Description
China believes that a strong central government will lead to a powerful Nation based on its 5,000 year history.
Investor Day
Strategyto double sales in China and Group update
Shanghai
November 11, 2014
Investor Day
Shanghai
November 11, 2014
China Market
FaureciaChina
Jingcheng Li
November 11, 2014
China believes that a strong central government will lead
to a powerful Nation based on its 5,000 year history
Investor Day –Shanghai –November 11, 2014 4
Foundation of the
Republic of China
Foundation of CPC
Foundation of the
People’s Republic
of China
The 100th
Anniversary of
CPC
The 3rd Plenary Session of the
18th Central Committee of the
CPC for “Deepening Reform”
The 100th Anniversary
of the People’s
Republic of China
People’s Republic of China: 100 Years Development
Communist Party of China: 100 Years Development
1911 1921 1949 1978 2013 2021 2049
In 35 years:
• 2nd World Eco Power
• GDP +142 times
• Urban revenue +71 times
• Rural revenue +59 times
China is now going for the Chinese Dream:
? 1921 – 2021: 100 years of CPC foundation,
China will reach a comfortable level at the whole nation
? 1949 – 2049: 100 years of PRC foundation,
China will reach the same level as that of the developed
countries
? By the end of 21st century: China rejuvenation
will be realized step by step and China re-becomes
the world first powerful country
The 3
rd
Plenary Session of the 11
th
Central Committee of the CPC for
“Reform and Opening “
Chinese Dream realization will improve people living conditions and boost consumption
2014 China dilemma: Stimulus or Reform
China government has chosen to deepen the reforms
Investor Day –Shanghai –November 11, 2014 5
China
GDP
Drivers
Export
Investment
Consumption
? Super-imposed effect in 2014
? Speed shift of GDP growth
? Pain of structure reform
? Digestion of post 4tr. Plan
? 30 “Golden Years” now limited by
? Natural resources
? Environment impact
? Labor force and cost
? GDP drivers shift becomes must
? Public debt control & reduction
? Consumptionand wagepolicy
? Core technologies & Innovation
“Global weak
demand"
"Debubble! –
post 4 trillion
Plan"
“Limited social
protection"
China is committed to conduct further reforms aiming at the new development model
"The Rule of Law": main theme of 4
th
plenary session
of 18
th
Central Committee of CPC, historical milestone
Investor Day –Shanghai –November 11, 2014 6
What does it
mean?
What does it
include?
How to
understand?
Direction & Consequences
? China historyand culture deeplymarkedby Confucianism
? Confucianismprivilegesmoralisimrather thanlaws
? In ancient China, "Law" meanspunishment, different fromWestern
? "Law" has no linkto humanrightsand powers’ separationnotion
? Legislation: reinforcement of the roleof People’sCongress
? Administration: the ruleof the lawfor government
? Judicial organ: more independent and justice
? Respect of Law: population withlawmindset in dailylife
? Under the leadership of CPC and socialist market economy
? Better balance betweenthe ruleof lawand individual perfection
? Restriction of government power, thusreducecorruption source
? New reformsneedto beconductedon the basis of laws
China will provide a more healthy business environment
2014 China automotive industry is marked by top level
government exchange between Europe and China
Investor Day –Shanghai –November 11, 2014 7
J an Mar
May J uly Sept
Anti Trust
Investigation
Euro V from
1/1/2015
Scrap of Yellow
Label vehicles
Incentives
for new
energy cars
Car air
Purifier
standard
Child seats
In cars
German PM Merkel
China visit
Anti trust fine
On OEM and
Auto parts
XI Jinping
Europe visit
DF / PSA
Daimler
BMW
VW
Volvo
DF / Renault JV Yanfeng JCI
Interior
merger
DF Infiniti new JV
DF PSA
Chengdu new site
FVW new sites
In Qingdao &
Tianjin
Oct
Capital increase of VW in
itsJV withFAW:
49% vs. 40%
? PV growth High H1 and Low H2
? Local brands losing some share
? Global OEMs capacity expansion
? Regulation: anti-trust, environment, safety
Main market trends
China automotive industry continues to grow, with more regulation and new norms
China market is maturing in terms of regulation and norms
Air cleaning becomes a priority for government
Investor Day –Shanghai –November 11, 2014 8
Environment Safety Health
Emission
2010
China IV
(EU IV)
2018
Gasoline
China V
(EU V)
Diesel
2013
China IV
2015
China V
2018
China VI
(TBD)
Fuel consumption limits (PV)
NEV subsidy plan
2015
6.9 L / 100 km
2020
5.0 L / 100 km
2025
4.0 L / 100 km
2010
•Pilot in 25 cities
•Subsidy by battery energy
2013
•Focus on Beijing, Yangtze
& Pearl river delta regions
•Subsidy by battery endurance
distance
? Request continuous attention
and development on new material
? Potential cost-up pressure
? Product quality improvement is
a priority
? International standards move
? Constant innovation required in emission technology
to meet environment requirements
? Lightweight solutions contribute to reach fuel
consumption targets
Implications Implications Implications
2013, enlarge vehicle scope, defects definition,
clarify responsible party, increase fine for OEMs
who refuse recall
Recall policy
China Three Guarantees
2013, Guarantee for repair, replacement, &
return within 3 years cf car lifetime, provide
more protection to consumer
Child seat
2012, Restraint system of vehicles for children
(ECER44), enhance the protection of children
safety
Air quality (PV)
2015, Air quality standards inside vehicles
(PV), set mandatory standards for volatile
organic compounds & specified pollutants'
limits
CAR MODEL CAR PRICE (€) EU CAR PRICE (€) CN JV CAR PRICE (€) CAR MODEL
Car selling price comparison between China and Europe
Margin on Premium and SUV under pressure
Investor Day –Shanghai –November 11, 2014 9
Global Brand Chinese Brand
A00
A0
A
B
C
D/E
SUV
4,000-7,000
5,000-7,000
8,000-14,000
11,000-23,000
10,000-13,000
Segment
9,000-14,000
12,000-18,000
19,000-26,000
24,000-42,000
36,000-56,000
71,000-134,000
24,000-31,000
Not produced
10,000-15,000
13,000-22,000
22,000-39,000
38,000-90,000
89,000-350,000
22,000-42,000
Note: EU car price incl. sales tax, exchange rate: EURO/RMB=1/8.2 Source: www.cars-of-europe.com, www.bitauto.com
Not present
Not present
Geely Panda
Geely SC6
Geely EC8
Geely GX7
Geely EC7
VW Tiguan
VW UP
VW Polo
VW Golf
Audi A6
BMW 7 Series
VW Passat
Six automakers share over 80% of the market
Investor Day –Shanghai –November 11, 2014 10
SAIC
26% 3,013
FAW
16% 1,857
DongFeng
17% 1,977
Chang'an
10% 1,121
BAIC
8% 961
GAC
6% 750
GreatWall
3% 357
Geely-Volvo
2% 241
BYD
2% 261
Brilliance
3% 317
Chery
2% 257
Others
5% 606
Market share
20% 4% 2% 1% 0% 10% 4% 5% 5% 5% 10% 3% 32%
Volume ['000]
2,369 472 197 89 42 1,116 524 591 612 563 1,116 299 3,729
Others
Chinese
Brand
Market
Share
Volume
['000]
European U.S Japanese & Korean
JV
59%
24%
12%
Chinese OEM groups
PV brands
Source: Auto 2000 Aug, Faurecia internal analysis
Global OEMs enjoys 2014 market growth with continuous capacity expansion
2015 auto growth continues despite some pressure from macro
economy and will be key for new China auto industry policy
Investor Day –Shanghai –November 11, 2014 11
Domestic
Economic
Growth
Automotive
industry
Development
Potential Impacts Forecasts
? GDP between 7.0% to 7.3%
? Population at 1.37 billion
? Urbanization rate at 55.4%
? High pressure on CO
2
control
? PV volume growth around +9.9%
? Euro V nationally implemented
? New industrial policy release
? 13
th
Five Year Plan direction
? Unemployment rate to increase
? Big consumer market to stimulate
? Public debt control and financing innovation
? Pillar industries support to maintain growth
? 2015 PV production volume at 18.7m units
? Yellow Label vehicles scrap plan results
? China local brands development
? Emission control, light weight, safety
Source: China State Information Center
2015 main focus: 3
rd
Edition of China Automotive Industry Policy
China automotive industry faces some strategic topics
to be clarified in 2015 with long term impact
Investor Day –Shanghai –November 11, 2014 12
3
rd
Edition of China Automotive Industry Policy
1
st
Edition in 1994: Market against Technology Market open mainly to global OEMs
2
nd
Edition in 2004: Consolidation by SOE OEMs Own Brands development difficulties
3
rd
Edition in 2015: Powerful automotive country Mastering core technology / innovation
China Local Brand Support Policy
EachChineseOEM will findout itsownwayto developfurther the local brands
Anti-Trust Scrutiny Evolution
China moves toward the international practices
13
th
Five Year Plan Direction
CO
2
focus: China CO
2
peak forecasted between 2025 and 2030, light weight and emission controls
OEM 50/50 JV Evolution
OEM Joint Venture Agreements extension, the latest is FVW for 25 years
Chinese and global OEMs relationship will be closer via different forms: cross participation, M&A etc.
