Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — Investor Day (November 2019)
104 slides from Forvia's investor day presentation, Nov 26, 2019
Slide 1: Capital Markets Day: Transformation in action
CAPITAL MARKETS DAY Transformation in action Paris – November 26, 2019
Slide 2: Agenda
Agenda 1 Faurecia transformation overview 2 Cockpit of the Future enabled by Faurecia Clarion Electronics 3 Accelerating transition to Clean Mobility Solutions 4 Growth and Resilience 5 Conclusion & Q&A Capital Markets Day - November 26, 2019 2
Slide 3: Transformation in action
Patrick Koller Chief Executive Officer Transformation in action
Slide 4: Mobility industry at the heart of major transformations
Mobility industry at the heart of major transformations TECHNOLOGY DISRUPTIONS Digitalization & data Human & bio-inspired New energy sources Connected objects science science Environmental issues Women empowerment GLOBAL DEVELOPMENT EVOLVING STRUCTURE CHALLENGES OF SOCIETY Growing urbanization Aging
Slide 5: Main impacts of key trends on Faurecia's transformation strategy
Main impacts of key trends on Faurecia’s transformation strategy New products Accelerate development of innovation for powertrain CONNECTED electrification and invest in zero emission solutions Focus on short time-to-market technology bricks for the Cockpit of the Future adaptable to autonomous
Slide 6: Faurecia combining strategic transformation and operational excellence
Faurecia combining strategic transformation and operational excellence Transformation Resilience & carbon & execution neutrality Capital Markets Day - November 26, 2019 6
Slide 7: Transformation strategy aligned with megatrends giving significant market opportunity
Transformation strategy aligned with megatrends giving significant market opportunity Sustainable Mobility Cockpit of the Future Solutions for fuel efficiency, Solutions for a connected, air quality and zero emissions versatile and predictive cockpit Addressable Addressable market market €46bn €73bn
Slide 8: Accelerated investment in broad ecosystem and new competences
Accelerated investment in broad ecosystem and new competences SINCE MAY 2018 INVESTOR DAY SUSTAINABLE MOBILITY Partnership with Michelin for fuel cell systems COCKPIT OF THE FUTURE Acquisitions of Clarion, Creo Dynamics and Covatech Project to acquire SAS Partnerships with Microsoft, Aptoide
Slide 9: Expanded product line offer for Sustainable Mobility and Cockpit of the Future
Expanded product line offer for Sustainable Mobility and Cockpit of the Future SUSTAINABLE MOBILITY COCKPIT OF THE FUTURE PASSENGER DUAL POWER ELECTRIC COVERS COMFORT COMPLETE SEATS SEAT STRUCTURE SYSTEMS VEHICLES VEHICLES & FOAM SOLUTIONS & WELLNESS SOLUTIONS FUEL CELL ELECTRIC COMMERCIAL VEHICLES
Slide 10: Broader and more diversified customer portfolio
Broader and more diversified customer portfolio MASS MARKET OEMS PREMIUM OEMS CHINESE OEMS CV & HHP NEW ENTRANTS Capital Markets Day - November 26, 2019 10
Slide 11: Global approach to Total Customer Satisfaction
Global approach to Total Customer Satisfaction PERFORMANCE PERCEPTION Technological edge Active listening to understand Flawless launches No surprises Relentless problem resolution Build in quality & program excellence Zero defects at source 100% on-time End-to-end secured capacity Fiv
Slide 12: Record order intake leading to sales of > €20.5bn in 2022
Record order intake leading to sales of > €20.5bn in 2022 Increasing share for New Value Spaces* ORDER INTAKE NVS ORDER INTAKE Expected record 2017-2019 order intake lifetime sales three-year rolling reflecting continuous market share gains €68bn 12% €62bn €63bn 22% NVS €53bn New Value Spaces or
Slide 13: Delivering on financial targets despite headwinds through resilience initiatives and cost management
