Slide 1: 2022 Results, February 20, 2023
2022 “RESULTS February 20, 2023 ‘Faurecia
Slide 2: 2022 Key Highlights, Results Review, FY 2023 Guidance
2022 KEY HIGHLIGHTS 2022 RESULTS REVIEW FY 2023 GUIDANCE AND KEY TAKEAWAYS FY 2022 Results - February 20, 2023
Slide 3: 2022 Key Highlights
2022 KEY HIGHLIGHTS FY 2022 Results - February 20, 2023
Slide 4: Step change in size, resilient operating margin, deleveraging underway
STEP CHANGE RESILIENT STRONG DELEVERAGING IN SIZE OPERATING MARGING NET CASH FLOW UNDERWAY Net debt/Adj. EBITDA ratio* 3.1x at June 30, 2022 2.6x €1,115m €471m at Dec. 31, 2022 +63.0% €25,458m €6,512m HELLA €862m consolidation €305m €3,012m 11 months €689m EBITDA €15,618m +17.0% €510m organic €426m
Slide 5: Deleveraging, HELLA integration, sustainable growth
DELEVERAGING HELLA INTEGRATION SUSTAINABLE GROWTH ▪ €1BN DISPOSAL PROGRAM ▪ UPGRADED COST ▪ RESILIENT FINANCIAL FULFILLED THROUGH SYNERGIES TO >300M PERFORMANCE IN 2022 CONTEMPLATED 2025 EBITDA RUN-RATE TRANSACTIONS ANNOUNCED ▪ STRONG ORDER INTAKE TO DATE ▪ UPGRADED SALES OF €31BN IN 2022 AT AN SYNE
Slide 6: Contemplated transactions fulfill the €1bn disposal program
▪ July 2022: ▪ HELLA announced the sale of its 33.33% stake in HBPO to its co-shareholder, Plastic Omnium, for €290m (closed in December 2022) ▪ December 2022: ▪ Announcement of the sale of Faurecia’s Interiors business in India to TAFE (Tractors and Farm Equipment Ltd) ▪ Faurecia, Michelin (50/50 p
Slide 7: We pioneer technology for mobility experiences that matter to people
WE PIONEER TECHNOLOGY FOR MOBILITY EXPERIENCES THAT MATTER TO PEOPLE PROCESS / COST COMMERCIAL OPTIMIZATION PEOPLE Combined go-to-market Kick-off for common Celebrating together Positive customer feedback FORVIA Excellence FORVIA’s from CES 2023 System in Operations 1st anniversary Multiple joint De
Slide 8: Upgraded cost and revenue synergies targets
Cost synergies and optimization Revenue synergies target upgraded to target upgraded to > €300m > €400m annual sales 2025 EBITDA run-rate increase by 2025 (vs. >€250m previously) (vs. between €300m and €400m previously) ▪ Robust tracking & governance ▪ €1.8bn joint order intake in 2022 ▪ > €300m of
Slide 9: Selective order intake with average operating margin >7%
ELECTRONICS CHINA EVs (BEVs + FCEVs) PREMIUM & SUVs €8.4bn €6.2bn €13.3bn €18.8bn 27% 20% 43% 61% SELECTIVE ORDER INTAKE WITH AN AVERAGE OPERATING MARGIN >7%, ALREADY REACHING 25 TARGETED PROFITABILITY 9 FY 2022 Results - February 20, 2023
Slide 10: Sales split by region
Americas / 28% Asia / 27% EMEA / 45% 10 FY 2022 Results - February 20, 2023
Slide 11: No customer above 20% of Group sales
Lifecycle solutions / 3% Lighting / 12% Seating / 30% Others VW / 18% Electronics / 14% BMW / 5% Stellantis / GM / 5% 13% US EV maker / 6% Ford / 9% Daimler / 7% Clean Mobility / 19% Interiors / 22% Chinese OEMs / 8% RNM / 8% NO CUSTOMER ABOVE 20% OF GROUP SALES 11 FY 2022 Results - February 20, 202
Slide 12: Sales in China = 21% of Group sales in 2022
SALES IN CHINA = 21% OF GROUP SALES IN 2022 INCREASING SHARE OF CHINESE OEMs €5,377m 1.7x €672m €5,377m €1,292m +21.6% €3,117m 60% €3,117m €296m Non-Chinese OEMs 1.6x +41.4% +9.5% 67% Chinese OEMs 2.1x 40% 33% FY 2021 FY 2022 12 FY 2022 Results - February 20, 2023
Slide 13: First automotive company with net-zero target approved by SBTi
FORVIA FIRST AUTOMOTIVE COMPANY WITH NET-ZERO TARGET APPROVED BY THE SCIENCE BASED TARGETS INITIATIVE 1 net-zero target approved by the st automotive company with Science Based Targets (June 22) 2 intermediate steps: Net Zero Scopes 1 & 2: Scope 3: CO2-neutral -45% CO2 by 2045 by 2025 by 2030 Creati
Slide 14: 2022 Results Review
2022 RESULTS REVIEW FY 2022 Results - February 20, 2023
Slide 15: Worldwide automotive production
WORLDWIDE AUTO. PROD. (m units) +6.7% 90 82.4 80 77.2 70 60 -1.1% +14.8% 50 43.4 39.4 39 37.8 40 30 20 10 0 H1 2021 H1 2022 H2 2021 H2 2022 FY 2021 FY 2022 S&P Mobility (ex-IHS Markit) figures, dated February 2023 15 FY 2022 Results - February 20, 2023
Slide 16: Sales up 63% including HELLA scope effect
