27 may 2014
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Annual Shareholders Meeting. 27 May 2014. Agenda. 2013 results Michel Favre Short and medium term outlook Yann Delabrière Resolutions concerning governance Jean-Pierre Clamadieu. 2013 results Michel Favre Short and medium term outlook Yann Delabrière - PowerPoint PPT PresentationTRANSCRIPT
27 May 2014
Annual ShareholdersMeeting
Shareholders Meeting – 27 May 2014 2
Agenda
2013 results Michel Favre
Short and medium term outlook Yann Delabrière
Resolutions concerning governance Jean-Pierre Clamadieu
Shareholders Meeting – 27 May 2014 3
2013 results Michel Favre
Short and medium term outlook Yann Delabrière
Resolutions concerning governance Jean-Pierre Clamadieu
Agenda
Shareholders Meeting – 27 May 2014 4
Global automotive production up 4% in 2013
Source : IHS Automotive
North AmericaProduction : +5%
EuropeProduction stable
South AmericaProduction : +6%
AsiaProduction : +5% o/w China : +14%
Shareholders Meeting – 27 May 2014 5
Sustained growth: sales up 5.0%
€m
Product sales Tooling and prototypesMonoliths
* Like for like: constant exchange rates & perimeter
13,693
2013
1,568
13,296
2012
1,414
17,365 18,029 +5.0%*
+12.4%*+12.4%*
+6.4%*+6.4%*
+3.9%*+3.9%*
+10.9 %
+4.3 %
+3.0 %
2,7682,654
Strong growth in second half with a sales increase of 6.1% due to a turnaround in Europe (+4.0% in second half) and ongoing growth in Asia (+26%* in second half)
Exchange rate variations had a negative impact on sales of 2.4% (or € 417m) for the year
The effect of change in scope was +1.3% (or € 220m) for the year
Sales of tooling and prototypes were up 12.4%* due to the strong increase in the order book
+3.8%
Shareholders Meeting – 27 May 2014 6
Strong growth in Asia The region represents 13% of Group sales
Product sales in €m
2012 2013
851868
2012 2013
3,7073,646
2012 2013
1,388
1,706
2012 2013
7,412 7,412
Asia
Europe North America
South America and rest of world
Like for like*
-0.4% +1.7%
Published
Like for like*
+22.9% +24.3%
Published Like for like*
+2.1% +19.5%
+1.3%StableStable
Like for like*
Published
Published
* At constant exchange rates & perimeter
Shareholders Meeting – 27 May 2014 7
Operating margin improvement in second half
Operating margin in €m
The operating margin improved from 2.8% to 3.2% of sales in the second half due to:
Increased margin in Europe (3.0% vs 2.4%) following improved activity and the reduction of fixed costs
Profitability improvement in North America (1.6% vs 1.2%),
An improvement of 80 basis points in Asia (9.1% vs 8.3%) due to a strong increase in the activity
The operating margin was stable for the year at 3.0% as the first half was impacted by the low level of activity in Europe
514
2012 2013
3.0%3.0%
538
% Total sales
Shareholders Meeting – 27 May 2014 8
Net income at 88 million euros
€m
Total sales Operating margin
as % of total sales
Restructuring and other income (net)Other income and financial expenses (net)
Pretax income of integrated companiesCorporate income taxesNet income of associates and other minority interests
Consolidated net income (Group share)
Net income per share (fully diluted) (in euros)
2012*
17,364.5
516.33.0%
(87.2)(197.1)
232.0(67.4)(21.1)
143.5
1.28
2013
18,028.6
538.33.0%
(106.8)(234.3)
197.2(64.7)(44.9)
87.6
0.82
* Restated for IAS 19R norm
Shareholders Meeting – 27 May 2014 9
Strong improvement in cash flow generation
€m
Operating marginDepreciation and amortization
EBITDA
Change in working capital requirementCapex and capitalized R&DRestructuringFinancial expensesTaxes and other
Net cash flow
2012
514495
1,009
(372)(827)(54)
(164)(151)
(559)
2013
538532
1,070
364(788)(123)(187)(192)
144
Shareholders Meeting – 27 May 2014 10
Net debt down by 288 million euros to reach 1.52 billion euros
Net debt in €m
The early conversion of the 2015 convertible bond in December 2013:
Reduces debt by € 214m (and improves equity by the same amount)
Leads to the creation of 11.76 million shares
Will reduce financial expenses by € 12m per year
31 December 2012
31 December 2013
(1,519)
(1,807)
Shareholders Meeting – 27 May 2014 11
Faurecia S.A. financial statements
€m
Total sales
Operating margin
Financial and other expenses (net)Exceptional income and expensesCorporate taxes*
Net income
2012
191.9
2.5
89.2(29.7)45.3
107.3
2013
203.5
1.9
20.158.918.2
99.1
* Tax credit
Shareholders Meeting – 27 May 2014 12
Proposal for appropriation of net income
Payment of a dividend of € 0.30 per share
Choice between payment in cash or in shares, from 30 May to 16 June, with trading ex-coupon on 30 May 2014
Share price for payment in shares: € 26.83 representing a discount of 10% compared to the share price on 23 May (€ 29.80)Share price for payment in shares is calculated as follow: 90% of the average of the previous 20 days opening prices minus dividend
Payment of dividend and delivery of shares on 24 June 2014
Shareholders Meeting – 27 May 2014 13
Proposal for appropriation of net income
Origin
