Slide 1: FY 2019 Results
FY 2019 RESULTS All targets achieved despite tough environment Record order intake February February 17, 2020 17, 2020 The full-year 2019 consolidated financial statements have been approved by the Board of Directors at its meeting held on February 14, 2020, under the chairmanship of Michel de Rosen
Slide 2: Agenda
Agenda Patrick Koller 1 2019 HIGHLIGHTS Chief Executive Officer Michel Favre 2 DETAILED REVIEW OF 2019 RESULTS Chief Financial Officer Patrick Koller 3 2020 OUTLOOK Chief Executive Officer 2 2019 Results - February 17, 2020
Slide 3: Agenda
Agenda Patrick Koller 1 2019 HIGHLIGHTS Chief Executive Officer Michel Favre 2 DETAILED REVIEW OF 2019 RESULTS Chief Financial Officer Patrick Koller 3 2020 OUTLOOK Chief Executive Officer 3 2019 Results - February 17, 2020
Slide 4: 2019 Highlights
2019 Highlights > Strong and resilient performance in 2019 • All financial targets achieved in a tough environment • Strong cash generation • Record order intake in 2019 resulting in €68bn over the last three years > Accelerated transformation for Cockpit of the Future and Sustainable Mobility • Cre
Slide 5: All targets achieved in a challenging environment
All targets achieved in a challenging environment > 2019 financial targets maintained throughout the year despite worsening worldwide automotive production from an estimated -1% in February 2019 to a final figure of -5.8%* (miss of 4.3m vehicles, of which 1.6m in China) SALES PROFITABILITY NET CASH
Slide 6: Robust profitable growth roadmap for Faurecia Clarion Electronics
Robust profitable growth roadmap for Faurecia Clarion Electronics > Creation of our fourth Business Group with the successful integration of Clarion, Parrot and Coagent > Accelerated cost competitiveness program to generate at least €80m annual savings by end 2020 • Reduction of 14% of headcount at
Slide 7: Extended range of product lines for Sustainable Mobility and Cockpit of the Future
Faurecia now offers an extended range of product lines for Sustainable Mobility and Cockpit of the Future SUSTAINABLE MOBILITY COCKPIT OF THE FUTURE COMFORT PASSENGER DUAL POWER ELECTRIC SEAT STRUCTURE COVERS COMPLETE SEATS & WELLNESS VEHICLES VEHICLES SYSTEMS & FOAM SOLUTIONS SOLUTIONS FUEL CELL EL
Slide 8: Record order intake securing future profitable growth
Record order intake securing future profitable growth 3-YEAR ROLLING ORDER INTAKE (lifetime sales) > Record order intake in 2019 resulting in €68bn over the last three years: €68bn €62bn €63bn • Reflecting continuous market share gains €53bn • With high profitability 2014-2016 2015-2017 2016-2018 20
Slide 9: Sustained investment in innovation and development of a broad ecosystem
Sustained investment in innovation and development of a broad ecosystem > Sustainable Mobility Sustainable Mobility Cockpit of the Future Group • Partnership with Michelin for fuel cell systems • Acquisition of Ullit for high-pressure tanks Acquisitions > Cockpit of the Future • Acquisitions of Clar
Slide 10: Anticipating the next disruption and targeting CO2 neutrality by 2030
Anticipating the next disruption and targeting CO2 neutrality by 2030 ACCOUNTING ACTIONS STARTING POINT Faurecia 2019 “controlled” USE Carbon Footprint (Deloitte) LESS 8 7 Scope 1 & 2 DESIGN 6 FOR PLANET 5 Logistics 4 Other 3 BUY > Scope 1 Heat use in Plants GREEN 2 Purchased > Scope 2 Electricity u
Slide 11: Agenda
Agenda Patrick Koller 1 2019 HIGHLIGHTS Chief Executive Officer Michel Favre 2 DETAILED REVIEW OF 2019 RESULTS Chief Financial Officer Patrick Koller 3 2020 OUTLOOK Chief Executive Officer 11 2019 Results - February 17, 2020
Slide 12: Strong financial performance and increased proposed dividend
Strong financial performance and increased proposed dividend Sales Up 1.4% on a reported basis and down 3.0% at constant currencies and excl. Clarion scope effect €17,768m vs. €17,525m in 2018 Outperformance of 280bps, in line with guidance of between 150bps and 350bps Operating income €1,283m In li
