February 12, 2015 2014 Results & 2015 Objectives
Agenda 1 2014 Highlights Yann Delabrière 2 2014 Results Michel Favre 3 2015 Priorities and outlook Yann Delabrière 2
Agenda 1 2014 Highlights Yann Delabrière 2 2014 Results Michel Favre 3 2015 Priorities and outlook Yann Delabrière 3
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
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
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
Agenda 1 2014 Highlights Yann Delabrière 2 2014 Results Michel Favre 3 2015 Priorities and outlook Yann Delabrière 7
Sustained growth Total sales up 7.1%* in H2 m Second half Full year +8.4% 8,764 9,501 828 1,380 +11.3 % +14.5 % +6.8 % 921 1,580 7.1% 10.7% 12.1% 18,029 1,568 2,768 +4.4% +4.5 % +12.1 % +2.9 % 18,829 1,638 3,102 5.5% 5.8% 12.2% 6,556 7,000 6.0% 13,693 14,089 4.4% H2 2013 * Constant currencies & scope Product sales Monoliths Tooling, Prototypes H2 2014 Like for like* 8 2013 2014 Like for like*
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
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 3,756 6.5% 6.9% 6.2% 6.8% Stable H2 2013 H2 2014 Published Like for like* Light vehicle production** 2013 2014 (excl. Russia +4%) 3% Published Like for like* Light vehicle production** (excl. Russia +6%) North America H2 FY 1,712 1,794 4.8% 1.0% 6% 3,707 3,496-5.7% -4.6% 5% H2 2013 H2 2014 Published Like for like* Light vehicle 2013 2014 production** * Constant currencies & scope ** Source IHS January 2015 10 Published Like for like* Light vehicle production**
Strong growth in China above 20% for the 6 th consecutive year Product sales by region in m Asia 907 1,096 20.9% 17.4% H2 2% 1,706 2,029 19.0% 19.7% 4% FY H2 2013 H2 2014 Published Like for like* Light vehicle production** 2013 2014 (o/w China +8%) Published Like for like* Light vehicle production** (o/w China +9%) South America + RoW H2 FY -20.4% 410 354-13.5% -7.3% -15% 868 691-7.7% -16% H2 2013 H2 2014 Published Like for like* Light vehicle production** 2013 2014 (South America) * Constant currencies & scope ** Source IHS January 2015 11 Published Like for like* Light vehicle production** (South America)
Operating income by region Europe sharp improvement in H2 and for FY m H2 139 193 % of total sales Total sales Product sales 3.0% 3.8% H2 2013 H2 2014 4,666 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 261 372 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 2013 2014 9,701 7,412 10,391 7,873 12
Operating income by region North America starting to recover in H2 but not fast enough m H2 % of total sales 36 38 1.6% 1.6% Transition year with large number of model changes, slowing growth and with high ramp-up costs H2 2013 H2 2014 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 98 78 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 2013 2014 4,692 3,707 4,516 3,496 13 VP North America Emissions Control Technologies VP North America Automotive Exteriors
Operating income by region Asia margin is improving from an already high level m H2 123 150 % of total sales Total sales Product sales 9.1% 9.3% H2 2013 H2 2014 1,345 907 1,620 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 210 268 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 2013 2014 2,522 1,706 3,008 2,029 14
