Slide 1: FY 2017 Results Strong Performance and Record Order Intake
February 16, 2018 FY 2017 Results The 2017 consolidated financial statements have been Strong Performance approved by the Board of Directors at its meeting held on February 15, 2018, under the chairmanship of Michel de Rosen. and Record Order Intake These financial statements have been audited.
Slide 2: Agenda
Agenda 1 2017 Highlights 2 Review of 2017 Results 3 2018 Guidance 2
Slide 3: Agenda
Agenda Patrick Koller 1 2017 Highlights Chief Executive Officer Michel Favre 2 Review of 2017 Results Chief Financial Officer Patrick Koller 3 2018 Guidance Chief Executive Officer 3
Slide 4: Strong performance in 2017 and all financial targets achieved or exceeded
Strong performance in 2017 and all financial targets achieved or exceeded Strong organic* sales growth of +10.6% to €17.0bn, VALUE-ADDED SALES 830bps above worldwide automotive production €16,962.2m growth €15,613.6m Above guidance of 7% organic* growth and c. 500bps outperformance +10.6%* Signi
Slide 5: Strong financial performance achieved whilst managing growth and innovation investment
Strong financial performance achieved whilst managing growth and innovation investment All Business Groups in all regions posted strong organic* sales growth and strongly outperformed worldwide automotive production growth All BGs posted organic growth above 8%, with Interiors in the double-digi
Slide 6: Customer confidence and operational excellence lead to record order intake
Customer confidence and operational excellence lead to record order intake Over 40 customer recognition awards in all regions, including Hyundai 5 Star quality certification ORDER INTAKE (THREE-YEAR ROLLING) VALUE-ADDED SALES IN €BN Over 200 program launches successfully managed in 2017 includin
Slide 7: Acceleration of investment in innovation
Acceleration of investment in innovation INVESTMENT IN INNOVATION (€M) PATENT FIRST FILINGS (units) CAGR CAGR 330 +23% +25% 160 244 130 210 105 +23% +35% 2015 2016 2017 2015 2016 2017 Objective: innovation spend > €200m Including extensions, 577 patents filed in 2017 7
Slide 8: Partnerships and investments to integrate new competences and accelerate growth
Partnerships and investments to integrate new competences and accelerate growth Acquisitions in adjacent value spaces Parrot Automotive for connectivity and infotainment Coagent for displays, connectivity and infotainment Hug Engineering for High Horsepower engines Strategic technology par
Slide 9: Faurecia Tech: our global innovation organization
Faurecia Tech: our global innovation organization to accelerate time-to-market for new Value Spaces Incubator divisions for pre-development working with open innovation network of academic establishments and Research Saclay Toronto institutes Tel Aviv Shenzhen Cockpit of the Future in Meru (Fran
Slide 10: Agenda
Agenda Patrick Koller 1 2017 Highlights Chief Executive Officer Michel Favre 2 Review of 2017 Results Chief Financial Officer Patrick Koller 3 2018 Guidance Chief Executive Officer 10
Slide 11: Strong performance in H2 2017
Strong performance in H2 2017 Accelerated sales growth and operating margin reaching 7.0% VALUE-ADDED SALES €m H2 2016 Currencies Scope Organic* H2 2017 €8,377.6m €7,691.9m VA sales 7,691.9 (300.2) 0.0 985.9 8,377.6 vs. H2 2016 -3.9% 0.0% +12.8% +8.9% +12.8%* Accelerated organic growth in H2: +12.
