Investor Day 12 Novembre 2012 FINAL

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  • 7/30/2019 Investor Day 12 Novembre 2012 FINAL

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    London November 12, 2012

    Investor Day 2012

    Successfully facing new challenges

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    Investor Day 2012 London November 12, 2012 2PropertyofF

    aurecia-

    Duplication

    prohibited

    November 2011 - November 2012

    New European context with a very weak environment

    Faurecia growing faster than expected in North America and Asia Acceleration of Faurecia globalization

    Validating our strategic priorities

    New European context is impacting mid-term financial targets

    Requiring additional action plan

    New European context, same strategic priorities,

    additional action plan

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    Investor Day 2012 London November 12, 2012 3PropertyofF

    aurecia-

    Duplication

    prohibited

    IHS Automotive production forecast is now significantlylower than 12 months ago

    New European context with very weak environment

    Light vehicle production up to 3.5 tons Source IHS Automotive

    Light vehicle production in Europe (excl. Russia)

    CAGR2011-2016 :

    +0.8%

    CAGR2011-2015 :

    +2.8%

    18.8

    19.8

    18.4

    15.5

    17.4

    17.9

    17.5

    18.3

    19.4

    20.0

    17.8

    18.6

    17.9

    16.616.3

    17.0

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    -12%

    In million vehicles

    IHS October 2011

    IHS October 2012

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    Investor Day 2012 London November 12, 2012 4PropertyofF

    aurecia-

    Duplication

    prohibited

    Faurecia growing faster than expected

    in North America and Asia

    Product sales

    Asia+14% like-for-like9M 2012 vs 9M 2011

    North America+21% like-for-like9M 2012 vs 9M 2011

    In million

    North America

    Accelerated rebound of automotive production

    Faurecia growing faster than expected thanksto rapid expansion with VW, Ford, Nissan,Daimler and Commercial vehicles for FaureciaEmissions Control Technologies

    Asia

    Slower growth in China but impactingmore the low end of the market thanthe core and luxury segments

    In China, Faurecia continued to outperformautomotive production by 5 pp.

    Faurecia sales in China up 12% in 2011 and

    up 13% (like-for-like) after 9 months in 2012

    Faurecia sales in Korea up 34% in 2011 and +8%(like-for-like) at end September 2012 thanks tocontinued development with Hyundai

    2010

    1,860

    9M 2012

    2,659

    1,945

    9M 2011

    2,579

    2011

    +43%+33%

    2011

    790

    9M 2012

    9991,117

    9M 2011

    968

    2010

    +15%+26%

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    Investor Day 2012 London November 12, 2012 5PropertyofF

    aurecia-

    Duplication

    prohibited

    Acceleration of Faurecia's globalization

    64

    20

    5

    9

    2

    9M 2011

    57

    27

    5

    10

    1

    9M 2012

    Europe

    North America

    South America

    AsiaOther

    Europe

    After 9 months 2012, product sales in Europe

    are down 5% (like-for-like) and represented 57%of group total (versus 64% a year ago)

    North America

    After 9 months 2012, product sales are up 43%(21% like-for-like). The acquisit ion in June

    of the Ford Saline business (annual consolidatedsales of approx $ 400m) is boosting the overall growth

    At end of September 2012, product sales in NorthAmerica represented 27% of group total or +7 pointsversus a year ago

    Asia

    At the end of September 2012, product salesare up 26% (14% like-for-like) on the backof a strong organic growth and represented10% of group total product sales

    Product sales breakdown by region (in %)

    19

    5

    9

    9M 2010

    66

    1

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    Investor Day 2012 London November 12, 2012 6PropertyofF

    aurecia-

    Duplication

    prohibited

    4

    2

    3 6

    1

    5

    Keep our focus on 4 core businesses Operational performance as a strategic lever

    Leverage globalization Technology leadership

    as a growth and profitability lever

    Accelerate in Asia Be a cautious consolidator

    Adequate growth and profit potentialfor all the 4 business groups

    Leadership positions and worldwide coverage

    Technology leadership

    Deliver worldwide to customers the same benchmarklevel of service in manufacturing and engineering

