Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — Investor Day (June 2017)
50 slides from Forvia's investor day presentation, Jun 27, 2017
Slide 1: Investor Day Sustainable Mobility
Investor Day June 27, 2017 Sustainable Mobility
Slide 2: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 Faurecia Clean Mobility leadership Christophe Schmitt Investor Day – London
Slide 3: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 FCM performance leadership Christophe Schmitt Investor Day – London – June 2
Slide 4: Accelerating value creation and strategic flexibility
2012 – 2016 Accelerating value creation and strategic flexibility CAGR CAGR Order intake: three year rolling Operating margin +22% +11% Value-added sales in € billion % of value-added sales (in €m) 6.2 5.4 53 47 4.3 43 3.5 2012 - 2014 2013 - 2015 2014 - 2016 2013 2014 2015 2016 Net debt ROCE* in € m
Slide 5: 2017 will be major step to achieve 2018 objectives
2017 will be major step to achieve 2018 objectives 2017 GUIDANCE +6% 6.4 - 6.8% +400 bp above market of VA sales > €350m Around €4 2017 2017 2017 2017 Value-added sales Operating Net cash Earnings growth margin flow per share 2018 OBJECTIVES +6% 7% +400 bp above market of VA sales > €500m €5 Value-a
Slide 6: Strategic priorities
Strategic priorities Sustainable mobility and smart life on board Become a valued key player in the new automotive landscape Market growth* providing intelligent solutions Market growth* €25 billion for an enhanced and sustainable €40 billion driving experience by 2030 by 2030 * Value added sales In
Slide 7: Many different powertrains will co-exist driven by different urbanization patterns
Many different powertrains will co-exist driven by different urbanization patterns Global population by city archetype Relevance of powertrain type (billion) Optimized ICE Hybrids Electric Typical technologies 8.6 0.7 High income, suburban sprawl 0.4 Hybrid, BEV, FCEV* 7.3 (eg Los Angeles) 0.6 0.3 1
Slide 8: Faurecia will offer broad range of technology solutions to enlarged customer base
Faurecia will offer broad range of technology solutions to enlarged customer base Increase in technology content for all types of passenger car Average content/vehicle increase by at least 60% by 2030 New markets becoming emissionized creating new opportunities Commercial Vehicles: on and of
Slide 9: Strategy to reach > €10 billion sales in Clean Mobility by 2030
Strategy to reach > €10 billion sales in Clean Mobility by 2030 >7% CAGR 2016-2030 Freedom from powertrain mix High value content on electric vehicles Leverage existing technologies and competencies into adjacent markets Expand breakthrough DeNox technologies into new markets Develop servi
Slide 10: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 FCM performance leadership Christophe Schmitt Investor Day – London – June 2
Slide 11: Faurecia's vision of powertrain electrification
Faurecia’s vision of powertrain electrification In line with market consensus LIGHT VEHICLES: GLOBAL POWERTRAIN MIX TO 2030 Faurecia Vision Roland Berger BCG IHS 3% 3% 3% 3% 5% Pure EV 11% Pure EV 10% Pure EV 11% Pure EV 17% 13% 19% 19% 34% Hybrids 36% Hybrids 38% Hybrids 35% Hybrids 3% ICE Diesel 1
Slide 12: Internal combustion engines will remain dominant; electrification is a clear trend
Internal combustion engines (ICE) will remain dominant Electrification is a clear trend Worldwide volume by powertrain (million units) Key trends + 1.5 to 2.0% TOTAL VOLUME 116.5 CAGR 108.0 2.3 Electric Vehicle 103.1 10.4 (BEV & FCEV) 3.1 6.5 + 0.7 to 1.1% 93.0 ICE VOLUME 0.2 CAGR 5.6 23.7 32.4 43.3
Slide 13: CO2 regulation will drive system content increase
CO2 regulation in all key geographies will drive system content increase in particular for hybrid vehicles CO2 targets Faurecia star technologies Emission control system value g/km €/vehicle Integrated low Faurecia accessible market in value added sales* pressure EGR Gasoline 150 Ultra-compact Curre
Slide 14: Reduction of diesel share is improving Faurecia's value mix
