Slide 1: 2016 Annual Results
2016 Presentation title February 9, 2017 Annual Results
Slide 2: Agenda
Agenda ■ 1. 2016 Highlights Patrick Koller ■ 2. 2016 Results Michel Favre ■ 3. 2016-2018 New Trajectory Patrick Koller 2 2016 Annual Results – February 9, 2017
Slide 3: Highlights
2016 Presentation title Patrick Koller – Chief Executive Officer Highlights
Slide 4: 2016 - A strong performance exceeding guidance
2016 - A strong performance exceeding guidance Robust value-added* sales growth + 4.3% (like for like**) Total sales up 2.6% (like for like**) Operating margin up 80 bp to 6.2% of value-added sales 5.2% of total sales Net cash flow at €459m up 52% Proposed dividend of 90 cents, up 38% ve
Slide 5: 2016 performance exceeded commitments set in 2013
2016 performance exceeded commitments set in 2013 2016 COMMITMENTS 2016 total* sales Operating margin 4.5% - 5.0% Net cash flow above ROCE*** (total sales) around 21 billion euros Europe 4.5% – 5.0% above 20% 300 million euros (CAGR ~5%) North America >4.0% Asia >8% 2016 ACHIEVEMENTS Operating margi
Slide 6: 2016 - Achievements
2016 - Achievements ALL BUSINESS GROUPS CONVERGED TO MARGIN LEVELS AT OR ABOVE 5.2% Seating Organic growth of 9.0%, twice the LV production growth Interiors Operating margin improvement of 250 bp between 2014 and 2016 Clean Mobility 9.4% operating margin (on value-added sales), at benchmark le
Slide 7: Completed transformation to become a global leader with diverse customer portfolio
Completed transformation to become a global leader with diverse customer portfolio SALES BY CUSTOMER Hyundai Kia Others Chrysler Cummins Daimler Hyundai Kia Others VW Group VW Group Strong and well-diversified FIAT-Chrysler 24.7% 19.1% customer portfolio Ford BMW 2008 Daimler 2016 16.9% GM Ford
Slide 8: Results
2016 Presentation title Michel Favre – Chief Financial Officer Results
Slide 9: IFRS 15 application – Revenue recognition
IFRS 15 application – Revenue recognition Value-added sales, best representation of Group activity, are defined as total sales less monolith sales Monolith sales: Faurecia has a "pass through" role (no role on specification, on system validation and has no economic interest) According to our s
Slide 10: Solid organic growth in H2 2016 with value-added sales up 3.5%
Solid organic growth in H2 2016 with value-added sales up 3.5%* Sales in €m H2 2016 vs H2 2015 9,282 9,179 Like Variation Reported Currencies Scope for like* 1,604 Monoliths 1,487 Value-added +0.2% (1.6%) (1.7%) +3.5% Sales Currencies had an overall negative impact of €122m on value-added sales 7,
Slide 11: H2 Operating margin sharply up by 40 bp to 6.2%
H2 Operating margin sharply up by 40 bp to 6.2% Operating income in €m H2 2016 operating margin +40 bp 480 +34 ■ Operating margin on value-added sales improved by 40 bp to 6.2% 446 ■ Higher sales contribution (gross margin +60 bp) ■ Accelerating investments in Faurecia 4.0 project ■ Higher R&D expen
Slide 12: Solid organic growth in 2016 with value-added sales up 4.3%
Solid organic growth in 2016 with value-added sales up 4.3%* CAGR** Sales in €m 2014-2016 2016 vs 2015 +6.5% Like Variation Reported Currencies Scope for like* 18,770 18,711 Value- 16,877 added +1.0% (2.1%) (1.1%) +4.3% 3,304 Monoliths 3,097 sales 3,102 Currencies had an overall negative impact of
Slide 13: 2016 operating margin sharply up by 80 bp to 6.2%
