February 12, Results & 2015 Objectives

Transcription

1 February 12, Results & 2015 Objectives

2 Agenda Highlights Yann Delabrière Results Michel Favre Priorities and outlook Yann Delabrière 2

3 Agenda Highlights Yann Delabrière Results Michel Favre Priorities and outlook Yann Delabrière 3

4 2014: Solid performance at top end of guidance Sales growth of 5.5%* significantly outperforming automotive production in Europe and Asia 60bp operating margin improvement to reach 3.6% Robust cash generation at 216m Proposal to Annual General meeting for increased dividend of 0.35 up from 0.30 Payment in shares will be offered * Constant currencies & scope 4

5 Highlights by region Europe Growth of 7%* outperformed light vehicle production Operating margin improvement of 90bp to 3.6%, leveraging lean cost base Strong improvement for Interior Systems North America Transition year with many product changes Most of operational issues are solved VCM (Variable Costs Margin) up despite significant ramp-up costs Sales starting to recover in second half Emissions Control profitability strong improvement Asia China at +22%* largely outpacing light vehicle production growth Operating margin up 60bp to 8.9% * Constant currencies & scope 5

6 All Business Groups improved performance Emissions Control Technologies Operating margin increased by 70bp to 3.8% (+160bp to 7.5% on product sales) Commercial Vehicles business showing significant growth (+19%*). Represents over 8% of sales (16% of North American sales). Poised for breakthroughs in North America and China Automotive Seating Operating margin improved to 4.4% (FY) and to 4.7% in H2, within benchmark performance Acceleration of generic frames for Renault-Nissan CMF platform Automotive Exteriors Accelerating growth and profitability improvement in second half Good performance in bumpers in Europe South America still penalized by low volumes Interior Systems Operating margin improved by +90bp to reach 2.7% Strong profitable growth in Asia (sales +50%*) Successful ramp up of all Mercedes Benz S Class models * Constant currencies & scope 6

7 Agenda Highlights Yann Delabrière Results Michel Favre Priorities and outlook Yann Delabrière 7

8 Sustained growth Total sales up 7.1%* in H2 m Second half Full year +8.4% 8,764 9, , % % +6.8 % 921 1, % 10.7% 12.1% 18,029 1,568 2, % +4.5 % % +2.9 % 18,829 1,638 3, % 5.8% 12.2% 6,556 7, % 13,693 14, % H * Constant currencies & scope Product sales Monoliths Tooling, Prototypes H Like for like* Like for like*

9 Over 20%* growth with Nissan & Daimler and 59%* with Cummins Product sales Full year Main evolution Commercial vehicles 2.2 % PSA 13.7 % Other 5.5 % 24.6 % VW Group Breakthrough with Cummins +59%* Renault 6.2 % Nissan 4.9 % Hyundai 1.6 % Other Asian 1.0 % 4.3 % Chrysler 8.1 % 14.6 % 7.3% Daimler 6.0 % BMW Daimler +23%* Nissan +21%* GM Ford * Product sales changes at constant currencies and scope German 38% - American 27% - Asian 8% 9

10 Europe grew in H2 by 6.9%* North America started to recover in H2 and will accelerate in 2015 Product sales by region in m Europe (incl. Russia) H2 7,412 7,873 FY 3,527 3, % 6.9% 6.2% 6.8% Stable H H Published Like for like* Light vehicle production** (excl. Russia +4%) 3% Published Like for like* Light vehicle production** (excl. Russia +6%) North America H2 FY 1,712 1, % 1.0% 6% 3,707 3, % -4.6% 5% H H Published Like for like* Light vehicle production** * Constant currencies & scope ** Source IHS January Published Like for like* Light vehicle production**

11 Strong growth in China above 20% for the 6 th consecutive year Product sales by region in m Asia 907 1, % 17.4% H2 2% 1,706 2, % 19.7% 4% FY H H Published Like for like* Light vehicle production** (o/w China +8%) Published Like for like* Light vehicle production** (o/w China +9%) South America + RoW H2 FY -20.4% % -7.3% -15% % -16% H H Published Like for like* Light vehicle production** (South America) * Constant currencies & scope ** Source IHS January Published Like for like* Light vehicle production** (South America)