Slide 12: Record sales and profitability in FY 2017
Record sales and profitability in FY 2017 Delivering on targets and on track for continuous improvement VALUE-ADDED SALES €16,962.2m €m FY 2016 Currencies Scope Organic* FY 2017 €15,613.6m VA sales 15,613.6 (191.0) (117.2) 1,656.8 16,962.2 vs. FY 2016 -1.2% -0.8% +10.6% +8.6% +10.6%* FY organic gr
Slide 13: Europe (50% of Group sales)
Europe (50% of Group sales) Profitability up 60bps to 6.2%, leveraging operational efficiency VALUE-ADDED SALES VALUE-ADDED SALES Value-added sales up 8.2% on an organic* basis (up 7.5% reported), €8,500.4m outperforming European LV production growth by 500bps €7,906.6m (+ 3.2%, source: IHS Januar
Slide 14: North America (26% of Group sales)
North America (26% of Group sales) Profitability up 40bps to 5.8%, thanks to improved industrial efficiency VALUE-ADDED SALES VALUE-ADDED SALES Value-added sales up 5.6% on an organic* basis (up 0.8% reported), €4,470.2m €4,432.7m significantly outperforming North American LV production, which dro
Slide 15: Asia (17% of Group sales)
Asia (17% of Group sales) Strong sales growth with Chinese OEMs and double-digit profitability VALUE-ADDED SALES VALUE-ADDED SALES €2,942.3m Value-added sales up 18.1% on an organic* basis (up15.1% reported), outperforming Asian LV production growth (+2.7%, source: IHS January 2018) €2,557.2m Cu
Slide 16: South America (5% of Group sales)
South America (5% of Group sales) Sales turnaround and return to profitability confirmed VALUE-ADDED SALES VALUE- ADDED SALES €788.0m Value-added sales up 51.1% on an organic* basis (up 54.6% reported), strongly outperforming South American LV production growth (+19.7%, source: IHS January 2018)
Slide 17: Faurecia Seating (42% of Group sales)
Faurecia Seating (42% of Group sales) Solid organic* growth of 9.0% and profitability up 60bps to 5.8% VALUE-ADDED SALES VALUE-ADDED SALES Value-added sales up 9.0% on an organic* basis (up 8.0% reported), €7,132.9m outperforming worldwide automotive production by 670bps €6,607.4m (+2.3%, source:
Slide 18: Faurecia Interiors (31% of Group sales)
Faurecia Interiors (31% of Group sales) Strong organic* growth of 14.8% and profitability up 40bps to 5.6% VALUE-ADDED SALES VALUE-ADDED SALES Value-added sales up 14.8% on an organic* basis (up 10.9% reported), €5,336.1m strongly outperforming worldwide automotive production €4,810.9m (+2.3%, sou
Slide 19: Faurecia Clean Mobility (27% of Group sales)
Faurecia Clean Mobility (27% of Group sales) Strong organic* growth of 8.3% and profitability up 80bps to 10.2% VALUE-ADDED SALES VALUE-ADDED SALES €4,493.2m Value-added sales up 8.3% on an organic* basis (up 7.1% reported), €4,195.3m outperforming worldwide automotive production by 600bps (+2.3%,
Slide 20: Net income from continued operations up 34%, to €714m
Net income from continued operations up 34%, to €714m In €m 2016 2017 Change Value-added sales 15,613.6 16,962.2 +8.6% Operating income 970.2 1,170.3 +20.6% Operating leverage: 15% on VA sales as % of VA sales 6.2% 6.9% +70bps Of which restructurings for €85.0m (€86.3m in 2016) Restructuring & other
Slide 21: On track to continuously enhance cash flow generation
On track to continuously enhance cash flow generation In €m 2016 2017 Change Operating income 970.2 1,170.3 +20.6% Depreciation and amortization 669.1 719.0 EBITDA 1,639.3 1,889.3 +15.3% EBITDA up €250m or +15%, reflecting improved profitability Change in WCR 162.5 213.0 Positive WCR change thanks t
Slide 22: Sound financial structure with indebtedness ratio stable at 0.2x EBITDA
Sound financial structure with indebtedness ratio stable at 0.2x EBITDA In €m 2016 2017 Change EBITDA 1,639.3 1,889.3 +15.3% Net cash flow 458.5 435.3 -5.1% Dividends paid (incl. minorities) (165.0) (186.1) Of which €123m to Faurecia shareholders (€0.90 per share) Share purchase (24.8) (40.0) Net fi
Slide 23: Strong financial flexibility and improved credit ratings
Strong financial flexibility and improved credit ratings Over 70% of gross debt is financed through the financial markets: €700m bonds issued in 2015, maturity June 2022 (callable June 2018) @ 3.125% €700m bonds issued in June 2016, maturity June 2023 (callable June 2019) @ 3.625% As anticip
Slide 24: Proposed dividend of €1.10 per share, up 22% year-on-year
Proposed dividend of €1.10 per share, up 22% year-on-year Faurecia will propose to shareholders a dividend DIVIDEND PER SHARE of €1.10 per share €1.10* It will be payable in cash early June 2018, €0.90 subject to approval at the Annual Shareholders’ Meeting to be held in Paris on May 29, 2018 €0
Slide 25: Agenda
Agenda Patrick Koller 1 2017 highlights Chief Executive Officer Michel Favre 2 Review of 2017 Results Chief Financial Officer Patrick Koller 3 2018 Guidance Chief Executive Officer 25
Slide 26: Worldwide automotive production should continue to grow in 2018
Worldwide automotive production should continue to grow in 2018 In the current environment, Faurecia’s expectation for worldwide automotive production growth is of around +2% By region, Faurecia’s growth expectations are: Europe: at least +2%, North America: below +1%, China: at least +2%.
