Slide 1: FY 2021 results
FY 2021 results 2021, a foundational year for Faurecia FORVIA on track to deliver on ambitions February 21, 2022
Slide 2: Agenda
Agenda 01 2021, a foundational year for Faurecia | Patrick Koller - CEO 02 Financial Review | Michel Favre - CFO 03 2022 Faurecia standalone guidance | Patrick Koller - CEO 04 FORVIA strategic update | Patrick Koller - CEO
Slide 3: 2021, a foundational year for Faurecia
01. 2021, A FOUNDATIONAL YEAR FOR FAURECIA
Slide 4: 2021, a foundational year for Faurecia on track to deliver on synergies
2021, a foundational year for Faurecia Successful spin-off from the historical shareholder (PSA/Stellantis) • Increased free float > 90% and inclusion in CAC Next 20 effective March 22, 2021 • First Employee Shareholding Plan (faur’ESO), with high subscription rate for a total of €100m Strategic and
Slide 5: Climate change at the heart of our strategy
Climate change at the heart of our strategy Faurecia is fully on track to become CO2 neutral Creation of a new cross-business division for scopes 1 and 2 by 2025 and to reduce by 50% its scope 3 for Sustainable Materials controlled emissions in 2030, before reaching net zero by 2050 at the latest •
Slide 6: Acceleration of Zero-Emission Hydrogen strategy
Acceleration of Zero-Emission Hydrogen strategy Internationalization of Faurecia’s capabilities through the acquisition of a majority stake in CLD, a leading Chinese manufacturer of hydrogen tanks Structuration of Faurecia’s industrial footprint • New plant in Allenjoie (France) with a capacity of u
Slide 7: Solid order intake amounting to cumulative €75bn for 2019 - 2021
Solid order intake amounting to cumulative €75bn for 2019 - 2021 Continued progress in customer satisfaction through efficient Total Customer Satisfaction program • 70 awards in 2021 for global performance, manufacturing excellence, cost savings and innovation • New improvement in customer perceptio
Slide 8: Financial Review
02. FINANCIAL REVIEW
Slide 9: Resilient performance in 2021 despite headwinds
Resilient performance in 2021 despite headwinds Resilient performance in 2021: • Sales of €15.6bn up 8.8% organically with strong outperformance of 650bps in H2 and 500bps in FY • Operating income of €862m, representing 5.5% of sales • Net cash flow of €305m or €317m before HELLA acquisition impact
Slide 10: In 2021, the automotive industry has been strongly penalized by the semiconductor shortage
In 2021, the automotive industry has been strongly penalized by the semiconductor shortage In million vehicles* 85.4 80.9 In 2021, worldwide automotive production 73.4 remained low at 73.4m LVs, close to the record 70.7 low of 2020 (impacted by Covid-19), vs. an initial forecast of 80.9m (as release
Slide 11: In 2021, raw material prices faced a significant rise mitigated by pass-through terms
In 2021, raw material prices faced a significant rise mitigated in Faurecia’s account by our “pass-through” contractual terms Steel and chemicals represented c. 40% of the Group’s total free purchases in 2021 Contractual “pass-through” to customers is on average of c. 80% CARBON STEEL PRICE EVOLUTIO
Slide 12: In H2 2021, Stop & Gos decided by OEMs reduced our cost flexibilization capabilities
In H2 2021, Stop & Gos decided by OEMs reduced our cost flexibilization capabilities, especially for JIT deliveries CUMULATED OEMS DAYS OF CLOSURE IN EUROPE 338 Semiconductor shortage strongly 272 disrupted our customers’ activity and generated 205 166 203 a record high volatility in OEMs programs 1
Slide 13: Launch of a new Seating program in Michigan generated significant extra-costs
