Faurecia Targeting profitable growth

Transcription

1 Faurecia Targeting profitable growth DB Conference Detroit January 10, 2012

2 Profitable growth Core strategic priorities 1 4 Keep our focus on 4 core businesses Adequate growth and profit potential for all Leadership positions and worldwide coverage Technology leadership Technology leadership as a growth and profitability lever Decoration, comfort, end-user interface and connectivity Environment and fuel efficiency solutions Breakthrough materials and processes Targeted technology acquisitions 2 Operational performance as a strategic lever Deliver worldwide to customers the same benchmark level of service in manufacturing and engineering Keep optimizing the cost base to ensure competitiveness and profitability 5 Accelerate in Asia More than double sales in China Become fully local in all markets with state-of-the-art R&D capabilities Build on worldwide expansion with targeted Asian OEMs Target 4 bn Sales in 2015 (over 15% CAGR) 3 Leverage globalization Lead competition in global programs and global platforms management Outperform market in BRIC countries Achieve scale in Russia and India Become a Top 5 supplier in North America 6 Be a cautious consolidator Small to medium size acquisitions backed by our customers Priority to organic growth and market share gains 2

3 Profitable growth We expect to organically grow 3-4 points faster than automotive markets worldwide Europe In line with market Higher product value, strong customer mix and Russia take-off compensating price erosion Commercial policy targeting profit optimization not market share North America + 5/7 pts over market Rapid growth driven by favorable customer mix (expansion of German and Asian OEMs), premium products capabilities (German premium OEMs and Cadillac), global programs (Ford, GM, VW, Hyundai, Nissan) and highly competitive Mexican footprint Target to enter top 5# in North America Asia + 14/16 pts over market China growth driven by International OEM J/Vs, selected Chinese OEMs, demand for premium and technology Korea based on strong position at Hyundai, global programs at GMDAT and Renault-Samsung and expansion of local footprint India and Thaïland driven by global programs Under current CSM / IHS assumptions, it implies 20.0 bn revenues in 2015, vs 15.7 / 15.9 bn in

4 Profitable growth 2014 profitability targets confirmed 2014 onwards profitability 5 to 6% operating margin Pre-tax ROCE above 25% Net debt/ebitda below 0.5x based on 1. Booked program portfolio profitability: discipline in program acquisitions and excellence in program management 2. Higher margins through advanced technology products and upstream integration 3. Operational excellence and continuous shift to best cost locations in manufacturing and engineering All four Business Groups expected to contribute equally to Group performance 4

5 Profitable growth Record order book will support future growth and profitability Backlog of contracts in development Lifetime product sales in bn Increasing profitability of order book In % of product sales 34,0 26,4 21,9 18,1 4,4 5,1 5, (e) (e) 5

6 Globalization Faurecia has reached scale in North America Faurecia positioned today as #9 automotive supplier in North America Emissions Control Technologies, Interior Systems and Automotive Seating are fully deployed Automotive Exteriors as a niche player 3,100 m total sales in 2011e German OEMs 22% Customer portfolio in North America BMW Daimler Ford 17% VW 6% 2% 28% Asian OEMs 6% 2011e 2% Commercial vehicles 17% 22% GM Fiat Chrysler Faurecia sales in North America American OEMs 67% 20% CAGR e 27 manufacturing sites Full D&D capabilities deployed 49% 1% 28% 2011e 22% 6

7 Globalization Faurecia targets to grow 5/7 points faster than market in North America and to reach 4,200 m sales in ,500 m contracts already booked* Faurecia strategy in North America is based on: Rapid expansion at German OEMs Development of the business with Asian OEMs (Nissan, Hyundai) to over 250 m sales in 2015 Global programs worldwide strategy at Ford, with both Emissions Control Technologies and Interior Systems named Aligned Business Framework (ABF) suppliers Faurecia expertise in premium products (German OEMs and Cadillac) 2, Total sales [ m] +10% CAGR 4, e Cost competitiveness LCC headcount in North America Superior cost competitiveness Total headcount Direct headcount Low exposure to legacy footprint and union plants Large scale Mexican footprint Growth of Emissions Control Technologies for commercial vehicle business through the strategic partnership with Cummins Mexico * Contracts awarded 2009 to 2011 in life-time sales 37% % 2015e LCC 43% % 2015e 7