Delivering on financial targets despite headwinds through resilience initiatives and cost management All financial targets met in 2018 despite headwinds in H2 2019 targets confirmed despite market deterioration throughout the year: currently estimated at c. -6% versus c. -1% estimated in Februar
Slide 14: Strong Convictions are the basis of our CSR approach
Strong Convictions are the basis of our CSR approach "As a company, WE ARE CONVINCED THAT we believe that acting responsibly is key to ensure the sustainable development of our Environmental The world is in a Diversity ecosystem for the future issues pose a state of permanent is a strength generatio
Slide 15: Six transversal initiatives to respond to our Convictions
Six transversal initiatives to respond to our Convictions and to anticipate the next disruption Short-term Environmental Companies The world Power thinking issues pose a must have is in a state Diversity must have a jeopardizes serious challenge a positive impact of permanent is a strength counterba
Slide 16: Implications of PSA-FCA merger project
Implications of PSA-FCA merger project PSA has been an active and supportive shareholder for Faurecia over the years The combination of PSA and FCA would create the #1 customer for Faurecia, similar in size to VW Group, providing new opportunities for value through platforms, innovation and foot
Slide 17: Record targets for sales, profitability and cash generation in 2022
Record targets for sales, profitability and cash generation in 2022 Targets will be achieved despite significantly lower than expected market volumes: 2022 volumes forecasted at a lower level than 2020 volumes estimated in May 2018 Market assumptions: 2020 volume slightly negative vs. 2019 and c
Slide 18: Takeaways
Takeaways Faurecia strategy for the Cockpit of the Future and Sustainable Mobility is relevant and is being deployed at a sustained pace Maintaining a good balance between execution and transformation allows Faurecia to deliver its financial targets even in a difficult environment Faurecia is
Slide 19: Cockpit of the Future enabled by Faurecia Clarion Electronics
Cockpit of the Future enabled by Faurecia Mathieu Devillard SVP Cockpit of the Future Clarion Electronics
Slide 20: Cockpit of the Future Vision
Cockpit of the Future Vision Capital Markets Day - November 26, 2019 20
Slide 21: Faurecia leading position in seating…
FAURECIA LEADING POSITION IN SEATING…
Slide 22: … and interiors
... AND INTERIORS
Slide 23: Competences
COMPETENCES Advanced safety Perceived quality & seamless integration Comfort Acoustics & sound management Thermal management Ambient lighting Smart surfaces
Slide 24: Creation of Faurecia Clarion Electronics
CREATION OF FAURECIA CLARION ELECTRONICS
Slide 25: Competences
COMPETENCES Electronics & software Sensors & computer vision Artificial Intelligence & connected solutions Systems integration Display integration
Slide 26: Project to acquire SAS
PROJECT TO ACQUIRE SAS
Slide 27: Competences
COMPETENCES Full interior systems architecture Expanded systems integration offer for all interior modules Expanded network of just-in-time and just-in-sequence delivery
Slide 28: Strong innovation ecosystem
STRONG INNOVATION ECOSYSTEM
Slide 29: … to enable the Cockpit of the Future vision
… TO ENABLE THE COCKPIT OF THE FUTURE VISION 5acXjzUk 29
Slide 30: Cockpit of the Future enabled by Faurecia Clarion Electronics
Jean-Paul Michel Cockpit of the Future Deputy EVP Faurecia Clarion Electronics enabled by Faurecia Frantz Lohier CTO Faurecia Clarion Electronics Clarion Electronics
Slide 31: Faurecia Clarion Electronics integrates recent acquisitions
Faurecia Clarion Electronics integrates recent acquisitions of Clarion, Parrot, Coagent, Covatech and Creo Dynamics 1,600 engineers Over 10 years €1bn sales 100m+ vehicles 7,100 employees of experience with (proforma* 2019e) equipped worldwide o/w 70% in LCC Embedded Android EUROPE CHINA 11% of sale
Slide 32: Four product lines aligned with Cockpit of the Future and Sustainable Mobility
