2003 second half and annual results. Pierre Lévi Pierre-Jean Sivignon

Transcription

1 2003 second half and annual results Pierre Lévi Pierre-Jean Sivignon

2 Second half 2003: objectives met Increased operating margin +0.3 pts Organic growth faster than the market +4.4% vs. -3.3% Positive net income, full year Significant rise in earnings per share Debt stable 10 million x 2.2 (before amortization of goodwill) million... dividend proposed at AGM maintained at 0.91 per share 2

3 Agenda 2003 second half in review 2003 second half and annual results Outlook 3

4 Agenda 2003 second half in review 2003 second half and annual results Outlook 4

5 Downturn in automotive production during second half > % change in production volumes, breakdown by region 2003/ nd half 1 st half 2003/2002 Europe North America Mercosur (3.3%) (1.3%) (2.2%) (3.0%) (3.2%) (3.1%) (1.2%) 5.0% 1.8% source: Faurecia 5

6 European production fell 3.3% during second half (thousands yr-on-yr 2 nd half 03 / of vehicles) 2003 change 2 nd half 02 VW Group 3,342 (6.6%) (9.0%) PSA Peugeot Citroën 2,902 (0.4%) (7.5%) Renault Nissan 2,392 (0.4%) 4.0% Ford Group 2,202 (0.4%) 0.7% GM Group 1, % (2.5%) DaimlerChrysler 1,367 (5.7%) (7.8%) Fiat Group 1,206 (7.7%) (1.9%) BMW 895 (1.8%) 0.3% Toyota % 15.7% Others 423 (0.1%) 0.1% TOTAL 16,784 (2.2%) (3.3%) source: Faurecia 6

7 Faurecia sales outperformed the market +17.3% +12.5% +8.4% +8.3% +3.5% +1.5% H (1.2%) (4.3%) H H % H (1.3%) H % Total sales (excl. catalyic converters) European (3.3%) automotive H2 production 2003 source: Faurecia 7

8 Continued organic growth in 2003 ( millions) 2 nd half 2003 change / 2 nd half 02 full-year 2003 change 03 / 02 Automotive Seating 2, % 4, % - at constant exchange rates 4.9% 10.3% Interior Systems 1,660.1 (5.1%) 3, % - at constant exchange rates and scope of consolidation 1.8% 7.3% Exhaust Systems (7.2%) 1,587.9 (10.7%) - excl. sales of catalytic converters % (3.5%) -andat constant exch. rates andscope 2.3% 0.4% Front end % % - at constant exchange rates 19.1% 14.0% Total 4,880.7 (0.5%) 10, % - excl. sales of catalytic converters 4, % 9, % -andat constant exch. rates andscope 4.4% 8.3% 8

9 Sustained pace of new launches during second half Chevrolet Malibu (USA) Citroën C2 (France) Ford Freestar (Canada) Mercedes Viano / Vito (Spain) Peugeot 407 (France) Volkswagen Golf and Fox (Brazil) Volvo S40 / V50 (Belgium) 9

10 Significant upswing in sales to BMW during second half ( millions) 2 nd half 2003 change 2003/2002 PSA Peugeot Citroën 1, % VW Group 1, % Renault Nissan (4.2%) Ford Group (22.2%) on a comparable scope (5.7%) GM Group (2.2%) DaimlerChrysler (2.5%) BMW % Toyota 66.7 (1.5%) Others % Total 4,880.7 (0.5%) 10

11 Three leading customers account for two-thirds of sales > 2003 sales, breakdown by customer DaimlerChrysler 6.4% GM Group 7.1% Ford Group 8.6% Renault Nissan 15.5% BMW 5.2% Toyota 1.4% Others 4.2% PSA Peugeot Citroën 28.2% VW Group 23.4% 11

12 Continued focus on four improvement plans: 1. Manufacturing processes and redeployment of the industrial footprint 2. Purchasing plan 3. Program management 4. R&D efficiency 12

13 1. Redeploying industrial footprint > Openings in western Europe Deeside - UK - JIT Neuenstadt - Ger - JIT Vesoul - France Vigo - Spain - JIT +9 Neutraubling - Ger - JIT Sittard - NL - JIT Poissy - France - JIT Rastatt - Ger - JIT 13

14 1. Redeploying industrial footprint > Openings in central Europe Deeside - UK - JIT Neuenstadt - Ger - JIT Vesoul - France Vigo - Spain - JIT Golçuk - Turkey Legnica - Poland +9 Neutraubling - Ger - JIT Sittard - NL - JIT Gorzow - Poland Walbrzych 2 - Poland Poissy - France - JIT Rastatt - Ger - JIT Kosice - Slovakia Sibiu - Romania 14