In H2 2021, the launch of a new Seating program in Michigan generated significant extra-costs before being fixed in 2022 Operational difficulties met in H2 2021 in the two new separate production units (one for Metal and one for Assembly of complete seats): • Structural shortage of the US labor mark
Slide 14: Strong headwinds in H2 2021: Stop & Gos and operational difficulties
Strong headwinds in H2 2021: Stop & Gos due to high volatility in OEM programs and operational difficulties in a Seating US program H2 2021 SALES €8,360m €132m €(657)m - €7,835m +1.6% -7.9% - WW auto WW auto prod. prod. 41.9m* Mainly CNY vs. automotive production 35.9m* and USD growth* of -14.4% H2
Slide 15: Strong sales outperformance of 500bps; operating leverage of 34%
Strong sales outperformance of 500bps Confirmed robust operating leverage of 34% FY 2021 SALES €14,445m €(164)m €1,277m €60m €15,618m -1.1% +8.8% +0.4% WW auto WW auto prod. prod. 70.7m* Mainly USD , TRY vs. automotive production 73.4m* and BRL growth* of +3.8% FY 2021 OPERATING INCOME €298m €(3)m €
Slide 16: Seating and Interiors
Seating Interiors 39% of Group sales 30% of Group sales FY 2020* H2 2021 FY 2021 FY 2020* H2 2021 FY 2021 5,560 Sales (€m) 3,082 6,049 4,335 Sales (€m) 2,265 4,641 Excl. €100m YoY reported -6.3% +8.8% YoY reported -9.4% +7.0% impact in the US YoY organic -8.2% +9.1% YoY organic -10.2% +7.7% 191 Oper
Slide 17: Clean Mobility and Clarion Electronics
Clean Mobility Clarion Electronics 26% of Group sales 5% of Group sales FY 2020* H2 2021 FY 2021 FY 2020* H2 2021 FY 2021 3,823 Sales (€m) 2,051 4,091 727 Sales (€m) 438 838 YoY reported -5.8% +7.0% YoY reported +10.7% +15.4% YoY organic -7.8% +8.2% YoY organic + 9.3% +17.5% 200 Operating income (€m
Slide 18: Europe and North America
Europe North America 45% of Group sales 24% of Group sales FY 2020* H2 2021 FY 2021 FY 2020* H2 2021 FY 2021 6,763 Sales (€m) 3,191 6,996 3,632 Sales (€m) 1,945 3,725 Excl. €100m YoY reported -16.5% +3.5% YoY reported -9.8% +2.6% impact in the US YoY organic -16.2% +3.7% YoY organic -11.3% +5.8% 85
Slide 19: Asia and Rest of the world
Asia Rest of the world 27% of Group sales 4% of Group sales FY 2020* H2 2021 FY 2021 FY 2020* H2 2021 FY 2021 3,528 Sales (€m) 2,309 4,167 523 Sales (€m) 391 731 YoY reported +12.2% +18.1% YoY reported +20.4% +39.8% YoY organic +7.7% +16.3% YoY organic +15.2% +46.7% 308 Operating income (€m) 256 458
Slide 20: Gross margin at 12.1%; operating margin at 5.5%
Gross margin at 12.1%, up 190bps yoy despite headwinds in H2 Operating margin at 5.5%, up 260bps yoy in €m FY 2020* FY 2021 Change Sales 14,445 15,618 +8.1% Organic growth Gross margin of 12.1%, up 190bps year-on-year +8.8% • Purchasing policy with resilience actions on inflation Cost of sales (12,9
Slide 21: Net income from continued operations of €113m
Net income from continued operations of €113m, incl. €(41)m from one-off costs related to HELLA acquisition in €m FY 2020* FY 2021 Change Restructuring expenses of €(196)m: Sales 14,445 15,618 +8.1% • Significantly reduced vs. the historical high of €285m Organic growth (%) +8.8% in 2020 Operating i
Slide 22: Strong EBITDA margin at 13.5%; NCF of €317m
Strong EBITDA margin at 13.5%, up 190bps yoy Solid NCF of €317m, before €(12)m due to HELLA acquisition in €m FY 2020* FY 2021 Change Operating income 418 862 444 Depreciation and amortization, of which: 1,251 1,247 - Amortization of R&D intangible assets 518 487 Capex contained to €530m well below
Slide 23: Deleveraging with net debt-to-EBITDA ratio reduced to 1.6x