Slide 27: 2018 guidance ahead of 2016-2018 roadmap
The 2017 record performance and solid growth prospects put Faurecia ahead of its 2016-2018 roadmap 2018 GUIDANCE (based on the previously mentioned assumptions) Sales Operating margin Net cash flow Earnings per share At least +7%* Above 7% Above €5.00 or at least 500bps of sales €500m above worldwid
Slide 28: Conclusion
Conclusion 2017 marked a further step in confirming our capability to: Accelerate value creation through profitable growth Deliver on targets Our financial structure is sound and offers strong flexibility Our 2018 targets exceed the 2016-2018 roadmap presented in April 2016 We are accele
Slide 29: Next Capital Markets Day on May 15 in Paris
Next Capital Markets Day on May 15 in Paris FOCUSING ON SMART LIFE ON BOARD UPDATING ON SUSTAINABLE MOBILITY 29
Slide 30: Faurecia inspiring mobility
‘Faurecia inspiring mobility
Slide 31: General Appendices
Faurecia inspiring mobility General Appendices
Slide 32: Calendar
Calendar April 20, 2018 May 15, 2018 Q1 sales announcement Capital Markets Day in Paris (before market hours) Smart Life on Board May 29, 2018 July 20, 2018 Annual Shareholders’ Meeting H1 results announcement (Paris) (before market hours) October 4-14, 2018 October 11, 2018 Presence at the Paris Q3
Slide 33: Contact & share data
Contact & share data Investor Relations Share Data Marc MAILLET Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA 2, rue Hennape Datastream: F:BERT 92735 Nanterre ISIN Code: FR0000121147 France Tel: +33 1 72 36 75 70 ADR Data Fax: +33 1 72 36 70 30 Ticker: FURCY E-mail: marc.maillet@faurecia.com Ratio
Slide 34: Definitions of terms frequently used
Definitions of terms frequently used 1. Organic Variation at constant exchange rates and consolidation scope, including JVs consolidation. 2. Value-added sales Total sales less monoliths sales. 3. Order intake Sum of 3 year order intake. 4. Monolith sales Monolith are components used in catalytic co
Slide 35: Safe Harbor Statement
Safe Harbor Statement This report contains statements that are not historical facts but rather forward-looking statements. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions identify these forward
Slide 36: FY 2017 Appendices
Faurecia inspiring mobility FY 2017 Appendices ae We
Slide 37: 2017 Key Facts
2017 Key Facts Sales Since January 1, 2017, Faurecia reports on value-added (VA) sales, which are total sales, as reported in the consolidated financial statements, less monolith sales (a table in appendix details the reconciliation between total sales and VA sales) As from 2018, VA sales will
Slide 38: Reconciliation between Value-added sales and Total sales FY 2017
Reconciliation between "Value-added sales" and "Total sales" FY 2017 in €m 2016 2017 YoY organic* YoY reported Product sales 14,247.1 15,272.4 +9.2% +7.2% R&D and Tooling 1,366.5 1,689.9 +24.9% +23.7% Value-added sales 15,613.6 16,962.2 +10.6% +8.6% Monolith sales 3,096.9 3,219.4 +5.0% +4.0% Total s
Slide 39: Value-added sales by region FY 2017
Value-added sales by region FY 2017 Currencies Scope Organic* Reported VA sales Reported in €m 2016 value % value % value % 2017 % Europe 7,906.6 (51.2) -0.6% 0.0 0.0% 645.0 +8.2% 8,500.4 +7.5% North America 4,432.7 (91.6) -2.1% (117.2) -2.6% 246.3 +5.6% 4,470.2 +0.8% Asia 2,557.2 (78.1) -3.1% 0.0 0