8 Globalization China is a top priority for Faurecia Critical size already achieved Our strategy has been so far based on International JVs and Global Platforms 1,200 m total sales in 2011e +38% CAGR e Operations fully localized and 100% controlled: 25 plants at worldwide 7 performance benchmark 7,000 employees Ford PSA 16% 15% % VW 12% Nissan 10% 7% SGM Others VW Shanghai Volkswagen, FAW-Volkswagen PSA Peugeot Citroën automobile company LTD 7Ford Changan Ford Mazda Automotive Nissan Dongfeng Nissan Motor Company limited SGM Shanghai GM Others BMW, Suzuki, Our footprint covers all the automotive regions in China 100% controlled D&D capabilities: 4 R&D centers wholly-owned 600 engineers Full intellectual property control 7 8

9 Globalization Next strategic steps in China: 2,500 m sales targeted in ,900 m contracts already booked* Expand further with International JVs Partnership with Geely / Volvo Global programs deployed in China Opportunities opened by new OEM footprints (FAW-VW Foshan, PSA-Changan Shenzhen, BMW- new Shenyang, Kia new Yancheng) Start of Automotive Exterior business (FAW-Audi) Develop business with selected Chinese pure players Partnership with Geely / Volvo is our first priority Total sales 650 [ m] e Total plants e e * Contracts awarded 2009 to 2011 in life-time sales Geely / Volvo expected to be the largest non government-owned OEM in China Partnership signed in Dec 2010 for development and manufacturing of Interior and Exterior components 7 plants under construction with SOP sarting 2012 (Cixi, Chengdu, Beilun, Xiangtan, Lanzhou & Jinan) Over 200 m Sales targeted in 2015 Partnership extended to Emissions Control Technologies (Oct 2011) and to Seats (under discussion for 2012) 9

10 Globalization Faurecia targets further growth with Asian OEMs worldwide and to reach 2,300 m sales in 2015 Faurecia targets progressive expansion with Asian OEMs Total sales [ m] Faurecia accessible markets historically limited by in-house sourcing (bumpers, cockpits) or close links with Kereitsu companies, including affiliates (Hyundai / Mobis, Nissan / Calsonic Kansei, Toyota /Toyota Boshoku, Honda / Tachi S) Further international expansion, delocalization from Japan, need of expertise / technology, global approach are offering new opportunities for Faurecia Top priorities Nissan and Hyundai Opportunities with Honda Major pure player partner in China Geely / Volvo 1, % CAGR 2, e Faurecia objectives with Asian OEMs Double sales between 2010 and 2015 Asians OEMs to represent 12% of Group Sales in 2015 (8% in 2010) 10

11 Globalization Faurecia targets further growth with Asian OEMs worldwide 3,200 m contracts already booked* 600 m contracts already booked* Strategy deployment at Nissan Strategy deployment at Hyundai/Kia Global partnership with Japanese supplier NHK establishing Faurecia as a strategic seat supplier Our position as one of the two largest suppliers emissions control in Korea is confirmed through the Medium Term Plan In final negotiation for a new partnership with a local interior supplier Acquisitions in 2010 in the US of a just-in-time Seat assembly and an interior component plant delivering to Nissan Faurecia business boosted by Renault / Nissan global approach and targeting Nissan "Power 88" new opportunities in North America, China, Russia and Brazil * Contracts awarded 2009 to 2011 in life-time sales We will continue to grow Emissions Control Technologies further through a global approach (China, India, Russia, Brazil) We are building solid relationship with Engineering and Advanced Development through several co-innovation and technology projects for Automotive Seating and Interior Systems 11

12 Globalization Critical size achieved in Brazil / Argentina: 1,100 m sales targeted in ,200 m contracts already booked* Critical size already achieved 630 m fullly consolidated sales in 2010 Total sales [ m] 31% CAGR e 15 manufacturing sites Expansion based on global and local programs with PSA, Renault Nissan, VW, Ford and GM % CAGR 1, e Key drivers for future growth Global programs for all customers Faurecia s footprint covers all the automotive regions Favorable market mix, driving additional value in Interior Systems and Automotive Seating Favorable clients portfolio with expected superior growth: VW, Renault-Nissan and Ford Start of Automotive Exteriors business with VW, Ford and PSA Start of the Commercial Vehicles business for Emissions Control Technologies with new environment regulations in 2012 * Contracts awarded 2009 to 2011 in life-time sales 12

13 Globalization A global automotive player Sales by region South America RoW South America RoW Asia 5% 9% 2% Asia 17% 6% 2% North America 21% 2011e 63% Europe 2015e 54% Europe North America 21% Close to 50% of sales outside Europe Asia will double in size Of which BRIC Brazil 14% China India 22% Russia A global Group serving all OEMs worldwide Full scale reached in North America Suppliying key customers in all fast emerging markets 13

14 Q Sales Growth substantially above market Q3 Total sales by type in m % Reported Organic* Total sales +15.9% +15.9% Product sales +13.5% +12.8% Q3-10 Q3-11 Product sales Monoliths sales Development, Tooling & Prototype sales *: Like-for-like (Perimeter & exchange rate) Main drivers Emissions Control North America Emerging markets 14