Operating income by region South America + RoW hit by sharp volume contraction m H2 H2 2013 H2 2014 FY % of total sales Total sales Product sales % of total sales (2.9%) (3.8%) (15) 522 410 (18) 469 354 2013 2014 (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 1,114 868 915 691 15
Operating income by Business Group Automotive Seating is in the leading pack m Sales H2 Operating income 2,500 2,679 201 Sales 207 2,299 2,472 H2 2013 H2 2014 5,219 5,309 328 370 4,891 4,939 2013 2014 6.1% 6.5% like for like* 2.8% 2.1% like for like* FY % of total sales % of total sales 112 Operating income 217 16 127 4.5% 4.7% H2 2013 H2 2014 234 4.2% 4.4% 2013 2014 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
Operating income by Business Group Emissions Control Technologies reducing gap with competitors m 3,150 119 1,381 2.299 1,651 3,419 H2 2013 H2 2014 6,351 231 Sales Sales 121 1,580 1,718 6,747 213 2,768 3,102 3,352 3,433 2013 2014 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 17 123 135 3.9% 3.9% H2 2013 H2 2014 Operating margin 7.4% 7.8% Operating income 199 257 3.1% 3.8% 2013 2014 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
Operating income by Business Group Interior Systems is building momentum in sales & profits m Sales H2 Operating income 2,199 2,341 391 1,808 1,975 8.2% H2 2013 H2 2014 Sales 366 4,560 4.709 767 713 3,793 3,996 2013 2014 5.5% like for like* 5.1% 7.1% like for like* FY % of total sales % of total sales 25 84 18 66 1.1% 2.8% H2 2013 H2 2014 Operating income 129 1.8% 2.7% 2013 2014 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
Operating income by Business Group Automotive Exteriors is improving m Sales H2 Operating income 914 117 1,062 228 16.4% 23 35 Growth acceleration: +4.9%* in H2 and +4.3%* FY 797 834 4.9% H2 2013 H2 2014 1,899 242 Sales 2,063 342 like for like* 9.1% FY % of total sales 2.5% 3.3% H2 2013 H2 2014 Operating income 54 38 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 1,721 2013 2014 4.3% like for like* % of total sales 2.0% 2.6% 2013 2014 Product sales Tooling, Prototypes * Constant currencies & scope 19
Net income up 89% to 166m m 2013 H2 2014 2014 Total sales 18,028.6 9,500.6 18,828.9 2014 vs 2013 +4.4% Operating income (margin as % of total sales) 538.3 362.7 673.3 (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 197.2 181.2 343.2 Corporate income taxes (64.7) (70.6) (115.1) Net income of associates & Other 10.9 1.7 0.8 Minority interests (55.8) (34.8) (63.2) Consolidated net income (Group share) 87.6 77.6 165.7 Net income per share (fully diluted) 0.82 1.34 20 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
Cash flow generation is improving mainly driven by sharp EBITDA improvement m 2013 H2 2014 2014 Operating income 538 363 673 D & A 532 295 556 EBITDA 1.070 658 1.229 Sharp increase mostly coming from higher operating income Change in WCR 364 69 263 Capex -523-288 -521 Capitalized R&D -265-152 -322 Restructuring -123-47 -96 Finance expenses -187-95 -180 Driven by reduced inventories ( 78m), lower receivables ( 88m) higher payables ( 120m) Receivables sold: Dec 2014 742m; June 2014 575m; Dec 2013 385m 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 -134-90 -155 Others -58 15-3 Net cash flow 144 39 216 21 Breakthrough in net cash flow generation