Reduction of diesel share is improving Faurecia's value mix Faurecia's vision: NOx targets Faurecia star technologies Emission control system value Base 100 in 2016 €/vehicle Electric Heated Value added sales* 100 Catalyst Diesel Ultra-Compact +67% - Faurecia content + 17% SCR BlueBox® Diesel Partic
Slide 15: Faurecia Clean Mobility sales on light vehicles will outpace the market
Faurecia Clean Mobility sales on light vehicles will outpace the market FCM ICE LIGHT VEHICLE VA SALES (€bn) Growth drivers 7.7 +5% CAGR 6.2 4.7 Faurecia will outpace the market growth, enabled 3.9 by a strong innovation & technology portfolio for all powertrains Reduction of diesel share is imp
Slide 16: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 FCM performance leadership Christophe Schmitt Investor Day – London – June 2
Slide 17: On-Highway: Regulations in China and India will increase content per vehicle
On-Highway: Regulations in China and India will significantly increase average content per vehicle from 2020 Regulation impact on future Faurecia's vision on regulation Key technologies emissionized vehicles €/vehicle Complete system breakthrough Faurecia accessible market in value added sales* 2016
Slide 18: Off-Highway: China and India content per vehicle increases dramatically
Off-Highway: China and India content per vehicle increases dramatically Regulation impact on future Faurecia's vision on regulation Key technologies emissionized vehicles €/vehicle Faurecia accessible market in value added sales* 2016 2019 2022 2025 China China III China NR IV CHINA (Stage IIIA) (St
Slide 19: Commercial vehicles: Faurecia targets 27% market share globally by 2030
Commercial vehicles Faurecia targets 27% market share globally by 2030 2016 market share Drivers of increased market share Globalization of engine strategies favors two global actors Patented technologies and innovations e.g. Compact mixer, ASDSTM 12% Strategic partnerships and JVs with key cu
Slide 20: Faurecia sales on commercial vehicles to grow more than twice as fast as the market
Faurecia sales on commercial vehicles to grow more than twice as fast as the market FCM COMMERCIAL VEHICLE VA SALES (€bn) 1.5 Growth drivers +12.2% CAGR 1.0 0.7 Huge impact in value due to tightened regulations in China and India 0.3 Technology as a key driver for market share gain Global plat
Slide 21: High Horsepower and industrial applications offer adjacent market opportunities
High Horsepower and industrial applications offer adjacent market opportunities for our technologies Emissionized adjacent markets Applications Marine propulsion Medium & low speed > 5,000 Horsepower Marine power supply After treatment for High Power generation Horsepower Railway engines Hig
Slide 22: High Horsepower will be more and more emissionized
High Horsepower will be more and more emissionized HHP REGULATION DEVELOPMENT IN KEY GEOGRAPHIES Global Power Generation Local Key regulations reinforced between 2022 and 2025 NAO Europe HHP China 75% of engines India emissionized in 2025 ROW vs. 25% today 2015 2020 2021 2022 2023 2024 2025 2030 >80
Slide 23: Faurecia targets 20% market share in 2030
Faurecia targets 20% market share in 2030 Current State Future State Small players ~60-80% market share Large players ~60-80% market share Selling to engine dealers / integrators Selling mostly to engine OEMs 15-20% Focusing on customized projects Manufacturing small series (a few hundre
Slide 24: Faurecia uniquely positioned to achieve around 20% market share in fast growing market
Faurecia uniquely positioned to achieve around 20% market share in fast growing market FCM HHP & INDUSTRIAL VA SALES (€bn) Growth drivers 0.7 +21.5% CAGR Strategic relationships with engine manufacturers 0.4 and leveraging existing footprint Bolt-on acquisitions 0.1 0 Upscaling existing techno
Slide 25: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 FCM performance leadership Christophe Schmitt Investor Day – London – June 2
Slide 26: Fuel cell and battery electric vehicles will coexist on different segments
Fuel cell and battery electric vehicles will coexist on different segments 2030 COMPARED PERFORMANCE OF BATTERY AND FUEL CELL Battery EV Fuel cell EV Short Range Vehicles 100 133 <200 km Autonomy B / C segment vehicles 100 100 Long Range Vehicles 100 70 400 km Autonomy D / E segment vehicles 100 50