12 Operating income by region Europe sharp improvement in H2 and for FY m H % of total sales Total sales Product sales 3.0% 3.8% H H ,666 3,527 5,115 3,756 Operating margin improved in H2 by 80bp to 3.8% and for FY by 90bp to 3.6% mainly driven by: Higher sales FY Improved Variable Costs Margin (VCM) Leveraging lean cost base Sharp improvement for Interior Systems, Automotive Exteriors & Automotive Seating % of total sales 2.7% 3.6% Total sales Product sales ,701 7,412 10,391 7,873 12

13 Operating income by region North America starting to recover in H2 but not fast enough m H2 % of total sales % 1.6% Transition year with large number of model changes, slowing growth and with high ramp-up costs H H Most operational issues are solved Total sales Product sales 2,230 1,712 2,296 1,794 Variable Costs Margin (VCM) up FY by 60bp despite significant ramp-up costs FY Substantial margin upgrade for Emissions Control Technologies up 230bp (on product sales) for FY New management team in place with Americans at top positions % of total sales 2.1% 1.7% EVP, CFO, HR, North America VP North America Automotive Seating Total sales Product sales ,692 3,707 4,516 3, VP North America Emissions Control Technologies VP North America Automotive Exteriors

14 Operating income by region Asia margin is improving from an already high level m H % of total sales Total sales Product sales 9.1% 9.3% H H , ,620 1,096 Operating margin increased by 60bp in 2014 (+20bp in H2) on the back of: Strong sales growth (close to 20% like for like and over 20% like for like in China in H2 and FY) FY Impressive profitable sales growth for Interior Systems in Asia (+47% like for like) Margin expansion for Emissions Control Technologies % of total sales 8.3% 8.9% Record profitability in H2 Total sales Product sales ,522 1,706 3,008 2,029 14

15 Operating income by region South America + RoW hit by sharp volume contraction m H2 H H FY % of total sales Total sales Product sales % of total sales (2.9%) (3.8%) (15) (18) (2.7%) (4.8%) South America: Losses in South America are mostly derived from lower sales Lower FY product sales (-10.3% like for like and -23.2% reported) had a negative impact of close to 40m on operating income Fixed costs have been reduced in absolute terms (headcount reduction, plant closure/downsizing.) (31) (44) Total sales Product sales 1,

16 Operating income by Business Group Automotive Seating is in the leading pack m Sales H2 Operating income 2,500 2, Sales 207 2,299 2,472 H H ,219 5, ,891 4, % 6.5% like for like* 2.8% 2.1% like for like* FY % of total sales % of total sales 112 Operating income % 4.7% H H % 4.4% Product sales Tooling, Prototypes * Constant currencies & scope Sales growth +2.8%* FY and accelerating in H2 at +6.1%* : Strong growth in Asia Gaining momentum since H2 in North America with several new programs ramping-up (H2 +5.9%*) Operating margin improvement of 20bp in H2 and full year to 4.7% in H2 and 4.4% FY: 4.7% in H2 is within segment benchmark Europe reaping benefit from single organization Significant improvement is targeted in North America

17 Operating income by Business Group Emissions Control Technologies reducing gap with competitors m 3, , ,651 3,419 H H , Sales Sales 121 1,580 1,718 6, ,768 3,102 3,352 3, Product sales 6.4% 12.1% 3.2% like for like* 7.0% 12.2% 4.7% like for like* H2 FY Monoliths % of total sales % of product sales % of total sales % of product sales Operating income % 3.9% H H Operating margin 7.4% 7.8% Operating income % 3.8% Operating margin Tooling, Prototypes 5.9% 7.5% * Constant currencies & scope Rapid total sales growth +7.0%* FY: Solid growth in Asia +16%* Commercial Vehicles +19%* Improved operating margin on product sales by 40bp in H2 to 7.8% and 160bp to 7.5% for FY : Strong profit improvement in North America Expansion in Asia now representing 27% of product sales Profit improvement in Europe through industrial processes standardization

