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2016 fully confirmed on track to meet 2018 targets January 2017

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Page 1: Presentation at Oddo Conference

2016 fully confirmed on track to meet 2018 targets

January 2017

Page 2: Presentation at Oddo Conference

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FY 2016 guidance is fully confirmed

Full year 2016 guidance n  Total sales (organic*) Between 1%* and 3%*

Value-added** sales (organic*) Between 3%* and 5%* (9M: total sales +2.8%; value-added sales +4.6%)

n  Operating margin (on total sales) Minimum of 5.0% Operating margin (on value-added sales) Close to 6.0% (H1: operating margin 5.1% on total sales; 6.2% on value-added sales)

n  Net cash flow Minimum of €300 m (H1: net cash flow €205 m)

*: Constant exchange rates & scope; **: Total sales less monoliths sales January 2017 – Roadshow

Page 3: Presentation at Oddo Conference

2016 - 2018 Our key objectives

Total sales CAGR

2016 - 2018

2018 Operating

Margin

2018 Net Cash

flow

2018 Earnings Per Share

7% of value added* sales

400 bps above market growth

6% 6% of total sales

> €500 m €5

* Value added sales: Total sales less Monolith sales 3 January 2017 – Roadshow

Page 4: Presentation at Oddo Conference

Light vehicle production forecast % change of unit output

Europe n  Including Russia, LV production

around +2% n  Russia up around 10%

China

n  Asumption made before the tax incentive has been extended until end 2017

North America

2017 market outlook Growth to continue in 2017

China South America

Marginally positive

Europe excl. Russia

Between +1.0%/+1.5%

Around +3% Stable

Faurecia / IHS Automotive, January 2017

World around +2%

January 2017 – Roadshow 4

Page 5: Presentation at Oddo Conference

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Faurecia is a “gasoline” company

Faurecia’s exposure to diesel for Light Vehicles (LV) is limited to: n  Emissions Control Technologies (ECT) or 27% of Group’s value-added sales

(Not relevant for Automotive Seating or Interior Systems)

n  For ECT, LV diesel sales are mostly in Europe and in Korea (basically no LV diesel sales in North America, South America and in Asia (except Korea))

n  LV diesel sales represent ONLY 15% of our entire ECT business. (or 16% of our ECT LV business)

LV diesel sales represent ONLY 4% of Group’s value-added sales

January 2017 – Roadshow

Page 6: Presentation at Oddo Conference

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Opportunities on gasoline

n  Value-Added content per vehicle is only 5% less on a gasoline versus a diesel engine For example on a VW Tiguan:

Gasoline (150hp): € 180 (value-added) Diesel SCR (150hp): € 190 (value-added)

n  Profitability is similar (gasoline vs diesel)

n  The recent legislation passed in December in Europe on PM (Particulate Matters) will

de-facto impose a GPF (Gasoline Particulate Filter) on gasoline engines with DFI (Direct Fuel Injection) leading to a revenue opportunity of around € 25 (value-added) per vehicle.

In Europe, our CPV (Content Per Vehicle) could become higher on a gasoline versus a diesel engine.

January 2017 – Roadshow

Page 7: Presentation at Oddo Conference

Recent corporate activity

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Recent corporate activity Amminex acquisition

Faurecia acquired Amminex to accelerate efficient NOx reduction for LV & CVE: n  Amminex has developed and patented an Ammonia Storage and Delivery System (ASDS™)

which has demonstrated its efficiency to almost completely eliminate (as much as 99%) nitrogen oxide (NOx) pollutants from diesel engines;

n  Starting in 2017, Faurecia will equip a very large fleet (up to 50,000 units) of city buses of a

major city in South East Asia and also the city buses (around 6,000 units) of two Tier-1 cities in China using ASDSTM technology;

n  Tender and evaluation ongoing for city buses in major cities in Europe;

n  For trucks, large scale sales to start in 2019 in Asia;

n  For LV, with Euro VII standard starting in 2023, it could generate some business. Today, ongoing pre-development and feasibility studies with various OEMs.

January 2017 – Roadshow

Page 9: Presentation at Oddo Conference

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Recent corporate activity Parrot Automotive partnership

Faurecia entered in a strategic partnership with Parrot Automotive which could result in Faurecia progressively taking control of Parrot Automotive: n  Parrot is bringing a team of close to 200 engineers with strong skills in hardware & software.

Parrot Automotive has an attractive portfolio of patents;

n  Parrot’s product line includes connectivity chipset concentrating all connectivity & signal processing functions, radio systems (AM/FM, DAB & TV) and infotainment systems;

n  Faurecia will bring support and size credibility to win contracts with Tier-1 OEMs. Pre-development ongoing with a major OEM.