Main Target "Perceived" Results
New China Automotive Industry Policy may focus on new energy cars and local brands
China economy will live with deep changes to maintain
a steady growth in the coming 10 years
Investor Day –Shanghai –November 11, 2014 13
Source: China State Information Center
Domestic
Economic
Growth
Automotive
industry
Development
14
th
Five Year Plan (2021 - 2025) 13
th
Five Year Plan (2016 - 2020)
? GDP around 7.3%, 2020 below 7.0%
? Population at 1.41 billion
? Urbanization rate at 60%
? Urban family number: 270m in 2020
? PV volume growth 9.4%, 2020 at 26.4m
? Euro VI introduction, 5l per 100km
? Own brands turnaround
? New energy significant growth
? PV volume growth at 4.4%, 2025 at 31.7m
? Further weight reduction
? China becomes global player
? China powerful automotive country
? GDP around 6.3%, 2025 below 6.0%
? Population at 1.44 billion
? Urbanization rate at 64%
? Urban family number: 340m in 2025
China market still offers important potential for the coming years
China vehicle production hits 22 m units in 2013,
and will exceed 30 m units by 2017
Investor Day –Shanghai –November 11, 2014 14
Source: IHS 2014 Aug, Faurecia China internal analysis
1) CVE refers to truck/bus above 3.5 tons 2) LCV refers to commercial vehicles up to 3.5 tons 3) PV refers to cars, incl. MPV and SUV 4) incl. Pickup
2017 E
31
22
6
3
3
2010
18
11
4
3
LCV
CVE
2020 E
33
24
4
2
2011
19
12
6
3
2013
22
16
CAGR = ~6%
CAGR = 7%
3
4
3
2012
19
13
PV
China vehicle production volume 2009 – 2020 E [m units]
1)
3)
CAGR
‘10-'13 '13-'20
Key figures of PV Market - 2013
Car owner -
ship
[units/1,000
people]
Total car
parc
[m units]
8% 6%
17% 6%
Total
Production
Volume
[m units]
8
11
11
16
63
490
740
470
60
235
213
85
W. Europe
4)
4)
1% 3%
2)
Market consensus on China automotive volume turn-point: 40m units
29% 29% 29%
66%
63%
61%
8%
10%
20%
28% 29%
16%
15%
15%
47%
40%
39%
12% 11% 11%
30%
31% 32%
26%
27%
27%
20%
19% 19%
14%
14% 14%
10%
9% 8%
SUVs are increasingly favored by Chinese OEMs, premium
and entry segments are also gradually gaining share
Investor Day –Shanghai –November 11, 2014 15
Source: IHS 2014 Aug
? China PV market is still dominated by C
segment, accounting for ~40% M/S
? SUVs are increasingly favored by
Chinese customers, esp. for 2nd-time
purchase, due to their roominess
? As premium brands are pushing
forward their localization in China,
their share is expected to increase
? Entry brands are now recovering and
expected to achieve ~30% M/S
? In general, the market is relatively stable,
with Chinese brands increasing thanks
to government support
? Japanese OEM performance to be
impacted by bilateral relationship
2013 2020 E 2017 E 2013 2020 E 2017 E 2013 2017 E 2020 E
16 24 22
16 24 22
Sedan
16 24 22
5% Premium
Entry
MID
U.S.
Korea
China
Europe
Japan
SUV
MPV
D/E
C
A/B
6%
4%
6%
Growth and mix trend still support profitability improvement
Share of body-type
[m units]
Share of brand tier
[m units]
Share of brand origin
[m units]
Chinese OEMs will become more and more global via
partnership reinforcement and cross-border M&A operations
Investor Day –Shanghai –November 11, 2014 16
In the past In the future
Value chain
coverage
Technology
direction
Market focus
Missing to
China
Work split
Market
players
? Vehicle, mainly PV
? Localizing foreign cars
Impact on suppliers
? Full value chain including auto parts
? Specific car development for China
? JV with OEM as key strength
? Differentiation and innovation
? Passive Chinese partner
? In learning curve
? More active Chinese partner
? More confident to drive decisions
? Customer intimacy to focus
? Address decision makers
? Chinese market
? Global car makers in China
? Global market and own brands
? Chinese OEMs focus export / go global
? 6 SOEs / Global OEMs
? Captive and capitalistic
? Internal combustion engine
? Funds, market, HR
? Technology, brands
? SOEs/ POEs/ Global OEMs
? All kinds of cooperation
? New energy, hybrid, EV
? Core technology
? Brands
? China full service capabilities
? Global footprint
? Business model challenge
? Capability and competitiveness
? Regulation
? Light weighting
? M&A - Partnership
? Local brands support
China has spent US$15bn for OEM and Auto Part acquisition outside China
Starting from Oct. 2014, 98% cross border M&A need no more approval from Beijing
China auto part market competition is well structured
Investor Day –Shanghai –November 11, 2014 17
? China Top OEM have auto part integrationstrategy
? Global ambition to berealizedvia M&A operations
? Market isgettingmore and more open
? Technologyand innovation drivensuppliers
? Market mix requiringhigher technologyand quality
performance
? Capable of managingglobal platforms
? Cost drivencompetitionand customer intimacyfocus
? Lackof global presenceand accessto technology
OEM CAPTIVE PLAYERS
Faurecia is well armed to face the competition in China with a strong team
Technology, engineering localization rate and platform capabilities
remain key success drivers
GLOBAL PLAYERS
LOCAL PLAYERS
Key takeaway for China market
Investor Day –Shanghai –November 11, 2014 18
1
2
3
4
China new government team has defined the development objectives, strategy and roadmap
for the coming 10 years, positive impact on automotive industry is expected
China‘s PV market will continue to grow with 1.5 million units more per year till 2020
with a mix moving up and tightened regulation toward the international standards
China government support focuses on local brand and new energy solution development
Chinese partners will increase their decision power in the JV with global OEMs
and 50/50 business model can be in further evolution in 5 to 10 years period
5
China market environment is positive for Faurecia who has already
a solid presence and will accelerate the deployment of its strategy
Faurecia China development strategy definition takes fully
into account market and Group’s expectations
Investor Day –Shanghai –November 11, 2014 19
Key Assumptions
Impact on
Strategy Design
Faurecia China
Strategy
2018 plan
> € 4.0 bn
2016 plan
> € 3.0 bn
2014 Forecast
? € 2.3 bn
+ 17% vs. 2013
Neutral
Political stability
Geopolitical and social tension
Positive
GDP ?7% per year
Inflation ?4%
Positive
Neutral
Local Brand support
New energy car support
Positive
Environment focus
Safety and health focus
Positive
Challenging
Footprint strategy
Increasing decision power
Positive
Challenging
International standard move
M&A development
Challenging
Technology and Innovation
Differentiation focus
Positive
15% to 20% of Group sales
Profitable and cash generating
China
Political Environment
China
Macro Economy
China Automotive
Industrial Policy
China Regulation
China
Global & Local OEMs
China
Auto Parts
China Competition
Faurecia Group
Expectation
Market components
Faurecia has solid presence and clear strategy roadmap in China
Investor Day
Shanghai
November 11, 2014
China Strategy
FaureciaChina
Jean-Michel Vallin
November 11, 2014
Faurecia celebrates in 2014 its 20 years’ localization in China,
providing a solid base for business acceleration
Investor Day –Shanghai –November 11, 2014 22
2002 2011 2014 2015
? Raw material,
components, process,
equipment
? Quality system, lean
production system
Manufacturing
? Engineering
and validation
? Program
management
Industrialization
? Tech Center fully autonomous
? Advanced development
for China market needs
? Local innovation
R&D and Innovation
WAVE 1
WAVE 2 WAVE 3 & 4
1994 2005 2013
>€1bn
>€2bn
2010
A consistent strategy focused on 6 dimensions
to sustain profitable long term growth
Investor Day –Shanghai –November 11, 2014 23
? Global program acquisition
? Customer portfolio diversification
? Product portfolio diversification
? OEM connection
? Regional presence
? Business development booster
Organic growth with core
and emerging clients
Partnership as OEM intimacy
leverage
Manufacturing operational
excellence at benchmark level
? Quality & HSE best in class
? Flawless new launches
? Operation and cost optimization
? KPI constant improvement
? ECRs efficient management
? VA/VE portfolio enhancement
? Fully-owned, worldwide network
? Deep expertise localization
? Innovation and industrial style
Program development to
drive profitability and cash
World class R&D providing
value to customers
Strong leadership team
to drive the growth plan
? A strong Chinese mgmt. team
? Training and development plan
? Organization and resources
1
4 5 6
3 2
Faurecia has 23% CAGR for the past years and forecasts
€2.3 Bn sales in 2014, a new faster-than-market growth year
Investor Day –Shanghai –November 11, 2014 24
? €2.3 Bn Sales*
38 Plants
? 12,800 employees
Present in 21 cities
R&D
4 centers
750 engineers
Total Plants
€ bn
Total Sales
* Including €0.2bn non consolidated sales
2014 Forecast
1.0
1.2
1.5
2.0
~2.3
2010 2011 2012 2013 2014
25
30
35
36
38
2010 2011 2012 2013 2014
CAGR = 23%
Faurecia has now deployed its 4 Business Groups in China
FECT and FAS Metal in market leading position
Investor Day –Shanghai –November 11, 2014 25
1) Consolidated sales 2) Consolidated and non-consolidated sales ; 3) mainly non-consolidated
First operation
1994: Wuhan
16 plants
Total sales: ? €1,150m
1)
? 4,400 employees
27% Market Share
First operation
2002: Changchun (Structures)
2003: Wuhan (Complete seat)
2004: Wuxi (Mechanism)
10 plants
Total Sales: ? €830m
1)
? 4,900 employees
15% Market Share Metal
5% M/S Complete Seat
First operation
2005: Changchun
11 plants
Total Sales: ? €260m
2)
? 2,800 employees
4% Market Share
First operation
2011: Changchun
1 plant
Total Sales: ? €80m
3)
? 550 employees
2% Market Share
2014 Forecast 2014 Forecast 2014 Forecast 2014 Forecast
A manufacturing footprint of 38 plants in 2014,
covering the 6 main auto regions
Investor Day –Shanghai –November 11, 2014 26
North
1996
2002
2005
2010
2011
2011
2012
Changchun
Changchun
Changchun
Changchun
Changchun
Shenyang
Changchun
West Region
2003
2007
2010
2011
2012
2012
Chongqing
Chongqing
Chengdu
Chengdu
Chongqing
Chengdu
Central Region
1994
2003
2006
2010
2012
2013
2014
Wuhan
Wuhan
Wuhan
Wuhan
Xiangyang
Nanchang
Changsha
East Region
2000
2004
2005
2008
2012
2012
2012
2012
2013
2014
Shanghai
Wuxi
Shanghai
Shanghai
Shanghai
Nanjing
Shanghai
Cixi
Yancheng
Nanjing
Cixi
Beilun
?
South Region
Exhaust Interior Seats R&D centers China Headquarter Exterior ?