Deleveraging with net debt-to-EBITDA ratio reduced to 1.6x in €m FY 2020* FY 2021 Change Net cash flow 13 305 292 Return to dividend payment in 2021: • Dividend suspended in 2020 due to the Covid-crisis Dividends paid incl. mino. (35) (201) • Resumed dividend policy with 1€ per share paid Share purc
Slide 24: Active on financial markets to strengthen debt profile and secure HELLA financing
Faurecia has been active on the financial markets to strengthen debt profile, extend maturity and secure the financing of HELLA 2021 debt issuance included a large share Secured financing of HELLA of sustainability-linked financings August 2021 February 2021 Additional issuance of €190m Bridge facil
Slide 25: Solid financial structure as of December 31, 2021
Solid financial structure as of December 31, 2021 Strong liquidity of €6.4bn, incl. pre-financing actions for HELLA BREAKDOWN OF GROSS DEBT BY MATURITY As of December 31, 2021 Improved financial flexibility 2 500 Average cost of long-term debt < 2.8% excl. IFRS16 debt 2 000 No major debt repayment b
Slide 26: Proposed dividend of €1 per share, stable year-on-year
Proposed dividend of €1 per share, stable year-on-year Stable dividend at €1 per share* to reflect: DIVIDEND PER SHARE • Strategy to offer a fair and attractive remuneration to shareholders Year of payment • Commitment to maintain a sound financial structure, fully aligned with the Group’s deleverag
Slide 27: 2022 Faurecia standalone guidance
03. 2022 FAURECIA STANDALONE GUIDANCE
Slide 28: Worldwide automotive production assumptions 2022 expected to grow by 7%
Faurecia’s worldwide automotive production assumptions 2022 expected to grow by 7%, driven by H2 Faurecia’s assumption for 2022 is 78.7m light vehicles, In millions vehicles 78.7 73.4 a +7.2% year-on-year growth driven by H2 2022: • H1 2022 to decrease by c.2% vs. H1 2021, 37.5 36.7 42.0 35.9 mostly
Slide 29: 2022 guidance (Faurecia standalone)
2022 guidance (Faurecia standalone) reflects strong sales organic growth, solid operating leverage and strong cash generation At this stage and due to the recent closing of HELLA transaction, Faurecia is guiding for its standalone scope: Operating margin Net cash flow of c.€500m Sales between betwee
Slide 30: FORVIA strategic update
04. FORVIA STRATEGIC UPDATE
Slide 31: HELLA acquisition successfully closed within a short period of time
HELLA acquisition successfully closed within a short period of time January 31, 2022: closing of the acquisition • Faurecia owns a controlling stake exceeding 80% for a total value of €5.4bn CAPITAL STRUCTURE As of January 31, 2022 • HELLA to be fully consolidated into Faurecia’s accounts as from Fe
Slide 32: February 7 "Day One": Creation of FORVIA
February 7 Creation of FORVIA, “DAY ONE” the new combined company name of Faurecia and HELLA around a successful project 32 FY 2021 results - February 21, 2022
Slide 33: Powerful and strong organization around 6 Business Groups
Powerful and strong organization around 6 Business Groups Six Business Groups with leading positions will be the backbone of the new organization • All with full accountability, consolidating Product lines and Regional Divisions • 5 (Seating, Interiors, Clean Mobility, Electronics and Lighting) with
Slide 34: A high technology offer structured around 24 differentiating product lines
A high technology offer structured around 24 differentiating products lines, addressing all industry megatrends Seating Interiors Clean Mobility Instrument Panels Complete Seats Door Panels Ultralow Emissions – PV Mechanisms & Frames Center Consoles Ultralow Emissions – CV Covers and Comfort Solutio
