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7/30/2019 Investor Day 12 Novembre 2012 FINAL
1/64
London November 12, 2012
Investor Day 2012
Successfully facing new challenges
7/30/2019 Investor Day 12 Novembre 2012 FINAL
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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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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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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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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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Investor Day 2012 London November 12, 2012 24Propertyo
fFaurecia-
Duplication
prohibited
24
Only 5 new JIT sites between 2013 and 20162
After a phase of rapid expansion,
only 5 new JIT sites to be added between2013 and 2016, 3 JIT in the US and 2 JITsites in Mexico
Industrial focus will shift from newfootprint launch to industrial efficiency
44 sites in North America in 2016
Mexico + 2 JIT sites
Ramos Arizpe
Cuernavaca
FAS
US + Canada+ 3 JIT sites
Detroit
Wentzville
Louisville
FAS
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Investor Day 2012 London November 12, 2012 25Propertyo
fFaurecia-
Duplication
prohibited
North America profitabili ty to rapidly improve:
Finalization of the Emcon integration
Stabilization of the manufacturing footprintin North America after 15 new manufacturing
sites opened in 2011 - 2012 Fixed costs stabilization after a high number
of new programs launches
Synergies expected from revenue growth
Leverage further the low cost base
Faurecia is targeting a fast improvementof its North American profitability
North America direct labor
LCC
HCC
2011 2016
43%54%
57% 46%
2
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Investor Day 2012 London November 12, 2012 27Propertyo
fFaurecia-
Duplication
prohibited
1
2
4
5
3 Herv GuyotEVP Strategy
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 28Propertyo
fFaurecia-
Duplication
prohibited
China: CAGR 11-16: 9%
Excellent mid-term prospects(volume & value)
Favorable mix trend with growthin medium and high segments
above average Worlds largest commercial
vehicle market
Japan
Temporary recovery after
Fukushima disaster in 2011 Globalization is pushing Japanese
OEMs to expand production abroad
Asean: CAGR 11-16: 11%
Thailand is becoming a major hubfor automotive production in Asia
Indonesian market expected to grow fast
India: CAGR 11-16: 10%
Automotive market growthis expected to remain strong
Average value to increasebut will remain very low
Very large commercial vehicle market
South Korea
Hyundai-Kia are increasing global marketshare though footprint globalization
Auto production in Korea expectedto remain broadly stable
Asia remains a key driverfor automotive market expansion
Light vehicle production in Asia
Other Asian Countries**ASEAN*South KoreaJapanIndiaChina
15.8
3.5
7.7
4.6
2.80.7
2011
35.1
24.5
5.7
8.1
4.3
4.71.0
2016
48.3
3
In million units
*ASEAN : Indonesia, Malaysia, Philippines, Thailand, Vietnam
** Other Asian Countries : Australia, Pakistan, Taiwan Light vehicle production up to 3.5 tons Source IHS Automotive October 2012
CAGR+7%
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fFaurecia-
Duplication
prohibited
Key drivers of the Chinese marketare favorable for Faurecia
New emission regulationsto be introduced
2009 2010 2011 2012 2013 2014 2015 2016
Euro 3 Euro 4 Euro 5
3
Source: IHS Automotive, October 2012
Light vehicle production in mil lion units
Premium segment to continue to grow faster than market
Overall mix to improve further
International OEMs are expected to maintain their leadership and few Chinese OEMsmay emerge as key players
Emissions standard are converging with European ones offering huge opportunities to FaureciaEmissions Control Technologies business for both passenger cars and commercial vehicles
CAGR (11-16)
LCV
A
B
C
DE+
MPV/SUV
20162011
15.8
24.5
8%
9%
6%
6%
5%
18%
11%
22%
4%10%
35%
12%2%15%
18%
3%9%
35%
11%2%
21%CAGR+9%
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fFaurecia-
Duplication
prohibited
Faurecia has already a solid presence in China3