15 1. Redeploying industrial footprint > Openings outside of Europe Deeside - UK - JIT Neuenstadt - Ger - JIT Vesoul - France Vigo - Spain - JIT Golçuk - Turkey Legnica - Poland Shiheung South Korea +9 Neutraubling - Ger - JIT Sittard - NL - JIT Gorzow - Poland Walbrzych 2 - Poland Riverside - USA Puebla 2 - Mexico Kyong Ju South Korea Wuhan 2 - China Kyushu - JV Japan Poissy - France - JIT Rastatt - Ger - JIT Kosice - Slovakia Sibiu - Romania Auburn Hills - USA Cleveland - USA Lordstown - USA Hermosillo - Mexico Ramos - Mexico Rosslyn - So. Africa Changchun 3 - China Wuxi - China 15

16 1. Redeploying industrial footprint > Openings Deeside - UK - JIT Neuenstadt - Ger - JIT Vesoul - France Vigo - Spain - JIT Golçuk - Turkey Legnica - Poland Shiheung South Korea Neutraubling - Ger - JIT Sittard - NL - JIT Gorzow - Poland Walbrzych 2 - Poland Riverside - USA Puebla 2 - Mexico Kyong Ju South Korea Wuhan 2 - China Kyushu - JV Japan Poissy - France - JIT Rastatt - Ger - JIT Kosice - Slovakia Sibiu - Romania Auburn Hills - USA Cleveland - USA Lordstown - USA Hermosillo - Mexico Ramos - Mexico Rosslyn - So. Africa Changchun 3 - China Wuxi - China > Closings Rennes- France Senones - France Stadeln - Germany Toledo - USA Roermond - Netherlands Sassenburg - Germany Sontra - Germany Telford - United Kingdom Norfinch - Canada 16

17 2. Purchasing plan Reduction in number of suppliers Increase in low-cost country sourcing Increased use of on-line sourcing Improved quality in purchased parts 17

18 3. Program management > PMS* now deployed throughout Group and applied to all programs More rigorous launch management substantial decrease in start-up costs: 26 million in second half 2003 compared to 40 million in second half 2002 Reduced number of loss-making programs * Program Management System 18

19 4. R&D efficiency > Rationalization underway Organized by technical area of expertise Redeployment and modernization of R&D centers Implementation of shared group-wide tools has started R&D: key figures 5,000 engineers / technicians 25 R&D / D&D centers 5.3% of 2003 sales 19

20 Agenda 2003 second half in review 2003 second half and annual results Outlook 20

21 Further improvement in operating margin Key figures 2 nd half 2 nd half ( millions) change Sales 4, ,907.5 (0.5%) change 10, , % EBITDA % % of sales 6.3% 5.8% Operating income % % of sales 2.9% 2.6% % 6.3% 5.9% % 3.0% 2.6% 21

22 Further improvement in operating margin Income statement 2 nd half 2 nd half* ( millions) change Sales 4, ,907.5 (0.5)% Gross margin (3.1)% % of sales 8.1% 8.3% R&D expenses Gross (6.8)% Net (27.4)% % of sales 2.2% 3.0% SG&A expenses % % of sales 3.0% 2.8% Operating income % % of sales 2.9% 2.6% * change 10, , % % 8.3% 8.3% (13.6)% (14.3)% 2.4% 2.8% % 2.9% 2.9% % 3.0% 2.6% * Proforma after transfer of tooling margin from net R&D to gross margin 22

23 Operating margin by activity Key figures 2 nd half 2 nd half ( millions) change Interior vehicle modules Sales 3, ,808.1 (0.6%) at constant exch. rates and comparable scope 3.5% Operating margin (%) 2.7% 2.7% Other modules Sales 1, ,099.4 (0.3%) Sales excl. cat. conv % at constant exch. rates and comparable scope 8.6% Operating margin (%) 3.7% 2.1% Total Operating margin (%) 2.9% 2.6% change 7, , % 2.9% 2.8% 8.9% 2, ,371.1 (4.5%) 1, , % 3.3% 2.1% 3.0% 2.6% 5.4% 23