Slide 40: Value-added sales by Business Group FY 2017
Value-added sales by Business Group FY 2017 Currencies Scope Organic* Reported VA sales Reported in €m 2016 value % value % value % 2017 % Seating 6,607.4 (71.6) -1.1% 0.0 0.0% 597.1 +9.0% 7,132.9 +8.0% Interiors 4,810.9 (67.7) -1.4% (117.2) -2.4% 710.1 +14.8% 5,336.1 +10.9% Clean Mobility 4,195.3 (
Slide 41: Profitability by region FY 2017
Profitability by region FY 2017 2016 2017 Operating income Change €m €m Europe 440.0 527.0 +19.8% % of VA sales 5.6% 6.2% North America 239.4 257.6 +7.6% % of VA sales 5.4% 5.8% Asia 310.4 341.8 +10.1% % of VA sales 12.1% 11.6% South America (23.2) 11.6 n/s % of VA sales -4.6% 1.5% RoW 18.8 32.2 +71
Slide 42: Profitability by Business Group FY 2017
Profitability by Business Group FY 2017 2016 2017 Operating income Change €m €m Seating 343.7 410.9 +19.6% % of VA sales 5.2% 5.8% Interiors 247.9 299.7 +20.9% % of VA sales 5.2% 5.6% Clean Mobility 393.8 459.7 +16.7% % of VA sales 9.4% 10.2% IFRS5 adjustment (15.2) 0.0 Group 970.2 1,170.3 +20.6% %
Slide 43: Cash-flow reconciliation FY 2017
Cash-flow reconciliation FY 2017 in €m 2016 2017 Change Recurring net cash-flow 332.5 435.3 +30.9% Factoring transferred from discontinued to continued 119.0 0.0 Other changes 7.0 0.0 Net cash-flow 458.5 435.3 -5.1% Sales/Acquisitions of investments and businesses (net of cash) 532.5 (218.0) Proceed
Slide 44: H2 2017 Appendices
Faurecia inspiring mobility H2 2017 Appendices ae We
Slide 45: Reconciliation between Value-added sales and Total sales in H2 2017
Reconciliation between "Value-added sales" and "Total sales" in H2 2017 in €m H2 2016 H2 2017 YoY organic* YoY reported Product sales 6,952.4 7,461.4 +11.3% +7.3% R&D and Tooling 739.5 916.2 +27.5% +23.9% Value-added sales 7,691.9 8,377.6 +12.8% +8.9% Monolith sales 1,486.9 1,509.4 +4.6% +1.5% Total
Slide 46: Value-added sales by region in H2 2017
Value-added sales by region in H2 2017 Currencies Scope Organic* Reported VA sales Reported in €m H2 2016 value % value % value % H2 2017 % Europe 3,703.2 (29.8) -0.8% 0.0 0.0% 531.8 +14.4% 4,205.2 +13.6% North America 2,207.4 (162.7) -7.4% 0.0 0.0% 24.4 +1.1% 2,069.1 -6.3% Asia 1,375.9 (74.9) -5.4%
Slide 47: Value-added sales by Business Group in H2 2017
Value-added sales by Business Group in H2 2017 Currencies Scope Organic* Reported VA sales Reported in €m 2016 value % value % value % 2017 % Seating 3,308.1 (113.0) -3.4% 0.0 0.0% 304.8 +9.2% 3,499.9 +5.8% Interiors 2,293.0 (91.5) -4.0% 0.0 0.0% 470.2 +20.5% 2,671.7 +16.5% Clean Mobility 2,090.8 (9
Slide 48: Profitability by region in H2 2017
Profitability by region in H2 2017 H2 2016 H2 2017 Operating income Change €m €m Europe 185.9 261.1 +40.5% % of VA sales 5.0% 6.2% North America 119.4 116.5 -2.4% % of VA sales 5.4% 5.6% Asia 170.9 182.0 +6.5% % of VA sales 12.4% 11.6% South America (7.0) 5.7 n/s % of VA sales -2.4% 1.4% RoW 13.5 18
Slide 49: Profitability by Business Group in H2 2017
Profitability by Business Group in H2 2017 H2 2016 H2 2017 Operating income Change €m €m Seating 168.1 208.2 +23.9% % of VA sales 5.1% 5.9% Interiors 119.2 147.4 +23.7% % of VA sales 5.2% 5.5% Clean Mobility 195.4 228.1 +16.7% % of VA sales 9.3% 10.3% IFRS5 adjustment (2.8) 0.0 Group 479.9 583.6 +21
Slide 50: Faurecia inspiring mobility
‘Faurecia inspiring mobility