Total sales
2009 2010 2011 2012e
1.0
1.2+25%
In billion
Ford
PSA
VW
HyundaiOthers
Nissan
GM
2011
Total sales by OEM
0.6
1.5
Industrial footprint
Changchun
Shenyang
Lanzhou
Chengdu
ChongqingWuhan
Lanzhou
Huadu
YantaiQingdao
ShanghaiWuxi Jinan YanchengBeilun Cixi Nanjing
Sou thwes t Cent ral North
Northeast
East
South
FASFECTFIS
FAE
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Duplication
prohibited
A fully owned R&D assets
R&D Strategy
R&D headcounts
Fully owned R&D centers in Shanghaiintegrated in the global Faurecianetwork and regional footprintsfor programs deployment
Strong local teams with a very largerange of skills, able to realize completelocal developments
Industrial style as di fferentiation factor
Innovation capabilities localized in China
400
1,200
2011 2016
3
New Tech Centers in Shanghai
opened in 2011 opening in 2013
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Duplication
prohibited
Emissions contro l market for light vehicle expectedto grow faster than automotive production thanksto the convergence with European norms (13% CAGR 11-16)
Market share 2011 2016
Passenger cars 25% 27%
Market share in light vehicle to increase slightlyfrom 25% to 27%
Strong portfolio of western OEMs(top 3 customers: VW, PSA, GM)
Development with Chinese OEMs:Geely, Chery, FAW, SAIC
Commercial vehicles business to reach 60m in 2016
Market share 2011 2016
Mechanisms 15% 20%
Frames 20% 20%
Market share 2011 2016
Passengers cars 4% 10%
JV with ChangAn under final discussionfor Ford and PSA new businesses
Selected development with chinese OEMs:Faurecia-Geely JV for Geely Volvo programs
Faurecia growth strategy in China3
Faurecia to double its market share in complete seats
Nissan, PSA and BMW
VW as a new customer
Premium vehicles
Faurecia leading position in mechanisms and frames
Global platform deployment with VW, Nissan, PSA, GM
Mechanisms localization and vertical integration
Overall globalization
Market share 2011 2016
Complete seats 5% 10%
Follow our key customers in their worldwide programs.Existing business with: Ford VW
PSA
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Duplication
prohibited
Faurecia in China in 20163
China product sales
in billion
0.9
2.6
20162011
CAGR+24%
20162011
30
55
To support growth 25 new manufacturingsites to be added by 2016 or a totalof 55 manufacturing sites
To continue to grow 15 pointsfaster than automotive production
China manufacturing sites
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Duplication
prohibited
Competitive developments in India and Thailand
To supply Ford, Renault-Nissan, Hyundai and VW
Opportunities in commercial vehicles
New development center in Pune
working for worldwide programs(600 engineers)
3
2011 2016
54
250
India product salesIn million
2011 2016
18
140
Thailand product salesIn million
IndiaTo accompany key customers with optimized and limited
investment and leverage a very efficient and low cost D&D base
Expanding interior systems business (Nissan, Ford)
Expanding in emissions control (Ford, GM)
ThailandTo follow OEMs as it is becoming
a major production hub for Ford, GM and Nissan
CAGR+36%
CAGR+51%
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ofFaurecia-
Duplication
prohibited
Worldwide business expansionwith Nissan and Hyundai
Nissan already represents 3.5% of Faurecia product sales Faurecia nominated Alliance Growth Partner
Strategic partnership with NHK Spring in automotive seatingfor Nissan leading to rapid development in North America,Brazil, Russia, China and Europe
Partnership with Howa Textile for Interior systems
3
2011 2016
345
1,000
In million
CAGR+24%
Product sales with
Hyundai-Kia: strong emissions control businessand opportunities in other activities
Strategic development with Nissan and strong growththrough the Alliance and agreements with Nissan's suppliers
Emissions control: 200m product sales targeted in 2016,already 24% market share
Technology and business opportunitieswith other business group
2011 2016
171300
In million
CAGR+12%
Product sales with
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ofFaurecia-
Duplication
prohibited
Sustained and profitable growth in Asia
China Continue strong strategic development in worlds largest auto market
