Forvia Se · EURONEXT:FRVIA
Forvia — Faurecia — H1 2021 Earnings Presentation
32 slides from Forvia's earnings presentation, Jul 26, 2021
Slide 1: H1 2021 Results: Strong performance in H1, upgraded FY 2021 guidance
H1 2021 RESULTS Strong performance in H1 Upgraded FY 2021 guidance July 26, 2021
Slide 2: Agenda
Agenda 1 H1 2021 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 2 ● H1 2021 Results – July 26th, 2021
Slide 3: Agenda
Agenda 1 H1 2021 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 3 ● H1 2021 Results – July 26th, 2021
Slide 4: H1 2021 Highlights
H1 2021 Highlights Strong performance in H1 2021 despite adverse impact from shortage of semiconductors (exacerbated in Q2) and raw material inflation ▸ Sales of €7.8bn, up 32% on an organic basis; outperformance of 760bps in Q2 and 170bps in H1 ▸ Operating margin of 6.6% and EBITDA margin of 14.2%
Slide 5: Solid order intake of €12bn in H1, on track to reach €26bn in 2021
Solid order intake of €12bn in H1, on track to reach €26bn in 2021 120 successful launches in H1 Strong order intake with VW Group for €2.6bn China represents c. 25% of total order intake ▸ Of which 67% with Chinese OEMs Faurecia Clarion Electronics represented €1.3bn, confirming FY 2021 target ≥ €2
Slide 6: Faurecia already well engaged in the deployment of its New Perspectives strategy
Faurecia already well engaged in the deployment of its « New Perspectives » strategy ACCELERATED MOMENTUM STELLANTIS 39% DISTRIBUTION RECENT ACQUISITIONS ALIGNED FOR HYDROGEN SUCCESSFULLY EXECUTED WITH STRATEGIC PRIORITIES Increased free float to 85% April 2021: Majority stake in CLD, and inclusion
Slide 7: Accelerating on ESG initiatives
Accelerating on ESG initiatives KPMG and Schneider Electric selected for power purchase agreement and offsite renewable electricity purchasing advisory €165 million investment in new industry 4.0 platform in the Bourgogne-Franche-Comté region of France, equipped with the latest digital manufacturing
Slide 8: Agenda
Agenda 1 H1 2021 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 8 ● H1 2021 Results – July 26th, 2021
Slide 9: 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 10: Strong YoY sales growth in H1 2021 but still below H1 2019
Strong YoY sales growth in H1 2021 but still below H1 2019 due to shortage of semiconductors Q2 2021 should be the most severely impacted by shortage of semiconductors, as it faced additional headwinds Despite shortage is expected to continue in H2, automotive production should gradually grow vs. H1
Slide 11: Strong sales outperformance in Q2 favored by geographic mix
Strong sales outperformance in Q2 favored by geographic mix Sales outperformance of 760bps in Q2 2021 Sales outperformance of 170bps in H1 2021 (including strong favorable geographic mix) (including almost neutral geographic mix) WW auto WW auto €1,484m prod. €1,934m €60m prod. €7,783m 37.6m* €3,778
Slide 12: Strong operating margin of 6.6% and operating leverage of 36%
Strong operating margin of 6.6% and operating leverage of 36% Operating margin of 6.6% in H1 2021, up 820bps vs. Strong operating leverage of 36%, reflecting volume H1 2020 that was strongly impacted by the Covid crisis recovery and benefiting from resilience actions YEAR-ON-YEAR OPERATING LEVERAGE
Slide 13: Seating and Interiors
Seating Interiors 38% of Group sales 31% of Group sales H1 2020* H1 2021 H1 2020* H1 2021 Sales (€m) 2,270 2,967 Sales (€m) 1,837 2,376 YoY reported 30.7% YoY reported 29.4% YoY organic 34.1% YoY organic 31.9% Operating income (€m) (23) 196 Operating income (€m) (78) 117 % of sales -1.0% 6.6% % of s
Slide 14: Clean Mobility and Clarion Electronics
Clean Mobility Clarion Electronics 26% of Group sales 5% of Group sales H1 2020* H1 2021 H1 2020* H1 2021 Sales (€m) 1,646 2,040 Sales (€m) 331 400 YoY reported 23.9% YoY reported 20.9% YoY organic 29.4% YoY organic 27.0% Operating income (€m) 10 198 Operating income (€m) (9) (1) % of sales 0.6% 9.7
Slide 15: Europe and North America
Europe North America 49% of Group sales 23% of Group sales H1 2020* H1 2021 H1 2020* H1 2021 Sales (€m) 2,942 3,806 Sales (€m) 1,475 1,780 YoY reported 29.4% YoY reported 20.7% YoY organic 29.6% YoY organic 30.8% Operating income (€m) (99) 206 Operating income (€m) (84) 61 % of sales -3.4% 5.4% % of
