investor day - · pdf filefront end modules include cooling systems, headlamps, crash...

Investor day •

November 25, 2013

Hervé

GuyotEVP

Faurecia

Automotive

Exteriors

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2Investor day • November 25, 2013

2013 product

sales by regionProduct Portfolio

4R&D centers

32Plants

7,000Employees

Modules

Plastic Body Parts

Bumpers, Rocker Panels, Arch wheels, Spoilers

Composites

A-class, Semi-Structural & Structural parts

A strong product portfolio and market leadership in Europe

Key Figures

€1.8bnTotal sales 2012

Market leader in Europe with 25% market share

Strong technology expertise

Leading composite player

North AmericaSouth America

EuropeFront End Modules, Front End Carriers 91%€1.6bn

7%

2%

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Revenues have increased by 20% CAGR over last 5 years

296689

1,004 976 1,050482

541

602 576 500

17 50

1,230

1,6061,569

2009 2013e2010 2011 2012

778

1,600

Faurecia Automotive Exteriors doubled in size (2009-2013), based on external growth:

Plastal

Germany and Plastal

Spain in 2010

Plastal

Hambach

and Sora

Composites in 2012

Plastic body parts activity reaches over €1bn

Front End Module (FEM) activity declining in Europe while growing in North America

Product Sales (€m)

Sora

Composites 07/12Plastal

Hambach

09/12

Plastal

Germany 04/10Plastal

Spain 10/10

Plastic body partsFEMComposite

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Plastic body partsEuropean leader with diversified customer portfolio

Market characteristics

Plastic Body Parts are highly design sensitive, thus independent from platform strategy

Bumper price range: from €20 to €300 per car set

Competition is regional and well structured

Sourcing remains regional and not global

FAE: A strong leader in Europe

Market leader in Europe

Presence on all vehicle segments (Dacia Logan to Daimler S-class)

Well balanced and diversified customer portfolio

Bumpers

-

Europe

2013 bumper

product

sales by OEM

Source : Faurecia

25%

17%

15%9%

34%FAE

Others

Plastic Omnium

Magna

SMP

(Peguform)

€1.0bn

VWGM

Audi

Seat

Porsche

Daimler

Renault-Nissan

Ford

Chrysler

BMW

16%

9%

3%

3%13%

12%4%

5%

3%

22%PSA

9%

German

OEMs

50%

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Plastic body partsStrong engineering and industrial leadership

Strong design, program management and industrialization capabilities, based on:

FAE standardized tools and processes for program management

Standardized industrial processes

New Tech is a new standard and innovative painting line concept, supporting our international development:

Modular & flexible

High perceived quality

Environmental friendly

Reduced start-up costs

Experienced teams with strong technical and industrial skills

NewTech

bumper

line

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Plastic body parts in Europe Optimal market coverage

with good capacity utilization

2013-2014: European plant capacity utilization

Valladolid

2014

2013

Tudela

Sterbfritz

Essen

14 plastic body parts plants in Europe

Valencia

Barcelona

Bains sur Oust

HambachAudincourt

Reinsdorf

HlohovecPappenheimMarles les Mines

Marines

Valladolid

88%74%

91%

France Spain Germany

95%

Logistics requires proximity to customer plant creating high entry barriers

FAE well-positioned

close to strategic

customer

sites

Good capacity

utilization

rate in Western Europe

Former German Plastal

plants not yet fully optimized: continuous improvement in Essen and Reinsdorf, breakthrough ongoing for Sterbfritz

and Pappenheim, based on Faurecia Excellence System

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Footprint expansion is highly Capex

intensive (€30m for a standard plant producing 1,400 bumpers/day)

Current situation: South America

In 2012/2013, FAE has invested in two new plants in Brazil and Argentina and already ranks number 3 in the region

FAE best-in-class product perceived quality combined with cost leadership (NewTech) bringing appropriate service and support to customers

High start-up costs impacting profitability in 2012/2013; profitable business from 2015 onwards

Strategy

2014 onwards

Selective projects due to high investment cost

Priority to strategic customers supporting our investment

One project underway in Russia and two being considered in the Americas

Plastic body parts strategySelective international development

23%34%

17%15%

6%5%

Others

FAE

Plascar

Peguform

Plastic Omnium

Flex-N-Gate

South AmericaMarket

share

2013

Source : Faurecia

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Front End Modules Market stable at 7 million vehicles per year

