Slide 1: H1 2022 Results
H1 2022 Results ▪ Sales of €11.6bn, with strong organic outperformance ▪ Resilient operating margin of 3.7% in a volatile and inflationary environment ▪ Positive net cash flow of €102m ▪ Integration of HELLA on track ▪ FY 2022 guidance confirmed July 25, 2022
Slide 2: Summary
Summary 01 H1 2022 Key Highlights 02 H1 2022 Results Review 03 FY 2022 Guidance 04 FORVIA’s Way Forward
Slide 3: H1 2022 Key Highlights
01 00 H1 2022 Key Highlights
Slide 4: H1 2022 Context and Priorities
H1 2022 Context and Priorities Still low volumes and heightened inflationary context in H1: • Worldwide automotive production of 37 million LVs, down 0.6% yoy (o/w Europe down 12%), penalized by: ▪ Continued shortage of semiconductors ▪ War in Ukraine starting end of February generating supply chain
Slide 5: H1 2022 Key Highlights
H1 2022 Key Highlights ❯ Successful closing of the acquisition of HELLA and major steps already achieved in H1: ▪ Closing on January 31 for a total amount of €5.4bn, of which only €1.7bn still to be refinanced (post capital increase) ▪ Creation of FORVIA, combining FAURECIA’s and HELLA’s operations
Slide 6: H1 2022 Key Figures
H1 2022 Key Figures ❯ Resilient performance in H1 2022 despite volatile and inflationary environment: • €11.6bn of sales, up +49.3% on a reported basis (incl. 5-month of HELLA) and +9.0% on an organic basis • Strong organic sales outperformance of +960bps (Faurecia stand-alone), o/w +790bps from vol
Slide 7: FORVIA achieved solid order intake in H1 2022
FORVIA achieved solid order intake in H1 2022 FY 2022 target is in line with sales ambition Solid order intake > €15bn in H1 2022 with profitability aligned with Group’s ambition Electronics China EVs (BEVs + FCEVs) (incl. Clarion €4.1bn Premium Electronics) 27% €4.7bn & SUVs €5.0bn 31% €8.7bn 33% 5
Slide 8: Three strategic levers for growth
Three strategic levers for growth Electrification Safe & Automated Digital & & Energy Driving Sustainable Cockpit Management Experiences ❯ BEV: battery & thermal management ❯ Sensors, perception software, ❯ Digital continuity systems for hybrid & electric vehicles data fusion and actuation/automatio
Slide 9: Advancing on Hydrogen Mobility
Advancing on Hydrogen Mobility Supporting the company’s mid-term ambition to reach €500 million of sales from Hydrogen by 2025 and >€3.5 billion by 2030 ✓ Two major achievements in H1 2022 for more than €500 million life-time sales: ▪ The biggest European agreement between Symbio (Faurecia’s 50/50 J
Slide 10: FORVIA accelerating pace towards CO2 neutrality
FORVIA accelerating pace towards CO 2 neutrality with a recent major validation of its CO2 strategy approved targets by SBTi NET ZERO We are 2025 - 80% scopes 1&2 THE FIRST aligned with the ambition AUTOMOTIVE of the 2015 Paris Agreement of limiting global warming to 1.5°C COMPANY 2030 - 45% scopes
Slide 11: FORVIA Net Zero CO2 Ambition
FORVIA Net Zero CO2 Ambition First Automotive Company Approved by SBTi 45 000 000 40 000 000 Operation Neutral Scope 3 uncontrolled : Use phase of our products Outside 2025 Scope 3 controlled: All Upstream and Downstream activities our plants 35 000 000 SBTi Near Term in our value chain (apart from
Slide 12: Creation of a Sustainable Materials division
Creation of a powerful and ambitious Sustainable Materials division Our focus ❯ Raw materials ❯ Construction of a R&D center recycled materials and bio-sourced and pilot production site in France dedicated to sustainable materials in 2023 ❯ New materials ❯ >400 engineers in 2025 ❯ Pioneering partner