Slide 16: Asia and South America & Rest of World
Asia South America & Rest of World 24% of Group sales 4% of Group sales H1 2020* H1 2021 H1 2020* H1 2021 Sales (€m) 1,470 1,857 Sales (€m) 198 340 YoY reported 26.3% YoY reported 71.9% YoY organic 28.3% YoY organic 98.5% Operating income (€m) 101 201 Operating income (€m) (18) 42 % of sales 6.9% 10
Slide 17: Gross margin of 13.4%, up 620bps year-on-year
Gross margin of 13.4%, up 620bps year-on-year Strict R&D and cost control also contributed to improve margin in €m H1 2020* H1 2021 Change Gross margin of 13.4%, up 620bps year-on-year Sales 6,084 7,783 +27.9% Organic growth (%) +31.8% ▸ vs. 7.2% in H1 2020 Cost of sales (5,648) (6,738) ▸ close to p
Slide 18: Net income Group Share of €146m in H1 2021
Net income Group Share of €146m in H1 2021 vs. a loss of €(433)m in H1 2020 that was strongly impacted by Covid crisis in €m H1 2020* H1 2021 Change Sales 6,084 7,783 +27.9% organic growth (%) +31.8% Net income Group share of €146m vs. a loss of Operating income €(433)m in H1 2020 mainly reflected t
Slide 19: EBITDA margin of 14.2% and strong cash flow generation of €290m
EBITDA margin of 14.2% and strong cash flow generation of €290m, both above H1 2019 pre-Covid level in €m H1 2020* H1 2021 Change EBITDA of 14.2% of sales (vs. 13.1% in H1 2019) Operating income (100) 510 610 Depreciation and amortization, of which: 613 599 Capex contained to €214m vs. €226m in H1 2
Slide 20: Deleveraging with net debt-to-EBITDA ratio at 1.5x
Deleveraging with net debt-to-EBITDA ratio at 1.5x in €m H1 2020* H1 2021 Change Back to dividend payment in 2021 Net cash flow (1,026) 290 1,316 ▸ Dividend suspended in 2020 due to the Covid-crisis Dividends paid incl. mino. (5) (160) ▸ Resumed dividend policy with 1€ per share paid in June 2021 Sh
Slide 21: Improved financial flexibility through recent financings
Improved financial flexibility through recent financings Increased liquidity of €4.5bn as of June 30 Improved financial flexibility Breakdown of gross debt by maturity as of June 30, 2021 ▸ February 2021: Additional issuance of €190m 2027 2 000 bonds @ 2.26% ▸ March 2021: First issuance of Senior Gr
Slide 22: Agenda
Agenda 1 H1 2021 Highlights Patrick KOLLER, CEO Financial Review 2 Michel FAVRE, CFO Key Takeaways 3 Patrick KOLLER, CEO 22 ● H1 2021 Results – July 26th, 2021
Slide 23: Upgraded FY 2021 guidance
Upgraded FY 2021 guidance Despite continuing uncertainty in H2 related to Covid-19 variant and shortage of semiconductors, Faurecia confirms its FY 2021 sales and operating margin targets and upgrades its FY 2021 net cash flow target to more than €500m (from “c. €500m” previously) SALES OPERATING MA
Slide 24: Key Takeaways
Key Takeaways In H1 2021, Faurecia delivered strong financial performance ▸ Outperformance of sales ▸ Strong operating margin thanks to efficient operating leverage ▸ Deleveraging thanks to strong cash generation ▸ Solid order intake for future profitable growth Deployment of “New Perspectives” stra
Slide 25: Appendices
Appendices ● H1 2021 Results – July 26th, 2021
Slide 26: 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 27: 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-recurr
Slide 28: IHS Worldwide automotive production forecasts as of July 2021
IHS Worldwide automotive production forecasts as of July 2021 Worldwide automotive production forecasts (IHS Markit dated July 2021, vehicles segment in line with CAAM for China – in K vehicles) 22 023 22 412 21 290 21 784 21 582 20 257 19 672 19 506 19 019 17 251 17 757 11 518 Q1 2019 Q2 2019 Q3 20
Slide 29: Research & Development costs
Research & Development costs H1 2021 CASH FLOW STATEMENT P&L H1 2020 H1 2020 H1 2020 H1 2021 H1 2021 H1 2021 In €m after IFRS5 after IFRS 5 In €m after IFRS 5 Operating income -100 510 R&D Sales 269 320 Depreciation and amortization 613 599 o/w am ortization of R&D intangible assets 240 240 Inventor
Slide 30: Investor Relations
Share Data INVESTOR RELATIONS 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 Matthieu FERNANDEZ Mob: +33 6 22 02 01 54 Bonds ISIN Codes E-mail: matthieu.fernandez@faurecia.com 2025 bonds
Slide 31: 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 32: Faurecia inspiring mobility
‘Faurecia inspiring mobility