2013 Results & 2014 Objectives February 12, 2014

Transcription

1 2013 Results & 2014 Objectives February 12, 2014

2 Agenda 2013 highlights Yann Delabrière 2013 results Michel Favre 2014 priorities, actions & guidance Yann Delabrière 2013 Results & 2014 Objectives February 12,

3 2013 key figures Second half Full Year Total sales 8.8 bn (+6.1%*) 18.0 bn (+5.0%*) Product sales 6.6 bn (+4.6%*) 13.7 bn (+3.9%*) Operating income 282 m (3.2% margin) 538 m (3.0% margin) Net free cash flow 7 m 144 m Net income 53 m 88 m Net financial debt Dividend * constant currencies & scope 2013 Results & 2014 Objectives February 12, bn 30 cents (to be proposed at the AGM) 3

4 Solid growth and profitability in line with guidance Solid growth (+5.0%*) with acceleration in H2 (+6.1%*) Good performance in Europe in line with light vehicle production Temporary adverse commercial mix in North America Outstanding growth in Asia: 7 th year in a row of growth over 20% Operating margin in H2 improved sequentially by 40bp and by 70bp year-over-year to 3.2% Full year operating margin at 3.0% in line with the guidance * constant currencies & scope 2013 Results & 2014 Objectives February 12,

5 Positive free cash flow above guidance Sharp net debt reduction Cash generation objectives exceeded with a positive net cash flow of 144m (after restructuring) 2012 negative WCR swing fully recovered Commercial policy adjustments towards less capital intensive programs fully deployed Good level of new business acquisitions ( 13.8bn) combined with lower upfront cash invested Capex plus capitalized R&D in line with the 800m cap Debt reduction accelerated by the early conversion of the 2015 Oceane (convertible bond) Financial leverage significantly reduced Net debt / EBITDA = 1.42x (end Dec 2013) 2013 Results & 2014 Objectives February 12,

6 Europe above expectation, North America lagging Asia outstanding Europe 2013 fixed costs reduction program executed 60bp operating margin improvement in H2 North America Action plan in progress Management resources increased at all levels Executive Committee member for North America nominated since Sept 1 Number of critical manufacturing sites significantly reduced Operating margin improved in H2 by 40bp (year-over-year) but not at the expected level South America Challenging environment with cost inflation and currency swings Slow ramp-up for Automotive Exteriors and operational issues in Argentina Still loss-making in H2 Asia Operating margin reached 9.1% in H2 and 8.3% full year Robust business model combining high growth and excellent execution Reinforcement of our R&D resources with opening of Shanghai Tech Center 2013 Results & 2014 Objectives February 12,

7 2013: Accelerating technology leadership Unprecedent display of technology at Auto shows April 2013 Shanghai Auto Show September 2013 Frankfurt Motor Show January 2014 Detroit Auto Show 2013 Results & 2014 Objectives February 12,

8 2013: Accelerating technology leadership Automotive Seating First contracts in seat electronics (ECU Electronic Control Unit) Launch of new mechanisms with 15% weight reduction Worldwide launch of the first Faurecia seat actuator (E-Pump 1.0) manufactured in Wuxi, China Launch of generic frames on CMF1 Renault-Nissan platform and BMW UKL 2013 Results & 2014 Objectives February 12,

9 2013: Accelerating technology leadership Emissions Control Technologies Adaptive Valve launched in production on major General Motors Silverado platform First contracts for SCR BlueBox 2013 Results & 2014 Objectives February 12,

10 2013: Accelerating technology leadership Interior Systems NafiLean (Natural Fiber for Injection) in production on Peugeot 308 State-of-the-art full interior on Mercedes-Benz S-Class New wood decoration (Ligneos) in production on Citroën DS 3 Human Machine Interface strategy deployed through JV with Magneti Marelli, first contract already awarded 2013 Results & 2014 Objectives February 12,

11 2013: Accelerating technology leadership Automotive Exteriors First contract for composite tailgate NewTech painting lines deployed in China and Brazil 2013 Results & 2014 Objectives February 12,

12 Agenda 2013 highlights Yann Delabrière 2013 results Michel Favre 2014 priorities, actions & guidance Yann Delabrière 2013 Results & 2014 Objectives February 12,