Four product lines aligned with Cockpit of the Future and Sustainable Mobility COCKPIT DOMAIN DISPLAY IMMERSIVE ADAS CONTROLLER TECHNOLOGIES EXPERIENCES In-Vehicle Infotainment Small & Medium Sound Systems e-Mirror & Surround Displays & Branded Audio View Systems Rear Seat Entertainment Systems Larg
Slide 33: Complementarity of integrated companies and ecosystem
Complementarity of integrated companies and ecosystem 3 tier-one entities + 2 tech-based acquisitions + ecosystem COCKPIT AliOS Android OS DOMAIN DuerOS Linux OS CONTROLLER Universal tuner Tencent DISPLAY Small & medium Large & multiple Optical TECHNOLOGIES displays displays Bonding IMMERSIVE Voice
Slide 34: Two priorities
Two priorities Aggressive roadmap Accelerate growth for in four product lines cost competitiveness Capital Markets Day - November 26, 2019 34
Slide 35: Cockpit Domain Controller (CDC)
Cockpit Domain Controller (CDC) Accelerate growth in four product lines Personalized infotainment for all occupants In-Vehicle Infotainment Rear-Seat Entertainment Systems Universal/Remote Tuner Apps Store Capital Markets Day - November 26, 2019 35
Slide 36: Cockpit Domain Controller: description
Cockpit Domain Controller (CDC) Accelerate growth in four product lines Market Segments & Portfolio IN-VEHICLE REAR-SEAT UNIVERSAL/ APPS INFOTAINMENT (IVI) ENTERTAINMENT SYSTEMS REMOTE TUNER STORE 3 primary segments: Dedicated infotainment ECU Radio ECU with universal Base of downloadable apps
Slide 37: Cockpit Domain Controller: ambition and unique selling proposition
Cockpit Domain Controller (CDC) Accelerate growth in four product lines Ambition and Unique Selling Proposition IN-VEHICLE REAR-SEAT UNIVERSAL/ APPS INFOTAINMENT (IVI) ENTERTAINMENT SYSTEMS REMOTE TUNER STORE Opportunistic Top 3 Top 3 Leader Develop low-cost entry Reach 20% market share Consol
Slide 38: Display Technologies
Display Technologies Accelerate growth in four product lines Highly customizable advanced display solutions Small & Medium Displays Large & Multiple Display Modules Capital Markets Day - November 26, 2019 38
Slide 39: Display Technologies: description
Display Technologies Accelerate growth in four product lines Market Segments & Portfolio SMALL & MEDIUM LARGE & MULTIPLE DISPLAY DISPLAYS MODULES Up to 12”3 display surface mainly Combined display surface in excess DESCRIPTION for central console of 12”3 and up to 49” PRODUCT Scalable tactile
Slide 40: Display Technologies: ambition and unique selling proposition
Display Technologies Accelerate growth in four product lines Ambition and Unique Selling Proposition SMALL & MEDIUM LARGE & MULTIPLE DISPLAY DIFFERENTIATING TECHNOLOGY DISPLAYS MODULES & INTEGRATION EXPERTISE Opportunistic Top 3 AMBITION Focus on integration capabilities Leader in large and 3D-S
Slide 41: Immersive eXPeriences (IXP)
Immersive eXPeriences (IXP) Accelerate growth in four product lines Improved and individualized in-car experience Sound Systems & Branded Audio Occupant Monitoring Systems Personalized Cockpit Experiences Capital Markets Day - November 26, 2019 41
Slide 42: Immersive eXPeriences: description
Immersive eXPeriences (IXP) Accelerate growth in four product lines Market Segments and Portfolio SOUND SYSTEMS OCCUPANT MONITORING PERSONALIZED COCKPIT & BRANDED AUDIO SYSTEMS EXPERIENCES Active Noise Cancellation (ANC) Camera-based measure of driver Sensor data fusion and artificial intellig
Slide 43: Immersive eXPeriences: ambition and unique selling proposition
Immersive eXPeriences (IXP) Accelerate growth in four product lines Ambition and Unique Selling Proposition SOUND SYSTEMS OCCUPANT MONITORING PERSONALIZED COCKPIT & BRANDED AUDIO SYSTEMS EXPERIENCES Niche Leader Leader Leader smart headrest and ANC algorithms Leader in camera-based occupant Leader i
Slide 44: Advanced Driver Assistance Systems (ADAS)