18 Operating income by Business Group Interior Systems is building momentum in sales & profits m Sales H2 Operating income 2,199 2, ,808 1, % H H Sales 366 4, ,793 3, % like for like* 5.1% 7.1% like for like* FY % of total sales % of total sales % 2.8% H H Operating income % 2.7% Product sales Tooling, Prototypes * Constant currencies & scope Solid product sales growth +8.2%* in H2 and +7.1%* FY Strong sales growth to Daimler and to VW Group Sharp increase in operating margin (+170bp in H2 and +90bp FY) Solid profitability in Europe Breakthrough for both growth (+47%*) and profitability in Asia Ramp-up costs in Saline plant with 17 launches Profitability improvement anticipated in North America

19 Operating income by Business Group Automotive Exteriors is improving m Sales H2 Operating income , % Growth acceleration: +4.9%* in H2 and +4.3%* FY % H H , Sales 2, like for like* 9.1% FY % of total sales 2.5% 3.3% H H Operating income Sharp increase in H2 (+80bp) to 3.3% is helping to increase full year profitability by 60bp (or 2.6%) Sharp profitability improvement in Europe South America still weighing on profitability Bumper business in Europe close to 5% margin 1,657 1, % like for like* % of total sales 2.0% 2.6% Product sales Tooling, Prototypes * Constant currencies & scope 19

20 Net income up 89% to 166m m 2013 H Total sales 18, , , vs % Operating income (margin as % of total sales) (3.0%) (3.8%) (3.6%) +25% +60bp Restructuring (91.3) (39.9) (76.7) Other income and (expense) net (15.5) (1.9) (9.8) Interest expense net (187.9) (101.0) (183.1) Other financial income and (expense) net (46.4) (38.6) (60.5) Pretax income of integrated companies Corporate income taxes (64.7) (70.6) (115.1) Net income of associates & Other Minority interests (55.8) (34.8) (63.2) Consolidated net income (Group share) Net income per share (fully diluted) Including 14m charges for South America and Russia Savings planned in 2015 thanks to refinancing. Provisions of 16m booked in 2014 for the call on 2019 bond in June Russian Ruble forex losses. Refinancing expenses (Syndicated facility renewal) 33% tax rate Higher contribution from Chinese minorities

21 Cash flow generation is improving mainly driven by sharp EBITDA improvement m 2013 H Operating income D & A EBITDA Sharp increase mostly coming from higher operating income Change in WCR Capex Capitalized R&D Restructuring Finance expenses Driven by reduced inventories ( 78m), lower receivables ( 88m) higher payables ( 120m) Receivables sold: Dec m; June m; Dec m Capex at 521m including 50m software investment for SAP implementation Capitalized R&D at 322m includes 20m of 1-off elements (2013 R&D expenses) Taxes Others Net cash flow Breakthrough in net cash flow generation

22 Debt maturity profile Strong opportunity to reduce cost of debt Maturities of long-term debt ( m) Financing actions 2014 Renewal of the 1.2bn, 5 year (2019) syndicated facility; (100% undrawn at end Dec 2014) Rating improvement (Fitch at BB-) Provisions of 16m for the call in June 2015 of the 2019 bond ( 250m at 8.75%) New factoring lines for 150m HY 9% 490m CV 3.25% 250m Syndicated Facility 1.2bn undrawn at end Dec 2014 HY 8.75% 250m Financing actions Exercise call option on the 2019 bond in June 2015 Issuance of benchmark fixed income bond(s) Conversion of the convertible bond ( 250m) if the share price is above 25 in January 2016 Net Debt (at end Dec 2014): 1.39bn Net Debt / EBITDA: 1.13x Net debt / Market Cap.: 0.3x Total financial expenses to be reduced by around 50m from 252m to around 200m in 2015 Target 2016 for total financial expenses to be close to 150m