Market

share

in Europe and North

America

17%

49%

19%

15%

Others

FAE

Magna

HBPO7 million vehicles

Front End Modules (FEM)

Front End Modules include cooling systems, headlamps, crash management systems and also a Front End Carrier (FEC) as the Module backbone

Module price

range: €300 –

€600

FAE has technology leadership:

On the leading edge of perceived quality, with acknowledged expertise (3 successive generations of "mEasy" solutions)

Best-in-class Front End Carrier know-how

Front End Module

Front End Carrier

Source : Faurecia

Market overview

The Front End Module market remains stable over the medium term at 7 million vehicles. Overall market is limited to 50 to 60% of total vehicle volumes due to remaining OEM in-house strategy

FAE in top 3 suppliers, with 15% market share (Europe + North America)

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Current situation

FAE is in top 3 supplier with strong technology leadership

Good profit margin on added value content

High ROCE due to limited investment

BUT

Market is not growing

Highly margin dilutive (around 1.5% of total sales) due to high content of OEM mandated

parts

Strategy

Strategic review for Front End Modules

Further development of Front End Carriers

Front End Module strategy

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CO2

emission reduction regulations will be addressed through aerodynamics, thermal engine downsizing, hybridization / electrification and weight reduction (200 to 250kg on average vehicle)

10 kg weight reduction represents 1g/km CO2

reduction

Conventional materials such as steel and aluminium are not sufficient to meet objectives

Composite

is thus a key technology to address weight reduction

Structural (chassis, floor and doors) and semi-structural parts (roof structure, liftgates) are main contributors

to vehicle weight reduction

Composite technology is expensive today, however there is huge potential for cost improvement

to reach between 4 and 8 euros per kg saved

Composites High long term potential for weight reduction breakthrough

International development of CO2

fleet emission targets

Weight reduction

Weight saving

Cost (€/kg)

-20% -50%-35%

Cost & weight saving by material (vs. baseline steel)

18

16

14

12

10

8

6

4

2

Baseline Steel

Affordable zone

Carbon Composite

2013

2020

Glass Composite

2000 2005 2010 2015 2020 2025

USA: 107

China: 117EU: 130

Japan: 105EU: 95 ?

Status

QuoTargets

already

definedTargets

under

discussion

?

300

250

200

150

100

50

USA: 107

China: 117

Japan: 105EU: 95

EU: 130

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FAE is present in all composite market segments:

Trucks

Volume OEMs

Sports and luxury

FAE is present on all composite parts segments:

A-Class (visible parts)

Semi-structural

Structural

Market

is

expected

to take-off from

2017 at

8% CAGR, with

further

acceleration from

2020

Composites High long term potential for weight reduction breakthrough

Estimated market by product (€m)

Structural

A-class

Semi-structural

2017-2020 CAGR

2013 2017 2020

755 8701,005

5%

400 480600

8%25%

1,2301,460

1,8208%

110 21575

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Composite strategy

Acquisition of Sora

Composites in July 2012

Strong technology portfolio

Covering all technologies from SMC to RTM

Access to Sports and Luxury vehicle segment

High transformation cost 2013 / 2014

Technology Roadmap

Resins & fibers:

price, usage (yield) and grade optimization, in collaboration with academics, technical institutes and fiber

manufacturers

Industrial process

step change: in collaboration with machine & equipment and tool

suppliers1.

Reduced cycle time, based on new generation resins (from 20 min/current to 2 min depending on parts/processes)

2.

One-step process including preparation3.

Automated handling and lean manufacturing processes.

Commercial roadmap

Target wide range of European and North American OEMs

Develop long term partnerships with OEMs on structural parts to qualify composite solutions as an alternative to conventional solutions & materials

Concept phase for next generation of truck cabins

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Current situation

European bumper business around 4.5% operating margin

High start-up costs in South America

Front End Module around 1.5% operating margin

High transformation cost for composites

FAE around 2% operating margin

Strategic levers

Upgrading German plants

South America profitable and generating cash

Selective international development

2016 ambition

Operating margin 4.5% -

5.0%

ROCE above 20%

Strong focus on profitability and cash return, investing in composites for the long term

investor day - · pdf filefront end modules include cooling systems, headlamps, crash...

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