Faurecia : Résultats du premier semestre 2019 - Présentation (anglais uniquement)

H1 2019 RESULTS

Resilient sales, profitability and cash generation in a challenging environment Full-year guidance confirmed

July 23, 2019

The 2019 half-year consolidated financial statements have been approved by the Board of Directors at its meeting held on July 22, 2019, under the chairmanship of Michel de Rosen. These financial statements have been subject to a limited review and the external auditors have issued their report.

Operating income presented as Faurecia's main performance indicator is Operating income before amortization of intangible assets acquired in business combinations.

Agenda

1

2

3

H1 2019 highlights	Patrick Koller
Chief Executive Officer

Review of H1 2019 results	Michel Favre
Chief Financial Officer

Confirmed FY2019 targets	Patrick Koller
Chief Executive Officer

H1 2019 Results - July 23, 2019

2

Resilient sales, profitability and cash generation

 Sales outperformance of 420bps in a challenging environment

 Growth ex-currencies and ex-Clarion @ -2.8%* vs. worldwide automotive production @ -7.0%**

 Above the high end of the guidance range of 150bps to 350bps for the FY

 Resilient profitability, demonstrating Faurecia's robust business model and flexible structure

 Operating margin of 7.2% including Clarion

 Operating margin of 7.3% excluding Clarion, with improved or stable profitability in all three historical Business Groups

 Net cash flow of €257m, up 3.9% year-on-year

	* Including bolt-ons
H1 2019 Results - July 23, 2019	** Source: IHS Markit forecast dated July 16	3
(vehicles segment in line with CAAM for China)

Sales	€8,991m	€8,972m
	Clarion →	€150m	€8,822m
	H1 2018	H1 2019	H1 2019
			excl. Clarion

Operating income

€647m		€645m		€646m
7.2%		7.2%		7.3%
of sales		of sales		of sales

H1 2018H1 2019H1 2019

excl. Clarion

Resilience through additional measures in H1 2019

Operating income	 Flexibility through direct and indirect headcount
ADDITIONAL RESILIENCE ACTIONS
	management

								 Reduction of c. 6% of headcount year-on-year
				13	(14)				for the three historical BGs (-17% in China)
€647m	(99)		14	€646m	(1)	€645m	Reduction of temporary headcount sub-contractors
85
							
			Forex	IFRS16	Other		Clarion		and consultancies (plan launched in July 2018)
	Volume	Resilience						 Flexibility kept with temps representing 18% of total
							headcount
	mix
								 Rationalization of industrial footprint in H1 2019
								 11 plants and 2 administrative centers,
									of which 7 in China (excluding FCE)
H1 2018						H1 2019		H1 2019
						excluding
						Clarion		 Accelerated restructuring with short pay-back
								 €73m of restructuring in H2 2018 (vs. €59m in H2 2017)
								 €71m of restructuring in H1 2019 (vs. €28m in H1 2018)
H1 2019 Results - July 23, 2019						4

Strong momentum in order intake and transformation strategy

• Order intake on track for another strong year and acceleration in New Value Spaces
• • Major awards for Interiors and Seating for Premium OEMs
  • Commercial vehicles gaining momentum
  • Significant award for HHP in Marine business
  • Increasing share from New Value Spaces with 20 new business awards
• Continuing transformation and expansion of technology ecosystem
• • Joint Venture with Michelin for fuel cell systems to be closed in Q3
  • Creation of global center of expertise for hydrogen tanks in Bavans, France
  • Partnership with Microsoft for digital services for Cockpit of the Future
  • Acquisition of Creo Dynamics and Covatech and investment in GuardKnox

H1 2019 Results - July 23, 2019

5