Slide 13: Energy Efficiency Program
Energy Efficiency Program SAVING TOTAL ELECTRICITY ❯ Current Group target = -11% 2022 full year (against 2019) Saved by management • o/w 1.5% ESaaS (Energy Saving as a Service) 16% -22% 6% Saved by investment (exit ❯ Exit end of 2023: -16% Balanced 71% 7% Self-produced 2023) • o/w 6% ESaaS (invested
Slide 14: HELLA integration is fully on track and supported by employees
HELLA integration is fully on track and supported by employees Synergy plans already implemented: Strong employee engagement* ❯ Revenue synergies of €600m (LTS) achieved ❯ Around 200 synergy opportunities now being executed ❯ Cost synergies and optimization of > €250m in 2025 Ready Able Willing on t
Slide 15: H1 2022 results review
02 00 H1 2022 results review
Slide 16: Worldwide automotive production down 0.6% in H1
Worldwide automotive production down 0.6% in H1, mostly penalized by Europe in Q1 and China in Q2 WORLDWIDE (in million units) Major disruptions in H1 2022 came from Europe and China (representing combined c. 2/3 of Group sales): Reminder: H1 2019 @ 43.3m ❯ Europe was strongly impacted by Stop & Gos
Slide 17: H1 2022 was strongly impacted by high inflation
H1 2022 was strongly impacted by high inflation Europe and China most impacted, respectively by Stop & Gos and Covid HIGH INFLATION IMPACT ON ACTIVITY OF STOP & GOS AND COVID ❯ Heightened inflationary environment since the start of 2022 • Raw materials (contractual pass-through policies already in p
Slide 18: H1 2022 sales of €11.6bn, up 49.3%
H1 2022 sales of €11.6bn, up 49.3% incl. the consolidation of HELLA since February 1, and up 9.0% on an organic basis ❯ Positive currency effect of €355m or +4.6% ❯ Scope effect of €2,789m or +35.8%, related to the 5-month consolidation of HELLA (since February 1, 2022) ❯ Organic sales growth (Faure
Slide 19: Operating margin proved resilient in H1 despite headwinds
Operating margin proved resilient in H1 despite headwinds and should recover in H2 thanks to the full effect of measures taken during H1 ❯ Operating margin of 3.7% in H1 (with sequential improvement in Q2 vs. Q1) reflected: ▪ Drop in volumes related to the war in Ukraine and its consequences and the
Slide 20: Seating and Interiors
Seating Interiors 30% of Group consolidated sales in the period 22% of Group consolidated sales in the period H1 2021 H1 2022 H1 2021 H1 2022 Excl. Sales (€m) 2,967 3,530 €(45)m Sales (€m) 2,376 2,562 impact from the YoY reported +19.0% Michigan YoY reported +7.8% program YoY organic +13.6% YoY orga
Slide 21: Clean Mobility and Clarion Electronics
Clean Mobility Clarion Electronics 20% of Group consolidated sales in the period 4% of Group consolidated sales in the period H1 2021 H1 2022 H1 2021 H1 2022 Sales (€m) 2,040 2,285 Sales (€m) 438 458 YoY reported +12.0% YoY reported +14.6% YoY organic +6.7% YoY organic +9.2% Operating income (€m) 19
Slide 22: Accretive contribution from the consolidation of HELLA
Accretive contribution from the consolidation of HELLA, despite similar headwinds in H1 2022 24% of Group consolidated sales in the period H1 2022 Sales (€m) 2,789 Europe 1,624 North America 602 Asia 527 Rest of the World 36 Operating income (€m) 130 % of sales 4.7% ❯ HELLA is consolidated since Feb
Slide 23: Europe and North America
Europe North America 46% of Group consolidated sales in the period 26% of Group consolidated sales in the period H1 2021* H1 2022* H1 2021* H1 2022* Excl. Sales (€m) 3,806 5,357 Sales (€m) 1,780 2,973 €(45)m impact YoY reported +40.8% YoY reported +67.0% from the Michigan Scope effect +42.7% Scope e