Slide 13: Sales outperformance of 300bps despite significant impact from Seating EoPs
Sales outperformance of 300bps despite significant impact from Seating EoPs €(529)m €586m €17,768m €187m €17,525m +1.1% -3.0% +3.3% Currency effect Growth ex-currencies* Clarion scope effect** Vs. automotive production growth*** of -5.8% FY 2018 FY 2019 WW auto prod. 90.5m WW auto prod. 85.3m H1 201
Slide 14: Confirmed resilient performance thanks to strong action plans
Confirmed resilient performance thanks to strong action plans 7.3% 7.4% 7.2% Other €(188)m €175m Clarion consolidation Volume/mix Resilience FY 2018 FY 2019 FY 2019 excluding Clarion including Clarion > The negative impact from volume/mix was broadly offset by cost savings generated by: • Our three
Slide 15: Successful resilience action plans
Successful resilience action plans > Operational flexibility through direct and indirect headcount management • Total headcount reduction of c. 6% year-on-year (at constant perimeter) • Additional flexibility through temporary headcount, still representing an estimated share of c.19% of total headco
Slide 16: Seating 39% of Group sales
Seating 39% of Group sales Improved profitability despite lower sales SALES OPERATING INCOME €7,438m €52m €(517)m €453.1m +0.7% -6.9% €6,973m €448.5m Currency effect Growth ex-currencies* Vs. automotive production growth** of -5.8% 6.0% +1.0% 6.5% of sales or +50bps of sales FY 2018 FY 2019 FY 2018
Slide 17: Interiors 30% of Group sales
Interiors 30% of Group sales Strong sales outperformance of 490bps; profitability temporarily impacted by the Decoration activity SALES OPERATING INCOME €58m €(51)m €5,363 +1.1% -0.9% €5,370m Growth Currency ex-currencies* €325.3m effect €293.7m Vs. automotive production growth** of -5.8% 6.1% -9.7%
Slide 18: Clean Mobility 26% of Group sales
Clean Mobility 26% of Group sales Strong sales outperformance of 500bps and improved profitability SALES OPERATING INCOME €75m €(36)m -0.8% €4,654m €4,615m +1.6% Growth €524.6m Currency ex-currencies* effect €499.8m Vs. automotive production growth** of -5.8% 10.8% +5.0% 11.3% of sales or +50bps of
Slide 19: Clarion Electronics 5% of Group sales
Clarion Electronics 5% of Group sales Successful integration of Clarion and improved profitability in H2 thanks to accelerated cost-cutting plans SALES OPERATING INCOME €771m Clarion €586m €11.9m €109m Parrot Automotive €49m 1.5% of sales Coagent Coagent €136m €0.3m FY 2018 FY 2019 FY 2018 FY 2019 >
Slide 20: Europe 49% of Group sales; North America 25% of Group sales
Europe 49% of Group sales North America 25% of Group sales Sales outperformance in a challenging environment Sales impacted by significant Seating EoP and improved profitability and resilient profitability SALES SALES €8,858m €(16)m €(250)m €227m €(364)m -0.2% +5.1% €4,474m €146m €4,483m Currency -2
Slide 21: Asia 21% of Group sales; South America 4% of Group sales
Asia 21% of Group sales South America 4% of Group sales Sales outperformance of 910bps in a tough Strong sales outperformance of 970bps environment; resilient double-digit profitability in China and improved profitability driven by Brazil SALES SALES €386m €3,766m €714m €(60)m €37m €5m €696m +11.9%
Slide 22: Operating income up to €1,283m
Operating income up to €1,283m Resilient operating margin and dilutive impact from Clarion in €m FY 2018 FY 2019 Change Sales 17,525 17,768 +1.4% > Gross margin improved by 100bps, reflecting resilience ex-currency growth* -3.0% actions Cost of sales (15,249) (15,287) +0.2% % of sales (87.0%) (86.0%
Slide 23: Net income impacted by higher restructuring and Clarion-related costs