2016 operating margin sharply up by 80 bp to 6.2% CAGR Operating income in €m 2014-2016 2016 operating margin +80 bp +28% 970 +140 830 ■ Operating margin on value-added sales improved 80 bp to 6.2% versus 2015 595 ■ Higher sales contribution (gross margin +100 bp) ■ Accelerating investments in Faure
Slide 14: Europe: Profitability up 80 bp to 5.6%
Europe Profitability up 80 bp to 5.6% leveraging operational efficiency Sales in €m 9,507 9,643 Value-added sales +3.2%* (+2.1% reported) 1,773 Monoliths 1,736 above European production growth (+2.8%**) In 2017, sales growth will be driven by new models 7,734 Value-added sales 7,907 from PSA, Re
Slide 15: North America: Profitability up 70 bp to 5.4%
North America Profitability up 70 bp to 5.4% thanks to improved industrial efficiency Sales in €m Value-added sales -0.9%* (-3.3% reported) 5,427 5,219 below North American production (+2%**). 843 Monoliths 786 VA sales were negatively impacted by: FCA’s decision to discontinue the Chrysler 200
Slide 16: Asia: Sales to Chinese OEMs +48%, profitability above 12%
Asia Sales to Chinese OEMs +48%*, profitability above 12% Sales in €m Value-added sales +9.1%* (+2.0% reported) above Asian production (7.2%**) 3,100 3,068 592 Monoliths 511 Sales to Chinese OEMs soared by 48%* and now represent 13% of our Chinese business and are to reach 20% by 2018 and 30% by
Slide 17: Faurecia Seating
Faurecia Seating Strong growth +9%* and profitability above 5% Value-added sales in €m Value-added sales +9.0%* (+6.8% reported), 6,607 430 bp above production growth (+4.7%**) through significant market share gain. 6,189 Sales were boosted by Renault-Nissan, Daimler, BMW and Ford with the launch
Slide 18: Faurecia Interiors
Faurecia Interiors Sharp profitability improvement to above 5% Value-added sales in €m Value-added sales -0.2%* (-5.5% reported) with Renault-Nissan up but penalized 5,092 4,811 by lower sales to Daimler and FCA (Chrysler 200) and the disposal at end June 2016 of the Fountain Inn site in the USA
Slide 19: Faurecia Clean Mobility
Faurecia Clean Mobility Sharp profitability improvement to 9.4% margin Sales in €m 7,490 7,292 Value-added sales +2.6%* (+0.2% reported), growth was driven by Renault-Nissan 3,304 Monoliths 3,097 and Geely/Volvo both up double digit and Cummins Value-added sales 4,186 4,195 In 2017, sales growth
Slide 20: Faurecia has minimal exposure to diesel
Faurecia has minimal exposure to diesel Faurecia’s exposure to diesel for Light Vehicles (LV) is limited to: Clean Mobility, which represents 27% of Group’s value-added sales (not relevant for Seating or Interiors) For Clean Mobility, LV diesel sales are mostly in Europe (basically no LV diesel
Slide 21: Net income at €638m
Net income at €638m, net margin on continued operations 2.9% (on VA sales) In €m 2015 2016 Value-added sales 15,466.0 15,613.6 Operating income 830.0 970.2 Operating leverage (excluding Fx & scope): (margin as % of VA sales) (5.4%) (6.2%) 24% on VA sales Restructuring & other income and expenses (
Slide 22: Net cash flow of €459m in 2016
Net cash flow of €459m in 2016 In €m 2015 2016 Operating income 830 970 D&A 612 669 EBITDA 1,442 1,639 EBITDA up by €197m or +14% mostly coming (margin as % of VA sales) 9.3% 10.5% from higher operating income Change in WCR 153 163 Positive WCR change thanks to tight control of all items CapEx
Slide 23: Successful refinancing plan completed
