Slide 1: H1 2023 Results
H1 2023 RESULTS Patrick KOLLER Chief Executive Officer Olivier DURAND Chief Financial Officer July 27, 2023 « Lumières » The FORVIA Cabin Demo presented during CES in Las Vegas, January 2023
Slide 2: H1 2023 Key Highlights
H1 2023 KEY HIGHLIGHTS Patrick KOLLER CEO 2 H1 2023 Results zeW3484E
Slide 3: Growth, Cash Generation and Deleveraging
GROWTH, CASH GENERATION AND DELEVERAGING STRONG SALES IMPROVED OPERATING SOLID NET DELEVERAGING GROWTH OF +21.3% MARGIN BY +150BPS CASH FLOW ON TRACK €13.6bn €11.2bn €675m NET DEBT / ADJ. EBITDA RATIO +18.6% €172m organic €398m €155m 5.0% of sales 1.3% of sales 3.1x 3.5% 1.4% of sales of sales 2.4x(
Slide 4: On Track with Priorities and POWER25 Plan
ON TRACK WITH PRIORITIES AND POWER25 PLAN SELECTIVE GROWTH COST MANAGEMENT ACCELERATED DRIVEN BY INNOVATION AND ENHANCED DELEVERAGING AND SUSTAINABILITY PROFITABILITY AND DEBT MANAGEMENT ❯ > €15bn order intake ❯ Effective management ❯ Disposal program: with average profitability of inflation all cas
Slide 5: Robust Order Intake > €15 Billion with High Profitability
ROBUST ORDER INTAKE > €15 BILLION WITH HIGH PROFITABILITY Reinforcing Group exposure to fast-growing segments ELECTRONICS CHINA ELECTRIC VEHICLES PREMIUM & SUVs (BEVs + FCEVs) €3.2bn €3.8bn €7.5bn > €8bn 21% 25% 50% 54% Order intake with an average operating margin above FORVIA’s POWER25 objectives
Slide 6: Focus on Electronics
FOCUS ON ELECTRONICS Orders reflecting the strong appeal of the Group’s technology offering and increased CPV LATEST GENERATION LATEST GENERATION HIGH-VOLTAGE BATTERY OF REMOTE TUNER OF STEERING SENSORS MANAGEMENT SYSTEM ❯ Best-in-class digital ❯ Key technology to advance ❯ Ensuring the safe and rel
Slide 7: Accelerating on Hydrogen
ACCELERATING ON HYDROGEN A global supplier, on track to become a Zero-Emission Hydrogen leader Entry of Stellantis in Symbio’s capital: Symbio now perfectly equipped to scale up and expand its leadership outside Europe Start of deliveries of type IV* hydrogen tanks from the Allenjoie plant (France)
Slide 8: Scopes 1&2 CO2 Emissions Reduction Path
SCOPES 1&2 CO2 EMISSIONS REDUCTION PATH SCOPES 1&2 REDUCTION PATH (TCO2E/M€ EXTERNAL SALES) As audited and published in URD Saving 0% SBTi CO2 Green electricity -10% reduction curve Heat electrification -20% recommended -20% -30% -32% -40% FORVIA -40% actual CO2 -45% -50% curve FORVIA CO2 target -60
Slide 9: New Step Forward in Decarbonization
NEW STEP FORWARD IN DECARBONIZATION 10-year PPA with Renewable Capital The deal will generate taking its renewable the equivalent of energy capacity to 40% up to 70% more than of all FORVIA European yearly electric consumption, 9 H1 2023 Results zeW3484E
Slide 10: Collaboration with HELLA Further Intensified
COLLABORATION WITH HELLA FURTHER INTENSIFIED Sales synergies ramping up Creation of FH Services consolidating IT systems and Indirect Purchasing Joint management meetings (1st Global Management Meeting) Roll-out of FORVIA values 10 H1 2023 Results zeW3484E
Slide 11: Synergies Accelerating