Japan & Korea Be a partner of Japanese & Korean OEMs in their globalization
India Follow key customers with limited investment and expand the low cost D&D base
Thailand To accompany strategic customers
Roadmap & objectives
Product sales to reach 3.4bn by 2016
Profitabili ty to stay significantlyabove group average
Asia product sales
Faurecia in Asia
1.1
2011
3.4
2016
3
CAGR+25%
In billion
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ofFaurecia-
Duplication
prohibited
Faurecia technology strategyis based on 4 pil lars
Faurecia product offer
4
Faurecia Innovation key drivers
CO2 and fuel consumptionreduction
60 kg weight saving equivalent to 6 g/km CO2 reduction
40 kg additional savings with composite solutions
Energy recovery solutions
Emissions regulation NOx reduction for passenger cars
Commercial vehicles business development
Attractiveness for the end user
Premium decoration
Electronics integration to add new functions and value content
Platform solut ions Generics solutions
Product and process standardization
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Duplication
prohibited
Faurecia lightweight solutions
Gain of induction brazing on an European B-Segment car
13.3 kg 8.8 kg (- 33%)
4
5.9
4.8
0.35(7%)
1.5(25%)
2012 2016
Lightweight
Regular
0.2bn 0.9bn
Faurecia market share of lightweightmarket and product sales
Worldwide Market for Cold EndIn billion
Thickness reductionfrom 1.2 to 0.8 mm
Gain of on an American C-Segment car
Chevrolet Cruze1.4L gasoline turbo
Ford B-Max
60%57%
2012 2016
Source: Faurecia
29 L
15.5 kg 9.0 kg (- 42%)
19 L (- 34%)
Reduction ofinterfaces overlap
Muffler sizereduction
Over 10 kg saved with induction brazing & adaptive valves
CAGR46%
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ofFaurecia-
Duplication
prohibited
Faurecia lightweight solutions
40% weight reduction (11 kg per car) with new generation of frames
- 40% weight reduction,based on major materials,
product concept andindustrial processesinnovation
BMW Mini VW Up!
High Strength Steel
Laser welding
Material hybridation
4
OEM 1OEM 1
Global &Modular
Previous Front SeatStructure - Metal
Global & Modular IMetal
2007 20162011
2016
Global & Modular IIMetal/Hybrid
of Front Seat Nextgeneration Structures
M0
OEM 2OEM 2
OEM 3OEM 3
OEM 1OEM 1
OEM 2OEM 2
OEM 3OEM 3
Prod. Dev.
FaureciaElectronics
Inside
FaureciaElectronics
Inside
FaureciaElectronics
Inside
15.0 kg 11.5 kg 9.5 kg
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Investor Day 2012 London November 12, 2012 41Property
ofFaurecia-
Duplication
prohibited
Cellular polypropyleneinstrument panel carrier
Injected naturalfiber door panel
Faurecia lightweight solutions
Wood fiberdoor panel
Thin slush skin
"Lightweightconceptacoustic package
Ford Kuga
PEUGEOT 208
Mercedes-Benz SL
2013 GlobalC Segment Car
2013 Premium Sedan(Germany)
Synthetic premium skin
2013 Luxury SUV(USA)
2013 European CSegment Car
4
- 20%
- 20%
- 40%
- 20%
- 15%
- 60%
Up to 22 kg weight reduction in car interiorwith new technologies & materials
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Investor Day 2012 London November 12, 2012 42Property
ofFaurecia-
Duplication
prohibited
Composite chassisUp to 5 000 vehicle / year
Mass market
> 50 000 vehicles / year
StructuralThermoplastic Front
End Carrier
Faurecia lightweight solutions
-20% weight reduction,based on major materials,
product concept andindustrial processes
innovation
Composite hybridbody panels
Thermoplastic - RTM
SMC, RTM, RIM,
Injection molding
Carbon fiberBody panels
Automotive Composite
4
Structural thermoset
Composite chassis
Composite body parts
Thermoset body parts
Thermoplastic body parts
Target: - 35 kg(C-Segment sedan)
- 15 kg
Complete composite technologies and preparingfuture light weight solutions
St t f th t l ti t dd
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Investor Day 2012 London November 12, 2012 43Property
ofFaurecia-
Duplication
prohibited
Faurecia market shareof the heat recovery market
and product sales
Acting as working temperature optimizer or direct power supplyto the powertrain, heat recovery systems are key contributorsto Hybrids overall efficiency.Faurecia is aiming at 20% market share in 2016and targeting 25% by 2020.