Successful refinancing plan completed Maturities of long-term liquidity resources December 2016 in €m 1 500 March 2016: €700m, 7-year bond issued at 3.625% €1.2B April 2016: Early redemption of the €490m, 1 000 Syndicated Dec 2016 very expensive bond (over 9% coupon) facility Maturity (undrawn)
Slide 24: Accelerating value creation and strategic flexibility
Accelerating value creation and strategic flexibility CAGR CAGR Order intake: three year rolling Operating margin +22% +11% Value-added sales in €bn % of value-added sales (in€m) 6.2 5.4 53 4.3 47 43 3.5 2012 - 2014 2013 - 2015 2014 - 2016 2013 2014 2015 2016 Net debt ROCE* in €m 2013 2014 2015 2016
Slide 25: New Trajectory
2016 - 2018 title Presentation Patrick Koller – Chief Executive Officer New Trajectory
Slide 26: Profitable growth to accelerate from 2017
Profitable growth to accelerate from 2017 Order intake: three year rolling Growth objectives secured with order intake up €6bn Value-added sales in €bn Fast growing customers accelerating CAGR +11% New premium customers growing 25% (Tesla, JLR, Volvo…) including €1bn order intake for electric
Slide 27: Strategic priorities
Strategic priorities Sustainable mobility and smart life on board Market growth Market growth €25bn €40bn 2016-2025 2016-2025 27 2016 Annual Results – February 9, 2017
Slide 28: Growth driven by new markets and new technologies for powertrain electrification
Growth driven by new markets and new technologies for powertrain electrification After-treatment Lightweight and energy recovery solutions market growth will accelerate with increased electrification Composites will become key technology for structural parts 2016-2025 KEY GROWTH DRIVERS Faurec
Slide 29: Strong increase in value of aftertreatment systems for all vehicles
Strong increase in value of aftertreatment systems for all vehicles World light vehicle production by powertrain technology Value of system % of vehicle production € per vehicle 100% Non ICE 90% GASOLINE DIESEL HYBRID 80% Euro 6d +130% +60% +210% 70% Euro 7 60% 580 50% 360 370 40% ICE 280 EV/Fuel Ce
Slide 30: Cockpit of the future will be connected, versatile and predictive
Cockpit of the future will be connected, versatile and predictive Addressable market Cockpit of Future € billion Faurecia is leveraging its unique competitive €40bn advantages as a full interior systems integrator Connectivity and infotainment Smart surfaces and HMI technologies Three developmen
Slide 31: Well positioned to achieve 2018 profitable growth objectives
Well positioned to achieve 2018 profitable growth objectives 2018 OBJECTIVES +6%* 7% +400 bp above market of VA sales > €500m €5 Value-added 2018 2018 2018 sales Operating Net cash Earnings CAGR margin flow per share 2016 - 2018 2017 GUIDANCE +6%* 6.4 - 6.8% +400 bp above market of VA sales > €350m
Slide 32: Faurecia has succeeded its transformation and confirms New Trajectory
Faurecia has succeeded its transformation and confirms New Trajectory Outperformed all objectives for 2016 set in 2013 Order intake confirms accelerating growth from 2017 A strategy aligned with megatrends Accelerating innovation for sustainable mobility and smart life on board Strategic f
Slide 33: Back-up
‘Faurecia inspiring mobility
Slide 34: Next events & 2017 Assumptions
Next events & 2017 Assumptions Q1 sales, April 11, 2017 (after market) Clean Mobility Investor Day in June 2017 in London IAA September 2017 Light vehicle (PC + LCV <3.5 tons) production to grow globally by 2% Europe: 1.0% to 1.5% North America: 0% China: 3.0% to 5.0% Currencies US