Debt maturity profile Strong opportunity to reduce cost of debt 2 000 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 1 500 1 000 500 0 HY 9% 490m CV 3.25% 250m 2015 2016 2017 2018 2019 2020 Syndicated Facility 1.2bn undrawn at end Dec 2014 HY 8.75% 250m Financing actions 2015-2016 22 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
Agenda 1 2014 Highlights Yann Delabrière 2 2014 Results Michel Favre 3 2015 Priorities and outlook Yann Delabrière 23
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 4.5 5.0% Net cash flow around 300 million euros ROCE* > 20% 24
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
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
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
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
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
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
Appendices Profitability by Region TOTAL SALES* (in m) 2012 H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Europe 9,618.3 5,034.6 4,666.4 9,701.0 5,275.5 5,115.3 10,390.8 North America 4,541.1 2,461.4 2,230.3 4,691.7 2,219.8 2,295.7 4,515.5 Asia 2,123.9 1,177.1 1,344.8 2,521.9 1,387.5 1,620.2 3,007.7 o/w China 1,482.0 857.3 998.3 1,855.6 1,010.7 1,215.1 2,225.8 South America 777.7 450.7 410.7 861.4 331.4 346.4 677.7 RoW, other & eliminations 303.4 141.2 111.4 252.6 114.2 122.9 237.2 TOTAL 17,364.5 9,265.0 8,763.6 18,028.6 9,328.3 9,500.6 18,828.9 PRODUCT SALES* (in m) 2012 H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Europe 7,411.7 3,884.2 3,527.3 7,411.5 4,117.4 3,755.8 7,873.1 North America 3,645.5 1,995.5 1,712.0 3,707.5 1,702.0 1,793.8 3,495.8 Asia 1,388.4 799.2 906.6 1,705.8 933.4 1,096.0 2,029.4 o/w China 1,097.9 649.9 743.0 1,392.9 768.6 912.2 1,687.8 South America 661.6 370.7 346.3 717.0 270.8 279.7 550.4 RoW, other & eliminations 189.1 88.1 63.3 151.4 65.9 74.6 140.5 TOTAL 13,296.3 7,137.7 6,555.5 13,693.2 7,089.5 6,999.8 14,089.3 OPERATING INCOME (in m) 2012** H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Europe 281.3 122.1 138.6 260.8 178.5 193.0 371.5 Margin (as % of Total sales) 2.9% 2.4% 3.0% 2.7% 3.4% 3.8% 3.6% North America 90.9 62.2 35.9 98.1 40.0 37.5 77.5 Margin (as % of Total sales) 2.0% 2.5% 1.6% 2.1% 1.8% 1.6% 1.7% Asia 169.8 87.2 122.9 210.1 118.4 150.0 268.4 Margin (as % of Total sales) 8.0% 7.4% 9.1% 8.3% 8.5% 9.3% 8.9% South America -17.2-13.4-14.5-27.9-30.0-19.4-49.4 Margin (as % of Total sales) -2.2% -3.0% -3.5% -3.2% -9.1% -5.6% -7.3% RoW, other & eliminations -11.1-1.9-0.8-2.7 3.8 1.5 5.3 Margin (as % of Total sales) -3.7% -1.3% -0.7% -1.1% 3.3% 1.3% 2.2% TOTAL 513.7 256.2 282.1 538.3 310.6 362.7 673.3 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