Net income impacted by higher restructuring and Clarion-related costs > Amortization of intangible assets in 2019 mainly in €m FY 2018 FY 2019 Change included €(50)m for FCE (of which €33m for 9 months Operating income 1,274 1,283 +0.7% of Clarion) (before amort. of acquired intangible assets) Amort
Slide 24: Net cash flow up 11%, to €587m
Net cash flow up 11%, to €587m in €m FY 2018 FY 2019 Change > EBITDA up €263m or +12.3%, mostly due to Operating income 1,274 1,283 +0.7% the application of IFRS16 as of January 1, 2019 Depreciation and amortization, of which: 867 1,121 > Strict control of capex, broadly stable year-on-year . Amorti
Slide 25: Strong financial discipline and secured financing
Strong financial discipline and secured financing NET DEBT VARIATION (€m) LONG-TERM DEBT MATURITY PROFILE (€m) Opening net debt Closing net debt 900 Dec. 31, 2018 Dec. 31, 2019 800 Schuldschein IFRS 16 700 and other bank loans Senior Notes 600 1st application (726) 500 impact Clarion Impact (180) ac
Slide 26: Increase in proposed dividend to €1.30 per share
Increase in proposed dividend to €1.30 per share DIVIDEND PER SHARE > Faurecia will propose to shareholders a dividend of €1.30 per share €1.30* €1.25 €1.10 > It will be payable in cash early June 2020, subject to approval at the Annual Shareholders’ €0.90 Meeting to be held on May 29, 2020 €0.65 >
Slide 27: Agenda
Agenda Patrick Koller 1 2019 HIGHLIGHTS Chief Executive Officer Michel Favre 2 DETAILED REVIEW OF 2019 RESULTS Chief Financial Officer Patrick Koller 3 2020 OUTLOOK Chief Executive Officer 27 2019 Results - February 17, 2020
Slide 28: 2020 market assumptions in an environment with low visibility
2020 market assumptions in an environment with low visibility AUTOMOTIVE PRODUCTION GROWTH > Europe, impacted by: 2020 vs. 2019 • New CO2 rules • Economic challenges (Brexit, weakening macro in countries such as Italy and Spain) • Contraction in Russia NORTH > North America, impacted by: EUROPE AMER
Slide 29: Update on China situation
Update on China situation > Faurecia in China • €2.6bn of sales in 2019 • 58 plants (o/w 4 in Wuhan and 2 in XiangYang in Hubei province) and 19,700 people at Dec. 31, 2019 > Health and safety of our people and families is Nr. 1 priority • No employee infected to date • Start-up of production and of
Slide 30: FY 2020 guidance
FY 2020 guidance > With the assumption of worldwide automotive production down c. 3% in 2020 vs. 2019, our FY 2020 guidance* is as follows: SOLID GROWTH IMPROVEMENT STRONG IN REPORTED SALES IN PROFITABILITY CASH GENERATION including: Scope effect of c. 500bps Operating margin Net cash flow (3 months
Slide 31: FY 2020 guidance puts us on track to achieve our mid-term targets
FY 2020 guidance puts us on track to achieve our mid-term targets > Faurecia is committed to generate profitable growth and create value for all stakeholders > Our mid-term financial targets presented at our Capital Markets Day on November 26, 2019 are as follows: 2022 FINANCIAL TARGETS OPERATING NE
Slide 32: Update on PSA/FCA merger process
Update on PSA/FCA merger process > On December 18th, 2019, PSA and FCA signed an agreement to merge > PSA confirmed it will distribute to its shareholders its 46% stake in Faurecia before completion of the deal, which is expected to take place 12 to 15 months after the signature of the agreement > F
Slide 33: Key takeaways
Key takeaways > 2019 confirmed the Group’s resilience and agility, with all financial targets achieved, and secured future profitable growth through record order intake > Despite tough environment, the Group continued its transformation with the creation of a fourth Business Group, Faurecia Clarion
Slide 34: FY 2019 Results - Appendices
FY 2019 RESULTS Appendices February February 17, 2020 17, 2020 The full-year 2019 consolidated financial statements have been approved by the Board of Directors at its meeting held on February 14, 2020, under the chairmanship of Michel de Rosen. These financial statements have been audited.