13 Sustained growth Total sales up 6.1% (like for like) in H2 m Second half Full year 8, , % +1.8 % % +0.2 % 8, , % 4.7% 14.6% 17,365 1,414 2, % % +4.3 % +3.0 % 18,029 1,568 2, % 12.4% 6.4% 6,543 6, % 13,296 13, % H * constant currencies & scope 2013 Results & 2014 Objectives February 12, 2014 H Product sales Var in % Like for like* Monoliths 2012 Tooling, Prototypes 2013 Var in % Like for like* 13

14 Double digit growth with Nissan, CVE Daimler and Ford Product sales Full Year Commercial vehicles 1.9 % Other 4.9 % Main evolution PSA 14.0 % 24.7 % VW Group Nissan +31%* Commercial vehicles +17%* Renault 6.5 % Nissan 4.2 % Hyundai 1.6 % Other Asian 1.3 % 5.0 % 7.9 % Chrysler 14.9 % 7.1% 6.1 % BMW Daimler Daimler +15%* Ford +13%* now solidly established as our #2 client GM Ford German 38% - American 28% - Asian 7% * Product sales change like for like 2013 Results & 2014 Objectives February 12,

15 Europe grew in H2 by 3.8% (like for like) North America declined in H2 hit by adverse commercial mix Product sales by region in m Europe H2 7,412 7,412 FY 3,416 3, % 3.8% 4% Stable -0.4% Stable H H Published Like for like Light vehicle production* Published Like for like Light vehicle production* North America -12.3% H2 FY 3,646 3, % 6% 1.7% 1.3% 5% 1,951 1,712 H H Published Like for like Light vehicle production* Published 2013 Results & 2014 Objectives February 12, 2014 * Source IHS January Like for like Light vehicle production*

16 Strong growth in Asia & South America Product sales by region in m Asia % 26.3% H2 8% 1,388 1, % 24.3% 5% FY H H Published Like for like Light vehicle production* o/w China +16% Published Like for like Light vehicle production* o/w China +14% South America + RoW -6.5% 14.1% H2 19.5% % 2.1% 6% FY H H Published Like for like Light vehicle production* (South America) Published 2013 Results & 2014 Objectives February 12, 2014 * Source IHS January Like for like Light vehicle production* (South America)

17 Operating income by region Europe sharp improvement in H2 m H2 % of total sales % 3.0% H H Operating margin improvement in H2 was mainly driven by: Higher volume contribution Reduced fixed costs Sharp improvement for Emissions Control Technologies Total sales Product sales 4,539 3,416 4,666 3,527 FY % of total sales Total sales Product sales Results & 2014 Objectives February 12, % 2.7% ,618 7,412 9,701 7,412 Operating margin contraction of 20bp for the full year resulting from the 100bp margin contraction in H1 (to 2.4%). The decline in H1 was the full year impact of the volume drop seen since mid-2012 (volume decline and fixed costs reduction not fully deployed) 17

18 Operating income by region North America improving but not at the expected pace m H2 FY % of total sales Total sales Product sales % 1.6% H H ,403 1,951 2,230 1, Operating margin improved by 40bp in H2 despite volume drop of 4.3% (like for like) and increased slightly for full year (+10bp) Substantial margin upgrade for Emissions Control Technologies which reached a good level of profitability in H2. Automotive Seating still affected by a low profitability in Mexico due to important capex and ramp-up costs of new technology Interior Systems faced ramp-up issues on sophisticated products impacting profitability in two manufacturing sites % of total sales Total sales Product sales 2013 Results & 2014 Objectives February 12, % 2.1% ,541 3,646 4,692 3,707 18

19 Operating income by region Asia margin is improving from an already high level m H2 % of total sales Total sales Product sales % 9.1% H H , , Operating margin increased by 80bp in H2 (+30bp full year) on the back of: Strong sales growth (above 20% like for like in H2 and FY) Margin expansion for both Emissions Control Technologies and Interior Systems FY % of total sales Total sales Product sales 2013 Results & 2014 Objectives February 12, % 8.3% ,124 1,388 2,522 1,706 19

20 Operating income by region South America hit by currency swings m H2 % of total sales Total sales Product sales H H (3.4%) (2.9%) (19) (15) Losses in South America (around 3% of total sales) were reduced in H2. The environment is very challenging: increasing inflation, forex volatility and pressure on volumes in Brazil in Q Difficult to pass on the full impacts to customers Significant start-up costs for Automotive Exteriors decreasing in Q FY % of total sales (2.6%) (2.7%) Total sales Product sales (28) 1, Results & 2014 Objectives February 12, 2014 (31) 1,