Slide 27: Battery and fuel cell electric vehicles will co-exist in different urban environments
Battery and fuel cell electric vehicles will co-exist in different urban environments Global population by city archetype Relevance of powertrain type (billion) Fuel Cell Battery 8.6 0.7 7.3 0.4 High income, suburban sprawl (eg Los Angeles) 0.6 0.3 1.5 High income, dense cities 1.1 (eg London) 2.8 L
Slide 28: Faurecia will offer solutions for BEV and FCEV building on composite expertise
Faurecia will offer solutions for BEV and FCEV building on composite expertise Composite battery pack Carbon fiber H2 tank and valve Vehicle integration High pressure management: 700 bars light Structural function storage to ensure 500km autonomy to a passenger car; 10 bars to feed fuel cell
Slide 29: Fuel cell stack could bring additional €3,000 added value sales per vehicle
Fuel cell stack could bring additional €3,000 added value sales per Fuel cell vehicle by 2030 Fuel cell stack technology Faurecia competitive advantage Financial Impact Fuel cell stack value target Development by 2030 is > €3,000 Partnership with CEA-Liten Bipolar plates Stack providing access
Slide 30: Faurecia targeting around 20% market share on battery pack and fuel cell tank sales
Faurecia targeting around 20% market share on battery pack and fuel cell tank sales FCM ELECTRIC VEHICLE (BEV & FCEV) VA SALES* (€bn) Growth drivers 0.8 Faurecia Clean Mobility is developing product offer for battery electric vehicles +21.7% CAGR and fuel cell vehicles Battery packs and fuel cel
Slide 31: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 FCM performance leadership Christophe Schmitt Investor Day – London – June 2
Slide 32: ASDS: Best-in-class deNOx technology allowing real-time monitoring
ASDSTM Best-in-class deNOx technology allowing real-time date monitoring NOx emissions NOx tracker 5 (base 1) 4 Adblue 3 ASDSTM 2 installation 1 ASDSTM Live monitoring of deNOx performance Ammonia gas stored in a salt of each vehicle Best deNOx performance at low temperatures (e.g. city drivin
Slide 33: ASDS unique performance makes it suitable for many uses
Growth potential ASDSTM unique performance makes it suitable for many uses ASDSTM APPLICATIONS Bus and Truck Industrial Opportunity: passenger cars NOx removal for city driving NOx removal in manufacturing Superior deNOx performance vehicles and cold climates plants, & industrial diesel (RDE in citi
Slide 34: Retrofit: Cost effective solution to improve air quality in the short term
Retrofit Cost effective solution to improve air quality in the short term ASDSTM Retrofit more effective Retrofit volume potential than fleet conversion to electric 26 million commercial vehicles Commercial vehicles fleet (million) For fleet of 5,000 buses Investment NOx removed € per kg 26 (€m) ove
Slide 35: Around 400 buses already equipped and >30 million km driven
Around 400 buses already equipped and >30 million km driven Seoul (Korea) London (UK) Copenhagen (DK) Order received for 20,000 buses Tender for 5,000 300 buses equipped and trucks buses ongoing 30m km driven In discussions with Aachen, Austin, airports, Indianopolis, Lyon, Munich, Portland, Santiag
Slide 36: Accessible market size is almost €3bn by 2025
Accessible market size is almost €3bn by 2025 ASDSTM SYSTEM: 2025 MARKET OPPORTUNITY (VA SALES €m) €1,600m €1,100m Growth strategy 1 3 Retrofit 25% 1 Retrofit market for city vehicles 50% 2 First fit OEM business for city driving 2 commercial vehicles 4 Develop LV retrofit solution for light vehicle
Slide 37: Long-term sales target to reach >€1.0bn with superior profitability
Long-term sales target to reach >€1.0bn with superior profitability FCM ASDSTM SYSTEM VA SALES* (€m) Growth Drivers > 1,000 Unique, patented deNOx performance in real road conditions (incl. low engine +25% CAGR temperature) Perfectly suited for city vehicles and 400 industry in retrofit and firs
Slide 38: Gasoline Low Pressure EGR system gives up to 10g CO2 reduction