2010
2010
2012
Guangzhou
Foshan
Foshan
2012
2012
2013
Foshan
Shenzhen
Shenzhen
Yantai
Qingdao
Beijing
2004
2007
2012
North-East Region
6
3
7
6
6
10
Investor Day –Shanghai –November 11, 2014 27
R&D Strategy FECT Tech Center Opened in April 2011
China HQ & New Tech Center Opened in March 2013 R&D and Program headcount evolution
? 3 fully owned R&D centers integrated
in the global network with 750 engineers
? Application centers in six regions
? Continuous reinforcement of local team
and competences
? More innovation focus
? Design and style as differentiation factor
R&D Strategy focused on competence and expertize
full localization under 100% Faurecia control
2014 2015 2017
750
900
1,200
Manufacturing strategy focused on best in class operations
through full FES deployment and margin enhancement
Investor Day –Shanghai –November 11, 2014 28
Recognized by Customers Among best performing plants Customer PPM [2014]
New Plant Launching Model
8 Chinese Plants in Group Top 10
22 Chinese Plants audited
82%@A Rank; Average 64%
(All plant managers are Chinese)
Dated on Sep. 2014
#1
#4
#8
Wuxi FAS
Nanjing
Guangzhou FAS
#9 Yantai FECT
#1 Anting FAS
#9 Chengdu FAS
#5 Wuhan FECT
FIS
#9
Wuhan
FIS
GM
“2013 GM
Supplier Quality
Excellence Award”
DPCA
“2013 GM Special
Award”
FAW-VW
“Top 10 Excellent
Quality Award”
KM&I
“2013 Best
Supplier Award”
FAS FIS FECT FAE
1
6
4
8
Faurecia China targets to double its size in the coming years
thanks to OEM volume growth and portfolio expansion
Investor Day –Shanghai –November 11, 2014 29
? Faurecia to grow twice as fast
as the market (15% CAGR)
? Strengthening relationships
with Chinese automakers:
? ChangAn for FIS, to extend
? Geely for FIS, FECT
? JMC for FECT
? Other opportunities
2016 2018 2014
> € 3bn
> € 4bn
? € 2.3bn
Sales forecast Comments
Investor Day –Shanghai –November 11, 2014 30
Partnerships objectives ChangAn Affiliated OEMs
JV footprint Interior Systems sales evolution
? 50/50 JV established in 2013
? Interior business as first step scope
? Potential extension to other Faurecia product lines
? Significant businesses award since creation
Faurecia‘s partnership with China ChangAn Group
progresses smoothly in line with the strategic plan
PV Volume
Growth
2014 YTD
1.7m
+26%
Chang'an
2016 2018 2020
~20
~150
~ 210
Faurecia will continute to deploy this strategy with other Chinese OEMs
€ M
Footprint strategy focused on business support
and capex optimization through volume massification
Investor Day –Shanghai –November 11, 2014 31
New footprint focus regions – OEM new entry points
Shenyang
Wuhan
Changchun
Beijing
Nanjing
Shanghai
Chengdu
Guangzhou
Chongqing
Changsha
Hangzhou
? Key Strategy
? Core technology / standard
product / techno plants:
densification of volume
? JIT to follow customers
? Cross BG building solution
? Capex optimization
? Vertical integration
to catch added value
? Plant Number
? 2014: 38
? 2018: 55
? 5 YR Investment: €400 M
Human Resources strategy focused on supporting
growth through leadership and competence build up
Investor Day –Shanghai –November 11, 2014 32
? Balance of nationality, seniority and competence
? Chinese people in key Division Management Positions
? 100% Plant Managers are Chinese
? Regular staffing reviews
? New employees induction and training plans
? Regular benchmarking to be competitive
? HR KPI close monitoring
? University campus campaigns for new graduates
? Clear career path for management evolution
? FES China School to prepare Faurecia mindset
DEVELOP A STRONG LEADERSHIP TEAM
? Multi-cultural
? Highlymotivated
? Result oriented
REINFORCE HR FOUNDATIONS
? Group keyvalues in team’s dailybehavior
? Full deployment of all Group HR tools
? C&B in line withGroup guidelines and market
PROVIDE RIGHT RESOURCES FOR GROWTH
? Reservoir and retention
? Career pathanticipation
? Training in China and abroad
Key takeaways
Investor Day –Shanghai –November 11, 2014 33
? A solid presence and good financial results
? A clear vision and target
? A clear strategic roadmap
? A motivated team
? Market providing significant growth potential
toward international standards
? Customer and product portfolio diversification focus
? Competition close follow-up and constant benchmarking
? Deliver budget year by year
? Raise contribution to Group earnings in mid-term plan
? HR and management development
Faurecia
China
Market environment
remains positive
High confidence
to respect commitment
to Group
Investor Day
Shanghai
November 11, 2014
Human Resources
FaureciaChina
Kathy Sun
November 11, 2014
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China demography overview
Source: Desktop research
? The most populous country:
1.37 billion, 20% of total worldwide
population; of which
the 770 million workforce
(56% of total Chinese population)
? Dense population in East
& Central China and sparse in
West; 240 million migrant workers
? Birth rate decreases because
of the family planning policy
from last century
? Unemployment rate is about
4.3% in recent 5-year average
? Manufacturing takes a larger
proportion of GDP (40%) & fiscal
revenue (50%)
Investor Day –Shanghai –November 11, 2014 36
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t
e
d
CAGR = +11%
CAGR = +28%
1 003
2 080
2 870
3 200
5 271
10 985
13 900
16 900
2010 2013 2015 2017
M&P* China all
Total Faurecia workforce in China reaches approx. 12,800
people in 2014 and will reach ~16,900 in 2017
Changchun
Shenyang
Beijing
Qingdao
Yantai
Nanchang
Nanjing
Yancheng
Wuxi
Shanghai
Anting
Cixi
Ningbo
Guangzhou
Foshan
Shenzhen
Chongqing
Chengdu
Wuhan
Xiangyang
Xiangtan
NORTHERN REGION
Total: 3,020
EASTERN REGION
Total: 3,280
SOUTH WESTERN REGION
Total: 2,350
CENTRAL REGION
Total: 2,750
SH Office: 1,400
SHANGHAI OFFICE
Distribution of Faurecia’s workforce in China (2014)
Total workforce in 2014: ?12,800
Evolution of Faurecia’s workforce
With CAGR at 28% in the past,
the increase in the coming years
is still significant, but at a moderate rate.
Investor Day –Shanghai –November 11, 2014 37
* Managers and professionals
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Faurecia China has developed a local management team
with limited expatriate support
The expatriate structure analysis
Expat vs total M&P Expat category Expat in mgt team
All Plant Managers are Chinese.
With 27 expatriates dedicated to China, 14 are for Technical/Expert positions
The strategy is to promote Chinese people for the management functions
and to have technical expatriates to transfer the know how
38
Source: Desktop research
1%
99%
Expatriate
Total M&P
48%
52%
Management Technical
expert
15%
85%
Local
Expatriate
38 Investor Day –Shanghai –November 11, 2014
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HR Mission
HR STRATEGY
Develop strong leadership team and ensure
key technical competence on board
Anticipate key resources growth
to meet future business needs
Retain talents with Faurecia Values
HR foundation: make sure country
alignment while managing diversity
Work on Employer Branding
to boost company attractiveness
? Promote in media communication channel
? Deploy CSR program in China
? Extend cooperation with target universities
? Golden Triangle and localization deployment
? Strategic recruitment for next generation leaders
? Young Talents program to stabilize talent foundation
? Promote Management & Technical parallel career path
? Prepare new leaders through Leadership & Management
program and Individual Development Plan
? Focus on talent identification and internal mobility
? Individual Career path designed in advance
? Provide competitive package for talents
? Ensure legal compliance and group alignment
? Respect regional guidelines
? HR Information System fully on board
KEY ACTIVITIES
Provide talented and committed people on time through systematic
anticipation to enrich talent pipeline and develop Faurecia Culture
Investor Day –Shanghai –November 11, 2014 39
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Faurecia golden triangle plan has been developed
to ensure that new plants launch at Faurecia standards
New plant Mother plant
28
54
82 people
moved
& promoted
Plant
mgr
1 key
funct. Mgr
1 key
funct. Mgr
? Golden Triangle: 1+2
? 1 plant manager
? 2 of 6 key functions filled internally
6 key functions = HR, ME, Quality, UAP, FES, PC&L
? Local hiring in advance and train in mother plant
? For tech. plant, internal transfer experience
? JP: "Young Talents Program"
? Operator: train in mother plant and involve from PMS phase 2
1
st
level: Plant Management Team
2
nd
level: Engineer & Professional
Below level: J unior Professional & operator
Investor Day –Shanghai –November 11, 2014 40
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Faurecia university in Asia is also aimed at developing the Faurecia
culture/value and strengthening the competency management
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Induction Program
Faurecia University in Asia
No. of trainees covered:
2014 –1,000; 2015 –1,200
41 Investor Day –Shanghai –November 11, 2014
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2012
113 hired
2013
177 hired
2014
140 planned
Faurecia China talent acquisition strategy
… Acquire Talents for Future
Executive
Sr. Manager
1st Line Manager
Junior Professional
Professional Experienced
Strategic
Recruitment
Young Talents
Program
83%
Retained
Till 2013
2012
25 hired
2013
30 hired
2014
50 planned
Investor Day –Shanghai –November 11, 2014 42
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? In 2014 the Group launched a
cultural transformation project called
Being Faurecia based on three key
managerial values
? Entrepreneurship
? Autonomy
? Accountability
Culture transformation in line with new values
fully underway in China
Investor Day –Shanghai –November 11, 2014 43
? In China this has been received
with enthusiasm as it is in line with
the way that we manage our
business through taking initiatives,
focus on performance and results
and celebrating success
Exemplarity: Tracy LI
(Chengdu FAS Plant Manager, Value: Entrepreneurship)
Wuxi Model Line
Value: Autonomy
Accountability
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Key take-away for Faurecia China HR
1
2
3
4
5
Investor Day –Shanghai –November 11, 2014 44
China headcount will increase from 12,800 today to 16,900 in 2017
China Government trend is to support the workers with more protection
through regulations and salary increase in order to maintain social harmony.
Productivity is becoming a key objective.