Advanced Driver Assistance Systems (ADAS) Accelerate growth in four product lines Enhanced safety & convenience e-Mirror & Surround View Systems Automated & Autonomous Parking Systems Advanced Driving Systems Capital Markets Day - November 26, 2019 44
Slide 45: ADAS: description
Advanced Driver Assistance Systems (ADAS) Accelerate growth in four product lines Market Segments and Portfolio E-MIRROR & SURROUND VIEW AUTOMATED & AUTONOMOUS ADVANCED DRIVING SYSTEMS PARKING SYSTEMS SYSTEMS e-Mirrors Automated parking: camera-based High-performance ECU and advanced system en
Slide 46: ADAS: ambition and unique selling proposition
Advanced Driver Assistance Systems (ADAS) Accelerate growth in four product lines Ambition and Unique Selling Proposition E-MIRROR & SURROUND VIEW AUTOMATED & AUTONOMOUS ADVANCED DRIVING SYSTEMS PARKING SYSTEMS SYSTEMS Top 3 Top 3 Ambition to be defined in Q1 2020 AMBITION Be an innovator in the c
Slide 47: FCE leverages a pioneer position in Surround View
Accelerate growth FCE leverages a pioneer position in Surround View in four product lines LEADING PERFORMANCE IN AUTOPARKING NISSAN TO INTRODUCE WORLD'S Nissan FIRST AROUND VIEW MONITOR Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Leaf (FCE) NISSAN TOKYO (Oct. 12, 2007) Nissan Motor Co., Ltd. will introd
Slide 48: Techno-bricks enabling the Cockpit of the Future
Accelerate growth Techno-bricks enabling the Cockpit of the Future in four product lines Cockpit Domain Controller DISPLAYS Immersive Experiences SMART HEADREST Displays ADAS E-MIRROR REMOTE TUNER SOFTWARE SOLUTIONS & SERVICES CAMERA - RADAR COCKPIT SYSTEMS & SOLUTIONS DOMAIN CONTROLLER SOUND DOMAIN
Slide 49: Strong growth in sales with selective management of order intake
Accelerate growth Strong growth in sales with selective management of order intake in four product lines Sales in € bn 2.5 IXP Strong order intake in 2019 CAGR +16% demonstrates FCE capacity Displays to accelerate growth 1.6 Targeted order intake in 2020 Targeted order intake ADAS and 2021: comp
Slide 50: Expansion in customer portfolio and increased content per vehicle drive growth
Expansion in customer portfolio and increased content Accelerate growth in four product lines per vehicle drive growth of addressable market DIVERSIFICATION OF CUSTOMER PORTFOLIO Increased accessible market from 30m 15% 18% vehicles in 2019 to 75m vehicles in 2025 2019PF J-OEM 2025 through enlarge
Slide 51: Two priorities
Two priorities Aggressive roadmap Accelerate growth for in four product lines cost competitiveness Capital Markets Day - November 26, 2019 51
Slide 52: Aggressive roadmap for cost competitiveness
Aggressive roadmap Aggressive roadmap for cost competitiveness for cost competitiveness 4 AREAS WITH STRONG ACTION PLANS Streamlined & Bill of Material (BoM) Headcount reduction accountable @ benchmark Optimized footprint and engineering organization, generating savings for operations offshoring eff
Slide 53: Headcount reduction and engineering offshoring targets by mid 2020
Headcount reduction and engineering offshoring targets Aggressive roadmap for cost competitiveness to be achieved by mid 2020 April 2019 End 2019 End 2020 2020 vs. April 2019 Total headcount 8,220 7,100 6,700 -19% MOI (excluding R&D) 3,360 2,500 2,240 -33% Offshoring of R&D (% LCC) 45% 50% 60% 1,120
Slide 54: BoM @ benchmark generating savings of at least 20%
BoM @ benchmark generating savings of at least 20% Aggressive roadmap for cost competitiveness Gap analysis achieved and execution plan started > 20% potential Core panel changes (e.g. SOCs). Up to 3% savings Improve design standards Insourcing (e.g. mechanical parts). Up to 8% savings 2% savi
Slide 55: Optimized footprint for operations underway
Aggressive roadmap Optimized footprint for operations underway for cost competitiveness Fully leverage global footprint to produce close to customers and simplify the supply chain Concentrate regional SMT lines in single LCC plant per region (20% cost saving, 50% safety stock reduction) Hungary