Appendices Profitability by BG TOTAL SALES (in m) 2012 H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Automotive Seating 5,155.9 2,718.6 2,500.3 5,218.9 2,630.6 2,678.5 5,309.1 Emissions Control Technologies 6,079.5 3,200.0 3,150.4 6,350.5 3,328.6 3,418.8 6,747.4 Interior Systems 4,352.7 2,361.3 2,198.7 4,560.0 2,368.0 2,341.3 4,709.3 Automotive Exteriors 1,776.4 985.0 914.2 1,899.3 1,001.1 1,062.0 2,063.1 TOTAL 17,364.5 9,265.0 8,763.6 18,028.6 9,328.3 9,500.6 18,828.9 PRODUCT SALES (in m) 2012 H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Automotive Seating 4,904.5 2,591.6 2,299.3 4,890.9 2,466.6 2,472.3 4,938.9 Emissions Control Technologies 3,233.2 1,700.6 1,651.0 3,351.7 1,715.1 1,717.9 3,433.0 Interior Systems 3,597.1 1,985.1 1,808.1 3,793.2 2,021.0 1,975.5 3,996.5 Automotive Exteriors 1,561.5 860.3 797.0 1,657.4 886.8 834.2 1,720.9 TOTAL 13,296.3 7,137.7 6,555.5 13,693.2 7,089.5 6,999.8 14,089.3 OPERATING INCOME (in m) 2012* H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 Automotive Seating 193.2 105.4 111.9 217.4 106.9 127.2 234.1 Margin (as % of Total sales) 3.7% 3.9% 4.5% 4.2% 4.1% 4.7% 4.4% Emissions Control Technologies 145.8 76.4 122.6 199.0 122.0 134.6 256.6 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 131.5 59.0 25.0 84.0 63.4 65.5 128.9 Margin (as % of Total sales) 3.0% 2.5% 1.1% 1.8% 2.7% 2.8% 2.7% Automotive Exteriors 43.1 15.4 22.5 37.9 18.3 35.4 53.7 Margin (as % of Total sales) 2.4% 1.6% 2.5% 2.0% 1.8% 3.3% 2.6% TOTAL 513.7 256.2 282.1 538.3 310.6 362.7 673.3 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
Appendices Sales by type SALES BY TYPE In m Product Monoliths 2013 R&D / Tooling Total Automotive Seating 4,890.9 327.9 5,218.9 Emissions Control Technologies 3,351.7 2,767.7 231.0 6,350.5 Interior Systems 3,793.2 766.8 4,560.0 Automotive Exteriors 1,657.4 241.9 1,899.3 TOTAL 13,693.2 2,767.7 1,567.7 18,028.6 2014 Product Monoliths R&D / Tooling Total 4,938.9 370.2 5,309.1 3,433.0 3,101.9 212.5 6,747.4 3,996.5 712.8 4,709.3 1,720.9 342.2 2,063.1 14,089.3 3,101.9 1,637.7 18,828.9 SALES BY TYPE In m Product Monoliths H2 2013 R&D / Tooling 33 Total Automotive Seating 2,299.3 201.0 2,500.3 Emissions Control Technologies 1,651.0 1,380.3 119.1 3,150.4 Interior Systems 1,808.1 390.6 2,198.7 Automotive Exteriors 797.0 117.2 914.2 TOTAL 6,555.5 1,380.3 827.8 8,763.6 H2 2014 Product Monoliths R&D / Tooling Total 2,472.3 206.2 2,678.5 1,717.9 1,579.8 121.1 3,418.8 1,975.5 365.8 2,341.3 834.2 227.8 1,062.0 6,999.8 1,579.8 920.9 9,500.6
Appendices Impact on sales In m 2013 Reported Currencies Scope & other Organic Like for like* 2014 Reported Total sales 18,028.6-172.7-18.9 991.9 18,828.9-1.0% -0.1% 5.5% 4.4% Product sales 13,693.2-147.3-56.5 599.9 14,089.3, -1.1% -0.4% 4.4% 2.9% In m H2 2013 Reported Currencies Scope & other Organic Like for like* H2 2014 Reported Total sales 8,763.6 111.8 0.0 625.2 9,500.6 1.3% 0.0% 7.1% 8.4% Product sales 6,555.5 74.8-20.6 390.1 6,999.8, 1.1% -0.3% 6.0% 6.8% * At constant exchange rates & scope 34
Appendices Sales variation by BG TOTAL SALES in m H2 2013 H2 2014 Reported Like for like* 2013 2014 Reported Like for like* Automotive Seating 2,500.3 2,678.5 7.1% 6.1% 5,218.9 5,309.1 1.7% 2.8% Emissions Control Technologies 3,150.4 3,418.8 8.5% 6.4% 6,350.5 6,747.4 6.3% 6.9% Interior Systems 2,198.7 2,341.3 6.5% 5.5% 4,560.0 4,709.3 3.3% 5.0% Automotive Exteriors 914.2 1,062.0 16.2% 16.4% 1,899.3 2,063.1 8.6% 9.1% TOTAL 8,763.6 9,500.6 8.4% 7.1% 18,028.6 18,828.9 4.4% 5.5% PRODUCT SALES in m H2 2013 H2 2014 Like for like* 2013 2014 Like for like* Automotive Seating 2,299.3 2,472.2 7.5% 6.5% 4,890.9 4,938.9 1.0% 2.1% Emissions Control Technologies 1,651.0 1,717.9 4.0% 3.2% 3,351.7 3,433.0 2.4% 4.7% Interior Systems 1,808.1 1,975.5 9.3% 8.2% 3,793.2 3,996.5 5.4% 7.1% Automotive Exteriors 797.0 834.2 4.7% 4.9% 1,657.4 1,720.9 3.8% 4.3% TOTAL 6,555.5 6,999.8 6.8% 6.0% 13,693.2 14,089.3 2.9% 4.4% *: At constant exchange rates & scope 35