SYNERGIES ACCELERATING Cost synergies and optimization H1 2022 VS. H1 2023 2022 TO 2025 TRAJECTORY ❯ Leveraging on an increased number of projets in key areas: >€300m • Procurement • Logistic • IT • SG&A €64m >€120m + €53m €51m €11m H1 2022 H1 2023 2022 actual 2023 target 2025 objective 11 H1 2023 R
Slide 12: Strong Execution on Top Priority to Deleverage Post-Acquisition of HELLA
STRONG EXECUTION ON TOP PRIORITY TO DELEVERAGE POST-ACQUISITION OF HELLA NET DEBT/ADJUSTED EBITDA RATIO ❯ Gross debt reduction of €559m in H1 2023 3.1x ❯ All three transactions finalizing the €1bn disposal program have received clearance and will be closed shortly 2.6x 2.4x* ❯ Deleveraging on track
Slide 13: H1 2023 Results Review
H1 2023 RESULTS REVIEW Olivier DURAND CFO 13 H1 2023 Results zeW3484E
Slide 14: H1 2023 Sales: +21.3% Reported and +18.6% Organically
H1 2023 SALES: +21.3% ON A REPORTED BASIS AND +18.6% ORGANICALLY OUTPERFORMANCE OF 740BPS (VS. AUTOMOTIVE PRODUCTION OF +11.2%) ❯ All Business Groups reported organic growth in the double digits ❯ Outperformance of 740bps included : • 430bps from volume • 110bps from inflation pass-through to custom
Slide 15: Operating Margin Up 150bps YoY, to 5.0% of Sales
H1 2023 OPERATING MARGIN UP 150BPS YOY, TO 5.0% OF SALES ❯ Strong yoy improvement of 150bps (from 3.5% in H1 2022 to 5.0% in H1 2023) and stable vs. H2 2022 despite continued headwind from inflation ❯ Effective inflation pass-through policy in H1 with ongoing actions in H2 • Nature of cost inflation
Slide 16: H1 2023 Performance by Region
H1 2023 PERFORMANCE BY REGION €m EMEA Americas Asia Total ❯ Strong sales momentum in Europe (47% % of H1 2023 consolidated sales 48% 27% 25% 100% of Group sales) and China (20% of Group sales), with outperformance of 270bps Regional auto. prod. YoY +13.7% +11.9% +9.9% +11.2% and 2,210bps respectivel
Slide 17: H1 2023 Performance by Business Group
H1 2023 PERFORMANCE BY BUSINESS GROUP €m Seating Interiors* Clean Mobility Electronics Lighting Lifecycle Solutions TOTAL % of H1 2023 consolidated sales 31% 18% 18% 15% 14% 4% 100% Worldwide auto. prod. YoY +11.2% H1 2022* sales (€m) 3 530 2 172 2 285 1 550 1 281 415 11 233 Currency effect -2.8% -3
Slide 18: H1 2023 Operating Margin Up 150bps YoY, to 5.0% of Sales
H1 2023 OPERATING MARGIN UP 150BPS YOY, TO 5.0% OF SALES ❯ Gross margin improved by 120bps €m H1 2022* H1 2023 Change to 13.6% of sales Sales 11,233 13,621 +21.3% ❯ Net R&D contained to 3.9% of sales Organic growth +18.6% vs. 4.0% of sales in H1 2022 ❯ Selling and administrative expenses Gross margi
Slide 19: H1 2023 Net Income Back into Positive Territory at €28m
H1 2023 NET INCOME BACK INTO POSITIVE TERRITORY AT €28M ❯ Increase of PPA linked to one more additional €m H1 2022* H1 2023 Change month of consolidation of HELLA ❯ Restructuring charges down from €(154)m Sales 11,233 13,621 +21.3% Operating income 398 675 +69.6% (before amortization of acquired int
Slide 20: Adj. EBITDA Up 26.9% to €1,607m; Net Cash Flow Up 11.0% to €172m