Gasoline Low Pressure EGR system gives up to 10g CO2 reduction in real driving conditions EGR stands for Exhaust Gas Recirculation Investor Day – London – June 27, 2017 38
Slide 39: Strong market growth at 25% CAGR driven by regulations and fuel savings
Strong market growth at 25% CAGR driven by regulations and fuel savings Gasoline low pressure EGR system Gasoline low pressure EGR addressable market (€ bn) system market drivers 5.4 Key technology to reduce CO2 +25% CAGR for gasoline turbo engines 2.2 In 2030, more than 50 million engines will
Slide 40: Faurecia will achieve 20% market share and over €1bn revenue by 2030
Faurecia will achieve 20% market share and over €1bn revenue by 2030 FCM LOW PRESSURE EGR SYSTEMS SALES (€bn) Growth Drivers 1.1 Faurecia is uniquely positioned as a systems integrator enabling breakthrough offer with 30% less volume and cost +30% CAGR Faurecia technology allows up to 0.3 10g CO
Slide 41: Real time emissions for clean cities
Real time emissions for clean cities Cities / Mobility operators’ needs Cities compliance with mandatory Air Quality improvement targets Clean Mobility in Smart Cities initiatives (C40) Monitoring and incentives for environmental-friendly driving behaviors Faurecia will provide real time emiss
Slide 42: Real time emissions for clean cities is an important market opportunity
Real time emissions for clean cities is an important market opportunity Market opportunities Digital service and sensors market* LV fleet, million vehicles €bn Connected car New opportunities thanks to car data 2.7 generation and analytics 1,050 +39% CAGR 550 0.7 70 0.1 2020 2025 2030 2020 2025 2030
Slide 43: Real time emissions for clean cities will generate €0.8bn revenue by 2030
Real time emissions for clean cities will generate €0.8bn revenue by 2030 FCM REAL TIME EMISSIONS SALES* (€bn) Growth Drivers 0.8 NOx Tracker know how +44% CAGR Expertise & exclusive technology Emissions measurement (sensors) 0.2 Data acquisition and analytics 2020 2025 2030 Strategic part
Slide 44: Agenda
Agenda 1 Introduction Patrick Koller 2 Growth via technology in automotive Mathias Miedreich 3 Growth beyond automotive Curt Miller 4 Electric vehicles Christophe Bouly Annika Isaksson 5 Star Technologies Christophe Bouly 6 Faurecia Clean Mobility leadership Christophe Schmitt Investor Day – London
Slide 45: Bright future for clean mobility market
Bright future for clean mobility market KEY MARKET DRIVERS Stringent regulations and new ultra green technology breakthroughs All markets getting emissionized including China, India CV, HHP engines, industrial Nearly 50% of the market will be electrified: a great opportunity Smart Cities wil
Slide 46: Strong technology ecosystem enables higher technology content
Strong technology ecosystem enables higher technology content and access to new mobility fields Share of new technologies Technology and market ecosystem in value added sales Air Quality / Acoustics NDA Innovation 32% HHP / CV 60% NDA Electrification NDA Baseline 68% NDA 40% Real Time NDA Emission 2
Slide 47: Leading Clean Mobility with >€10bn revenues in 2030
Leading Clean Mobility with >€10bn revenues in 2030 including €3bn of high technology new business FAURECIA VALUE ADDED SALES BY MARKET SEGMENT (€bn) Investment in €m >10.7 Electric vehicles 2017 -2022 0.8 CAGR 23% 2025-2030 0.7 HHP/Industrial > 7% CAGR 7.9 CAGR 21% 2020-2030 0.3 1.5 Commercial vehi
Slide 48: Faurecia Clean Mobility will more than triple operating income
Faurecia Clean Mobility will more than triple operating income with high cash conversion CAGR (in %) In €m 2016 2020 2025 2030 2016 - 2030 Value added sales 4,195 5,500 7,900 >10,700 >7% o/w LV 3,855 4,700 6,200 7,700 5% o/w CVE, HHP & other 340 800 1,700 >3,000 17% Operating income 394 around 600 a
Slide 49: Strategic transformation of Faurecia Clean Mobility
Strategic transformation of Faurecia Clean Mobility Vision Strategic Drivers Ambition 2030 Value added sales Be the leading clean mobility New clean emissions value > €10bn company with benchmark spaces through innovation > 7% CAGR 2016-2030 technology and profitability for ICE & hybrid Prof
Slide 50: Investor Day – London – June 27, 2017
Investor Day – London – June 27, 2017