Slide 35: Financial calendar
Financial calendar > April 20, 2020 Q1 2020 sales announcement > May, 29, 2020 Annual Shareholders’ Meeting > July 27, 2020 H1 2020 results announcement > October 23, 2020 Q3 2020 sales announcement 35 2019 Results - February 17, 2020
Slide 36: Definitions of terms used in this document
Definitions of terms used in this document > 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 “Growt
Slide 37: Impacts from IFRS 16 implementation
Impacts from IFRS 16 implementation > IFRS16 is the new standard on leases, > Main impacts on 2019 consolidated financial statements with first application on January 1, 2019 are the following: • All lease contracts are accounted In €m in the balance sheet through: P&L FY 2019 – an asset, representi
Slide 38: FY 2019 sales by Business Group
FY 2019 sales by Business Group Sales (in €m) Reported Currency effect Growth ex-currencies* Clarion scope effect Reported FY 2018 value % value % value % FY 2019 % Seating 7,438 52 0.7% -517 -7.0% 6,973 -6.3% of which bolt-ons 106 1.4% Interiors 5,363 58 1.1% -51 -0.9% 5,370 0.1% of which bolt-ons
Slide 39: FY 2019 sales by region
FY 2019 sales by region Sales (in €m) Reported Currency effect Growth ex-currencies* Clarion scope effect Reported FY 2018 value % value % value % FY 2019 % Europe 8,858 -16 -0.2% -250 -2.8% 49 0.6% 8,641 -2.4% of which bolt-ons 53 0.6% North America 4,474 227 5.1% -364 -8.1% 146 3.3% 4,483 0.2% Asi
Slide 40: FY 2019 operating income by Business Group
FY 2019 operating income by Business Group Operating income (in €m) FY 2018 FY 2019 Change Seating 448.5 453.1 +1.0% % of sales 6.0% 6.5% +50bps Interiors 325.5 293.7 -9.7% % of sales 6.1% 5.5% -60bps Clean Mobility 499.8 524.6 +5.0% % of sales 10.8% 11.3% +50bps Faurecia Clarion Electronics 0.3 11.
Slide 41: FY 2019 operating income by region
FY 2019 operating income by region Operating income (in €m) FY 2018 FY 2019 Change Europe 565.9 558.0 -1.4% % of sales 6.4% 6.5% +10bps North America 289.7 282.6 -2.5% % of sales 6.5% 6.3% -20bps Asia 367.0 373.6 +1.8% % of sales 11.3% 9.9% -140bps South America 24.6 47.9 +94.7% % of sales 3.4% 6.9%
Slide 42: FY 2019 bolt-on contribution to sales
FY 2019 bolt-on contribution to sales Sales (in €m) Business Group Region Conso as from Q1 2019 Q2 2019 H1 2019 Q3 2019 Q4 2019 H2 2019 FY 2019 Hug Engineering Clean Mobility Europe Q2 2018 14 0 14 0 0 0 14 JV with Wuling Interiors Asia Q2 2018 21 0 21 0 0 0 21 BYD Seating Asia Q3 2018 59 48 106 0 0
Slide 43: Research and development costs
Research and development costs CASH FLOW STATEMENT P&L in €m FY 2018 FY 2019 FY 2018 FY 2019 in €m FY 2018 FY 2019 reported excl. FCE Operating income 1,273.9 1,283.3 R&D Sales 663.3 712.1 Depreciation and amortization 866.7 1,121.0 o/w amortization of R&D intangible assets 398.6 437.8 o/w change in
Slide 44: Contact & share data
Contact & share data Investor Relations Share Data Bloomberg Ticker: EO:FP Marc MAILLET Reuters Ticker: EPED.PA Tel: +33 1 72 36 75 70 Datastream: F:BERT E-mail: marc.maillet@faurecia.com ISIN Code: FR0000121147 Anne-Sophie JUGEAN Tel: +33 1 72 36 71 31 E-mail: annesophie.jugean@faurecia.com Bonds I
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: Faurecia inspiring mobility
‘Faurecia inspiring mobility