State-of-the-art solutions to addressnew energy recovery market
25 %Traction
40 %Exhaust
Heat
35 %Friction
2012: Serialproductionon FORD C-Max
Hybrid
Heat recovery marketHeat to Power(H2P)
Medium term
Heat to Heat(H2H)
Hybrid engines,Diesel engines
4
In million
20%
30m
2016
75m
25%
2020
Hybrid engines,Diesel engines
40% of the energy createdby the internal combustion
engine is wastedin exhaust heat
Direct positive impact onhomologation CO2 testlevels (NEDC, WLTP,).
Source: Faurecia
Energy recovery technologies reduce fuel consumption
150
2016
300
H2P
180
2020
H2H H2H
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Investor Day 2012 London November 12, 2012 44Property
ofFaurecia-
Duplication
prohibited
Faurecia NOx treatment breakthrough
BlueBox: A c lose coupled architecture providing a complete SCR systemwithin the packaging of a conventional Diesel Oxidation Catalyst
4
SCR world marketIn million
Diesel oxidation catalyst (DOC)
Urea injector
Urea mixing device
SCR catalyst or SCRF(SCR coated DPF)
ConventionalLayout
Closed coupled -
BlueBox
Proximity to engine(close coupling)
Earlier catalyst activation, better NOx treatment Reduction of catalyst cost
Compact packaging Easier installation in vehicle Weight saving Reduced complexity
425
2011 2016
110
ClosecoupledSCR100%
35%
65%
ConventionalSCR
Faurecia market share
CAGR
+31 %
BlueBox10 contracts pending in 2013
Faurecia expertise in system design and manufacturing are key assetsto meet the technical challenges imposed by close coupled SCR.
With BlueBox, Faurecia is aiming at 40% of the close coupled market by 2016.
20112016
Source: Faurecia
Faurecia BlueBox allows a faster & better treatment of NOx,weight saving and cost optimization
12 % ofConventionalSCR
40% ofClosecoupledSCR
Major position in the
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ofFaurecia-
Duplication
prohibited
Major position in theCommercial Vehicles Engines (CVE) market
DOC/DPF systems
for Euro VI
Thermalregenerators
Selective Catalytic
Reduction systems
Off Highway On Highway
Truck
Off road
Complete CVE product offering
After-Treatment engineeringand manufacturing
World leader in medium-to-heavy dutyon and off-road diesel engines
More than 1m engines produced in 2012
Strong positions in North & South America,India and China
System integrationMarketing and sales
CVE product salesIn million
4
20162011
425
150
CAGR+ 23 %
Source: Faurecia
PartnershipFaurecia-Cummins
Generating more value4
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Investor Day 2012 London November 12, 2012 46Property
ofFaurecia-
Duplication
prohibited
Generating more valuewith interior decoration
Aluminum surfaces
Acquisition of Angell-Demmelcompleted in 2011
60% market share on Premium market
Large wood surfaces
Proprietary technology for 3D shapingof large wood surfaces
Films
Exclusive partnership establishedwith
Decoration Product Lineat 320m product sales
by 2016
2011 2016
50
320
4
Decoration product line salesIn million
CAGR+ 45 %
Faurecia masters all decoration technologies
Developing electronics technologies4
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Investor Day 2012 London November 12, 2012 47Property
ofFaurecia-
Duplication
prohibited
Opening of the new electroniclab in Brires (France)on October 3rd 2012
Appropriate time to market Modular architecture
with integrationof the latest standards
Connectivity to centralelectronic architecture
but not competingwith core electronics
Developing electronics technologiesfor Automotive Seating
Modular & decentralized CPU archi tecture
Heatingcontrol Unit
Ventilationcontrol Unit
Pneumaticcontrol Unit
State of the art standardized actuators
Brushlessmotor
Self poweredseat mechanism
Rare Earth - freeGear motors
4
Deployment through internal and external innovation
4
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Duplication
prohibited
Innovation in new end-userfunctions, increasing the valueto the end customer
Electronic integration addingnew functionalities associatedwith attractive style and perceivedquality
Easy integration into existingproducts
Enhancing product function & value content
Enhanced Life On Board
SmartFitTM high end customized features
Cushion Massage Adjustable Firmness