Slide 56: Streamlined and accountable organization, effective shared services and IT systems
Streamlined and accountable organization, Aggressive roadmap for cost competitiveness effective shared services and IT systems 4 global product lines to lead the strategy definition Regional Define global product roadmaps divisions Understand market trends and technology landscape 4 regional
Slide 57: Robust roadmap for profitable growth
Robust roadmap for profitable growth through selective order intake, aggressive cost competitiveness and strong cash management In €m 2019PF 2022 2025 Sales 1,000 1,600 2,500 CAGR vs. 2019PF +17% +16% EBIT as % of sales ≥ 2% ≥ 6% 8% ≥ 100 Net cash flow Neutral Neutral (4% of sales) Capital Markets D
Slide 58: Takeaways
Takeaways FCE is aligned with strategy for the Cockpit of the Future and Sustainable Mobility. The unique combination of FCE and CoF will drive strong profitable growth Sales growth driven by enlarged customer portfolio and increased content per vehicle 2019-2022: Resume growth in sales with m
Slide 59: Accelerating transition to Clean Mobility Solutions
Accelerating transition to Clean Mobility Mathias Miedreich EVP Faurecia Clean Mobility Solutions
Slide 60: Market Context
Market Context Electrification trend is confirmed with additional momentum for hydrogen fuel cell mobility Battery and fuel cell technologies will co-exist and address different market segments Internal combustion engines (ICE) remain dominant for the foreseeable future Faurecia content on I
Slide 61: Light Vehicle Powertrain Mix Scenarii
Light Vehicle Powertrain Mix Scenarii Rise of EV and resistance of ICE confirmed under all considered scenarii LIGHT VEHICLES: GLOBAL POWERTRAIN MIX TO 2030 McKinsey McKinsey Fast Faurecia Faurecia Fast Citigroup Baseline Electrification IHS BCG Baseline Electrification 10% 2% 5% 13% 14% 17% 26% 13%
Slide 62: Light Vehicle Regulatory Drivers
Light Vehicle Regulatory Drivers Regulatory pressure (CO2 and pollutants) forces the move to ultra-clean ICE and EV CO2 EMISSIONS REGULATION (g/km) POLLUTANT EMISSIONS REGULATION (g/km) 180 Proposed Europe x4.5 Homologation cycle Enacted China Real-driving emissions US 0.36 160 116 130 108 95 95 90
Slide 63: CO2 and Cost Drivers
CO2 and Cost Drivers FCEV competitive against BEV with improved range and fast refilling CRADLE-TO-GRAVE CO2 FOOTPRINT OPERATING AND POWERTRAIN COST (k€) T-CO2 eq Mid-size global average car 45 140 Assumptions Variability relative to vehicle size 40 LCV Segment Vehicle usage 120 EU region 35 Ene
Slide 64: Commercial Vehicle Powertrain Mix Drivers
Commercial Vehicle Powertrain Mix Drivers Regulation and new logistic models drive vehicle segments and powertrain mix URBAN DISTRIBUTION MODEL IMPLICATIONS LIGHT-DUTY VEHICLES City centers Last mile delivery by low/zero emission Growth due to increased light commercial vehicles importance of last-m
Slide 65: Commercial Vehicle Powertrain Mix Scenarii
Commercial Vehicle (CV) Powertrain Mix Scenarii Strong resistance of Diesel; Fuel Cell as the prime path for heavy trucks electrification COMMERCIAL VEHICLES: GLOBAL POWERTRAIN MIX TO 2030 Faurecia 2030 FAURECIA ELECTRIFICATION SCENARII Faurecia aggressive baseline electrification WEIGHT IN THE MIX
Slide 66: Faurecia is addressing all major segments in ICE and EV
Faurecia is addressing all major segments in ICE and EV LIGHT VEHICLE COMMERCIAL VEHICLE HIGH HORSEPOWER ICE 1 2 3 EV 4 5 Under review Capital Markets Day - November 26, 2019 66
Slide 67: ICE Solutions for Light Vehicles
ICE Solutions for Light Vehicles 1 Content per vehicle grows by 20% as ICE closes the gap with EV SUPER CLEAN SUPER QUIET Low to no PM, NOx & HC Faurecia content No compromise on noise Faurecia content per vehicle per vehicle ELECTRIC HEATED CATALYST (EHC) ADVANCED ARCHITECTURE -70% NOx & €85 -3dB a
Slide 68: ICE Solutions for Commercial Vehicles
