €500m GROUP (as initially planned) 375 350 725 EU-FORW
Slide 23: 2024-2028 restructuring costs (P&L and cash)
INTERNAL & PARTNERS 2024-2028 RESTRUCTURING COSTS (P&L AND CASH) ESTIMATED RESTRUCTURING COSTS ESTIMATED RESTRUCTURING COSTS IN THE INCOME STATEMENT IN THE CASH FLOW STATEMENT 2024-2025 2026-2028 2024-2028 2024-2025 2026-2028 2024-2028 In €m (rounded figures) In €m (rounded figures) combined combine
Slide 24: Complementary EU-FORWARD costs remain proportionate to past restructuring trends
INTERNAL & PARTNERS COMPLEMENTARY EU-FORWARD COSTS TO FULLY ALIGN THE EUROPEAN ORGANIZATION REMAIN PROPORTIONATE TO PAST RESTRUCTURING TRENDS RESTRUCTURING EXPENSE (P&L) RESTRUCTURING COSTS IN CASH 400 400 350 350 300 2024-2028e AVG: €240m 300 2021-2023 AVG*: €205m 2024-2028e AVG: €200m 250 250 2021
Slide 25: Trade payables, DPO and reverse factoring
INTERNAL & PARTNERS TRADE PAYABLES DPO AND REVERSE FACTORING 2022 In €m 2023 The Days Outstanding Payables (DPO) stood (restated IFRS5) at around 100 days at the end of 2023 Sales 24,574 27,248 The calculation of FORVIA’s Days Payable Outstanding must be Purchase consumed and external costs carried
Slide 26: INTERNAL & PARTNERS
INTERNAL & PARTNERS 5acXjzUk
Slide 27: Definitions of terms used in this document
INTERNAL & PARTNERS DEFINITIONS OF TERMS USED IN THIS DOCUMENT SALES GROWTH OPERATING INCOME • FORVIA’s year-on-year sales evolution is made of three Operating income is the FORVIA group’s principal performance indicator. It corresponds to net income of fully consolidated components: companies befor
Slide 28: Financial calendar
INTERNAL & PARTNERS FINANCIAL CALENDAR H1 2024 Results (before market hours) May 30, 2024 October 21, 2024 July 24, 2024 Annual Shareholders’Meetings Q3 2024 Sales in Nanterre (France) (before market hours) 28 | 2024 Q1 Sales – April 18, 2024 5acXjzUk
Slide 29: Investor relations
INTERNAL & PARTNERS INVESTOR RELATIONS Marc MAILLET SHARE TICKERS & ISIN CODE Tel: +33 1 72 36 75 70 Bloomberg Ticker: FRVIA.FP Reuters Ticker: FRVIA.PA Sébastien LEROY ISIN: FR0000121147 Tel: +33 1 72 36 75 70 BONDS ISIN CODES 2024 bonds: XS1611167856 E-mail: ir@forvia.com 2025 bonds: XS1785467751
Slide 30: Disclaimer
INTERNAL & PARTNERS DISCLAIMER IMPORTANT INFORMATION CONCERNING FORWARD LOOKING STATEMENTS This presentation/document contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regard
Slide 31: INTERNAL & PARTNERS
INTERNAL & PARTNERS 5acXjzUk