New gen Climate SeatBack Adv. MassageNew gen pneumatics
Soft Adjustments
4
Tailor Fit Back Fit GPS FitSmart
Fit
Growing demand for smart andhigh perceived quality functions
S d d l i f f l f4
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Duplication
prohibited
Standard solutions for seat frame platforms
Faurecia generic seat frames design
Apollo Dragon
High to medium specifications Optimized weight Laser welding
Low to medium specifications Mono or bi-recliner Magnetic welding
(*) per year in 2016
OEMbenefits
Lower development cost Improved yield Competitive cost Shorter time to market
4
625 000B & CApollo
Apollo
Apollo
Apollo
Apollo - Dragon
Apollo - Dragon
Generic
D& E
Truck
B, C, D
C, D & Entry
B,C & Entry
Segments
1 900 000American
2 050 000American
4 450 000German
1 550 000French
2 700 000Asian / European
Car sets*OEM
German Premium
Standard jig & tool
Standard equipment
Standard workstation
Faurecia generic seat process
Standard layout
Standard process
Standard design
Standard process to reduce Capexand reach full use of industrial capacity
Standardized process
Higher flexibility Full use of industrial capacity Lower Capex Leverage on material purchasing
Faurecia
benefits
T h l i l d k t l d i t h i
4
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Duplication
prohibited
Technological and market leader in seat mechanisms
NTG 36 NTG 30 NTG 24
FaureciaElectronics
Inside
New TrackGeneration
M3 M3
2016
2016
New TrackGeneration
New TrackGeneration
449
Ultima
4CB 4CBII
Current Track Portfolio
M3
2013
G3 and G3 v3 E-Pump I & II
Faurecia
ElectronicsInside
M2Nano
RD 77KEZE 70
KEZE Light
M4 M2 M1
RC 70
M4
New ReclinerGeneration
2013 2016
M4
RD 70Faurecia
Electronics
Inside
New ReclinerGeneration
KEZE
RC 83
RD 83
Current ReclinerPortfolio
New Pump GenerationPump mechanisms
Product plan continuous evolution
4
Patent
Pending
By continuously setting the performance benchmark through a renewed product portfolio, Faurecia is increasing its leadership.Between 2011 & 2016, a 7% turnover CAGR is exceeding a 3% market CAGR for the same period.
Source: Faurecia
Global leadership & increasing market share throughcontinuous performance & weight reduction
Seat mechanisms marketIn billion
25%
696m 960m
2011 2016
21%
Faurecia market share and product sales
3.8
2011 2016
3.3
CAGR+ 3%
CAGR7%
T h l l d hi t l t t4
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Duplication
prohibited
Technology leadership to grow our value content
Short term
CO2 and fuel consumption reduction with lightweight solutions
and energy recovery systems
Emissions regulations with NOx reduction solutions for passenger cars (BlueBox)and complete product offering for commercial vehicles
Attractiveness for end user with premium decoration and electronics integration
Platform solutions with generics solutions and product and process standardization
Medium term
CO2 reduction to 95g in 2020 in Europe Structural composites
Pollutants for Euro 7
4
Action plan to converge
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Investor Day 2012 London November 12, 2012 52Propert
yofFaurecia-
Duplication
prohibited
1
2
4
5
3
Frank ImbertEVP CFO
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 flowand debt targets
p gon our mid-term financial targets
Rapid growth at +6/7% p.a.5
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yofFaurecia-
Duplication
prohibited
p g pto reach 22 billion total sales in 2016
Faurecia sales
In billion
2011
12.4
2016
17.0CAGR+7%
5
Faurecia outside Europe product salesIn billion
CAGR14%
Europe (incl. Russia) product sales
7.8 8.0
In billion
2011 2016
2011 2016
2011
16.2
2016
22.0
CAGR
+6%
4.6
9.0
Product salesTotal sales
Out of Europe sales to represent 55%5
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Duplication
prohibited
50%37%55%
p pof our product sales by 2016
5
Product sales by region
Europe to decline in relative value from 63% to 45% due sales stability in this region
North America to grow to 25%, stabilizing after a strong growth period in recent years
Asia to keep growing steadily doubling from 9% to 20%, through China, India and Thailand
South America will grow from 6% to 8%
Europe (excl. Russia) North America Asia RoW
21%
9%
63%
7%
27%