This partnership will allow Faurecia to develop in the HMI field and in Smart Surfaces.

January 2017 – Roadshow

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Recent corporate activity Strategic JV with Borgward

Faurecia and Borgward, the revived German premium automaker, have created a joint-venture in China to jointly develop and build complete seats for new Borgward vehicles: n  From January 2017, the joint venture will develop and manufacture seats for the new Borgward

BX5 SUV and other models assembled in China, and later on intends to supply seats to Borgward for its vehicles to be assembled in Europe;

n  The joint venture is expected to reach a total production volume of 400,000 car sets by 2020;

n  The joint-venture – Borgward Faurecia Auto Systems Co., Ltd. – is majority-owned by Faurecia and will lead to a new plant with some 800 employees located in Tianjin, China;

n  The plant will develop and produce the full range of automotive seating components starting with the just-in-time assembly of complete seats and will progressively add component products such as seat frames, seat foams and seat covers.

January 2017 – Roadshow

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Recent corporate activity All 3 Business Groups are now present in Iran

n  FCAES, the 50/50 Faurecia – MAAD recently signed joint-venture will develop and

produce emissions control systems for the Iranian automotive market. The JV will cover both hot & cold end emissions control systems, based on Euro 5, with first local production scheduled to start at the end of 2017. Total sales are expected to reach € 50 million in 2020, representing a 25% market share;

n  AFISCO, the 50/50 Faurecia – Azin Khodro JV for vehicle interior systems, will develop and manufacture instrument panels, door panels, center consoles, acoustic and soft trim modules, with start of production in early 2018. AFISCO expects its total sales to reach € 50 million in 2020;

n  FAPSCO, the existing Faurecia JV for automotive seating, will expand its complete seats, frames and covers activities in the country beyond its current customer Renault to serve Peugeot, Iran Khodro and other automakers. FAPSCO expects to grow its business to 340,000 car sets per year and total sales of € 150 million in 2020.

All 3 Business Groups are now present in Iran with targeted sales of € 250 million by 2020

January 2017 – Roadshow

Page 12: Presentation at Oddo Conference

9M 2016 sales & next event

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Product Sales Development, Tooling, Prototypes Monoliths

9M 2016 Sales: +4.6%* value-added sales growth

10,541 10,546

789 907

2,481 2,320

9M 2015 IFRS 5 9M 2016

+14.9%

+0.0%

(6.5%)

13,811 13,773 (0.3%)

Turnover in €m 9M 2016 vs 9M 2015 (IFRS 5)

Variation Organic* Currencies Scope Reported

Total sales +2.8% (2.3%) (0.8%) (0.3%)

Value-added** sales +4.6% (2.5%) (1.0%) +1.1%

n  Currencies had an overall negative impact of: n  €316 m on total sales n  €285 m on value-added sales

n  Monoliths: Lower precious metal prices had a negative impact of around €230 m

n  Scope: negative €112 m, largely coming from the disposal at the end of June 2016 of the Fountain Inn plant (USA)

Value- added**

sales €11,330

Value- added** sales €11,453

* Organic: At constant exchange rates and scope ** Value-Added sales: Total sales less Monoliths sales

January 2017 – Roadshow

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FY 2016 results Thursday February 9, 2017

Earnings release: 8:00am (Paris time)

Analyst meeting: 10:30am (Paris time)

Back-up Next event

January 2017 – Roadshow

Page 15: Presentation at Oddo Conference

n  103,000 employees n  330 sites n  34 countries n  Group revenues: € 20.7 billion

n  30 R&D centers n  6,000 R&D engineers and technicians n  Over 850 patents filed in 2015 n  € 100m spent on innovation n  Annual gross R&D investment:

€ 924 million - 4.5% of revenues n  Capex € 678m or 3.3% of revenues

2015 key figures

N°8 worldwide equipment supplier

8th largest automotive equipment suppliers* (2015 revenues US$bn)

23.0

*: Source Automotive News

Faurecia at a glance

15

20. Calsonic Kansei 19. BASF

18. Yanfeng 17. Mahle

16. Thyssenkrupp 15. JTEKT

14. Sumitomo Electric 13. Yazaki

12. Delphi Auto. 11. Valeo 10. Lear

9. JCI 8. Faurecia

7. Aisin Seiki 6. Hyundai Mobis

5. ZF Friedrichshafen 4. Continental 3. Magna Intl.

2. Denso 1. Bosch

January 2017 – Roadshow

Page 16: Presentation at Oddo Conference

Three Business Groups with global leadership positions and strong development potential