Slide 24: Asia and Rest of the world
Asia Rest of the world 24% of Group consolidated sales in the period 4% of Group consolidated sales in the period H1 2021* H1 2022* H1 2021* H1 2022* Sales (€m) 1,857 2,807 Sales (€m) 340 486 YoY reported +51.1% YoY reported +43.1% Scope effect +28.4% Scope effect +10.7% YoY organic +14.1% YoY organ
Slide 25: Operating margin at 3.7% included negative inflation impact
Operating margin at 3.7% included a negative impact from inflation of c. -100bps * H1 2021 are Faurecia stand-alone figures as reported in July 2021; H1 2022 are FORVIA (Faurecia + 5m consolidation of HELLA) figures in €m H1 2021* H1 2022* Gross margin of 12.4% was mainly impacted by net impact Sale
Slide 26: Net income impacted by restructuring, HELLA costs and Russia
Net income impacted by higher restructuring expenses, costs related to the acquisition of HELLA and operations in Russia * H1 2021 are Faurecia stand-alone figures as reported in July 2021; H1 2022 are FORVIA (Faurecia + 5m consolidation of HELLA) figures in €m H1 2021* H1 2022* Amortization of acqu
Slide 27: Adjusted EBITDA of €1.3bn and NCF of €102m
Adjusted EBITDA of €1.3bn in H1 2022 or 11.4% of sales NCF of €102m * H1 2021 are Faurecia stand-alone figures as reported in July 2021; H1 2022 are FORVIA (Faurecia + 5m consolidation of HELLA) figures in €m H1 2021* H1 2022* Operating income 510 426 Capex of €523m in H1, of which: Depreciation and
Slide 28: Net debt as of June 30, 2022 included the acquisition of HELLA
Net debt as of June 30, 2022 included the acquisition of HELLA * H1 2021 are Faurecia stand-alone figures as reported in July 2021; H1 2022 are FORVIA (Faurecia + 5m consolidation of HELLA) figures in €m H1 2021* H1 2022* Decision not to pay dividend in 2022 approved Net cash flow 290 102 at the Sha
Slide 29: Major refinancing steps of the HELLA acquisition achieved
Major refinancing steps of the HELLA acquisition already achieved Further deleveraging includes asset divestment program for €1bn by 2023 ❯ Refinancing of the acquisition of HELLA on track: • €2.5bn already pre-financed in H2 2021 mainly through two debt issuances for a combined amount of €1.9bn • S
Slide 30: Strong liquidity of €6.1bn as of June 30, 2022
Strong liquidity of €6.1bn as of June 30, 2022 BREAKDOWN OF GROSS DEBT BY MATURITY As of June 30, 2022 Average cost of long-term debt < 2.8% excl. IFRS16 debt 2 500 Interest rate on gross debt c. 2/3 fixed and c. 1/3 variable 2 000 Liquidity of €6.1bn as of June 30, 2022: 1 500 • €4.2bn of available
Slide 31: FY 2022 guidance
03 00 FY 2022 guidance
Slide 32: Strong profitability momentum in H2
Strong profitability momentum in H2 driven by increased effectiveness of inflation mitigation measures and improved operational efficiency OPERATING INCOME ❯ Drivers for improvement in profitability Actual H1 sales Est. H2 sales Est. FY sales of c. 160bps in H2 vs. H1: €11.6bn €11.4bn-€12.4bn €23bn-
Slide 33: Strong focus on cash generation across the FORVIA Group
Strong focus on cash generation across the FORVIA Group NET CASH FLOW ❯ Sequential improvement of EBITDA in H2 2022 ❯ WCR optimization NCF Breakeven ❯ Strict cash management focus across before reserve for Reserve for including reserve the entire FORVIA group including: €102m safety stock safety sto
Slide 34: Fully committed in reducing debt leverage