21 Geographic rebalancing is continuing Asia now represents 13% of total product sales Product sales % outside Europe Asia South America 5% Rest of the world 10% 46% outside Europe Asia Rest of the world 2% 1% South 13% America 5% 56% Europe 54% Europe North America 27% North America 27% 2013 Results & 2014 Objectives February 12,

22 Operating income by Business Group Automotive Seating is reaching competition benchmark m H2 141 Sales 2,500 2, ,346 2,299 2,346 H H % 1.3% Var in % like for like % of total sales Operating income % 4.5% H H Sales growth (+1.8% like for like full year): Strong growth in Asia and South America Adverse commercial mix in North America in H2 FY Sales 5,156 5, ,905 4,891 2,346 2, % 1.8% Var in % like for like 2013 Results & 2014 Objectives February 12, 2014 % of total sales Operating income % 4.2% Product sales Tooling, Prototypes Operating margin improvement of 140bp in H2 and 50bp full year to 4.2% resulting from: Steady improvement in North America Profitability breakthrough in Mechanisms 22

23 Operating income by Business Group Emissions Control Technologies reducing gap with competitors m H2 Sales Operating income 107 2,924 1,244 3,150 1, % % % of total sales % 3.9% Solid sales growth in Asia and South America (+22% and 26% like for like respectively) 1,573 1, % H H Operating margin 2,346 2,299 H H Var in % like for like % of product sales 3.3% 7.4% FY 192 6,080 3,233 Sales 6,351 2,654 2,768 3,352 2,346 2, % % 7.0% Var in % like for like 2013 Results & 2014 Objectives February 12, 2014 % of total sales % of product sales Operating income % 3.1% Operating margin 4.5% 5.9% Product sales Monoliths Improved operating margin on product sales by 410bp in H2 to 7.4% and 140bp for FY driven by: Margin recovery in North America Breakthrough in Europe Margin expansion in Asia on an already highly profitable basis. Tooling, Prototypes 23

24 Operating income by Business Group Interior Systems is still facing challenges m H2 Sales Operating income 2,288 2, % 71 Solid product sales growth (+4.1% like for like in H2 and +4.4% like for like FY) 1,863 1, % 2,346 H H Var in % like for like % of total sales % 1.1% H H Operational issues mainly in North America leading to high start-up costs on sophisticated new programs FY Sales 4,353 4, % Operating income ,597 3,793 2,346 2, % Var in % like for like 2013 Results & 2014 Objectives February 12, 2014 % of total sales 3.0% 1.8% Product sales Tooling, Prototypes 24

25 Operating income by Business Group Automotive Exteriors is recovering m H2 Sales Operating income ,346 H H % % Var in % like for like % of total sales % 2.5% H H Growth acceleration (+5.0% like for like in H2 and +2.9% like for like full year) despite a low growth for modules Recovery in Europe Ramp-up costs in South America FY 1, Sales 1, ,562 1,657 2,346 2, % 2.9% Var in % like for like 2013 Results & 2014 Objectives February 12, 2014 % of total sales Operating income % 2.0% Product sales Tooling, Prototypes Despite a sharp increase in H2 (+120bp), full year profitability (-40 bp) is penalized by a weak H1 European bumper business around 4.5% operating margin Front End Module around 1.5% operating margin High start-up costs in South America mostly concentrated in H1 High transformation cost for composites 25

26 Net income at 88m m 2012* H2 H1 H Total sales 17, ,763.6 Operating income (margin as % of total sales) (3.0%) (3.2%) , (3.0%) H2 recovery over weak H1 margin Restructuring Other income and (expense), net Interest expense, net Other income and interest expense Pretax income of integrated companies Corporate income taxes Net income of associates & Other Minority interests Consolidated net income (Group share) Net income per share (fully diluted) (83.7) (3.5) (165.2) (31.9) (67.4) 21.0 (42.1) (52.2) (13.4) (90.8) (29.0) 96.7 (20.8) 7.4 (31.0) 52.3 (91.3) (15.5) (187.9) (46.4) (64.7) 10.9 (55.8) Results & 2014 Objectives February 12, 2014 * Restated for IAS 19R European restructuring plan launched late 2012 Iran deconsolidation Higher average net debt. Down 15m in 2014 after conversion of CV bond Forex losses 33% tax rate Higher contribution from Chinese minorities Net income impacted by high restructuring and 1-off (Forex, Iran)