ICE Solutions for Commercial Vehicles 2 On track to increase market share from 17% to 25% in 2025 CONTENT PER VEHICLE TREND: ASIA AND ULTRA-LOW NOX 2018/2019: high acquisition and market share AS KEY DRIVERS & CNG AS OPPORTUNITY gain with order book at €2.4bn including: BHARAT IV BHARAT VI / ADDIT
Slide 69: ICE Solutions For High Horsepower Market: regulation
ICE Solutions For High Horsepower Market 3 Positive regulation dynamic, paving the road for mid and long-term growth HIGH HORSEPOWER REGULATIONS HIGHLIGHTS NORTH AMERICA EUROPE EPA Tier4 (2017) Local Regulations (ie. BlmSchV in Germany Local Regulations – 2019, upgrade in 2025) Stationary (CAR
Slide 70: ICE Solutions For High Horsepower Market: growth plan
ICE Solutions For High Horsepower Market 3 Leverage CV OEM access to grow from 14% to 22% market share by 2030 HIGHLIGHTS HIGH HORSEPOWER GROWTH PLAN 1. Shift from fragmented end customer HUG ENGINEERING GLOBAL EXPANSION LEVERAGE FAURECIA base to OEM certified solutions DOCKING POINT NEW CUSTOMERS T
Slide 71: EV Solutions For Light Vehicles: Battery Housing and Dual Power
EV Solutions For Light Vehicles: Battery Housing and Dual Power 4 Faurecia technology addresses pain points of BEV and dual power FCEV/BEV BEV Dual-Power Architecture Architecture Unique selling points: Increased cost effectiveness: compact and light solution easy to assemble and integrate inclu
Slide 72: EV Solutions: Fuel Cell attractiveness
EV Solutions For Light and Commercial Vehicles: Fuel Cell 4/5 Fuel cell attractiveness is confirmed for larger vehicles with long range FCEV VS. BEV: CO-EXISTENCE DRIVEN BY USE-CASE Fuel cell more suitable for SUV, LCV, CV Superior TCO potential versus BEV FCEV 1400km Heavy-duty Increased conv
Slide 73: Faurecia with Symbio addresses the full fuel cell system
EV Solutions For Light and Commercial Vehicles: Fuel Cell 4/5 Faurecia with Symbio addresses the full fuel cell system 1. TANK sub-system 2. STACK sub-system Complete H2 Fuel Cell System Hydrogen Storage System (HSS) Fuel Cell Stack system Auxiliaries MEA Endplate Interfaces Other Bipolar Membrane E
Slide 74: Fuel Cell: content per vehicle and business awards
EV Solutions For Light and Commercial Vehicles: Fuel Cell 4/5 Increasing content per vehicle and value confirmed by business awards FUEL-CELL VEHICLE MARKET UNIQUE SELLING KEY Millions of vehicles POINTS ACHIEVEMENTS 2.0 2025 Faurecia content HYDROGEN STORAGE SYSTEMS HOMOLOGATION per vehicle Incre
Slide 75: Addressable Market Size under Faurecia baseline scenario
Addressable Market Size under Faurecia baseline scenario ICE remains a large value pool, EV drives growth after 2025 FCM MARKET In €bn CAGR 20-30 46.6 10% Battery Solutions +13% 5.5 EV +25% Fuel Cell Systems +101% 7% 12.9 28.8 2.5 3.8 2.5 20.4 1.8 6.1 High Horsepower +18% 0.7 1.6 5.2 +9% 3.5 ICE Com
Slide 76: Faurecia market share is increasing in all markets
Faurecia market share is increasing in all markets including fast-growing EV segments (baseline scenario) LIGHT COMMERCIAL HIGH VEHICLE VEHICLE HORSEPOWER 2020 Market 2030 2020 Market 2030 2020 Market 2030 in €bn CAGR in €bn in €bn CAGR in €bn in €bn CAGR in €bn +2.4% +5.7% +18% 16 13 21 ICE 27 30 %
Slide 77: Faurecia Sales and Market Share
Faurecia Sales and Market Share Faurecia growth outperforms the market (baseline scenario) FAURECIA SALES In €bn Including Symbio JV sales (100%) CAGR Market Share 20-30 20-30 +11% 12.1 Battery Solutions +64% N/A 17% 1.0 EV 72% +9% 3.2 3,8 Fuel Cell Systems +75% N/A 25% 7.3 5,3 0.3 0.8 0.6 1.7 0.4 H
Slide 78: Faurecia sales under fast electrification scenario
Faurecia sales under fast electrification scenario Aggressive electrification increases Faurecia rate of growth FAURECIA FAST LV ELECTRIFICATION FAURECIA SALES In €bn Including Symbio JV sales (100%) 14.2 5% Fuel Cell EV 1.7 Battery Solutions 25% Battery EV EV Fuel Cell Systems 5.5 34% ICE Hybrid 7.