Net income for the financial year 99,066,091.75 €Retained earnings from previous years 1,023,644,455.73 €
Total to be allocated 1,122,710,547.48 €
Appropriation
Statutory reserve 4,953,304.59 €Dividend 36,776,440.50 €Retained earnings 1,080,980,802.39 €
Total appropriation 1,122,710,547.48 €
Shareholders Meeting – 27 May 2014 14
Faurecia share price compared to SBF120 and the STOXXAuto Index
Faurecia SBF 120 STOXXAuto
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
31/12/2012
31/01/2013
28/02/2013
31/03/2013
30/04/2013
31/05/2013
30/06/2013
31/07/2013
31/08/2013
30/09/2013
31/10/2013
30/11/2013
31/12/2013
31/01/2014
28/02/2014
31/03/2014
30/04/2014
Shareholders Meeting – 27 May 2014 15
2013 results Michel Favre
Short and medium term outlook Yann Delabrière
Resolutions concerning governance Jean-Pierre Clamadieu
Agenda
Shareholders Meeting – 27 May 2014 16
Significant progress on all priorities decided early 2013
Reconcile growth and cash generation Capex and capitalized R&D stabilized at € 800m Positive free cash flow
Growth of 24% in 2013 Operating margin above 8% 4 new production sites and an R&D center opened in 2013
Deployment of fixed cost reduction plan Improvement of operating margin to reach 3.0% in second half
Increased managerial resources at all levels Significant progress for Emissions Control Technologies
Continue profitable growth in Asia
Adjust costs to level of production in Europe
Improve our profitability in North America
Shareholders Meeting – 27 May 2014 17
2014 – 2016Favorable market environment
Global market will grow around 3%
The fast growing markets in Asia will grow by 9%
Accelerating trend to global platforms
Global platforms now dominate automaker strategies Market globalization accelerating with product convergence and shorter time
gap between regional launches
Faurecia key actor in accelerating technology changes
Environmental performance
Fuel economy and reduction of CO2 emissions
Life on board
2016 Objectives
Salesabove 21 billion euros
Salesabove 21 billion euros
Operating margin 4.5 – 5.0 % of salesOperating margin
4.5 – 5.0 % of sales
Net cash flowAround 300 million euros
Net cash flowAround 300 million euros
Shareholders Meeting – 27 May 2014 18
Asia, and in particular China, will remain very dynamic
Asia (excluding Japan and South Korea) represents 75% of global market growth
China represents 60% of worldwide growth
Faurecia will continue to outperform the market in Asia and in particular in China
Growth with international automakers and global platforms
Growth with Asian customers, in particular through partnership with Nissan et Hyundai
Partnerships with Chinese customers
Asia will represent 20% of Group sales by 2016 (13% en 2013)
Sales in China will exceed 3 billion euros in 2016 et 4 billion euros in 2018
Shareholders Meeting – 27 May 2014 19
Faurecia key actor in accelerating technology changes
Environmental performance
Fuel economy and reduction of CO2 emissions
Life on board
Emissions Control Technologies NOx and particulate reduction for light and commercial vehicles Renewable materials
All of the businesses of Faurecia contribute to a weight reduction of 100 kg per vehicle representing a reduction of 10g of CO2/km
Energy recovery
Decoration and personalized interiors Human Machine Interface (HMI) Comfort and well-being
Shareholders Meeting – 27 May 2014 20
First quarter sales 2014+7.0% like for like*
Sales in €m
Q1 2013
3,417
265
687
4,370
Q1 2014
3,487
280
751
4,518
+3.4%
Product sales Tooling and prototypesMonoliths
+2.0%
+9.3% +5.7%
Total sales +3.4% +7.0%
Published Like for like*
Negative currency impact :
€ 137m or 3.1% of total sales
€ 105m or 3.1% of product sales
* Like for like: constant exchange rates and perimeter
Shareholders Meeting – 27 May 2014 21
2014 Guidance
Total sales(At constant exchange rates and perimeter)
Operating margin
Net cash flow
+ 2% / + 4%
Margin improvement between 20 and 50 basis points
Positive
Shareholders Meeting – 27 May 2014 22
2013 results Michel Favre
Short and medium term outlook Yann Delabrière
Resolutions concerning governance Jean-Pierre Clamadieu
Agenda
Shareholders Meeting – 27 May 2014 23
Appointment of two new Board Directors for a period of 5 years
Mrs Bernadette Spinoy Mr Carlos Tavares
Shareholders Meeting – 27 May 2014 24
Compensation of Chairman & CEO
Opinion on compensation due or granted to Mr Yann Delabrière in 2013
(Amount in euros) Full year 2012 Full year 2013
Fixed compensation 700,000.00 700,000.00
Variable annual compensation 140,000.00 700,000.00
Valuation of benefits (car) 7,371.60 7,371,60
Valuation of performance shares attributed in the period 435,080.00 1,386,456,00
Total 1,282,451.60 2,793,827.60
Shareholders Meeting – 27 May 2014 25
Amendments to Articles of Association
Modification of Articles of Association 16, 18 and 20 in order to increase the maximum age limit for the functions of Chairman of the Board, CEO and deputy CEO to 70 years of age
27 mai 2014