Faurecia HR KPIs are globally outperforming the market, which is well
highlighted by the company's internal Employee Engagement Survey of 2013
Internal promotion, talent attraction, retention and management development
remain the key challenges, as the market will grow even more competitive,
especially at the manager level
Faurecia China organization has been reinforced with creation of Divisions
supported by corporate functions, keeping Faurecia culture and value as a priority
Investor Day
Shanghai
November 11, 2014
Automotive Seating
FaureciaChina
Sam Xia
November 11, 2014
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FAS China growth at 18% CAGR in the past 4 years
Investor Day –Shanghai –November 11, 2014 47
? € 830m Total Sales
10 Plants
? 4,900 employees
€M
€M
2014: 10 Plants
? Complete Seat (3 Plants)
? Front Seat Frame (5 Plants)
? Mechanisms - Recliners (1 Plant)
? Mechanisms -Tracks (1 Plant)
R&D
2 centers
300 engineers
CAGR = 18%
2014 Forecast Total Sales
Plant Number
Business Awards
5
8
9
10 10
2010 2011 2012 2013 2014
1,560
1,920
>2,400
2009+2010 2011+2012 2013+2014e
423
466
583
712
2010 2011 2012 2013 2014e
? 830
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FAS China is composed of 4 product families
Investor Day –Shanghai –November 11, 2014 48
First operation
2003: Wuhan
2014 operation scale
650k carsets/year
2014 Market Share 5%
First operation
2002: Changchun
2014 operation scale
2,700k carsets/year
2014 Market Share 13%
First operation
2004: Wuxi
2014 operation scale
15M recliners /year
15M tracks/year
2014 Market Share 16%
Frames
Comfort &Trim
First operation
2013: Wuhan
2014 operation scale
350k carsets/year
Complete Seat Mechanisms
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FAS China business development strategy
3 priorities to secure the sales growth
Investor Day –Shanghai –November 11, 2014 49
1
2
3
"Partnership for
Complete Seat"
"Global Platform
for Frames"
"New Customers"
? Leverage the existing Faurecia JV
? Develop new partnership projects
? Other opportunities
? Secured the business awards of Global Generic Platforms
with VW, PSA, Nissan, BMW, GM and Ford
? Benefit from the new generation of Mechanisms
? Product 100% localization strategy for cost competitiveness
? Further develop new emerging customers in China
e.g. Renault, Fiat-Chrysler
? Confirm 2013 business breakthrough with Ford
? Opportunities with Japanese/Korean OEMs following
global approach, e.g. Hyundai
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FAS China profitability enhancement strategy
6 Priorities to sustain profitability
Investor Day –Shanghai –November 11, 2014 50
1
2
4
"Customer mix"
"Vertical integration"
"Footprint optimization"
? Focus on Premium brands: BMW, Audi, Cadillac …
? Focus on product innovation & generic system solutions
? Vertical integration for Complete Seat (Foams, Covers & Accessories)
? Stamping & painting for Frames
? Maximum loading of current metal plants (fixed cost optimization)
? Low CAPEX JIT Plants
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5
"Cost improvement"
? Purchasing (supplier panel, mandatory supplier management)
? Focus on value analysis / value engineering (VA/VE) & 6 sigma
? Engineering Change Request (ECR) managements in serial life phase
6
"Business Development
& Program Management"
? Constantly improve operating income / Upfront costs / IRR / Max Cash
Out during each program phase
? Reduce D&D, development core team cost
? Control the total upfront / CAPEX optimization
3
“Product mix"
? Maintain leadership in highly profitable mechanisms business
? Value-creating innovation in mechanisms and frames
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FAS China is balancing its customer portfolio
Key accounts remain global OEMs
Investor Day –Shanghai –November 11, 2014 51
? VW remains 1
st
key account
? 2018 Sales split
? European 65%
? Japan/Korean 19%
? American 11%
? Chinese 5%
? 4 customers
above € 200m Sales
2016 2018 2014
€ 1.2bn
€ 1.7bn
€ 830m
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Mechanisms
FAS China will have 17 plants in 2018: 6 new JIT plants
and 1 new metal plant are in preparation
Investor Day –Shanghai –November 11, 2014 52
Number of plants every year
+ 1 plant + 6 plants + 0 plant
• Northeast 1
• Central 2
• Northeast 1
• Central 2
• East 1
• South 1
• East 2
5 plants 3 plants 2 plants
"Footprint Centralization"
"JIT Module"
"Base Area"
JIT plants: Plan 6 new footprints
Metal plants: Densify the production by main
automotive regions to benefit from volume effect
Mechanisms plants: Fully load the current ones
JIT Frame
‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Year
10 10 14 15 16 17 Plan number
2014
10 plants
2018
+7 plants
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Investor Day –Shanghai –November 11, 2014 53
FAS China R&D strategy
Global network and local presence with customer proximity
R&D Strategy China HQ & New Tech Center Opened in March 2013
Validation Recognized by OEM
VW 100%
Ford 85%
GM
Local OEM
R-N
100% PSA
90%
100%
100%
146
196
244
300
2011 2012 2013 2014
CAGR 28%
Headcount Evolution
? 2 (Shanghai and Wuxi) fully owned R&D centers,
1 D&D plateau in Wuhan, 1 JV R&D in Changchun,
integrated in the global R&D network,
? Test facilities certified by global OEMs
? Continuous reinforcement of local team and competences
? Industrial style as differentiation factor
? “East Works” for advanced innovation
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FAS China product plan on Complete Seats
Global & Customization – Next generation
Investor Day –Shanghai –November 11, 2014 54
We Focus
We Focus
Offboard Wellness Assessment
Foot massage module 2
nd
social row Removable cover Safety Cover Carving
Air Cleaner Bamboo
Luxury trend for brand
Personalized trend
Environment trend
OEM Focus
End User Focus
Global Concern
Self Adjustment Connected with smart accessories Shape adjustment for comfort Tactile Seat Display Smart Fit
Audio & comfort Health “Magic” flexibility Heat & Vent
We Focus
Customization - Integrated Intelligence
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FAS China product plan on Front Seat Structure
Generic & Modular – Next generations with weight & cost reduction
Investor Day –Shanghai –November 11, 2014 55
1-2
3-1
1-1
3-2
10.5 Kg
2009 SOP 2011 2013 2012 2014 2006 2015 2016
8.5 Kg
12.0 Kg
11.5 Kg
5-1
11.9 Kg
? 2013-2018
? CHINA
? 2013-2022
? CHINA
? 2013-2022
? CHINA
? 2014-2021
? CHINA
Next generation
5-2
11.5 Kg
11.5 Kg
~15.0 Kg
2-1
17.07 Kg
2-2
15.59 Kg
? 2015-2023
? CHINA
Developed in China
4-2
11.5 Kg
4-1
13.7 Kg
4-3
Customer A
Customer C
Customer D
Customer E
Customer B
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FAS China product plan on Mechanisms
Global & Standard – Next generations with size, weight & cost reduction
Investor Day –Shanghai –November 11, 2014 56
Recliner III Recliner IV Recliner II
Track III Track II Track I
E-PumpI E-PumpII
2006 SOP 2008 2011 2010 2012 2003 2013 2014
Recliners
Tracks
E-Pumps
2015 2016
Recliner I
-19% vs. Recliner I -35% vs. Recliner III
-16% vs. Track II
-10% vs. E-pump1
Only 1 worldwide production facility in
China
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Key takeaways
Investor Day –Shanghai –November 11, 2014 57
1
2
3
4
FAS China achieved 18% CAGR in the past 4 years, reaching €830m by 2014.
It has developed leading market shares in Frames (#2 at 13%)
and Mechanisms (#1 at 16%)
FAS China targets to maintain sales at 20% CAGR in the next 4 years
which will lead to 3% to 6% market share increase per product line,
sales of €1.7b in 2018
FAS China has formulated clear customer, product, manufacturing strategies
to ensure growth and profitability, including customer mix, footprint optimization,
vertical integration, and program cost improvements
FAS China benefits from solid HR foundation on which it will further develop
the organization strength and competitiveness, with 7,700 people in 2018
Investor Day
Shanghai
November 11, 2014
Emissions Control Technologies
FaureciaChina
Thierry Aubry
November 11, 2014
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Investor Day –Shanghai –November 11, 2014 60
CAGR = 23%
2014 Forecast Total Sales
Total Plants
Business Awards
2009+2010 2011+2012 2013+2014e
2010 2012 2014e
? € 1.1bn Total Sales
? € 660m Product Sales
15 Plants
> 4,400 employees
R&D
1 center
288 engineers
9
11
12
14
15
2010 2011 2012 2013 2014
2011 2013
FECT is the market leader of emission control in China
499
607
778
990
? 1,100
1,680
2,440
~2,300
€m
€m
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FECT China is composed of 4 product families
Investor Day –Shanghai –November 11, 2014 61
Catalytic Converters
Complete Lines Manifolds Mufflers
First operation
2008: Qingdao
2014 operation scale
> 2 Mio parts / year
First operation
1998: Changchun
2014 operation scale
> 4 Mio parts / year
First operation
1994: Wuhan
2014 operation scale
> 3 Mio parts / year
First Operation
1994: Wuhan
2014 operation scale
> 1 Mio parts / year
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3 priorities have been strategically planned
for the next 5 years by FECT
FECT China strategy
62
? Strengthen customer partnerships through JV activities
? Reinforce customer relationship to improve business opportunity
? Achieve win-win for both OEM and FECT
Build customer alliance
throughout China
Reinforce market driven
innovation
? Marketing driven innovation focus on China requirements
? Speed up innovation to market
? Build up innovation experts and specialists team locally in China
Drive the growth
of commercial vehicle
emission business
? Strengthen China CVE product portfolio to meet the demand
of stricter China emission standards
? Alliance market approach with Cummins Emission System
? Leverage LVE footprint, experience and size to support CVE
China Innovation
Commercial
Vehicles
OEM Alliance
Investor Day –Shanghai –November 11, 2014
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63
FECT in superior position through technology
and global organization
? FECT is clear market leader
with 27% market share
? Diversified competition
? Technology is FECT strength
? Global program management
is key competitive advantage
Market share in 2013
Competition landscape in China
Source: FECT China
Tenneco
27%
Faurecia
Sejong
Calsonic Kansei
Sango
Lihe
Others
Total
of around 20
Competitors
Investor Day –Shanghai –November 11, 2014
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FECT China with very balanced customer portfolio
64
2016 2018 2014
€ 1.4bn
€ 1.6bn
€ 1.1bn
LVE
CVE
Investor Day –Shanghai –November 11, 2014
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FECT China will reach 30% market share in CVE in 2018
Investor Day –Shanghai –November 11, 2014 65
CVE Business development
Market volume evolution on road (M Units)
? Driving CVE business growth by the alliance with CES (Cummins Emission System)
and partnership with local players
? Develop technology co-operation with Chinese CV OEMs
After treatment systems shall reach 3.6 M Units in 2018
FECT is targeting to reach 30%
market share in the next 5 years
After treatment system Non emissionized