Slide 79: Faurecia Clean Mobility Financial Performance
Faurecia Clean Mobility Financial Performance Benchmark performance confirmed despite investment in EV solutions In €m 2019e 2022 2025 Sales 4,600 5,200 7,300 Of which Light Vehicles 4,000 4,200 5,500 Of which Commercial Vehicles 540 850 1,400 Of which HHP 60 150 400 EBIT as % of sales c. 11% ≥ 12%
Slide 80: Takeaways
Takeaways Electrification is accelerating in all segments driven by regulation and public pressure Increased ICE content per vehicle fully offsets any loss of ICE passenger vehicle volumes under the fast electrification scenario (30% EV in 2030) Market share gains and technology enable a doubl
Slide 81: Growth and Resilience
Michel Favre Chief Financial Officer Growth and Resilience
Slide 82: Since our previous CMD in May 2018, environment has deteriorated
Since our previous CMD in May 2018, environment has deteriorated AUTOMOTIVE PRODUCTION VOLUME ESTIMATES FOR 2020 (source: IHS Markit) (in million vehicles) Significant drop in current estimates North America Europe China for worldwide automotive production -6.2 vs. May 2018 estimates 27. 23. 21. 3
Slide 83: In this environment, our performance is resilient
In this environment, our performance is resilient In 2018, despite headwinds as from H2, we met all our financial targets and achieved record results For 2019, we confirm all our financial targets announced in February, despite deterioration of worldwide automotive production : In February, vo
Slide 84: Our resilience is based on 3 pillars
Our resilience is based on 3 pillars STRUCTURAL ACTIONS GOVERNANCE GLOBAL INITIATIVES & COST FLEXIBILIZATION & MANAGEMENT FOCUS Total Customer Satisfaction Rationalization/Optimization Monthly Operations Reviews of industrial footprint with Business Groups Three Global cost optimization prog
Slide 85: Operations Execution & Transformation program
Our three global cost optimization programs are on track (1/3) OPERATIONS EXECUTION & TRANSFORMATION PROGRAM OBJECTIVES PROGRESS TO DATE NEXT STEPS presented in May 2018 Plant ranking and program/plant risk Risk management has almost Integration of FCE and SAS assessment and management elimina
Slide 86: Global Business Services program
Our three global cost optimization programs are on track (2/3) GLOBAL BUSINESS SERVICES PROGRAM OBJECTIVES PROGRESS TO DATE NEXT STEPS presented in May 2018 From 34 locations to 5 main regional Migration to 5 centers achieved Integration of FCE and SAS operations centers in low-cost + Pune (In
Slide 87: Global R&D Power program
Our three global cost optimization programs are on track (3/3) GLOBAL R&D POWER PROGRAM OBJECTIVES PROGRESS TO DATE NEXT STEPS presented in May 2018 Targeting €50 R&D hourly rate 2020 R&D hourly rate target already Integration of FCE and SAS in 2020 (vs. €70 in 2016) reached for two Business G
Slide 88: Our Convert2Cash (C2C) program is delivering on targets
Our Convert2Cash (C2C) program is delivering on targets PROGRAM OBJECTIVES PROGRESS TO DATE NEXT STEPS presented in May 2018 Accelerate overdue collection Overdues down 25% vs. end 2017 Integration of FCE and SAS (< 0.5% of sales) Inventories adjusted to volume drop Just Needed Inventory (
Slide 89: Faurecia's medium-term market assumptions
Faurecia’s medium-term market assumptions AUTOMOTIVE PRODUCTION GROWTH AUTOMOTIVE PRODUCTION GROWTH 2020 vs. 2019 2020-2022 CAGR North America Europe China North America Europe China Slightly down Slightly down Slightly up Flat Flat c. +3% (low single-digit) (low single-digit) (low single-digit) Sou
Slide 90: Target of more than €20.5bn of sales in 2022
Based on these medium-term market assumptions, we target to achieve more than €20.5bn of sales in 2022 Total sales CAGR ≥ +5% NVS sales CAGR ≥ +25% > €20.5bn > €2bn (no bolt-on included) c. €1bn > €17.5bn c. 15% CAGR c. +4% < 10% SAS + Clarion Average annual outperformance ≥ +300pbs 2020e between
Slide 91: We target 8% operating margin with sales > €20.5bn in 2022