Fully committed in reducing debt leverage including asset divestment program for €1bn by end 2023 NET DEBT-TO-ADJUSTED EBITDA ❯ Improved cash generation in H2 2022 ❯ Covenant not tested as of June 30, as renegotiated with banks in April 2022 3.1x ❯ As of December 31, targeted net debt-to-adj. EBITDA
Slide 35: Confirmed FY 2022 guidance
Confirmed FY 2022 guidance ❯ This guidance is based on worldwide automotive production of c. 74m vehicles in 2022 or c. 37m in H2 (unchanged vs. assumption of April 26) Sales between Net cash flow €23bn and €24bn Operating margin at breakeven (including c.€1.5bn from the combined between 4% and 5% (
Slide 36: FORVIA's Way Forward
04 00 FORVIA’s Way Forward
Slide 37: Combining growth, innovation and sustainability
FORVIA H1 2022 Key Highlights Combining growth, innovation and sustainability > €15bn #1 Order Intake #1 100 % First to market decarbonized First automotive company STBi validated with major first orders of sites assessed on biodiversity with steel production technologies for electrification and aut
Slide 38: The New Normal
The New Normal From a planned world A more Climate change to an event-driven regionalized world world Talent war Inflation for Technology and attractiveness a while a pre-requisite 38 Combined General Meeting I 1st June 2022
Slide 39: Four priorities
Four priorities Focus on 4 priorities ▪ Deleveraging ▪ Integrating & executing synergies ▪ Enhancing resilience & lowering breakeven point ▪ Optimizing cash vs. growth 39 July 25, 2022 C2 - Internal Natixis
Slide 40: Capital Markets Day and Sustainability Day
CAPITAL MARKETS SUSTAINABILITY DAY DAY November 3 November 4 40 July 26, 2022 C2 - Internal Natixis
Slide 41: Questions & Answers
00 Questions & Answers
Slide 42: Appendices
00 APPENDICES
Slide 43: Shareholding structure as of June 30, 2022 post capital increase
Shareholding structure as of June 30, 2022 post capital increase SHAREHOLDER STRUCTURE ❯ Total share count increased by 45,482,154 new shares AS OF JUNE 30, 2022 post the capital increase of €705m realized in June 2022 Employee Family Pool ❯ The Hueck/Roepke Familly pool, Exor, Peugeot 1810, shareho
Slide 44: Definitions of terms (1/3)
Definitions of terms Used in this document (1/3) SALES GROWTH Faurecia’s year-on-year sales evolution is made of three components: • A “Currency effect”, calculated by applying average currency rates for the period to the sales of the prior year, • A “Scope effect” (acquisition/divestment), • And “G
Slide 45: Definitions of terms (2/3)
Definitions of terms Used in this document (2/3) ADJUSTED EBITDA Adjusted EBITDA is Operating income as defined above + depreciation and amortization of assets; to be fully compliant with the ESMA (European Securities and Markets Authority) regulation, this term of “Adjusted EBITDA” will be used by
Slide 46: Definitions of terms (3/3)
Definitions of terms Used in this document (3/3) NET CASH-FLOW Net cash-flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal o
Slide 47: 2022 Financial Agenda
2022 Financial Agenda October 21 Q3 2022 sales| before market hours November 3 Capital Markets Day | in Paris November 4 Sustainability Day | in Paris
Slide 48: Investor relations
Investor relations Share Data Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA Datastream: F:BERT Marc MAILLET ISIN Code: FR0000121147 Tel: +33 1 72 36 75 70 E-mail: marc.maillet@forvia.com Bonds ISIN Codes Matthieu FERNANDEZ 2025 bonds: XS1785467751 Mob: +33 6 22 02 01 54 2026 bonds: XS1963830002 E-
Slide 49: 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 50: -ORVIA
-ORVIA ‘Faurecia