UP 63% INCL. SCOPE EFFECT FROM HELLA UP 17% ON AN ORGANIC BASIS, INCL. EFFECT FROM INFLATION PASS-THROUGH €25,458m €6,512m +63% €2,654m €15,618m €674m +41.7% +4.3% +17.0% Mainly USD and CNY Outperformance of 1,080bps WW auto prod. WW auto 82.4m* prod. 77.2m* 11 months with HELLA * Source: S&P Global
Slide 17: Operating income
5.0% OF SALES IN H2 2022, UP 130BPS VS. H1 2022 AND UP 50BPS YEAR-ON-YEAR OPERATING INCOME €346m €1,115m €126m €862m €(108)m €20m €(95)m €(36)m 4.4% 5.5% of sales of sales Volume / Mix War in Ukraine Inflation Reduction in Zero Emissions HELLA including FX and Covid-related Michigan contribution imp
Slide 18: Inflation impact and pass-through
▪ In 2022, inflation generated c. €1.1bn of additional costs vs. 2021 for FORVIA ▪ Raw material costs increased increased by mid- to high-single digits (with steel the most impacted) ▪ Energy inflation was limited thanks to hedging policies proactively put in place in prior years and energy efficien
Slide 19: Seating
SEATING 30% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2021 2022 Sales (€m) 6,049 7,704 YoY reported +27.4% Currency effect +5.5% YoY organic +21.9% Operating income (€m) 285 197 % of sales 4.7% 2.6% STRONG ORGANIC SALES GROWTH OF +29.9% IN H2 AND +21.9% IN FY ▪ All regions contributed to organic gro
Slide 20: Interiors
INTERIORS 22% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2021 2022 Sales (€m) 4,641 5,529 YoY reported +19.2% Currency effect +2.4% YoY organic +16.8% Operating income (€m) 190 246 % of sales 4.1% 4.4% STRONG ORGANIC GROWTH OF +29.1% IN H2 AND +16.8% IN FY ▪ Organic growth was mainly driven by Europe
Slide 21: Clean Mobility
CLEAN MOBILITY 19% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2021 2022 Sales (€m) 4,091 4,736 YoY reported +15.8% Currency effect +4.9% YoY organic +10.9% Operating income (€m) 389 336 % of sales 9.5% 7.1% ORGANIC GROWTH OF +15.1% IN H2 AND +10.9% IN FY ▪ Organic growth mainly driven by Europe and N
Slide 22: Electronics
ELECTRONICS 14% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2021* 2022* Sales (€m) 838 3,522 YoY reported +320.5% Currency effect +4.1% YoY organic +12.5% Scope effect +303.9% Operating income (€m) (2) 141 % of sales (0.2)% 4.0% STEP CHANGE IN SIZE (MORE THAN 4X) AS ELECTRONICS NOW AGGREGATES: ▪ Faure
Slide 23: Lighting
LIGHTING 12% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2022* Sales (€m) 3,074 YoY reported n/a Scope effect n/a YoY organic n/a Operating income (€m) 107 % of sales 3.5% CONSOLIDATED FOR THE FIRST FISCAL YEAR IN FAURECIA’S CONSOLIDATED ACCOUNTS ▪ Sales for 11 months amounted to €3,074m OPERATING INC
Slide 24: Lifecycle Solutions
LIFECYCLE SOLUTIONS 3% OF GROUP CONSOLIDATED SALES IN THE PERIOD 2022* Sales (€m) 893 YoY reported n/a Scope effect n/a YoY organic n/a Operating income (€m) 89 % of sales 9.9% CONSOLIDATED FOR THE FIRST FISCAL YEAR IN FAURECIA’S CONSOLIDATED ACCOUNTS ▪ Sales for 12 months would amount to c. €1bn OP
Slide 25: Results by region
North South Europe Americas Asia Am. Am. % of 2022 consolidated sales 44% 25% 3% 28% 27% Regional auto. prod. YoY* -0.5% +9.7% +8.4% +9.4% +8.2% 2021 sales (€m) 6,996 3,725 543 4,268 4,167 Currency effect -2.4% +14.8% -1.9% +12.7% +7.2% YoY organic +10.1% +20.7% +34.3% +22.4% +21.6% Scope effect +52
Slide 26: Operating income including dilutive impact from inflation pass-through
INCLUDING A DILUTIVE CUMULATED IMPACT FROM INFLATION PASS-THROUGH OF C. -120BPS in €m 2021* 2022* ▪ Gross margin of 12.7%, up 60bps year-on-year Sales 15,618 25,458 ▪ Accretive effect from the consolidation of HELLA Reported growth +63.0% Organic growth +17.0% ▪ Net R&D expenses of €897m, up 140bps
Slide 27: Net income
in €m 2021* 2022* Sales 15,618 25,458 ▪ 2022 net income included: Operating income ▪ One-off charges (mainly asset 862 1,115 (before amort. of acquired intangible assets) impairment) of €(143m) related to Amort. of int. assets acquired in business combinations (93) (219) the decision to disengage fr
Slide 28: Net cash flow