27 Cash flow generation is improving, working capital requirement swings are reversed and investments are stabilized m 2012 H1 H Operating income D & A EBITDA Change in WCR Capex Capitalized R&D Restructuring Finance expenses Taxes Others Net cash flow , , Results & 2014 Objectives February 12, EBITDA increased (+6%) faster than sales (+5%) despite weak H1 Full recovery of the negative 2012 WCR swing Receivables sold: Dec m; June m; Dec m Capex plus capitalized R&D below the 800m cap and below 2012 peak ( 825m) High level due to accelerated deployment Unfavorable country mix Forex impact, and pensions Breakthrough in net cash flow generation, one year ahead of plan

28 Net debt down by 290m to 1.52bn m H Financial ratios Net Debt at June Net Debt at December Net Debt at December Net Debt at December Net Debt / EBITDA: 1.42x (vs 1.79x at end 2012) Net Debt / Equity: 0.93x (vs 1.33x at end 2012) (1,519) (1,519) Positive free cash flow (1,708) 7 (19) Net Cash Flow Other Equity (1,807) 144 (32) 2012 Results & 2013 Objectives February 12, Net Cash Flow Other Equity Early conversion of the 2015 convertible bond for 214m

29 3 year maturity of the debt No major repayment before end Maturities of long-term debt m Financing actions 2013 The first tranche of the syndicated credit facility has been extended to November 2016 Early conversion of the 2015 Oceane (convertible bond) for 214m in December New factoring programs for 187m Conversion of the m Oceane (convertible bond) can be forced from Jan 15, 2016 if the share price is above Nov & Dec Strong liquidity at 1.9bn Cash at end December 2013 is 702m (versus 628m at Dec 2012) Undrawn committed credit line stands at 1,150m higher than in 2012 ( 850m) Financing plan for early 2015 The syndicated facility will be renewed with an extended syndicate of global banks and will be transformed into a 5 year back-up line Issue a 7 year high-yield bond to repay the 2016 HY 2012 Results & 2013 Objectives February 12,

30 Agenda 2013 highlights Yann Delabrière 2013 results Michel Favre 2014 priorities, actions & guidance Yann Delabrière 2013 Results & 2014 Objectives February 12,

31 Key takeaways of our November 2013 Investor day Clear strategy boosting profitable growth and cash generation : controlled growth Leverage favorable market environment and Faurecia s strong market positions Benefit from selective resource allocation strategy Accelerate in Asia Optimization of cost base in Europe Boost North America profitability Leverage global platforms Develop value-added technologies 2016 sales above 21 billion euros Operating margin % Net cash flow around 300 million euros 2013 Results & 2014 Objectives February 12,

32 2014 Priorities & Actions Continue selective commercial policy Priority for Automotive Seating and Emissions Control Technologies Prudent for Interior Systems and Automotive Exteriors Asia to remain top priority Spending capped at 800m (like in 2013) 2013 Results & 2014 Objectives February 12,

33 2014 Priorities & Actions Accelerate margin recovery in North America Continue to deploy new organization with management optimization Enhance operational control Fix few remaining critical manufacturing sites Optimize footprint Focus on cash in South America Very strict enforcement of inflation and currency swings pass through 2013 Results & 2014 Objectives February 12,

34 2014 Priorities & Actions Continue to optimize our cost structure in Europe Automotive Seating: to merge South and North Europe operations into one single entity Emissions Control Technologies: adapt and specialize footprint in Europe Maintain strong profitable growth in Asia In China, maintain double digit growth with high profitability Focus on international platforms, commercial vehicles and Chinese OEMs Develop business with Nissan and Hyundai-Kia Increase our engineering capabilities in Japan and Korea 2013 Results & 2014 Objectives February 12,