ADJ. EBITDA UP 26.9% TO €1,607M (11.8% OF SALES, UP 50BPS YOY) NET CASH FLOW UP 11.0% TO €172M ❯ Capex to sales and Capitalized R&D to sales decreased from 4.5% and 4.1% in H1 2022 respectively to 3.3% and 4.1% in H2 2023 respectively €m H1 2022* H1 2023 Change Operating income 398 675 +69.6% ❯ Chan
Slide 21: Continued Deleveraging with Net Debt/Adj. EBITDA Ratio at 2.4x
CONTINUED DELEVERAGING WITH NET DEBT/ADJ. EBITDA RATIO AT 2.4X (BEFORE IFRS 5 IMPACT) AT JUNE 30, 2023 VS. 3.1X AT JUNE 30, 2022 ❯ IFRS 16 impact reduced in H1 2023 to €(76)m vs. €(162)m in H1 2022 €m H1 2022* H1 2023 ❯ Net debt at June 30, 2023 included two impacts Net cash flow 155 172 from the ex
Slide 22: Gross Debt Reduced by €559 Million and Available Cash of €3.5 Billion
GROSS DEBT REDUCED BY €559 MILLION AND AVAILABLE CASH OF €3.5 BILLION ❯ Group liquidity of €5.5bn at June 30, 2023 Breakdown of gross debt by maturity • €3.5bn of available cash February 28, 2023 June 30, 2023 • €1.5bn from the fully undrawn FORVIA Senior Credit Facility 2 500 2 500 • €500m from HEL
Slide 23: New FY 2023 Guidance
NEW FY 2023 GUIDANCE Patrick KOLLER CEO 23 H1 2023 Results zeW3484E
Slide 24: Assumption for Worldwide Automotive Production in 2023 Revised to Around 86M LVs
ASSUMPTION FOR WORLDWIDE AUTOMOTIVE PRODUCTION IN 2023 REVISED FROM 82M LVS TO AROUND 86M LVS 2022 2023 ❯ Based on actual worldwide automotive production (millions of LVs) (millions of LVs) growth in H1 and expected evolution in H2, FORVIA EMEA 18.0 19.7 >19 is revising upward its worldwide automoti
Slide 25: Main Drivers of Sequential Improvement in Operating Margin in H2 2023
MAIN DRIVERS OF SEQUENTIAL IMPROVEMENT IN OPERATING MARGIN IN H2 2023 VS. H1 2023 ❯ Positive mix ❯ Effective inflation management • Full impact in H2 of recurring inflation compensation obtained in H1 • Ongoing negotiations to increase compensation €675m ❯ Accelerated synergies with HELLA • Full imp
Slide 26: Further Deleveraging in H2 2023
FURTHER DELEVERAGING IN H2 2023 IN LINE WITH GROUP’S TOP PRIORITY TO REACH NET DEBT/ADJ. EBITDA RATIO BETWEEN 2.0X AND 2.2X AT YEAR-END NET DEBT/ADJUSTED EBITDA RATIO ❯ Expected cash-in of all divestments proceeds by end of Q3 3.1x ❯ Expected enhanced cash flow generation related 2.5x to sequential
Slide 27: New FY 2023 Guidance Confirms Significant Improvement in Profitability and Deleveraging
NEW FY 2023 GUIDANCE CONFIRMS SIGNIFICANT IMPROVEMENT IN PROFITABILITY AND DELEVERAGING, ON TRACK WITH POWER25 Based on FORVIA’s worldwide automotive production assumption revised to around 86 million LVs, new guidance is as follows: SALES OPERATING MARGIN • This guidance is based on full-year avera
Slide 28: Takeaways
TAKEAWAYS Patrick KOLLER CEO 28 H1 2023 Results zeW3484E
Slide 29: H1 2023 Demonstrated Full Alignment with Priorities
H1 2023 DEMONSTRATED FULL ALIGNMENT WITH PRIORITIES 1 2 3 4 5 Sustainable Strong order Synergies from Deleveraging FY 2023 growth and intake > €15bn combination is well guidance solid cash in H1 2023 with with HELLA underway revised upward, generation high average ahead of to 2.0 to 2.2x sustained b
Slide 30: On Track to Achieve 2025 Targets