    Keep optimizing the cost base to ensure competitivenessand profitability

    Lead competition in global programsand global platforms management

    Outperform market in BRIC countries

    Achieve scale in Russia and India

    Become a Top 5 supplier in North America

    Environment and fuel efficiency solutions

    Breakthrough materials and processes

    Decoration, comfort, end-user interface and connectivity

    Targeted technology acquisitions

    More than double sales in China

    Become fully local in all markets with state-of-the-artR&D capabilities

    Build on worldwide expansion with targeted Asian OEMs

    Target 3.4bn product sales in 2016 (over 25% CAGR 11-16)

    Priority to organic growth

    Small to medium size acquisitions backedby our customers

    Validating our strategic priorities

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    Investor Day 2012 London November 12, 2012 7PropertyofFaurecia-

    Duplication

    prohibited

    Lower European market has 4 main impacts

    on our medium term milestones

    With expected automotive production being cut by 12% for 2014,Faurecia Europe product sales have been significantly lowered

    Delaying our above 5% Group operating marginuntil 2016 (versus 2014)

    Significantly reduced production perspectives

    are requiring additional restructuring action

    Impacting 2013-2014 free cash flow generation

    November 2012 versus November 2011

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    Investor Day 2012 London November 12, 2012 8PropertyofFaurecia-

    Duplication

    prohibited

    Secure profitability in Europe in a weak

    environment with aggressive cost cutting

    Rapidly increase profitabilityin North America

    Keep a rapid growth paceand high profitability in Asia

    Technology leadership momentumto grow our value content

    2014 and 2016 profit, cash flow

    and debt targets

    Action plan to converge

    on our mid-term financial targets

    1

    2

    4

    5

    3

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    Investor Day 2012 London November 12, 2012 9PropertyofFaurecia-

    Duplication

    prohibited

    Secure profitability in Europe in a weak

    environment with aggressive cost cutting

    Rapidly increase profitabilityin North America

    Keep a rapid growth paceand high profitability in Asia

    Technology leadership momentumto grow our value content

    2014 and 2016 profit, cash flow

    and debt targets

    1

    2

    4

    5

    3

    Yann DelabrireChairman & CEO

    Yann Delabrire

    Chairman & CEO

    Herv GuyotEVP Strategy

    Herv GuyotEVP Strategy

    Frank Imbert

    EVP CFO

    Action plan to converge

    on our mid-term financial targets

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    Investor Day 2012 London November 12, 2012 10PropertyofFaurecia-

    Duplication

    prohibited

    1

    2

    4

    5

    3

    Yann Delabrire

    Chairman & CEO

    Secure profitability in Europe in a weak

    environment with aggressive cost cutting

    Rapidly increase profitabilityin North America

    Keep a rapid growth paceand high profitability in Asia

    Technology leadership momentumto grow our value content

    2014 and 2016 profit, cash flow

    and debt targets

    Action plan to convergeon our mid-term financial targets

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    Investor Day 2012 London November 12, 2012 11Propertyof

    Faurecia-

    Duplication

    prohibited

    Automotive production in Europe (excl. Russia)should stay weak

    Addit ional 2-3% declinein light vehicle productionin 2013

    2011 level is now notexpected to be reachedagain before 2015

    2016 expected lightvehicle productionto be remain below2006-2007 peak

    1

    Light vehicle production in Europe (excl. Russia)

    CAGR2011-2016 :

    +0.8%

    CAGR2011-2015 :

    +2.8%

    18.8

    19.8

    18.4

    15.5

    17.4

    17.917.5

    18.3

    19.4

    20.0

    17.8

    18.6

    17.9

    16.616.3

    17.0

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    -12%

    In million vehicles

    IHS October 2011

    IHS October 2012

    Light vehicle production up to 3.5 tons Source IHS Automotive

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    Investor Day 2012 London November 12, 2012 12Propertyof