15%
50%
8%
45%
25%
20%
10%
2011 2014 2016
Faurecia targets over 5.0% operating margin5
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Duplication
prohibited
by 2016
Around 4.0%
2014 2016
> 5.0%
Operating margin Profitability roadmap
5
As % of total sales
Europe European automotive production slowdown
is expected to reduce Faurecia Europe operating margin by 1.5 point
Action plan to adapt costs and additional restructuring will allowto regain 1.0 point profitability
North America
Fixed costs will stabilize after a phase of very rapid expansion
Low cost footprint will help to leverage profitability
Profitability to rapidly increase to 5.0% operating margin
Asia
Will keep a high level of profitability thanks to a steady growth
Profit generated outside out of Europe5
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Duplication
prohibited
will represent 2/3 by 20165
Out ofEurope
Europe64%
36% Europe
64%
36%Out of
Europe
Operating profit by region
2011 2016
Profit generated out of Europe will grow from 36% to 64% of total profit
Cap Capex at present level with5
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Duplication
prohibited
selective approach of new contracts
Business selectivity Focus on strategic regions:
Asia, North America
Focus on strategic OEMs
Footprint extension limited to Asia
Cap upfront investments
Seek limited capex and development costsand/or obtain pre-financing
Manage tendering portfolio Strict limit on overall 2013-2014
spending on Capex + Capitalized R&DCapex capped below 550m
5
Selective approachCapex
0
100
200
300
400
500
600
2011 2012 2013 2014 2015 2016
550m
In million
Positive free cash flow from 20145
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tyofFaurecia-
Duplication
prohibited
Positive free cash flow from 20145
Capex coverage by depreciation
Capex Depreciation
In million
0
100
200
300
400
500
600
2011 2012 2013 2014 2015 2016
550m
Cash flow roadmap
2013 cash flow wi ll be impacted byrestructuring spending
Balanced cash flow in 2014 targeted
From 2014, free cash flow to grow thanks to:
Operating income growth(+60% between 2011 and 2016)
Depreciation and amortization growth
(+70% between 2011 and 2016)
Capex coverage to reach 87% by 2016
Targeting Net Debt / EBITDA 0.5x in 20165
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tyofFaurecia-
Duplication
prohibited
Targeting Net Debt / EBITDA 0.5x in 2016
Net Debt / EBITDA
June 2012 2014 2016
1.4
1.3
0.5
In x
Net debt reduction
Positive free cash flow from 2014onwards
Operating margin improvement
Higher depreciation and amortization
EBITDA improvement
Liquidity secured by long term financing5
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tyofFaurecia-
Duplication
prohibited
Liquidity secured by long term financing
Initialmaturity
Maturityextended
0
0.5
1.0
1.5
2.0
2013 2014 2015 2016 2017 2018 2019
3-yeartranche
Available long-term financial resources 3.1bn long term financing secured
Syndicated banking credit facility 1,150
Bonds 740
Convertible bonds 460
Medium term banking facilities 250
Factoring programs 500
Total 3,100
Average maturity of bondsand banking credit of 4.2 years
No major refinancing before 2016
In billion In million
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Contact & Share data
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Duplication
prohibited
Investor Relations
Eric-Alain Michelis2, rue Hennape92735 NanterreFrance
Tel: +33 1 72 36 75 70Fax: +33 1 72 36 70 30E-mail: [email protected] site: www.faurecia.com
Share Data
Bloomberg Ticker: EO:FPReuters Ticker: EPED.PADatastream: F:BERT
ISIN Code: FR0000121147
62
Safe Habor Statement
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Duplication
prohibited
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 basedupon 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, mixand schedules, financial distress of key customers, energy prices, raw material prices, the strength of theEuropean 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, theoutcome 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 updatepublicity any forward-looking statements whether as a result of new information or future events.
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