16

Automotive Seating Interior Systems Emissions Control Technologies

n  Total sales 2015 €6.2 bn n  Operating margin H1 2016 5.3%

Market share

n  Total sales 2015 €5.0 bn n  Operating margin H1 2016 5.0%

Market share: #2 Worldwide

n  Total sales 2015 €7.5 bn n  Operating Margin H1 2016 5.4%

9.6% VA sales Market share : #1 Worldwide

n  Leader in global platforms with standard frames

n  Global leadership and strong profitability of mechanisms business

n  Rapid organic growth (CAGR 6.2%)

n  Benefiting from consolidation of market n  Diverse portfolio of products & technologies n  Most premium interior supplier n  Value-creating business

n  Leader in global platform standardized solutions

n  Leader in technologies for fuel economy (lightweight, energy recovery)

n  Leader in depollution for cars and trucks

14%

27% 14% 12% 17%

Complete seats # 3 Worldwide

Frames & mechanisms #1 Worldwide

Adient (JCI) Lear Magna “captive” Toyota Boshoku Taichi-S; Sitech…

Adient (JCI) Brose “captive” Sitech, NHK Comaco-Amvian Proma ….

YF-JCI Grupo Antolin IAC Reydel Automotive (ex Visteon) Inteva Dräxlmaier Mayco SMP “captive”: Toyota Boshoku Calsonic Kansei, MM, Mobis

Tenneco Eberspächer Boysen Benteler “captive” Sango; Futaba Calsonic Kansei Yutaka; Sejong;

January 2017 – Roadshow

Page 17: Presentation at Oddo Conference

A global and balanced Group

2015 Product sales by region and OEM in % (excluding disposed activities)

Row

Europe

North America

Asia

South America

17

PSA

GM

BMW

Others VW Group o/w Audi 8.2%

Renault-Nissan

Daimler

Fiat Chrysler

Ford 49.1

16.7 2.9

1.2

30.1

16.7

13.4 13.3

8.3

6.3

6.9 5.1

10.2 19.8

January 2017 – Roadshow

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Back-up Profitability by Business Group TOTAL SALES (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015* H1 2015* H1 2016Automotive Seating 4,981.2 5,155.9 5,218.9 5,309.1 6,188.2 3,103.3 3,299.2Emissions Control Technologies 5,779.3 6,079.5 6,350.5 6,747.4 7,450.0 3,792.8 3,691.4Interior Systems 3,645.5 4,352.7 4,560.0 4,709.3 5,018.6 2,592.6 2,541.0Automotive Exteriors (Sold July 29, 2016) 1,784.2 1,776.4 1,899.3 2,063.1 2,035.1TOTAL 16,190.2 17,364.5 18,028.6 18,828.9 20,691.9 -1,921.5 18,770.4 9,488.7 9,531.6o/w Monoliths sales 2,687.3 2,654.1 2,767.7 3,101.9 3,304.4 3,304.4 1,700.7 1,609.9

PRODUCT SALES (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015* H1 2015* H1 2016Automotive Seating 4,769.9 4,904.5 4,890.9 4,938.9 5,826.4 2,938.1 3,134.9Emissions Control Technologies 2,934.6 3,233.2 3,351.7 3,433.0 3,844.7 1,957.6 1,914.9Interior Systems 3,075.3 3,597.1 3,793.2 3,996.5 4,452.0 2,336.0 2,244.9Automotive Exteriors (Sold July 29, 2016) 1,611.3 1,561.5 1,657.4 1,720.9 1,825.5TOTAL 12,391.1 13,296.3 13,693.2 14,089.3 15,948.6 7,231.7 7,294.7

OPERATING INCOME (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015* H1 2015* H1 2016Automotive Seating 216.1 193.2 217.4 234.4 305.6 139.2 175.4Margin (as % of Total sales) 4.3% 3.7% 4.2% 4.4% 4.9% 4.5% 5.3%Emissions Control Technologies 152.8 145.8 199.0 256.7 359.9 171.4 200.5Margin (as % of Total sales) 2.6% 2.4% 3.1% 3.8% 4.8% 4.5% 5.4%Margin (as % of VA sales**) 4.9% 4.3% 5.6% 7.0% 8.7% 8.2% 9.6%Interior Systems 191.4 131.5 84.0 129.2 197.7 79.7 126.8Margin (as % of Total sales) 5.3% 3.0% 1.8% 2.7% 3.9% 3.1% 5.0%Automotive Exteriors (Sold July 29, 2016) 90.6 43.1 37.9 53.7 49.3Margin (as % of Total sales) 5.1% 2.4% 2.0% 2.6% 2.4%IFRS 5 Adjustements -6.6 -12.4TOTAL 650.9 513.7 538.3 674.0 912.6 -82.6 830.0 383.7 490.3Margin (as % of Total sales) 4.0% 3.0% 3.0% 3.6% 4.4% 4.4% 4.0% 5.1%Margin (as % of VA sales**) 4.8% 3.5% 3.5% 4.3% 5.2% 5.4% 4.9% 6.2%*: Restated IFRS 5; remaining Automotive Exterior sales have been added to the sales of Interior Systems; ** Value Added (VA) sales: Total sales less Monoliths sales