Slide 35: Strong and well-identified synergies >€250m, above initial plan
Strong and well-identified synergies >€250m, above initial plan Cost synergies Revenue and optimization synergies Cost synergies >€250m and optimization €300-400m 2025 EBIT run rate sales increase by 2025 target increased Will favor more selectivity vs. initial plan and more robust profitability Imp
Slide 36: 2025 ambition and deleveraging trajectory fully confirmed
2025 ambition and deleveraging trajectory fully confirmed >33bn ~1.75bn >24.5bn NET ~1.1bn Strong cash generation Strong sales growth mostly through: SALES and market CASH >5% • EBITDA growth outperformance FLOW ~c. 4.5% • CAPEX optimization as % of sales • WCR improvement 2025 Faurecia 2025 2025 Fa
Slide 37: At FORVIA, we shape safe, sustainable, advanced and customized mobility
At FORVIA, we shape safe, sustainable, advanced and customized mobility WE INSPIRE MOBILITY We are a global system enabler combining hardware and software Safe Sustainable Advanced Customized We relentlessly We frame everything We design advanced We offer solutions enhance mobility through the lens
Slide 38: FY 2021 results - February 21, 2022
FY 2021 results - February 21, 2022
Slide 39: Key takeaways
KEY TAKEAWAYS
Slide 40: Strategic transformation from Faurecia into FORVIA
Strategic transformation from Faurecia into FORVIA 2021 was a foundational year for Faurecia with two major events: • The spin-off from historical PSA/Stellantis shareholding • The strategic and transformative acquisition of HELLA Faurecia posted a solid and resilient 2021 performance, despite diffi
Slide 41: Appendices
APPENDICES
Slide 42: IFRS 5 - Discontinued Operations
IFRS 5 - Discontinued Operations On February 18, Faurecia announced that it had signed a Memorandum of Understanding for the sale of its AST (Acoustics and Soft Trim) division and all conditions are met to qualify this activity as discontinued, in compliance with IFRS 5 Therefore, 2021 Group figures
Slide 43: Operating leverage
Operating leverage Sales (in €m) Operating income (in €m) 2020* 14,445 2020 before one-offs* 483 (c) One-offs (65) Currency effect (164) (a) Volume 359 Organic 1,277 (b) Stop & Gos (40) Scope effect 60 Net raw material inflation (70) Operational difficulties in the US (100) Resilience and efficiency
Slide 44: Research & Development costs FY 2021
Research & Development costs FY 2021 Cash flow statement P&L In €m FY 2020* FY 2021 In €m FY 2020* FY 2021 In €m FY 2020* FY 2021 Operating income 418 862 R&D Sales 594 660 Depreciation and amortization 1,251 1,248 o/w amortization of R&D intangible assets 503 507 o/w change in impairment of R&D ass
Slide 45: Definitions of terms (1/2)
Definitions of terms Used in this document (1/2) 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 46: Definitions of terms (2/2)
Definitions of terms Used in this document (2/2) OPERATING INCOME Operating income is the Faurecia group’s principal performance indicator. It corresponds to net income of fully consolidated companies before: • Amortization of intangible assets acquired in business combinations; • Other non-recurrin
Slide 47: 2022 Financial Agenda
2022 Financial Agenda April 28 Q1 sales| before market hours June 8 Annual Shareholders meeting July 25 H1 2022 results| before market hours October 21 Q3 sales| before market hours
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@faurecia.com Bonds ISIN Codes Matthieu FERNANDEZ 2025 bonds: XS1785467751 Mob: +33 6 22 02 01 54 2026 bonds: XS1963830002
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: FORVIA - Inspiring mobility
-ORVIA Inspiring mobility