23 Agenda Highlights Yann Delabrière Results Michel Favre Priorities and outlook Yann Delabrière 23

24 November 2014 Investor day wrap up Accelerate Emissions Control Technologies and Automotive Seating growth Accelerate highly profitable growth in Asia Return to robust profitability in North America Leverage global platforms Develop value-added technologies *: Pre-tax and including goodwill 2016 Objectives Sales above 21 billion euros Operating margin % Net cash flow around 300 million euros ROCE* > 20% 24

25 2015: Favorable Market Environment Favorable macro-economic factors Lower oil price has reduced energy costs and raw material costs and should improve consumer spending Both oil-based plastics and steel prices significantly down Re-alignment of euro against USD and RMB (renminbi) favours european economies All major regions forecasting automotive production growth Europe (excluding Russia) + 2% / + 4% North America + 3% China + 7% 25

26 Three priorities for 2015 Accelerate in Asia Continue to outperform the market in China with all Business Groups showing profitable growth Develop partnerships with major Chinese OEMs to accelerate business Chang An joint venture has significantly boosted growth of Interior Systems Other opportunities in progress Capture growth of Commercial Vehicles market China is the largest on & off highway CV market with 3.7m units; 2.8x the size of the North American market and 3.0x the size of the European market First business awarded with major Chinese engine manufacturer Weichai Significant interest shown by major cities for ASDS technology Grow business with Asian OEMs Continuous development with Nissan and Hyundai Kia 26

27 Three priorities for 2015 Return to robust profitability in North America Interior Systems and Automotive Seating to reap benefits from ramp-up of many new programs and industrial footprint stabilization Emissions Control Technologies is already strongly profitable and will accelerate with margin enhancing CVE business New North American management in place Targeting operating margin improvement of over 100 bps 27

28 Accelerating technologies for sustainable mobility and enhanced life on board Energy recovery systems In production in 2016 with Asian automaker giving 3g CO 2 reduction Next generation Rankine systems from 2020 with 10% fuel economy Lightweight Technologies Faurecia can reduce weight by 100kg saving 10 g CO 2 First composite tailgate awards in Europe and China Seat architecture integrating lightweight mechanisms and frames 11 kg lighter Intuitive connectivity First HMI business to be launched this year 28

29 Company transformation accelerating Management transformation and reinforcement Executive Committee strengthened with three new appointments effective in the first quarter 2015 (Patrick Koller COO; Mark Stidham EVP North America; Hagen Wiesner EVP Automotive Seating) "Being Faurecia" Initiative launched in 2014 to transform corporate culture New values of entrepreneurship, autonomy and accountability to drive focus on performance and value creation Strengthened people management and talent development Digital Enterprise initiative to review all opportunities presented by new information technologies in particular in operations, supply chain, product life cycle management, collaborative working practices and customer relationship management Operations of the Future to capture benefits of new technologies such as robotization, 3D printing Strategic innovation to identify investment opportunities and to accelerate value-creation 29

30 2015 Guidance 2015 will put us well on our way to achieve 2016 targets Total sales: up around 5.0% (like for like) Operating margin: better than 4.0% Net cash flow: above 100m 30

31 Appendices Profitability by Region TOTAL SALES* (in m) 2012 H H H H Europe 9, , , , , , ,390.8 North America 4, , , , , , ,515.5 Asia 2, , , , , , ,007.7 o/w China 1, , , , ,225.8 South America RoW, other & eliminations TOTAL 17, , , , , , ,828.9 PRODUCT SALES* (in m) 2012 H H H H Europe 7, , , , , , ,873.1 North America 3, , , , , , ,495.8 Asia 1, , , ,029.4 o/w China 1, , ,687.8 South America RoW, other & eliminations TOTAL 13, , , , , , ,089.3 OPERATING INCOME (in m) 2012** H H H H Europe Margin (as % of Total sales) 2.9% 2.4% 3.0% 2.7% 3.4% 3.8% 3.6% North America Margin (as % of Total sales) 2.0% 2.5% 1.6% 2.1% 1.8% 1.6% 1.7% Asia Margin (as % of Total sales) 8.0% 7.4% 9.1% 8.3% 8.5% 9.3% 8.9% South America Margin (as % of Total sales) -2.2% -3.0% -3.5% -3.2% -9.1% -5.6% -7.3% RoW, other & eliminations Margin (as % of Total sales) -3.7% -1.3% -0.7% -1.1% 3.3% 1.3% 2.2% TOTAL Margin (as % of Total sales) 3.0% 2.8% 3.2% 3.0% 3.3% 3.8% 3.6% * By origin; ** Reported (not restated for IAS 19R) 31