Slide 35: Europe: Operational efficiency improving
Europe Operational efficiency improving Sales in €m 4,662 4,499 878 796 Monoliths H2 value-added sales -1.0%* (-2.1% reported) below European production (+1%**) due to adverse model/client mix 3,784 Value-added sales 3,703 H2 2015 H2 2016 Operating income in €m 188 186 H2 operating margin on val
Slide 36: North America: Higher R&D expenses to prepare for future growth
North America Higher R&D expenses to prepare for future growth Sales in €m H2 value-added sales +0.1%* (-4.1% reported) 2,701 2,588 below North American production (+1%**). 398 Monoliths 381 VA sales were negatively impacted by: FCA’s decision to discontinue the Chrysler 200 at end 2016. Without
Slide 37: Asia: Profitability at 12.4% up 110 bp
Asia Profitability at 12.4% up 110 bp Sales in €m H2 value-added sales +12.5%* (+6.3% reported) 1,586 1,655 above Asian production (11.4%**) 291 279 Monoliths Strong performance in H2 in China with value-added sales up 9.0%* (+0.9% reported) 1,295 Value-added sales 1,376 Sales to Chinese OEMs
Slide 38: Faurecia Seating
Faurecia Seating Solid growth +9.2%* and market share gain Value-added sales in €m 3,308 value-added sales +9.2%* (+7.2% reported) largely above world LV production growth (+6.9%**) indicating a significant market share gain. 3,085 Sales were boosted by Renault-Nissan, Daimler, BMW and Ford with t
Slide 39: Faurecia Interiors
Faurecia Interiors Sharp profitability improvement +90 bp to 5.2% Value-added sales in €m H2 value-added sales -2.4%* (-8.9% reported) 2,518 with Renault-Nissan up but penalized 2,293 by lower sales to Daimler and FCA (Chrysler 200) and the disposal of the Fountain Inn site in the USA. H2 2015 H2
Slide 40: Faurecia Clean Mobility
Faurecia Clean Mobility Margin at 9.3% of value-added sales Sales in €m 3,679 3,578 H2 value-added sales +2.1%* (+0.7% reported) 1,604 Monoliths 1,487 2,075 value-added sales 2,091 H2 2015 H2 2016 Operating income in €m 195 H2 operating margin on value-added sales came 184 at 9.3% (+50 bp). It i
Slide 41: Net income at €393m
Net income at €393m, net margin on continued operations of 3.3% of value-added sales In €m H2 2015 H2 2016 Value-added sales 7,678.0 7,691.9 Operating income 446.3 479.9 Operating leverage (excluding Fx and scope): (margin as % of VA sales) (5.8%) (6.2%) 22% on VA sales Restructuring & other incom
Slide 42: Net cash flow of €254m in H2 2016
Net cash flow of €254m in H2 2016 In €m H2 2015 H2 2016 Operating income 446 480 D&A 318 346 EBITDA 764 826 EBITDA up by €62m or +8.0% Change in WCR (7) 87 Positive WCR change thanks to tight control of all items CapEx (383) (406) CapEx + capitalized R&D at €628m (vs €534m in H2 2015) Capitali
Slide 43: Accelerating with Chinese OEMs
Accelerating with Chinese OEMs On track to achieve 20% sales with Chinese OEMs Sales to Chinese OEMs by 2018 and 30% by 2020 €m and % of sales in China 18% to be reached in 2017 SUV sales to represent 50% of sales in China by 2020 2016 order intake (life time VA sales) of €5bn, 23% with Chin
Slide 44: Partnership with Parrot Automotive
Partnership with Parrot Automotive for connectivity and infotainment solutions Faurecia entered in a strategic partnership with Parrot Automotive Parrot Automotive is bringing a team of close to 200 engineers with strong skills in hardware & software An attractive portfolio of patents Parrot
