Annual General May 29, 2018 Shareholders’ Meeting
Agenda 1 2017 Results Michel Favre 2 Faurecia transformation Patrick Koller Jean-Pierre Clamadieu 3 Governance and compensation Linda Hasenfratz Annual General Shareholders’ Meeting - May 29, 2018 2
Governance Members leaving the Board Mr Jean-Pierre Clamadieu Ms Amparo Moraleda 3 Annual General Shareholders’ Meeting - May 29, 2018
Governance Members joining the Board Mr Daniel Bernardino Ms Valérie Landon Mr Emmanuel Pioche 4 Annual General Shareholders’ Meeting - May 29, 2018
2017 full year results Michel Favre Chief Financial Officer & first quarter 2018 sales
Strong performance in 2017 and all financial targets achieved or exceeded SALES € 16,962.2m € 15,613.6m Strong organic* sales growth of +10.6% to € 17.0bn, 830bps above worldwide automotive production growth +10.6%* Significant improvement in profitability to 6.9% LV production +2.3% of sales (+70bps yoy), with an operating margin 2016 2017 at 7.0% in H2 Net cash flow of € 435m OPERATING INCOME € 1,170.3m EPS of € 4.42 € 970.2m 6.9% of VA sales +20.6% 6.2% of VA sales 2016 2017 Annual General Shareholders Meeting - May 29, 2018 6 * At constant currencies & scope, incl. JVs consolidation
Strong financial performance achieved whilst managing growth and innovation investment All Business Groups in all regions posted strong organic* sales growth and strongly outperformed worldwide automotive production growth All Business Groups posted organic growth above 8%, − Interiors had growth of +14.8% All regions outperformed regional market by more than 500bps − North America outperformed by 960bps (+5.6% vs. -4.0%) and Asia by 1,540bps (+18.1% vs. +2.7%) All Business Groups posted double-digit growth in operating income All regions posted strong growth in operating income, with Europe up 20%. South America back to profitability Over 200 programs launched and increased investment in innovation Annual General Shareholders Meeting - May 29, 2018 7 * At constant currencies & scope, incl. JVs consolidation
Net income from continued operations up 34%, to € 714m In € m 2016 2017 Change Value-added sales 15,613.6 16,962.2 +8.6% Operating income 970.2 1,170.3 +20.6% as % of VA sales 6.2% 6.9% +70bps Restructuring & other non-recurring operating inc. and exp. (105.8) (97.3) Net interest expense & other financial income and expenses (162.4) (131.3) Income before tax of fully consolidated companies 702.0 941.7 +34.1% (189.2) (261.8) Corporate income taxes as % of pre-tax income (26.9%) (27.8%) Net income before tax of fully consolidated companies 512.8 679.9 +32.6% Share of net income of associates 19.7 34.6 Net income from continued operations 532.5 714.5 +34.2% Net income from discontinued operations 188.3 (7.4) Consolidated net income, before minority interest 720.8 707.1 -1.9% Minority interest (83.0) (96.9) Consolidated net income, Group share 637.8 610.2 -4.3% Annual General Shareholders Meeting - May 29, 2018 8
On track to continuously enhance cash flow generation In € m 2016 2017 Change Operating income 970.2 1,170.3 +20.6% Depreciation and amortization 669.1 719.0 EBITDA 1,639.3 1,889.3 +15.3% Change in WCR 162.5 213.0 Capex and Capitalized R&D (1,044.9) (1,207.5) +15.6% Restructuring (63.5) (88.3) Finance expenses (132.0) (124.5) Taxes (257.7) (286.5) Other (operational) 154.8 39.8 Net cash flow 458.5 435.3 -5.1% Recurring net cash flow 332.5 435.3 +30.9% % of VA sales 2.1% 2.6% % of EBITDA 20% 23% Annual General Shareholders Meeting - May 29, 2018 9
2018 guidance shows increased growth 2018 GUIDANCE At least +7*% Above 7% Above € 500m € 5 +500 bps above market of sales 2018 2018 2018 2018 Operating Net cash Earnings Sales growth margin flow per share CAGR 2016 – 2018 >+8% * At constant currencies Annual General Shareholders Meeting - May 29, 2018 10