Appendices Sales variation by region TOTAL SALES in m H2 2013 H2 2014 Reported Like for Like * LV prod.** 2013 2014 Reported Like for Like * LV prod.** Europe 4,666.4 5,115.3 9.6% 9.8% North America 2,230.3 2,295.7 2.9% -1.2% Asia 1,344.8 1,620.2 20.5% 16.3% South America 410.7 346.4-15.7% -10.0% Rest of the World 111.4 122.9 10.3% 14.0% TOTAL 8,763.6 9,500.6 8.4% 7.1% 9,701.0 10,390.8 7.1% 7.4% 4,691.7 4,515.5-3.8% -3.1% 2,521.9 3,007.7 19.3% 19.0% 861.4 677.7-21.3% -8.8% 252.6 237.2-6.1% 5.4% 18,028.6 18,828.9 4.4% 4.0% PRODUCT SALES in m H2 2013 H2 2014 Reported Like for Like * LV prod** 2013 2014 Reported Like for Like * LV prod.** Europe 3,527.2 3,755.8 6.5% 6.9% 0.1% North America 1,712.0 1,793.8 4.8% 1.0% 5.9% Asia 906.7 1,096.0 20.9% 17.4% 2.1% South America 346.3 279.7-19.2% -12.8% -15.1% Rest of the World 63.3 74.6 17.9% 23.1% NS TOTAL 6,555.5 6,999.8 6.8% 6.0% 2.1% *: At constant exchange rates & scope **: Source IHS estimates, January 2015 36 7,411.5 7,873.1 6.2% 6.8% 3.2% 3,707.5 3,495.8-5.7% -4.6% 5.0% 1,705.8 2,029.4 19.0% 19.7% 4.1% 717.0 550.4-23.2% -10.3% -16.1% 151.4 140.5-7.2% 4.2% NS 13,693.2 14,089.3 2.9% 4.4% 3.3%
Appendices Various CASH FLOW RECONCILIATION In m 2014 2013 Net Cash Flow 216 144 Acquisitions of investments and business (net of cash & cash equivalents) -33-12 Proceeds from disposal of financial assets 0 0 Other changes -15-27 Cash provided (used) by operating and investing activities 167 105 P&L R&D In m 2014 Reported 2013 Comparable (to 2014) 2013 Reported Gross R&D costs 955.9 916.5 916.5 (-) 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 581.6 592.9 37.6-20.0 317.0 278.4 +20.0 575.3 258.4, (+) Amortization of capitalized R&D 175.8 171.5 171.5 (+) Others 2.4-0.3-0.3 NET R&D expense in the P&L 235.5 216.4, 254.0 As % of Total sales 1.3% 1.2% 1.4% 37
2016 Financial targets by region FAURECIA Group total sales (in bn) Operating margin as % of total sales 2016 > 21.0 4.5% 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
2016 Financial targets by Business Group FAURECIA 2016 Group total sales (in bn) Operating margin as % of total sales > 21.0 4.5% 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%
Contact & Share data Investor Relations Eric-Alain Michelis 2 rue Hennape 92735 Nanterre France Share Data Bloomberg Ticker: Reuters Ticker: Datastream: ISIN Code: EO:FP EPED.PA F:BERT FR0000121147 Tel: +33 1 72 36 75 70 Cell: +33 6 64 64 61 29 Fax: +33 1 72 36 70 30 E-mail: eric-alain.michelis@faurecia.com Web site: www.faurecia.com ADR Data Ticker: Ratio: Agent: FURCY 2 ADRs for 1 share Citi Group Bonds ISIN Codes 2016 bonds: XS0704870392 2019 bonds: XS0778917814 2018 convertible: FR0011321363 40
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