ON TRACK TO ACHIEVE 2025 TARGETS H1 2023 and guidance for FY 2023 confirm that the Group is well on track to achieve its POWER25 objectives, as presented at the Capital Markets Day held on November 3, 2022 SALES OPERATING MARGIN • These targets are based on the main following assumptions: • Worldwid
Slide 31: Q&A
Q&A 31 H1 2023 Results zeW3484E
Slide 32: Appendix
APPENDIX 32 H1 2023 Results zeW3484E
Slide 33: IFRS Restatement on 2022 Sales & Operating Income by Semester
IFRS 5 RESTATEMENT ON 2022 SALES & OPERATING INCOME BY SEMESTER ❯ Faurecia’s SAS Cockpit Modules division (assembly and logistics services), that was part of the “Interiors” Business Group and whose contemplated disposal was announced on February 19, 2023, has been presented as “Discontinued operati
Slide 34: Seating: Strong Growth and Recovery Underway
SEATING: STRONG GROWTH AND RECOVERY UNDERWAY 31% of Group consolidated sales in the period Organic Currency Reported €m H1 2022 H1 2023 growth effect change Sales 3,530 819 (101) 4,248 +20.3% % of last year's sales +23.2% -2.8% Outperformance (bps) +1,200 bps Operating income 65 139 2.1x % of sales
Slide 35: Interiors: Solid Growth and Temporary Headwinds on Margin
INTERIORS: SOLID GROWTH AND TEMPORARY HEADWINDS ON MARGIN 18% of Group consolidated sales in the period Organic Currency Reported €m H1 2022* H1 2023 growth effect change Sales 2,172 339 (72) 2,438 +12.3% % of last year's sales +15.6% -3.3% Outperformance (bps) +440 bps Operating income 63 94 +49.6%
Slide 36: Clean Mobility: Resilient Sales and Sustained Profitability
CLEAN MOBILITY: RESILIENT SALES AND SUSTAINED PROFITABILITY 18% of Group consolidated sales in the period Organic Currency Reported €m H1 2022 H1 2023 growth effect change Sales 2,285 267 (84) 2,467 +8.0% % of last year's sales +11.7% -3.7% Outperformance (bps) +50 bps Operating income 152 190 +25.3
Slide 37: Electronics: Strong Sales Growth and Challenges at Clarion Electronics
ELECTRONICS: STRONG SALES GROWTH AND CHALLENGES AT CLARION ELECTRONICS 15% of Group consolidated sales in the period Scope Organic effect Currency Reported €m H1 2022 H1 2023 growth (HELLA effect change 1 month) Sales 1,550 291 247 (41) 2,047 +32.0% % of last year's sales +18.7% 15,9% -2.6% Outperfo
Slide 38: Lighting: Strong Growth and Confirmed Turnaround
LIGHTING: STRONG GROWTH AND CONFIRMED TURNAROUND 14% of Group consolidated sales in the period Scope Organic effect Currency Reported €m H1 2022 H1 2023 growth (HELLA effect change 1 month) Sales 1,281 319 281 (8) 1,874 +46.3% % of last year's sales +24.9% +22.0% -0.6% Outperformance (bps) +1,370 bp
Slide 39: Lifecycle Solutions: A Growing Highly-Profitable Business
LIFECYCLE SOLUTIONS: A GROWING HIGHLY-PROFITABLE BUSINESS 4% of Group consolidated sales in the period Scope Organic effect Currency Reported €m H1 2022 H1 2023 growth (HELLA effect change 1 month) Sales 415 59 88 (16) 546 +31.4% % of last year's sales +14.1% +21.3% -4.0% Outperformance (bps) +290 b
Slide 40: FORVIA - Inspiring mobility
-ORVIA Inspiring mobility