    Faurecia-

    Duplication

    prohibited

    Secure profitability in Europe

    Our client portfolio is a real asset:

    50% German OEMs

    40% Premium OEMs

    Fixed cost base adjusted downby 230m in 2009

    Industrial footprint in Western Europeresized in 2008-2009

    Europe is profitable, at group averagein 2011 and 2012

    1

    Europe product salesby OEM

    VWo/w Audi 19%

    BMWPSA

    Renault-Nissan

    12%

    Tata 2%

    GM 2%

    OtherFiat-Chrysler1%Geely-Volvo 3%

    DaimlerPorsche 1%

    H22012e

    8%

    20%7%

    33%

    9%

    2%

    GermanOEMs50%

    Ford

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    Investor Day 2012 London November 12, 2012 13Propertyof

    Faurecia-

    Duplication

    prohibited

    Faurecia sales in Europe (excl. Russia)expected flat between 2011 and 2016

    Product sales in Europe are expected to:

    Decline in 2012 (-4.9% like-for-like

    at end of september 2012)and no rebound expected in 2013

    Gradually recover to 2011 levelfrom 2014 onwards

    1

    Faurecia Europe (excl. Russia)product sales

    7.7

    2011 2016

    7.6

    In billion

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    Investor Day 2012 London November 12, 2012 14Propertyof

    Faurecia-

    Duplication

    prohibited

    Western Europe industrial footprint adjustment Group restructuring charges expected to reach 100m in 2012

    including 1,500 headcounts reduction in Western Europe

    Group restructuring charges expected to reach 90m in 2013

    Adjusting further the cost base in Western Europe1

    Fixed costs base in Europe to be reducedby 50m in 2013 and 100m in 2014

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    Faurecia-

    Duplication

    prohibited

    Managing the cost base through additional extensionof the Eastern Europe footprint

    7 new manufacturing sites added inEastern Europe between 2012 and 2014

    Poland Legnica

    Gorzow II

    Czech Republic Mlada BoleslavPilsen

    Romania Rmnicu Vlcea

    Craiova

    LCC direct headcounts targeted to increasefrom 39% to 55% of total European(excl. Russia) direct headcounts

    Direct headcounts Europe(excl. Russia)

    2011 2016

    LCC

    HCC

    39%55%

    61% 45%

    1

    Eastern Europefootprint extensionPoland

    Romania

    CzechRepublic

    FASFECT

    FIS

    Craiova

    Legnica

    Gorzow

    Rmnicu Vlcea

    Mlada BoleslavPilsen

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    Investor Day 2012 London November 12, 2012 16Propertyof

    Faurecia-

    Duplication

    prohibited

    Faurecia's growth in Russia is based onglobal customers and programs

    Automotive market

    Russian automotive production is expected to growfrom 1.9m units in 2011 to 2.4m units in 2016

    Localization of components accelerated by taxincentives. Decree 166 requires OEMs to achieve60% local contents within 6 years

    Overall Tier-1 auto components sector is expectedto grow much faster than the OEM market

    OEMs strategy

    Russian OEM industry now well structuredthrough consolidation

    Renault-Nissan partnership with AvtoVAZ consolidated

    with the launch of the new entry platform andintroduction of Renault, Nissan and AvtoVAZ vehicles

    Ford in St Petersburg and Ford-Sollers JV areexpanding fast with 4 production facilities

    VW partnership with GAZ in Nizhny Novgorodin addition to its Kaluga base

    Russia light vehicle production

    1

    CAGR+5%

    1.9

    2.4

    2011 2016

    In million units

    Up to 3.5 tons Source IHS Automotive October 2012

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    Investor Day 2012 London November 12, 2012 18Propertyof

    Faurecia-

    Duplication

    prohibited

    European automotive production slowdownis expected to reduce Faurecia Europeoperating margin by 1.5 point

