Operating margin of c. 7% of sales, close to pre-covid levels (confirmed)
Net cash flow > €500m (vs. C. €500m previously) and net-debt-to-ebitda ratio
This guidance assumes worldwide automotive production of at least 39 million vehicles in H2 and no major lockdown impacting production or retail sales in any automotive region during the period.
Fully aligned with 'New Perspectives' presented at the recent Capital Markets Day
New capital structure through successful spin-off and employee shareholding plan
Focus on zero emissions hydrogen solutions, through the acquisition of CLD in China, and on ESG strategy, through ambitious CO2 neutrality program and recent successful issuance of green bonds
Fully on track to reach 2022 targets and 2025 ambition
We delivered a strong performance in H1, despite two main adverse effects: the shortage of semiconductors and raw material inflation. I would like to thank all Faurecia teams for this performance.
Our operations proved again very resilient with strong operating margin of 6.6% of sales, demonstrating our efficient leverage. We delivered strong net cash flow of 290 million euros and recorded a solid order intake of 12 billion euros, reflecting our potential for accelerating profitable growth.
We are convinced that automotive production has hit a low in Q2 and should gradually rebound in the coming quarters, despite shortage of semiconductors likely to last until the end of H1 2022. In this context, we will pay strict attention to cost flexibilization and cash generation, thus allowing deleveraging and profitable growth.