32 Appendices Profitability by BG TOTAL SALES (in m) 2012 H H H H Automotive Seating 5, , , , , , ,309.1 Emissions Control Technologies 6, , , , , , ,747.4 Interior Systems 4, , , , , , ,709.3 Automotive Exteriors 1, , , , ,063.1 TOTAL 17, , , , , , ,828.9 PRODUCT SALES (in m) 2012 H H H H Automotive Seating 4, , , , , , ,938.9 Emissions Control Technologies 3, , , , , , ,433.0 Interior Systems 3, , , , , , ,996.5 Automotive Exteriors 1, , ,720.9 TOTAL 13, , , , , , ,089.3 OPERATING INCOME (in m) 2012* H H H H Automotive Seating Margin (as % of Total sales) 3.7% 3.9% 4.5% 4.2% 4.1% 4.7% 4.4% Emissions Control Technologies Margin (as % of Total sales) 2.4% 2.4% 3.9% 3.1% 3.7% 3.9% 3.8% Margin (as % of Product sales) 4.5% 4.5% 7.4% 5.9% 7.1% 7.8% 7.5% Interior Systems Margin (as % of Total sales) 3.0% 2.5% 1.1% 1.8% 2.7% 2.8% 2.7% Automotive Exteriors Margin (as % of Total sales) 2.4% 1.6% 2.5% 2.0% 1.8% 3.3% 2.6% TOTAL Margin (as % of Total sales) 3.0% 2.8% 3.2% 3.0% 3.3% 3.8% 3.6% * Reported (not restated for IAS 19R) 32

33 Appendices Sales by type SALES BY TYPE In m Product Monoliths 2013 R&D / Tooling Total Automotive Seating 4, ,218.9 Emissions Control Technologies 3, , ,350.5 Interior Systems 3, ,560.0 Automotive Exteriors 1, ,899.3 TOTAL 13, , , , Product Monoliths R&D / Tooling Total 4, , , , , , , , , , , , ,828.9 SALES BY TYPE In m Product Monoliths H R&D / Tooling 33 Total Automotive Seating 2, ,500.3 Emissions Control Technologies 1, , ,150.4 Interior Systems 1, ,198.7 Automotive Exteriors TOTAL 6, , ,763.6 H Product Monoliths R&D / Tooling Total 2, , , , , , , , , , ,500.6

34 Appendices Impact on sales In m 2013 Reported Currencies Scope & other Organic Like for like* 2014 Reported Total sales 18, , % -0.1% 5.5% 4.4% Product sales 13, ,089.3, -1.1% -0.4% 4.4% 2.9% In m H Reported Currencies Scope & other Organic Like for like* H Reported Total sales 8, , % 0.0% 7.1% 8.4% Product sales 6, ,999.8, 1.1% -0.3% 6.0% 6.8% * At constant exchange rates & scope 34

35 Appendices Sales variation by BG TOTAL SALES in m H H Reported Like for like* Reported Like for like* Automotive Seating 2, , % 6.1% 5, , % 2.8% Emissions Control Technologies 3, , % 6.4% 6, , % 6.9% Interior Systems 2, , % 5.5% 4, , % 5.0% Automotive Exteriors , % 16.4% 1, , % 9.1% TOTAL 8, , % 7.1% 18, , % 5.5% PRODUCT SALES in m H H Like for like* Like for like* Automotive Seating 2, , % 6.5% 4, , % 2.1% Emissions Control Technologies 1, , % 3.2% 3, , % 4.7% Interior Systems 1, , % 8.2% 3, , % 7.1% Automotive Exteriors % 4.9% 1, , % 4.3% TOTAL 6, , % 6.0% 13, , % 4.4% *: At constant exchange rates & scope 35