January 2017 – Roadshow

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Back-up Profitability by Region TOTAL SALES* (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015** H1 2015** H1 2016Europe 10,072.3 9,618.3 9,701.0 10,390.8 11,256.3 4,845.1 5,144.1North America 3,313.5 4,541.1 4,691.7 4,515.5 5,543.6 2,725.9 2,631.7Asia 1,722.5 2,123.9 2,521.9 3,007.7 3,101.9 1,514.2 1,412.4o/w China 1,187.5 1,482.0 1,855.6 2,225.8 2,592.0 1,267.0 1,101.4South America 716.9 777.7 861.4 677.7 551.3 276.1 236.0RoW, Other & Elims 365.0 303.4 252.6 237.2 238.8 127.4 107.4TOTAL 16,190.2 17,364.5 18,028.6 18,828.9 20,691.9 -1,921.5 18,770.4 9,488.7 9,531.6o/w Monoliths sales 2,687.3 2,654.1 2,767.7 3,101.9 3,304.4 3,304.4 1,700.7 1,609.9

PRODUCT SALES* (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015** H1 2015** H1 2016Europe 7,815.3 7,411.7 7,411.5 7,873.1 8,556.8 3,612.0 3,833.1North America 2,579.2 3,645.5 3,707.5 3,495.8 4,400.2 2,148.8 2,067.8Asia 1,116.8 1,388.4 1,705.8 2,029.4 2,371.4 1,156.8 1,106.8o/w China NA 1,097.9 1,392.9 1,687.8 1,945.7 952.0 842.7South America 639.0 661.6 717.0 550.4 449.7 229.1 200.0RoW, Other & Elims 240.7 189.1 151.4 140.5 170.5 85.0 87.0TOTAL 12,391.1 13,296.3 13,693.2 14,089.3 15,948.6 7,231.7 7,294.7

OPERATING INCOME (in € m) 2011 2012 2013 2014 2015 IFRS 5 2015** H1 2015** H1 2016Europe 413.3 281.3 260.8 372.2 447.9 180.6 244.6Margin (as % of Total sales) 4.1% 2.9% 2.7% 3.6% 4.0% 3.7% 4.8%North America 81.2 90.9 98.1 77.5 218.3 74.9 118.4Margin (as % of Total sales) 2.5% 2.0% 2.1% 1.7% 3.9% 2.7% 4.5%Asia 149.5 169.8 210.1 268.4 292.6 146.8 139.5Margin (as % of Total sales) 8.7% 8.0% 8.3% 8.9% 9.4% 9.7% 9.9%South America 23.1 -17.2 -27.9 -49.4 -54.1 -21.7 -17.6Margin (as % of Total sales) 3.2% -2.2% -3.2% -7.3% -9.8% -7.9% -7.5%RoW, Other & Elims -19.9 -11.1 -2.7 5.3 8.0 3.2 5.4Margin (as % of Total sales) -5.5% -3.7% -1.1% 2.2% 3.4% 2.5% 5.0%TOTAL 650.9 513.7 538.3 674.0 912.6 -82.6 830.0 383.7 490.3Margin (as % of Total sales) 4.0% 3.0% 3.0% 3.6% 4.4% 4.4% 4.0% 5.1%Margin (as % of VA sales***) 4.8% 3.5% 3.5% 4.3% 5.2% 5.4% 4.9% 6.2%* by origin; ** Restated IFRS 5, remaining Automotive Exterior sales have been added to the sales of Interior Systems; *** Value Added sales=Total sales - Monoliths sales

January 2017 – Roadshow

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Contact & Share data

Bonds ISIN Codes 2022 bonds : XS1204116088 2023 bonds : XS1384278203

Investor Relations Eric-Alain Michelis 2, rue Hennape 92735 Nanterre France Tel: +33 1 72 36 75 70 Cell: +33 6 64 64 61 29 Fax: +33 1 72 36 70 30 E-mail: [email protected] Web site: www.faurecia.com

Share Data Bloomberg Ticker: EO:FP Reuters Ticker: EPED.PA Datastream: F:BERT ISIN Code: FR0000121147

ADR Data Ticker: FURCY Ratio: 2 ADRs for 1 share Agent: Citi Group

January 2017 – Roadshow

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Safe Habor Statement

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 based upon 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, mix and schedules, financial distress of key customers, energy prices, raw material prices, the strength of the European 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, the outcome 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 update publicity any forward-looking statements whether as a result of new information or future events.

January 2017 – Roadshow

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