in €m 2021* H1 2022* H2 2022* 2022* ▪ Capex of €1,177m Operating income 862 426 689 1,115 ▪ €608m for Faurecia (3.2% of sales, down 20bps Depreciation and amortization, of which: 1,247 895 1,002 1,897 year-on-year) - Amortization of R&D intangible assets 487 320 367 687 ▪ €569m for HELLA (8.7% of sa
Slide 29: Net debt
in €m 2021* H1 2022* 2022* Net cash flow 305 102 471 ▪ Net financial investment and other mainly reflected Dividends paid incl. minorities (201) (5) (55) the investment in HELLA, reduced by: ▪ €0.7bn from the successful capital increase in June Share purchase (26) - - ▪ €0.3bn from the divestment of
Slide 30: Gross debt by maturity and liquidity
BREAKDOWN OF GROSS DEBT BY MATURITY as of February 20, 2023 (including the €250m “New Notes” issued in January and post-reimbursement of the HELLA-related bridges early February ) Full reimbursement of financing bridges to acquire HELLA completed on February 2, 2023 2 500 Average cost of long-term d
Slide 31: FY 2023 Guidance
FY 2023 GUIDANCE FY 2022 Results - February 20, 2023
Slide 32: Worldwide auto production assumption vs S&P forecast
IS MORE CONSERVATIVE THAN S&P’S LATEST FORECAST Worldwide automotive production (in million units) EMEA 18m 18.5m 19m 100,0 FORVIA S&P 95 2022 2023e 95,0 94 93 90,0 89 89 AMERICAS 17m 18m 18m 87 85,0 85 85 FORVIA S&P 2022 82 82 82 2023e 80,0 77 77 75,0 75 74 ASIA 47m 45m 48m 70,0 2010 2011 2012 2013
Slide 33: 2023 inflation negotiation strategies
2023 NEGOTIATION STRATEGIES ARE BEING DEPLOYED, FULLY BACKED-UP BY ANALYSIS OF : ▪Results of 2022 negotiations with suppliers and main customers (“entry point 2023”) ▪Uncovered inflation costs from 2021 and 2022 ▪Expected 2023 market price evolutions: ▪Raw materials (+/- vs. 2022) ▪Energy (+ vs. 202
Slide 34: FY 2023 guidance
▪ The guidance is based on the following assumptions: ▪ Worldwide automotive production of 82m vehicles in 2023, broadly flat vs. actual production in 2022 ▪ Full-year average currency rates of 1.10 for USD/€ and of 7.50 for CNY/€ Sales Operating Net debt/ Including estimated impact of transactions
Slide 35: 2025 financial targets confirmed
▪ 2025 financial targets as presented at recent Capital Markets Day fully confirmed ▪ They are based on worldwide automotive production assumption of 88m LVs, more conservative than S&P Mobility’s latest forecast of 90m LVs ▪ They take into account the estimated impact of the disposal program of non
Slide 36: Deleveraging, Integration, Sustainable Growth
INTEGRATION SUSTAINABLE DELEVERAGING GROWTH 36 FY 2022 Results - February 20, 2023
Slide 37: FY 2022 Results - February 20, 2023
FY 2022 Results - February 20, 2023
Slide 38: FY 2022 Results - February 20, 2023
FY 2022 Results - February 20, 2023
Slide 39: Shareholder structure as of December 31, 2022
SHAREHOLDER STRUCTURE ▪ As of December 31, 2022: Total number of shares (incl. 45,482,154 new shares related AS OF DECEMBER 31, 2022 ▪ to the June 2022 capital increase with preferential subscription right) is 197,089,340 Employee ▪ Total number of voting rights is 199,381,524 Hueck/Roepke sharehold
Slide 40: Definitions used in this document (1/3): Sales growth
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 “Growth at constant c
Slide 41: Definitions used in this document (2/3)
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 the Group as of Janua
Slide 42: Definitions used in this document (3/3)
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 of financial assets. R
Slide 43: Financial calendar
(PROVISIONAL) APRIL 17 MAY 30 JULY 27 OCTOBER 20 Q1 2023 Annual H1 2023 Q3 2023 Sales Shareholders’ Results Sales Meeting Before market Nanterre Before market Before market hours hours hours 43 FY 2022 Results - February 20, 2023
Slide 44: Share data
SHARE DATA Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA Datastream: F:BERT ISIN Code: FR0000121147 Marc MAILLET Tel: +33 1 72 36 75 70 E-mail: marc.maillet@forvia.com Web site: www.forvia.com BONDS ISIN CODES 2025 bonds: XS1785467751 LISTING 2026 bonds: XS1963830002 The share is included in Euron
Slide 45: 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 46: FY 2022 Results - February 20, 2023
FY 2022 Results - February 20, 2023