Q1 2018 Strong sales growth at constant currencies Strong sales growth* of +9.3%, outperforming worldwide automotive production growth** by 960bps Excluding a significant negative currency impact of -6.7% € 4,315m Including € 57m (or +1.4%) from bolt-ons € 4,203m € (281)m +9.3% All three Business Groups posted solid growth* Seating: +7.5% -6.7% Interiors: +14.0% Clean Mobility: +6.8% € 392m Sales growth* outperformed automotive production in all regions Vs. automotive Europe: +9.1% (+920bps vs market) production growth** of -0.3 % North America: +4.2% (+690bps vs market) Asia: +15.2% (+1,570bps vs market) South America: +23.3% (+1,150bps vs market) Strengthened confidence in FY 2018 guidance Q1 2017 Q1 2018 Currency effect Sales growth* * At constant currencies 11 Annual General Shareholders’ Meeting - May 29, 2018 ** Source: IHS forecast April 2018
Share price up by 77% in 2017 +13% since January 1, 2018 (at closing May 25, 2018) SHARE PRICE AND MARKET CAPITALIZATION 10.2 € 73.74 9.0 +99% Faurecia outperforms CAC 40 5 times Significant rerating in 2017 5.1 5.1 Rerating supported by solid track record and perception as +20% a technology company +10% Integration in the CAC Next 20 Market capitalization in € bn Faurecia share price CAC 40 Euro STOXX / Automobiles & Parts Annual General Shareholders Meeting - May 29, 2018 12
Faurecia S.A. financial statements € millions 2016 2017 Total sales 302.2 290.9 Operating margin 26.4 13.4 39.9 64.4 Financial and other expenses (net) Exceptional income and expenses 8.1 (1.8) Corporate taxes 25.6 18.3 Net income 99.9 94.4 13 Annual General Shareholders’ Meeting - May 29, 2018
Proposed dividend of € 1.10 per share, up 22% year-on-year Faurecia will propose to shareholders a dividend DIVIDEND PER SHARE of € 1.10 per share € 1.10* It will be payable in cash on 5 June 2018 € 0.90 This dividend represents a pay-out ratio of 25% € 0.65 of net income Group share, reflecting: The Group’s confidence in its capability to generate profitable growth and enhanced cash flow Its commitment to create shareholder value 2015 2016 2017 * Subject to approval at todays' Annual Shareholders’ Meeting Annual General Shareholders Meeting - May 29, 2018 14
Proposal for appropriation of net income ORIGIN Net income for the financial year 94,364,262.41 € Retained earnings from previous years 1,227,485,803.32 € Total to be allocated 1,321,850,065.73 € APPROPRIATION Statutory reserve Fully allocated Dividend 151,839,381.10 € Retained earnings 1,170,010,684.63 € Total appropriation 1,321,850,065.73 € Annual General Shareholders Meeting - May 29, 2018 15
Faurecia Patrick Koller CEO Transformation
Faurecia Transformation 1 2020 Financial Targets 2 Growth in New Value spaces and 2025 Ambition 3 Transformation into European Company Annual General Shareholders’ Meeting - May 29, 2018 17
Our 2020 targets confirm our strong potential 2020 FINANCIAL TARGETS Sales Operating Margin Net Cash Flow > € 20bn 8% of sales 4% of sales Annual General Shareholders’ Meeting - May 29, 2018 18
Our sales growth target is above 20 billion euros in 2020 2020 Sales > € 20bn RECORD 2015-2017 ORDER INTAKE SALES IN CHINA c. € 4.5bn Record 2015-2017 order intake and current CAGR € 62bn x2 +15% order book secure growth at > 7% CAGR Non € 53bn € 2.2bn C-OEMs € 47bn Commercial vehicles CAGR > 15% driven by NOx and particulate matter C-OEMs 40% 16% regulations particularly in China and India 2013-2015 2014-2016 2015-2017 2017 2020e 15 new customers in 2017 > 95% of 2020 SALES SECURED > € 20bn CAGR Sales in China to double >7% Targeted 70% CAGR with Chinese OEMs € 17bn <5% Order intake represented € 6.7bn in 2017 Awarded >50% Addressable 2015 2017 2020 market China global 32% 43% > 60% Current 45% Chinese OEMs 25% 46% 66% 2017 2018e 2019e 2020e 19 Annual General Shareholders’ Meeting - May 29, 2018
Our profitable growth is driven by geographic, 2020 product and customer mix OM 8% of sales SALES BY REGION SALES BY CUSTOMER TYPE FAVORABLE IMPACT Favorable regional mix Favorable customer mix ON OPERATING MARGIN RoW Premium & SUVs (incl. EVs) 6% € 8.0bn Asia € 6.7bn 17% Growing share of sales in Asia 2017 50% Europe € 17bn 2017 2020e Increasing technology content North 26% Chinese OEMs per vehicle on SUV & Premium America € 1.8bn (growth accelerates from 2020) RoW € 0.4bn Growth in New Value Spaces 4% Asia (represent € 3.5bn in lifetime sales) 2017 2020e 25% New Value Spaces 2020e € 2.0bn Europe 48% > € 20bn € 0.5bn 23% North America 2017 2020e Annual General Shareholders’ Meeting - May 29, 2018 20
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