Slide 45: Sales by type
Sales by type 2015 (IFRS 5) 2016 (IFRS 5) Sales by type in €m Product R&D & Value-added* Monolith Total Product R&D & Value-added* Monolith Total Tooling Tooling Seating 5,826.4 362.0 6,188.5 6,188.5 6,244.1 363.3 6,607.4 6,607.4 Clean Mobility (formerly ECT) 3,880.5 305.4 4,185.9 3,304.4 7,490.3 3,
Slide 46: Sales impact by type
Sales impact by type in €m 2015 (IFRS 5) Currencies Scope Organic (like for like)* 2016 (IFRS 5) Total sales 18,770.4 -367.7 -179.1 486.9 18,710.5 Var in % -2.0% -1.0% 2.6% -0.3% Value-added sales 15,466.0 -332.6 -179.1 659.3 15,613.6 Var in % -2.1% -1.1% 4.3% 1.0% Product sales 14,218.7 -313.8 -175
Slide 47: Sales variation by business
Sales variation by business H2 2015 H2 2016 Var in % Var in % 2015 2016 Var in % Var in % in €m IFRS 5 IFRS 5 Reported Like for like* IFRS 5 IFRS 5 Reported Like for like* Total sales Seating 3,085.0 3,308.1 7.2% 9.2% 6,188.5 6,607.4 6.8% 9.0% Clean Mobility (formerly ECT) 3,679.1 3,577.7 -2.8% -1.6
Slide 48: Sales variation by region
Sales variation by region Var in % Var in % H2 2015 H2 2016 2015 2016 in €m IFRS 5 IFRS 5 Reported Like for like** LV prod.* IFRS 5 IFRS 5 Reported Like for like** LV prod.* Total sales Europe 4,662.3 4,499.0 -3.5% -2.5% 9,507.4 9,643.2 1.4% 2.4% North America 2,701.3 2,587.7 -4.2% -0.7% 5,427.2 5,2
Slide 49: Cash flow reconciliation
Cash flow reconciliation Cash flow reconcilation in €m 2016 Adjusted net cash flow 332.5 Factoring transfered from discontinued activities to continued activities 119.0 Other changes 7.0 Net Cash Flow (reported) 458.5 Acquisitions of investments and business (net of cash & cash equivalent) 532.5 Pro
Slide 50: Reclassification IFRS 5
Reclassification IFRS 5 Total sales H1 2015 H2 2015 2015 H1 2015 H2 2015 2015 H1 2016 H1 2016 H2 2016 2016 in €m Reported Reported Reported Reclassified Reclassified Reclassified Reported Reclassified Reported Reported Seating 3,103.3 3,085.0 6,188.5 3,103.5 3,085.0 6,188.5 3,299.2 3,299.3 3,308.1 6
Slide 51: Profitability by region
Profitability by region TOTAL SALES* (in € m) 2012 2013 2014 2015 H1 2015** H2 2015** 2015** H1 2016 H2 2016 2016 Europe 9,618.3 9,701.0 10,390.8 11,256.3 4,845.1 4,662.3 9,507.4 5,144.1 4,499.0 9,643.2 North America 4,541.1 4,691.7 4,515.5 5,543.6 2,725.9 2,701.3 5,427.2 2,631.7 2,587.7 5,219.4 Asi
Slide 52: Profitability by business
Profitability by business TOTAL SALES (in € m) 2012 2013 2014 2015 H1 2015* H2 2015* 2015* H1 2016 H2 2016 2016 Seating 5,155.9 5,218.9 5,309.1 6,188.2 3,103.5 3,085.0 6,188.6 3,299.3 3,308.1 6,607.4 Clean Mobility (formerly ECT) 6,079.5 6,350.5 6,747.4 7,450.0 3,811.2 3,679.1 7,490.3 3,714.5 3,577.
Slide 53: Contact & share data
Contact & share data Investor Relations Share Data Eric-Alain Michelis Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA Datastream: F:BERT 2, rue Hennape ISIN Code: FR0000121147 92735 Nanterre France Tel: +33 1 72 36 75 70 ADR Data Cell: +33 6 64 64 61 29 Ticker: FURCY Fax: +33 1 72 36 70 30 Ratio: 2
Slide 54: Safe Harbor Statement
Safe Harbor Statement This report contains statements that are not historical facts but rather forward-looking statements. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions identify these forward
Slide 55: Faurecia inspiring mobility
‘Faurecia inspiring mobility