We target 8% operating margin with sales > €20.5bn in 2022 +20bps +30bps +80bps +10bps Restructuring Global Business Global R&D Power -60bps 8.0% Services R&D/Innovation Contingencies +60bps Operations ≥ 7.0% Execution & Transformation Volumes & Mix OM OM 2019e 2022 target Capital Markets Day - Nove
Slide 92: Sales growth and improved operating margin in all Business Groups
Sales growth and improved operating margin in all Business Groups CAGR > €20.5bn of sales OM = 8% of sales ≥ +5% ˂ 10% of Group sales OM ≥ 6% of sales > €17.5bn of sales OM ≥ 7.0% of sales x2 39% of Group sales OM ≥ 2% of sales c. 5% of Group sales OM ≥ 6% of sales c. 25% of Group sales CAGR c. +4%
Slide 93: We target Net Cash Flow of 4% of sales in 2022
We target Net Cash Flow of 4% of sales in 2022 +50bps +50bps Capex +30bps optimization -55bps +50bps Conversion Investment 4.0% cycle in NVS -55bps Financial costs +80bps and tax variation acceleration WCR Miscellaneous from sales > €800m Restructuring normalized growth > 2.8% EBITDA > €500m increas
Slide 94: Secured financing and sound financial structure
Secured financing and sound financial structure Constant optimization of debt cost and maturity LONG-TERM DEBT MATURITY PROFILE (€m) Successful financing of recent acquisitions: • Clarion financing achieved @ 2.6% average cost 1000 • SAS financing achieved through €250 million additional Senior
Slide 95: Cash allocation strategy
Cash allocation strategy remains focused on bolt-on acquisitions and fair shareholder remuneration NET CASH FLOW ALLOCATION STRATEGY Self-financed bolt-on strategy In line with strategic priority of accelerating NVS and increasing presence in Asian markets Dividends & share repurchases* Consis
Slide 96: Strong ROCE and TSR for shareholder value creation
Strong ROCE and TSR for shareholder value creation PRE-TAX ROCE @ 20% in 2022 TOTAL SHAREHOLDER RETURN > 10% (including IFRS 16 impact) 5-year annualized TSR = +12.7% 20% 3-year annualized TSR = +14.1% Share price Nov. 22, 2019 18% €1.10 €1.25 €46.14 €0.90 €0.65 €0.35 Dividend Dividend Dividend Divi
Slide 97: Historic records for sales, profitability and cash generation in 2022
We target historic records for sales, profitability and cash generation in 2022 We pursue our roadmap to generate profitable growth and create value for all stakeholders Targets will be achieved despite significantly lower market volumes: 2022 volume forecast at a lower level than 2020 volume es
Slide 98: Strong sales and operating margin targets in tougher market conditions
Strong sales and operating margin targets in tougher market conditions reflect robustness and resilience of our business model SALES OPERATING MARGIN c. €0.7bn > €20.5bn > €20bn c. €1.6bn c. €0.2bn Improved sales 8% c. -134bps c. +140bps 8% Currency impact performance (c. €2bn) Perimeter impact Mark
Slide 99: Takeaways
Takeaways Proven resilience in challenging times Record sales, profitability and cash generation targeted in 2022 supported by robust action plans Pursuing our track record of improved performance year after year, with focus on cash generation for continued investment in transformation and str
Slide 100: Conclusion
Patrick Koller Chief Executive Officer Conclusion
Slide 101: Faurecia combining strategic transformation and operational excellence
Faurecia combining strategic transformation and operational excellence Transformation Resilience & carbon & execution neutrality Capital Markets Day - November 26, 2019 101
Slide 102: Takeaways
Takeaways Transformation strategy deployment accelerated by recent acquisitions and partnerships Investment in Fuel Cell Electric Vehicles to accelerate Zero Emissions strategy Faurecia Clarion Electronics has a robust roadmap for profitable growth and is a strong enabler for the Cockpit of th
Slide 103: 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 104: Faurecia inspiring mobility
‘Faurecia inspiring mobility