24 Positive net income in 2003 Income statement (cont'd) ( millions) 2003 % 2002 % Operating income % % Interest expense, net (82.9) (93.3) Other income and expense (net) (32.7) (70.4) Corporate income taxes (54.7) (27.1) Net income from consol. companies % % Income from companies accounted for by equity method Amortization of goodwill (110.4) (113.6) Net income before minority interests % (43.4) (0.4%) Minority interests (13.3) (15.7) Net income (Group share) 10.1 (59.1) Earnings per share ( ) Before amoritzation of goodwill After amortization of goodwill 0.42 (2.49) 24

25 Stabilization of net debt ( millions) 2 nd half 2003 Cash flow (Increase) / decrease in working capital 23.4 Cash flow from operations Capital expenditure (187.1) Net investment acquisitions (7.2) Other 7.2 Change in net financial debt 53.2 Net financial debt - at beginning of period (1,748.9) - at end of period (1,695.7) Gearing (at end of period) Cash flow per share (in ) (96.9) (344.9) (380.0) (13.3) (15.5) 32.0 (4.1) (1,707.1) (1,761.3) (1,695.7) (1,707.1)

26 Moving toward adoption of IFRS in 2005 > Main impact on accounts Decrease in goodwill due to cancellation of accruals for restructuring (IFRS 1) Transfer of capitalized development costs from inventory to intangible fixed assets (IAS 38) Additional capitalization of development costs Direct allocation into retained earnings of actuarial variance on post-retirement and other post-employment benefit obligations Transfer of cumulative translation adjustment at date of adoption of IFRS to retained earnings Increase in financial debt in the amount of secured receivables sold to financial institutions (IAS 39) Recognition in P&L of revaluation "mark to market" of options taken to cover interest rate risk (IAS 39) 26

27 Moving toward adoption of IFRS in 2005 > Main impacts Income statement: goodwill no longer amortized Balance sheet: increase in debt and corresponding increase in secured receivables 27

28 Agenda 2003 second half in review 2003 second half and annual results Outlook 28

29 Outlook > Forecasted reduction of European automotive production in 2004: objective to improve operating margin half year on half year going forward maintained slowdown in organic growth in 2004 accelerated activity in 2005 driven by growth generated outside Europe 29

30 European automotive production not expected to grow during first half 2004 Europe North America Mercosur 2004/ st half 2 nd half (3.4%) (1.7%) 3.2% 0% 4.4% 4.0% 2004/ /2002 (2.6%) (2.2%) 1.6% (3.1%) 4.2% 1.8% source: Faurecia 30

31 Major start-ups in 2004 > Europe Audi A6 (Germany) BMW 1-Series (Germany) Citroën C4 (France) Citroën C6 (France) Ford Focus (Germany) Mercedes A-Class (Germany) Opel Astra (United Kingdom) Peugeot 107 (France) Smart forfour (Netherlands) Mitsubishi Colt (Netherlands) > Outside Europe Cadillac STS (USA) Chevrolet Cobalt (USA) Nissan Teana (China) Peugeot 307 Tricorps (China) Pontiac G6 (USA) 31

32 Faurecia in North America > 2003 sales: 1,050 million Plants: 13 to 22 Barrie - Comp. Bradford - Comp. Mississauga - Comp. Auburn Hills - JIT - GM Metro Detroit - JIT - DC Walton - Comp. Riverside - JIT - GM Cleveland - Comp. Hermosillo - Ford Monterrey - Comp. Ramos - JIT Toluca - JIT - DC Puebla - Comp. - GM / DC Puebla - VW / Renault Nissan Exhaust Seating Interior Wilmington - GM Metro Detroit - DC Lordstown - GM Franklin - Ford / GM Troy - Ford / GM / DC Louisville - GM Granger- Ford / GM Fountain Inn - BMW / GM 3 R&D / D&D centers Auburn Hills Troy, MI Toledo (under construction) 32

33 Faurecia in Asia > 2003 sales: 150 million Plants: 9 to 11 Changchun - Comp. - VW Changchun - VW Changchun - VW Changchun - JIT - VW Bangalore - Comp. Exhaust Seating Interior Kyong Ju - Hyundai / Kia Shiheung - Hyundai / Kia Kyushu - Nissan Shangaï - VW Wuhan - PSA Wuhan - JIT - PSA / Nissan Wuxi - Comp. (under construction) 33

34 Strong growth potential > Global module market forecasts in 2010 ( billions) Seats 35 Cockpit 30 Door modules 15 Acoustic package 10 Front end 12 Exhaust

35 2003 second half and annual results Pierre Lévi Pierre-Jean Sivignon

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