2014 2015 2016 2017 2018
3.6
3.8
4.1
4.4
4.5
2020
3.6
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CVE
FECT China Footprint
Investor Day –Shanghai –November 11, 2014 66
Number of plants every year
+ 3 plants
+ 0 plant
+ 0 plant
6 plants 8 plants 1 plant
"JIT Sequence delivery"
"Technology capacity"
JIT plants: Plan 3 new footprints
Techno plants: Complete exhaust system
production capacity, key components manufacturing
CVE: Fully loading the current one
and use LVE actual footprints
Techno plants JIT plants
2014
15 plants
2018
+3 plants
‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Year
14 15 16 17 18 18 Plan number
• Central 2
• East 3
• South 1
• Central
• Northeast:1
• Central 2
• East: 4
• West: 1
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Acoustic Performance EDST
(3)
Noise dampers EVO valve/Electric valve
Emissions reduction ASDS
(2)
GPF
(1)
Weight reduction LW hot end Brazed cold end
Energy recovery EHRM
(4)
Compact EHRS
(5)
Rankine Direct oil gear box heating
Fabricated T Manifold
Mono and Airgap
Closed couple SCR :
U shape –C-mixer
Ultra light-weight cold end
Modular NVH solution
Our focus in the next 5 years will be reinforcing
product strategy and promoting innovation
Investor Day –Shanghai –November 11, 2014 67
2015 2020 2013 2017
1. Gasoline Particulate Filter
Product & Technology roadmap
3. Exhaust Dynamic Sound Technologies
2015 2020 2013 2017
5. Exhaust Heat Recovery System 4. Exhaust Heat Recovery Manifold 2. Ammonia Storage and Delivery System
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Key takeaways
Investor Day –Shanghai –November 11, 2014 68
1
2
3
4
FECT has a clear market leader position on China market
with over 25% market share
With 10% CAGR over the 2014-2018 period,
FECT will increase market share in China
Innovation and technology, strong growth in CVE market and alliance strategy
with OEMs as main pillars of FECT China strategy plan
FECT China has proven operational excellence including program management,
footprint optimization and talent management and retention
Investor Day
Shanghai
November 11, 2014
Interior Systems
FaureciaChina
Richard Zhang
November 11,2014
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FIS China Growth at 24% CAGR in the past 4 years
Investor Day –Shanghai –November 11, 2014 71
? € 270m Total Sales
13 Plants
? 2,800 employees
€m
€m
2014: 13 Plants
? 12 Technology Plants
? 1 JIT Plant
R&D
1 center
300 engineers
CAGR = 24%
2014 Forecast Total Sales
Plant Number
Business Awards
257
477
>1,000
2009+2010 2011+2012 2013+2014e
116
136
~270
2010 2012 2014e
5
8
13
2010 2012 2014
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FIS China is Composed of 4 product families
Investor Day –Shanghai –November 11, 2014 72
Instrument Panel
Acoustic Modules Cockpit Door Panel
First operation
2006: Chongqing
2013 operation scale
> 300k units / year
First operation
2005: Changchun
2013 operation scale
1 Mio parts / year
First operation
2005: Changchun
2013 operation scale
2.2 Mio parts / year
First operation
2010: Changchun
2013 operation scale
0.7 Mio parts / year
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Investor Day –Shanghai –November 11, 2014 73
Current merging of the market leaders open
great opportunities for Faurecia Interior Systems
Market share in 2014 Market consolidation underway
Current merging of both leaders combined with an "over-splitting" of the market by local players
is creating a very favorable business and partnership momentum for Faurecia Interior System
? Yanfengand Visteon had long-standing joint venture
covering all automotive regions and OEMs
? Yanfengpurchased all shares of joint venture in 2013
? Yanfeng Interior China estimated sales €2.1 bn
in 2012
? Yanfengis now in the process of absorbing
JCI Interiors (excluding electronics)
? JCI Interiors has JVs with FAW, BAIC
and GAC groups
? JCI China Interior sales (excluding electronics)
€1.04 bn
Yanfeng
JCI
Yanfeng
Others
Mobis
Calsonic Kansei
Faurecia
4%
Number
of player
42 (mainly
Chinese)
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Our sustainable business model is based on 4 key drivers
Toward 10% Market Share through a sustainable business model
Strategic
Partnership
Product &
Innovation
Programs &
Operations efficiency
Entrepreneur and
committed People
74 Investor Day –Shanghai –November 11, 2014
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Partnership and customer strategy
Strategic partnership will be a key success factor
Standalone approach Diversification Strategic Partnerships
Select Relevant
and Sustainable Business
SVW
FVW
Geely
Diversify customer portfolio
Guangdong Auto Group-CFA
Others
Enhance Market Share
Chang An
(Ford , DS and CA own brand)
Other opportunities
Reinforced customer intimacy, to better address:
1
? Ford remains our Number one customer
? 2018 Sales split
? European 38%
? Japan/Korean 18%
? American 32%
? Chinese 12%
? CAGR around 30%
75 Investor Day –Shanghai –November 11, 2014
Expected turnover
€ 270m
~ € 400m
~ € 750m
2014 2016 2018
2 3 4
Our customer strategy is based on 4 main pillars
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Industrial Strategy
Priority is to saturate our existing "Technology" footprint
Investor Day –Shanghai –November 11, 2014 76
Number of plants every year
+ 6 plants
+ 1 plant
2014
13 plants
2018
+7 plants
1 plant 12 plants
"Fast response"
"Ensure capacity"
Techno plants: To saturate our existing footprint
which covers the main automotive basins.
JIT plants: To set up 6 new JITs supplied
by our technoplant an ensuring quick response
to customer needs while limiting investments.
Techno JIT
‘14 ‘15 ‘16 ‘17 ‘18 Year
13 14 15 18 20 Plan number
• Northeast 1
• East 3
• South 2
• Central 2
• Central 1
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Product & innovation strategy
Addressing upgrading, personalization and environment trend
Upgrading
Premium
Quality
Cut & Sew LOCOP Slush Lite Decostitich Piping IMP
Personalized
trend
Aluminum Ambient Lighting Sliding Dock Wi-charging
Environment
trend
Air Purification NAFI
77 Investor Day –Shanghai –November 11, 2014
Matching with growing perceived quality expectations of Chinese market
Addressing enrichment and technology trends of Chinese market
Introducing global green technologies as well as specific technologies for China
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Key Takeaways
78 Investor Day –Shanghai –November 11, 2014
1
2
3
4
FIS China has engaged a successful growth and profitability allowing
to target more than € 750m total sales by 2018
Strategic partnership with OEM is a key driver to address this ambitious plan.
Our recent but successful CCAG JV is demonstrating the relevance of this approach
Operations and programs optimization are a must to be able to propose
a competitive and profitable business model in China Interior market
People are at the center of this strategy. Priority is to develop and reinforce our team,
enhancing entrepreneurship, continuous improvement and execution mindset
Investor Day
Shanghai
November 11, 2014
Investor Day
Strategyupdate
Yann Delabrière
November 11, 2014
? Benefit from selective resource allocation strategy
? Accelerate in Asia
? Leverage global platforms
? Develop value-added technologies
2014 - 2016: Selective growth strategy confirmed
Investor Day –Shanghai –November 11, 2014 81
Faurecia Automotive Seating
On track to meet its 2016 targets
Investor Day –Shanghai –November 11, 2014 82
Key drivers
? Mechanisms leadership and Generic frames
? China and Asian customer growth
? Customer diversification in particular growth with Nissan and Ford
? Value creating innovations based on fuel economy (weight reduction) and
smart comfort
Update on priorities ? Mechanisms and frames on track to reach over 8% operating margin in 2016
? Back to growth in North America, with significant launches in H2 2014
and operational turnaround confirmed
? Single European division successfully created, profitability improving
? Renault-Nissan on track to become second largest client
? China opportunities confirmed
2016 Targets
? Total sales > € 7.1bn
? Operating margin > 5.0%
? ROCE* > 20%
Faurecia Emissions Control Technologies
Ahead of its roadmap, 2016 targets upgraded
Investor Day –Shanghai –November 11, 2014 83
Key drivers
? Capture the growth of the Commercial Vehicle markets especially in China
? Increase value-added through innovations: environmental performance
(NOx and particulates); fuel economy (weight reduction, energy recovery);
acoustic performance (sound design)
Update on priorities
? Europe recovery is well engaged, further optimization to come
? North America turnaround ahead of plan
? Product and process standardization well underway
? CVE growth rate of around 20% CAGR confirmed, driven by partnership
with Cummins and regulation introduction especially in China moving
to Euro 5
? Business awards for energy recovery systems and SCR and interest
in sound design demonstrate relevance of technology strategy
2016 new Targets
? Total sales > € 7.4bn (value-added sales > € 4.0bn)
? Operating margin close to 5.0%, (up from > 4.0%)
now above 8.0% on value-added sales
? ROCE* > 25% (up from around 25%)
*: Pre-tax and including goodwill
Faurecia Interior Systems
Improving in evolving environment, 2016 targets adjusted
Investor Day –Shanghai –November 11, 2014 84
Key drivers
? Selective growth strategy with focus on cash model
? Profitability increased through operational improvement
? Benefit from trend towards consolidation in the market
? Accelerate in Asia
? Expand higher profitability product lines (decoration, HMI)
Update
? Consolidation underway should improve competitive environment
? Strong operational improvement in Europe, North America
is progressing
? China growth acceleration confirmed
? Breakthrough in bio materials with clear roadmap
towards 30% weight reduction
2016 Targets
? Total sales > € 4.5bn
? Operating margin > 4.0% (from > 4.5%)
? ROCE* around 15% (from around 20%)
*: Pre-tax and including goodwill
Faurecia Automotive Exteriors
On track to meet its 2016 targets
Investor Day –Shanghai –November 11, 2014 85
Key drivers
? Remain market leader in Europe
? Front End Modules (FEM) strategic review
? South America turnaround
? Develop long term potential for Composite Technologies
Priorities update
? Awarded first composite tailgate business and composite floors
co-development with OEMs
? Margin improvement actions in North Europe (ex. Plastal) to accelerate
? South America capacity utilization rate close to 100% in 2016
and operational cost management underway
2016 Targets
? Total sales > € 2.0bn (or > € 1.5bn excl. FEM)
? Operating margin 4.5% - 5.0%
? ROCE* > 20%
*: Pre-tax and including goodwill
? Being Faurecia: Major initiative launched in 2014
to transform corporate culture with two main axes
? New values of entrepreneurship, autonomy
and accountability to drive focus on performance
and value creation
? Strengthened people management
and people development in order
to better develop talent internally
? Executive Committee will be strengthened and diversified
with three new appointments effective in the first quarter 2015.