15 Q Sales Strong growth in the Americas & Asia Q3 Product sales by region in m Reported Organic* TOTAL +13.5% +12.8% ,5% Asia South America North America Europe +17.1% +17.0% +23.6% +8.5% +20.9% +22.5% +26.1% +5.2% Main drivers North America Asia Q3-10 Q3-11 Europe North America South America Asia Other *: Like-for-like (Perimeter & exchange rate) 15

16 Q Sales Faurecia is outpacing automobile production in all regions Change Q / Q North America : Auto Prod: +5.7% Faurecia: +23.6% Total World : Auto Prod.: +5.5% Faurecia: +13.5% Total Europe : Auto Prod.: +5.2% Faurecia: +8.5% South America : Auto. Prod.: +3.7% Faurecia: +17.0% (1) China Prod.: +8.4%, Faurecia: +11.6% (1) South Korea Prod.: +7.9%, Faurecia: +48.6% Auto. prod.: Light Vehicle Production up to 6.0 tons Source IHS Automotive Faurecia: Product Sales Asia : Auto. Prod.: +5.3% (1) Faurecia: +17.1% 16

17 Q Sales Faurecia 2011 objectives July 2011 Announced October 2011 Confirmed 1. Total sales 15.7 / 15.9 bn 2. Operating income 620 / 650m 3. Capex 450m 4. Net cash flow Approx. 100m 17

18 BACK-UP 18

19 Solid fundamentals Faurecia has an efficient cost structure Gained 2.5 pts in variable cost margin 23,0 22,9 22,3 In % of product sales 25,4 24,8 26,3 25,5 +2.5pts More direct headcount in low cost countries in % of total direct headcount % H1 08 H2 08 H1 09 H2 09 H1 10 H2 10 H1 11 June 2008 June 2011 Sharp fixed costs reduction with a greater reduction in Europe Total fixed costs in % of product sales 17,9 16,5 June 2008 June 2011 Total fixed costs in % of product sales 18,0 16,2 June 2008 June

20 Solid fundamentals Faurecia is a flexible company Sharp reduction of break even High level of direct labour flexibility Break even is reduced by 15%... In % of product sales Quick adjustment potential in % of direct headcounts in Europe June 2008 June Temporary contracts of which 17% in Europe In % of product sales June 2008 June June 2008 June 2011 Short term contracts 20

21 Solid fundamentals Global 1,558m Group Refinancing October 27 th : issuance of a 58m, 3- and 5-year German private placement (Schuldschein) November 3 rd : issuance of 350 million notes maturing in December 2016 bearing a coupon of 9.375% Proven access to financial market Bond was oversubscribed 4 times to 1.4 bn Bond mostly allocated to "long only" accounts (225), ie stable investors December 20 th : Refinancing the corporate syndicated facility New syndicated credit facility of 1,150 million, composed of two tranches, 690 million and 460 million, maturing respectively in December 2014 and December Tranche A can be extended by two years, allowing to bring the global maturity to December lending banks Peugeot loan repaid with the proceeds 21

22 Solid fundamentals Liquidity resources significantly lengthened 2.00 Available Long-Term Funding Resources 1.50 billion Maturity Tranche A, initial maturity Tranche A, extended maturity 22

23 Solid fundamentals Faurecia has a strong customer mix 50.4 % sales with German OEMs In % of H product sales (e) EUROPE 40.2 % sales with premium brands Audi 19.9% Other 49.6% German OEMs VW Group 33.7% Other 59.8% 2011 (e) Premium brands BMW 8.9% Daimler 7.2% Porsche 0.7% BMW 8.9% Daimler 7.2% Volvo 2.4% JLR 1.1% Porsche 0.7% Other 61.7% 38.3 % sales with German OEMs German OEMs VW Group 25.2% BMW 8.1% Daimler 4.6% Porsche 0.4% In % of 2011 product sales (e) CONSOLIDATED Other 72.6% 27.4 % sales with premium brands 2011 (e) Premium brands Audi 12.0% BMW 8.1% Daimler 4.6% Volvo 1.6% JLR 0.7% Porsche 0.4% 23

24 Contact & Share data Investor Relations Eric-Alain Michelis 2, rue Hennape Nanterre France Share Data Tel: Cell: Fax: eric-alain.michelis@faurecia.com Web site: Bloomberg Ticker: Reuters Ticker: Datastream: ISIN Code: EO:FP EPED.PA F:BERT FR

25 Safe Harbor 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. 25

26 Investor Day November 7,