    Action plan to regain 1.0 point operating

    margin in Europe in a slowly recoveringmarket

    Western European footprint adjustment

    Higher Eastern Europe content

    Fixed costs reduction

    Growth in Russia

    Product sales in global Europe reaching 8.0bnand to secure European profitability

    Global Europe product sales

    1

    In billion

    2016

    8.0

    2011

    7.8

    CAGR+0.5%

    Sales roadmap Profitability roadmap

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    Investor Day 2012 London November 12, 2012 19PropertyofFaurecia-

    Duplication

    prohibited

    1

    2

    4

    5

    3

    Yann DelabrireChairman & CEO

    Secure profitability in Europe in a weak

    environment with aggressive cost cutting

    Rapidly increase profitabilityin North America

    Keep a rapid growth paceand high profitability in Asia

    Technology leadership momentumto grow our value content

    2014 and 2016 profit, cash flow

    and debt targets

    Action plan to convergeon our mid-term financial targets

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    Investor Day 2012 London November 12, 2012 20PropertyofFaurecia-

    Duplication

    prohibited

    Faurecia in North America is to become ranked # 6

    North America product sales Very rapid growth in 2011 (+33%) and 2012e (+42%)

    Ford Saline acquisition is an additional booster

    with $ 400m annual consolidated revenues

    Has pushed Faurecia to become the 6th largestautomotive component supplier in North America

    North America now accounting for over 25%of Faurecias global sales

    Faurecia customer base reinforced and broadenedthrough:

    Expansion with Ford through organic growth and Saline

    acquisition from 370m in 2010 to 850m in 2012e Expansion with Nissan from 13m in 2010

    to 240m in 2012e

    Expansion with Daimler from zero to 230m in 2012e

    Expansion with VW in Mexico and Chattanooga (TN)( +25% in 2011 and +70% in 2012e)

    Commercial vehicles from zero to 90m in 2012e

    North America product sales by OEM

    Ford

    GM

    Chrysler

    BMW

    Daimler VW

    Cummins 2% Other4%

    23%

    21%

    20%

    11%

    7%Nissan

    6%6%

    2

    2012e

    2009 2010 2011 2012e2008

    3.7

    2.6

    1.9

    0.91.5

    In billion

    +42%

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    Investor Day 2012 London November 12, 2012 22PropertyofFaurecia-

    Duplication

    prohibited

    Belvidere

    FAS

    FECT

    FIS

    FAE

    BradfordLansing

    Sterling Heights

    Fountain Inn

    Spartanburg

    TuscaloosaArlington

    Cottondale

    Chattanooga

    Cleveland

    Madison

    Dexter

    Louisville

    Columbus

    Riverside

    Rapid expansion of the manufacturing footprint15 new sites in 2011 and 2012

    2

    Hermosillo

    Ramos Arizpe

    San Luis Potosi

    SilaoQueretaro

    Puebla

    Mexico

    Sizeable footprint expansion in 2011

    and 2012 with 15 sites added Region is now fully covered

    Low cost base is significantwith 43% of the direct workforce in 2011

    38 manufacturing sites in 2012

    10 manufacturing sites(components)US + Canada28 manufacturing sites(14 components / 14 JIT)

    FAS

    FECT

    FIS

    FAE

    SalineFraser

    Franklin

    Toledo

    Taylor

    Troy

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    Investor Day 2012 London November 12, 2012 23Propertyo

    fFaurecia-

    Duplication

    prohibited

    Development with Ford and GMon global programs and premium products(Cadillac) for Faurecia Automotive Seating

    Development with Nissan and Hyundai

    with sales expected to reach 380m in 2016

    Commercial vehicles product salesto account for 210m by 2016

    Development with VW/Audi thanks

    to OEM expansion and global programs

    Product sales expected to reach 4.3bn in 2016 or 11% CAGR 2011-2016

    Faurecia expects to continue to expandits business in North America

    North America product sales

    2011 2016

    2

    CAGR

    +11%

    2.64.3

    In billion

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