All these appointments are internal promotions.
? This management reinforcement at all levels will facilitate our ability
to implement our strategic plan
Management transformation and reinforcement
to support deployment of strategy
Investor Day –Shanghai –November 11, 2014 86
2016 Targets are fully confirmed
Investor Day –Shanghai –November 11, 2014 87
Sales above 21 billion euros
Operating margin 4.5 – 5.0%
Net cash flow around 300 million euros
ROCE* > 20%
*: Pre-tax and including goodwill
Investor Day
Shanghai
November 11, 2014
Investor Day
Group financial strategy and targets
Michel Favre
November 11, 2014
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? Increasing operating
margin from 3.0% in 2013
to 4.5% - 5.0% in 2016
? Capex + capitalized R&D
around € 800m
? Asset turn to improve
by 20bp to close to 5x
* Pre-tax and including goodwill
2012 2013 2014 2015 2016
Reminder of financial targets
ROCE to increase by 50% from 14% in 2013 to over 20% in 2016
> 20%
13%
14%
Investor Day –Shanghai –November 11, 2014 90
ROCE *
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? Increasing EBITDA margin
(>150bps gain or > € 300m
contribution)
? Improved Capital Employed
? Additional factoring
of receivables in 2014
? Reduced financial
expenses (€ 150m objective
in 2016 vs € 200m in 2013)
2013 2014 2016
Positive
144
Around 300
Reminder of the financial targets
Net Free Cash Flow generation around € 300m in 2016
Investor Day –Shanghai –November 11, 2014 91
Net Free Cash Flow in €m
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? Priority to strategic OEMs
? Priority to the two Business Groups (Emissions Control Technologies
and Automotive Seating) which require lower Capex and capitalized R&D
? Priority to new footprint expansion mainly in Asia
? Negotiate better financing terms with OEMs for development cost
Reminder of the financial targets
Optimize resource allocation
4 key priorities
Investor Day –Shanghai –November 11, 2014 92
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Financial priorities and resource allocation
? € 100m per year dedicated to research and innovation expenses
(within the R&D budget)
? € 50m per year from 2015 onwards for restructuring expenses to continue
to optimize the industrial footprint and increase the average size of our plants
? € 100m of Capex for process standardization
? Around € 100m capital allocation over 2015-2016 to buy-back minorities
Investor Day –Shanghai –November 11, 2014 93
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Main profitability drivers by region
Asia >8% and N. America and Europe >4% operating margin
Investor Day –Shanghai –November 11, 2014 94
Main drivers
Growth
(volume & mix)
? Asia is our top priority and it is where growth prospects are the best
? North America is restarting a cycle of secular growth
Commercial margin
(Project management & re-pricing)
? North America is where better project and commercial management should
help the most
? In South America, re-pricing to take into account high inflation,
lower volumes and currency swing is key to a margin recovery
Footprint optimization ? Footprint optimization is an ongoing process and will lead to sizeable
margin expansion
Standardization ? North America and Europe is where standardization is expected
to yield savings
Operational performance ? North America and to a certain degree South America will benefit
from operational improvements
Geographical mix ? With Asia being the fastest growing region and also the most profitable
region, it is helping overall margin expansion
Operating margin improvement
(2014-2016)
? 100 – 150bp
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Investor Day –Shanghai –November 11, 2014 95
Financial targets by region (updated vs initial)
> 21.0 (> 20.5 excl. FEM)
4.5% to 5.0%
Group total sales (in €bn)
Operating margin
as % of total sales
> 10.7 (> 10.2 excl. FEM)
> 5.4
Close to 4.0
Close to 1.0
Total sales (in €bn)
Europe
North America
Asia
South America & rest of world
4.5% - 5.0%
> 4.0%
> 8.0%
Breakthrough in profitability
and focus on cash generation
Operating margin
(% of total sales)
Europe
North America
Asia
South America & rest of world
2016 updated FAURECIA Comment
Depending on strategic
review outcome
Depending on strategic
review outcome
Upgraded
Adjusted
Upgraded
Upgraded
Adjusted
> 21.0
4.5% to 5.0%
> 10.7
> 5.4
> 3.8
> 1.1
4.0% - 5.0%
5.0%
> 7.0%
Breakthrough in profitability
and focus on cash generation
2016 initial
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2014 2016
56%
25%
14%
5%
Europe
North
America
South America
& rest of world
Asia
26%
52% Europe
18%
4%
South America
& rest of world
North
America
Asia
Investor Day –Shanghai –November 11, 2014 96
Regional perspective
Better balanced portfolio
Product sales by region
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Investor Day –Shanghai –November 11, 2014 97
Main profitability drivers by Business Group
All Business Groups above 4% operating margin
Main drivers
Growth
(volume & mix)
? Automotive Seating & Emissions Control Technologies
are the fastest growing Business Groups
Commercial margin
(Project management & re-pricing)
? Interior Systems will benefit the most from improved project
management and also re-pricing
Footprint optimization ? Automotive Seating, Emissions Control Technologies and Interior
Systems will benefit the most from continuous footprint optimization
Standardization ? Automotive Seating with generic frames and Emissions Control
Technologies with industrial standardization will generate sizeable
savings
Operational performance ? Interior Systems is where improved operational performance
especially in North America will yield significant margin expansion
Geographical mix ? Interior Systems will grow very fast in Asia where margins are higher
and therefore will benefit from a favorable mix improvement.
Operating margin improvement (2014-2016) ? 100 – 150bp
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98
Financial targets by Business Group (updated vs initial)
> 21.0 (> 20.5 excl. FEM)
4.5% to 5.0%
> 20%
around 300
Group total sales (in €bn)
Operating margin
as % of total sales
ROCE *
Net cash flow (in €m)
> 7.4
Total sales (in €bn)
Emissions Control Technologies
> 4.5 Interior Systems
> 2.0 (>1.5 excl. FEM) Automotive Exteriors
> 7.1 Automotive Seating
close to 5.0%
Operating margin (% of total sales)
> 4.0%
4.5% - 5.0%
> 5.0%
Emissions Control Technologies
Interior Systems
Automotive Exteriors
Automotive Seating
around 15%
ROCE **
> 20%
> 25%
> 20%
Emissions Control Technologies
Interior Systems
Automotive Exteriors
Automotive Seating
* pre-tax and including goodwill
2016 updated FAURECIA
Investor Day –Shanghai –November 11, 2014
Comment
Depending on strategic review outcome
Depending on strategic review outcome
Upgraded (> 8.0% on value-added sales)
Adapted
Upgraded
Adapted
> 21.0
4.5% to 5.0%
> 20%
around 300
> 7.4
> 4.5
> 2.0
> 7.1
> 4.0%
> 4.5%
4.5% - 5.0%
> 5.0%
around 20%
> 20%
around 25%
> 20%
2016 initial
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Significant profitability
increase from 3.0%
to 4.5% - 5.0% OM
Capex and
capitalized R&D
around at € 800m
Tight WCR control
€ 5m additional for 1%
sales change
Investor Day –Shanghai –November 11, 2014 99
Generate strong cash flow in 2016
Free cash flow before interest and tax of around 80% of operating income
Optimize financial expenses and taxes (around 32% tax rate)
Net cash flow around € 300m
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Investor Day –Shanghai –November 11, 2014 100
Cash Flow generation
Main drivers
EBITDA
Change in WCR
Capex + capitalized R&D
Restructuring
Finance expenses
Tax & Other
Net cash flow
Driver
? Higher operating income (> 150bp margin improvement between 2013 and 2016)
and higher D&A
? Improvement partially offsetting sales growth
? Strong discipline and selective capital allocation according to new footprint
opportunities
? Continuous footprint optimization
? Refinancing will generate sizeable savings (Objective € 150m in 2016 vs
€ 200m in 2013)
? Higher taxes from higher PBT to be partially offset by recovery of tax losses
carry forward
? Objective of around € 300m by 2016
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Investor Day –Shanghai –November 11, 2014 101
WCR optimization
Zoom on main drivers
Driver
Receivables
? Reduction of customer overdues & alignment of customer terms
? Factoring programs extension with additional lines in new countries and general
business growth
Inventories ? Reduction of minimum 1 day (out of 11 days)
Payables ? Gain of 1 day through alignment and reverse factoring
Other ? Geographical mix & contingencies will weigh on WCR
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? Objective to be 100% financed by capital markets
(factoring customer receivables and issuing bonds)
? Ensure liquidity and independence through a 5 year syndicated credit
facility (€1.2bn) with our core international partner banks
? Go back to the bond market to refinance our existing and expensive bonds
through a new bond
Investor Day –Shanghai –November 11, 2014 102
Debt & financing
Financing strategy
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Investor Day –Shanghai –November 11, 2014 103
Debt & financing
Reduce net debt & financial expenses
Net debt / EBITDA ratio of around or below 1.0x by 2016
Status
Conversion of the 2015 Oceane in December 2013
?
Debt reduction from net cash flow generation in 2013 and 2014
?
Rating improvement (Fitch at BB-)
?
Increase factoring (cheapest way to be financed)
?
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Investor Day –Shanghai –November 11, 2014 104
Update on refinancing
Status
Renewal of the € 1.2bn, 5 year syndicated facility
at better conditions
?
Refinancing of the 2019 HY bond (€ 250m) at better conditions Call option in June 2015
Refinancing of the 2016 HY bond (€ 490m) at better conditions Maturity in December 2016
Conversion of the 2018 convertible bond (€ 250m)
Option to force conversion in early
January 2016 if share price above € 25
Net debt / EBITDA ratio of around or below 1.0x by 2016
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Investor Day –Shanghai –November 11, 2014 105
Conclusion
Large opportunities with refinancing
First phase is accomplished
Faurecia is well on track to achieve its 2016 targets
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106
Contact & Share data
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
2013 Results & 2014 Objectives –February 12, 2014
Bonds ISIN Codes
2016 bonds : XS0704870392 2019 bonds : XS0778917814
2018 convertible : FR0011321363
Investor Day –Shanghai –November 11, 2014
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107
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
uponour current expectationsandvariousassumptions, andapplyonlyasof thedateof thisreport.