35 2014 market outlook Output in Europe to remain flat in 2014 Light vehicle production forecast % change of unit output North America +3% South America World +3% Europe incl. Russia 0% / +2% China Europe Guidance is based on stable production North America Faurecia is expecting light vehicle production in North America to continue to grow South America Light vehicle production to decline by at least 4% -4% +7% Faurecia / IHS Automotive, January Results & 2014 Objectives February 12, 2014 China Light vehicle production in China should continue to expand by +7% 35

36 Guidance 2014 Total sales (like for like) + 2% / + 4% Operating income Net cash flow Margin improvement between 20bp and 50bp Positive 2012 Results & 2013 Objectives February 12,

37 Back-Up Legal statement The board of directors approved the 2013 accounts on February 11, accounts have been fully audited Final auditor s report outstanding 2012 Results & 2013 Objectives February 12,

38 Back-Up Profitability by Region TOTAL SALES* (in m) 2011 H H H H Europe 10, , , , , , ,701.0 North America 3, , , , , , ,691.7 Asia 1, , , , , , ,521.9 South America RoW, Other & Eliminations TOTAL 16, , , , , , ,028.6 PRODUCT SALES* (in m) 2011 H H H H Europe 7, , , , , , ,411.5 North America 2, , , , , , ,707.5 Asia 1, , ,705.8 South America RoW, Other & Eliminations TOTAL 12, , , , , , ,693.2 OPERATING INCOME (in m) 2011 H H H H Europe Margin (as % of Total sales) 4.1% 3.4% 2.4% 2.9% 2.4% 3.0% 2.7% North America Margin (as % of Total sales) 2.5% 2.9% 1.2% 2.0% 2.5% 1.6% 2.1% Asia Margin (as % of Total sales) 8.7% 7.7% 8.3% 8.0% 7.4% 9.1% 8.3% South America Margin (as % of Total sales) 3.2% -0.3% -3.9% -2.2% -3.0% -3.5% -3.2% RoW, Other & Eliminations Margin (as % of Total sales) -5.5% -5.0% -2.1% -3.7% -1.3% -0.7% -1.1% TOTAL Margin (as % of Total sales) 4.0% 3.5% 2.5% 3.0% 2.8% 3.2% 3.0% 2012 Results & 2013 Objectives February 12, 2013 * Sales by origin 38

39 Back-Up Profitability by Business Group TOTAL SALES (in m) 2011 H H H H Automotive Seating 4, , , , , , ,218.9 Interior Systems 3, , , , , , ,560.0 Emissions Control Technologies 5, , , , , , ,350.5 Automotive Exteriors 1, , ,899.3 TOTAL 16, , , , , , ,028.6 PRODUCT SALES (in m) 2011 H H H H Automotive Seating 4, , , , , , ,890.9 Interior Systems 3, , , , , , ,793.2 Emissions Control Technologies 2, , , , , , ,351.7 Automotive Exteriors 1, , ,657.4 TOTAL 12, , , , , , ,693.2 OPERATING INCOME (in m) 2011 H H * H H Automotive Seating Margin (as % of Total sales) 4.3% 4.3% 3.1% 3.7% 3.9% 4.5% 4.2% Interior Systems Margin (as % of Total sales) 5.3% 3.0% 3.1% 3.0% 2.5% 1.1% 1.8% Emissions Control Technologies Margin (as % of Total sales) 2.6% 3.0% 1.8% 2.4% 2.4% 3.9% 3.1% Margin (as % of Product sales) 5.2% 5.7% 3.3% 4.5% 4.5% 7.4% 5.9% Automotive Exteriors 90, Margin (as % of Total sales) 5.1% 3.6% 1.3% 2.4% 1.6% 2.5% 2.0% TOTAL Margin (as % of Total sales) 4.0% 3.5% 2.5% 3.0% 2.8% 3.2% 3.0% 2013 Results & 2014 Objectives February 12, 2014 * Reported (not restated for IAS 19R) 39

40 Contact & Share data Investor Relations Eric-Alain Michelis 2, rue Hennape Nanterre France Tel: Cell: Fax: eric-alain.michelis@faurecia.com Web site: Share Data Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA Datastream: F:BERT ISIN Code: FR ADR Data Ticker: FURCY Ratio: 2 ADRs for 1 share Agent: Citi Group Bonds ISIN Codes 2013 Results & 2014 Objectives February 12, bonds : XS bonds : XS convertible : FR Results & 2014 Objectives February 12,

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 Results & 2014 Objectives February 12,

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