36 Appendices Sales variation by region TOTAL SALES in m H H Reported Like for Like * LV prod.** Reported Like for Like * LV prod.** Europe 4, , % 9.8% North America 2, , % -1.2% Asia 1, , % 16.3% South America % -10.0% Rest of the World % 14.0% TOTAL 8, , % 7.1% 9, , % 7.4% 4, , % -3.1% 2, , % 19.0% % -8.8% % 5.4% 18, , % 4.0% PRODUCT SALES in m H H Reported Like for Like * LV prod** Reported Like for Like * LV prod.** Europe 3, , % 6.9% 0.1% North America 1, , % 1.0% 5.9% Asia , % 17.4% 2.1% South America % -12.8% -15.1% Rest of the World % 23.1% NS TOTAL 6, , % 6.0% 2.1% *: At constant exchange rates & scope **: Source IHS estimates, January , , % 6.8% 3.2% 3, , % -4.6% 5.0% 1, , % 19.7% 4.1% % -10.3% -16.1% % 4.2% NS 13, , % 4.4% 3.3%

37 Appendices Various CASH FLOW RECONCILIATION In m Net Cash Flow Acquisitions of investments and business (net of cash & cash equivalents) Proceeds from disposal of financial assets 0 0 Other changes Cash provided (used) by operating and investing activities P&L R&D In m 2014 Reported 2013 Comparable (to 2014) 2013 Reported Gross R&D costs (-) Amounts billed to customers & changes in inventories o/w reclassification from product sales o/w 1-off Engineering, tooling & prototypes costs booked in inventories (-) Capitalized development costs o/w 1-off Engineering, tooling & prototypes costs transferred from inventories , (+) Amortization of capitalized R&D (+) Others NET R&D expense in the P&L , As % of Total sales 1.3% 1.2% 1.4% 37

38 2016 Financial targets by region FAURECIA Group total sales (in bn) Operating margin as % of total sales 2016 > % to 5.0% Total sales (in bn) Europe North America Asia South America & rest of world > 10.7 > 5.4 Close to 4.0 Close to 1.0 Operating margin (% of total sales) Europe North America Asia South America & rest of world 4.5% - 5.0% > 4.0% > 8.0% Breakthrough in profitability and focus on cash generation 38

39 2016 Financial targets by Business Group FAURECIA 2016 Group total sales (in bn) Operating margin as % of total sales > % to 5.0% ROCE * Net cash flow (in m) > 20% around 300 Total sales (in bn) Automotive Seating Emissions Control Technologies Interior Systems Automotive Exteriors > 7.1 > 7.4 > 4.5 > 2.0 Operating margin (% of total sales) Automotive Seating Emissions Control Technologies Interior Systems Automotive Exteriors > 5.0% close to 5.0% > 4.0% 4.5% - 5.0% *: Pre-tax and including goodwill ROCE * Automotive Seating Emissions Control Technologies Interior Systems Automotive Exteriors 39 > 20% > 25% around 15% > 20%

40 Contact & Share data Investor Relations Eric-Alain Michelis 2 rue Hennape Nanterre France Share Data Bloomberg Ticker: Reuters Ticker: Datastream: ISIN Code: EO:FP EPED.PA F:BERT FR Tel: Cell: Fax: eric-alain.michelis@faurecia.com Web site: ADR Data Ticker: Ratio: Agent: FURCY 2 ADRs for 1 share Citi Group Bonds ISIN Codes 2016 bonds: XS bonds: XS convertible: FR

41 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-looking statements. All such statements are based upon our current expectations and various assumptions, and apply only as of the date of this report. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because such statements involve risks and uncertainties such as automotive vehicle production levels, mix and schedules, financial distress of key customers, energy prices, raw material prices, the strength of the European or other economies, currency exchange rates, cancellation of or changes to commercial contracts, liquidity, the ability to execute on restructuring actions according to anticipated timelines and costs, the outcome could differ materially from those set out in the statements. Except for our ongoing obligation to disclose information under law, we undertake no obligation to update publicity any forward-looking statements whether as a result of new information or future events. 41

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