Our expectationsandbeliefsareexpressedingoodfaithandwebelievethereisareasonablebasisfor 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
outcomecoulddiffer materiallyfromthoseset out inthestatements.
Except for our ongoing obligation to disclose information under law, we undertake no obligation to update
publicityanyforward-lookingstatementswhether asaresult of newinformationor futureevents.
Investor Day –Shanghai –November 11, 2014
Investor Day
Shanghai
November 11, 2014
doc_462361445.pdf
China believes that a strong central government will lead to a powerful Nation based on its 5,000 year history.
Investor Day
Strategyto double sales in China and Group update
Shanghai
November 11, 2014
Investor Day
Shanghai
November 11, 2014
China Market
FaureciaChina
Jingcheng Li
November 11, 2014
China believes that a strong central government will lead
to a powerful Nation based on its 5,000 year history
Investor Day –Shanghai –November 11, 2014 4
Foundation of the
Republic of China
Foundation of CPC
Foundation of the
People’s Republic
of China
The 100th
Anniversary of
CPC
The 3rd Plenary Session of the
18th Central Committee of the
CPC for “Deepening Reform”
The 100th Anniversary
of the People’s
Republic of China
People’s Republic of China: 100 Years Development
Communist Party of China: 100 Years Development
1911 1921 1949 1978 2013 2021 2049
In 35 years:
• 2nd World Eco Power
• GDP +142 times
• Urban revenue +71 times
• Rural revenue +59 times
China is now going for the Chinese Dream:
? 1921 – 2021: 100 years of CPC foundation,
China will reach a comfortable level at the whole nation
? 1949 – 2049: 100 years of PRC foundation,
China will reach the same level as that of the developed
countries
? By the end of 21st century: China rejuvenation
will be realized step by step and China re-becomes
the world first powerful country
The 3
rd
Plenary Session of the 11
th
Central Committee of the CPC for
“Reform and Opening “
Chinese Dream realization will improve people living conditions and boost consumption
2014 China dilemma: Stimulus or Reform
China government has chosen to deepen the reforms
Investor Day –Shanghai –November 11, 2014 5
China
GDP
Drivers
Export
Investment
Consumption
? Super-imposed effect in 2014
? Speed shift of GDP growth
? Pain of structure reform
? Digestion of post 4tr. Plan
? 30 “Golden Years” now limited by
? Natural resources
? Environment impact
? Labor force and cost
? GDP drivers shift becomes must
? Public debt control & reduction
? Consumptionand wagepolicy
? Core technologies & Innovation
“Global weak
demand"
"Debubble! –
post 4 trillion
Plan"
“Limited social
protection"
China is committed to conduct further reforms aiming at the new development model
"The Rule of Law": main theme of 4
th
plenary session
of 18
th
Central Committee of CPC, historical milestone
Investor Day –Shanghai –November 11, 2014 6
What does it
mean?
What does it
include?
How to
understand?
Direction & Consequences
? China historyand culture deeplymarkedby Confucianism
? Confucianismprivilegesmoralisimrather thanlaws
? In ancient China, "Law" meanspunishment, different fromWestern
? "Law" has no linkto humanrightsand powers’ separationnotion
? Legislation: reinforcement of the roleof People’sCongress
? Administration: the ruleof the lawfor government
? Judicial organ: more independent and justice
? Respect of Law: population withlawmindset in dailylife
? Under the leadership of CPC and socialist market economy
? Better balance betweenthe ruleof lawand individual perfection
? Restriction of government power, thusreducecorruption source
? New reformsneedto beconductedon the basis of laws
China will provide a more healthy business environment
2014 China automotive industry is marked by top level
government exchange between Europe and China
Investor Day –Shanghai –November 11, 2014 7
J an Mar
May J uly Sept
Anti Trust
Investigation
Euro V from
1/1/2015
Scrap of Yellow
Label vehicles
Incentives
for new
energy cars
Car air
Purifier
standard
Child seats
In cars
German PM Merkel
China visit
Anti trust fine
On OEM and
Auto parts
XI Jinping
Europe visit
DF / PSA
Daimler
BMW
VW
Volvo
DF / Renault JV Yanfeng JCI
Interior
merger
DF Infiniti new JV
DF PSA
Chengdu new site
FVW new sites
In Qingdao &
Tianjin
Oct
Capital increase of VW in
itsJV withFAW:
49% vs. 40%
? PV growth High H1 and Low H2
? Local brands losing some share
? Global OEMs capacity expansion
? Regulation: anti-trust, environment, safety
Main market trends
China automotive industry continues to grow, with more regulation and new norms
China market is maturing in terms of regulation and norms
Air cleaning becomes a priority for government
Investor Day –Shanghai –November 11, 2014 8
Environment Safety Health
Emission
2010
China IV
(EU IV)
2018
Gasoline
China V
(EU V)
Diesel
2013
China IV
2015
China V
2018
China VI
(TBD)
Fuel consumption limits (PV)
NEV subsidy plan
2015
6.9 L / 100 km
2020
5.0 L / 100 km
2025
4.0 L / 100 km
2010
•Pilot in 25 cities
•Subsidy by battery energy
2013
•Focus on Beijing, Yangtze
& Pearl river delta regions
•Subsidy by battery endurance
distance
? Request continuous attention
and development on new material
? Potential cost-up pressure
? Product quality improvement is
a priority
? International standards move
? Constant innovation required in emission technology
to meet environment requirements
? Lightweight solutions contribute to reach fuel
consumption targets
Implications Implications Implications
2013, enlarge vehicle scope, defects definition,
clarify responsible party, increase fine for OEMs
who refuse recall
Recall policy
China Three Guarantees
2013, Guarantee for repair, replacement, &
return within 3 years cf car lifetime, provide
more protection to consumer
Child seat
2012, Restraint system of vehicles for children
(ECER44), enhance the protection of children
safety
Air quality (PV)
2015, Air quality standards inside vehicles
(PV), set mandatory standards for volatile
organic compounds & specified pollutants'
limits
CAR MODEL CAR PRICE (€) EU CAR PRICE (€) CN JV CAR PRICE (€) CAR MODEL
Car selling price comparison between China and Europe
Margin on Premium and SUV under pressure
Investor Day –Shanghai –November 11, 2014 9
Global Brand Chinese Brand
A00
A0
A
B
C
D/E
SUV
4,000-7,000
5,000-7,000
8,000-14,000
11,000-23,000
10,000-13,000
Segment
9,000-14,000
12,000-18,000
19,000-26,000
24,000-42,000
36,000-56,000
71,000-134,000
24,000-31,000
Not produced
10,000-15,000
13,000-22,000
22,000-39,000
38,000-90,000
89,000-350,000
22,000-42,000
Note: EU car price incl. sales tax, exchange rate: EURO/RMB=1/8.2 Source: www.cars-of-europe.com, www.bitauto.com
Not present
Not present
Geely Panda
Geely SC6
Geely EC8
Geely GX7
Geely EC7
VW Tiguan
VW UP
VW Polo
VW Golf
Audi A6
BMW 7 Series
VW Passat
Six automakers share over 80% of the market
Investor Day –Shanghai –November 11, 2014 10
SAIC
26% 3,013
FAW
16% 1,857
DongFeng
17% 1,977
Chang'an
10% 1,121
BAIC
8% 961
GAC
6% 750
GreatWall
3% 357
Geely-Volvo
2% 241
BYD
2% 261
Brilliance
3% 317
Chery
2% 257
Others
5% 606
Market share
20% 4% 2% 1% 0% 10% 4% 5% 5% 5% 10% 3% 32%
Volume ['000]
2,369 472 197 89 42 1,116 524 591 612 563 1,116 299 3,729
Others
Chinese
Brand
Market
Share
Volume
['000]
European U.S Japanese & Korean
JV
59%
24%
12%
Chinese OEM groups
PV brands
Source: Auto 2000 Aug, Faurecia internal analysis
Global OEMs enjoys 2014 market growth with continuous capacity expansion
2015 auto growth continues despite some pressure from macro
economy and will be key for new China auto industry policy
Investor Day –Shanghai –November 11, 2014 11
Domestic
Economic
Growth
Automotive
industry
Development
Potential Impacts Forecasts
? GDP between 7.0% to 7.3%
? Population at 1.37 billion
? Urbanization rate at 55.4%
? High pressure on CO
2
control
? PV volume growth around +9.9%
? Euro V nationally implemented
? New industrial policy release
? 13
th
Five Year Plan direction
? Unemployment rate to increase
? Big consumer market to stimulate
? Public debt control and financing innovation
? Pillar industries support to maintain growth
? 2015 PV production volume at 18.7m units
? Yellow Label vehicles scrap plan results
? China local brands development
? Emission control, light weight, safety
Source: China State Information Center
2015 main focus: 3
rd
Edition of China Automotive Industry Policy
China automotive industry faces some strategic topics
to be clarified in 2015 with long term impact
Investor Day –Shanghai –November 11, 2014 12
3
rd
Edition of China Automotive Industry Policy
1
st
Edition in 1994: Market against Technology Market open mainly to global OEMs
2
nd
Edition in 2004: Consolidation by SOE OEMs Own Brands development difficulties
3
rd
Edition in 2015: Powerful automotive country Mastering core technology / innovation
China Local Brand Support Policy
EachChineseOEM will findout itsownwayto developfurther the local brands
Anti-Trust Scrutiny Evolution
China moves toward the international practices
13
th
Five Year Plan Direction
CO
2
focus: China CO
2
peak forecasted between 2025 and 2030, light weight and emission controls
OEM 50/50 JV Evolution
OEM Joint Venture Agreements extension, the latest is FVW for 25 years
Chinese and global OEMs relationship will be closer via different forms: cross participation, M&A etc.
Main Target "Perceived" Results
New China Automotive Industry Policy may focus on new energy cars and local brands
China economy will live with deep changes to maintain
a steady growth in the coming 10 years
Investor Day –Shanghai –November 11, 2014 13
Source: China State Information Center
Domestic
Economic
Growth
Automotive
industry
Development
14
th
Five Year Plan (2021 - 2025) 13
th
Five Year Plan (2016 - 2020)
? GDP around 7.3%, 2020 below 7.0%
? Population at 1.41 billion
? Urbanization rate at 60%
? Urban family number: 270m in 2020
? PV volume growth 9.4%, 2020 at 26.4m
? Euro VI introduction, 5l per 100km
? Own brands turnaround
? New energy significant growth
? PV volume growth at 4.4%, 2025 at 31.7m
? Further weight reduction
? China becomes global player
? China powerful automotive country
? GDP around 6.3%, 2025 below 6.0%
? Population at 1.44 billion
? Urbanization rate at 64%
? Urban family number: 340m in 2025
China market still offers important potential for the coming years
China vehicle production hits 22 m units in 2013,
and will exceed 30 m units by 2017
Investor Day –Shanghai –November 11, 2014 14
Source: IHS 2014 Aug, Faurecia China internal analysis
1) CVE refers to truck/bus above 3.5 tons 2) LCV refers to commercial vehicles up to 3.5 tons 3) PV refers to cars, incl. MPV and SUV 4) incl. Pickup
2017 E
31
22
6
3
3
2010
18
11
4
3
LCV
CVE
2020 E
33
24
4
2
2011
19
12
6
3
2013
22
16
CAGR = ~6%
CAGR = 7%
3
4
3
2012
19
13
PV
China vehicle production volume 2009 – 2020 E [m units]
1)
3)
CAGR
‘10-'13 '13-'20
Key figures of PV Market - 2013
Car owner -
ship
[units/1,000
people]
Total car
parc
[m units]
8% 6%
17% 6%
Total
Production
Volume
[m units]
8
11
11
16
63
490
740
470
60
235
213
85
W. Europe
4)
4)
1% 3%
2)
Market consensus on China automotive volume turn-point: 40m units
29% 29% 29%
66%
63%
61%
8%
10%
20%
28% 29%
16%
15%
15%
47%
40%
39%
12% 11% 11%
30%
31% 32%
26%
27%
27%
20%
19% 19%
14%
14% 14%
10%
9% 8%
SUVs are increasingly favored by Chinese OEMs, premium
and entry segments are also gradually gaining share
Investor Day –Shanghai –November 11, 2014 15
Source: IHS 2014 Aug
? China PV market is still dominated by C
segment, accounting for ~40% M/S
? SUVs are increasingly favored by
Chinese customers, esp. for 2nd-time
purchase, due to their roominess
? As premium brands are pushing
forward their localization in China,
their share is expected to increase
? Entry brands are now recovering and
expected to achieve ~30% M/S
? In general, the market is relatively stable,
with Chinese brands increasing thanks
to government support
? Japanese OEM performance to be
impacted by bilateral relationship
2013 2020 E 2017 E 2013 2020 E 2017 E 2013 2017 E 2020 E
16 24 22
16 24 22
Sedan
16 24 22
5% Premium
Entry
MID
U.S.
Korea
China
Europe
Japan
SUV
MPV
D/E
C
A/B
6%
4%
6%
Growth and mix trend still support profitability improvement
Share of body-type
[m units]
Share of brand tier
[m units]
Share of brand origin
[m units]
Chinese OEMs will become more and more global via
partnership reinforcement and cross-border M&A operations
Investor Day –Shanghai –November 11, 2014 16
In the past In the future
Value chain
coverage
Technology
direction
Market focus
Missing to
China
Work split
Market
players
? Vehicle, mainly PV
? Localizing foreign cars
Impact on suppliers
? Full value chain including auto parts
? Specific car development for China
? JV with OEM as key strength
? Differentiation and innovation
? Passive Chinese partner
? In learning curve
? More active Chinese partner
? More confident to drive decisions
? Customer intimacy to focus
? Address decision makers
? Chinese market
? Global car makers in China
? Global market and own brands
? Chinese OEMs focus export / go global
? 6 SOEs / Global OEMs
? Captive and capitalistic
? Internal combustion engine
? Funds, market, HR
? Technology, brands
? SOEs/ POEs/ Global OEMs
? All kinds of cooperation
? New energy, hybrid, EV
? Core technology
? Brands
? China full service capabilities
? Global footprint
? Business model challenge
? Capability and competitiveness
? Regulation
? Light weighting
? M&A - Partnership
? Local brands support
China has spent US$15bn for OEM and Auto Part acquisition outside China
Starting from Oct. 2014, 98% cross border M&A need no more approval from Beijing
China auto part market competition is well structured
Investor Day –Shanghai –November 11, 2014 17
? China Top OEM have auto part integrationstrategy
? Global ambition to berealizedvia M&A operations
? Market isgettingmore and more open
? Technologyand innovation drivensuppliers
? Market mix requiringhigher technologyand quality
performance
? Capable of managingglobal platforms
? Cost drivencompetitionand customer intimacyfocus
? Lackof global presenceand accessto technology
OEM CAPTIVE PLAYERS
Faurecia is well armed to face the competition in China with a strong team
Technology, engineering localization rate and platform capabilities
remain key success drivers
GLOBAL PLAYERS
LOCAL PLAYERS
Key takeaway for China market
Investor Day –Shanghai –November 11, 2014 18
1
2
3
4
China new government team has defined the development objectives, strategy and roadmap
for the coming 10 years, positive impact on automotive industry is expected
China‘s PV market will continue to grow with 1.5 million units more per year till 2020
with a mix moving up and tightened regulation toward the international standards
China government support focuses on local brand and new energy solution development
Chinese partners will increase their decision power in the JV with global OEMs
and 50/50 business model can be in further evolution in 5 to 10 years period
5
China market environment is positive for Faurecia who has already
a solid presence and will accelerate the deployment of its strategy
Faurecia China development strategy definition takes fully
into account market and Group’s expectations
Investor Day –Shanghai –November 11, 2014 19
Key Assumptions
Impact on
Strategy Design
Faurecia China
Strategy
2018 plan
> € 4.0 bn
2016 plan
> € 3.0 bn
2014 Forecast
? € 2.3 bn
+ 17% vs. 2013
Neutral
Political stability
Geopolitical and social tension
Positive
GDP ?7% per year
Inflation ?4%
Positive
Neutral
Local Brand support
New energy car support
Positive
Environment focus
Safety and health focus
Positive
Challenging
Footprint strategy
Increasing decision power
Positive
Challenging
International standard move
M&A development
Challenging
Technology and Innovation
Differentiation focus
Positive
15% to 20% of Group sales
Profitable and cash generating
China
Political Environment
China
Macro Economy
China Automotive
Industrial Policy
China Regulation
China
Global & Local OEMs
China
Auto Parts
China Competition
Faurecia Group
Expectation
Market components
Faurecia has solid presence and clear strategy roadmap in China
Investor Day
Shanghai
November 11, 2014
China Strategy
FaureciaChina
Jean-Michel Vallin
November 11, 2014
Faurecia celebrates in 2014 its 20 years’ localization in China,
providing a solid base for business acceleration
Investor Day –Shanghai –November 11, 2014 22
2002 2011 2014 2015
? Raw material,
components, process,
equipment
? Quality system, lean
production system
Manufacturing
? Engineering
and validation
? Program
management
Industrialization
? Tech Center fully autonomous
? Advanced development
for China market needs
? Local innovation
R&D and Innovation
WAVE 1
WAVE 2 WAVE 3 & 4
1994 2005 2013
>€1bn
>€2bn
2010
A consistent strategy focused on 6 dimensions
to sustain profitable long term growth
Investor Day –Shanghai –November 11, 2014 23
? Global program acquisition
? Customer portfolio diversification
? Product portfolio diversification
? OEM connection
? Regional presence
? Business development booster
Organic growth with core
and emerging clients
Partnership as OEM intimacy
leverage
Manufacturing operational
excellence at benchmark level
? Quality & HSE best in class
? Flawless new launches
? Operation and cost optimization
? KPI constant improvement
? ECRs efficient management
? VA/VE portfolio enhancement
? Fully-owned, worldwide network
? Deep expertise localization
? Innovation and industrial style
Program development to
drive profitability and cash
World class R&D providing
value to customers
Strong leadership team
to drive the growth plan
? A strong Chinese mgmt. team
? Training and development plan
? Organization and resources
1
4 5 6
3 2
Faurecia has 23% CAGR for the past years and forecasts
€2.3 Bn sales in 2014, a new faster-than-market growth year
Investor Day –Shanghai –November 11, 2014 24
? €2.3 Bn Sales*
38 Plants
? 12,800 employees
Present in 21 cities
R&D
4 centers
750 engineers
Total Plants
€ bn
Total Sales
* Including €0.2bn non consolidated sales
2014 Forecast
1.0
1.2
1.5
2.0
~2.3
2010 2011 2012 2013 2014
25
30
35
36
38
2010 2011 2012 2013 2014
CAGR = 23%
Faurecia has now deployed its 4 Business Groups in China
FECT and FAS Metal in market leading position
Investor Day –Shanghai –November 11, 2014 25
1) Consolidated sales 2) Consolidated and non-consolidated sales ; 3) mainly non-consolidated
First operation
1994: Wuhan
16 plants
Total sales: ? €1,150m
1)
? 4,400 employees
27% Market Share
First operation
2002: Changchun (Structures)
2003: Wuhan (Complete seat)
2004: Wuxi (Mechanism)
10 plants
Total Sales: ? €830m
1)
? 4,900 employees
15% Market Share Metal
5% M/S Complete Seat
First operation
2005: Changchun
11 plants
Total Sales: ? €260m
2)
? 2,800 employees
4% Market Share
First operation
2011: Changchun
1 plant
Total Sales: ? €80m
3)
? 550 employees
2% Market Share
2014 Forecast 2014 Forecast 2014 Forecast 2014 Forecast
A manufacturing footprint of 38 plants in 2014,
covering the 6 main auto regions
Investor Day –Shanghai –November 11, 2014 26
North
1996
2002
2005
2010
2011
2011
2012
Changchun
Changchun
Changchun
Changchun
Changchun
Shenyang
Changchun
West Region
2003
2007
2010
2011
2012
2012
Chongqing
Chongqing
Chengdu
Chengdu
Chongqing
Chengdu
Central Region
1994
2003
2006
2010
2012
2013
2014
Wuhan
Wuhan
Wuhan
Wuhan
Xiangyang
Nanchang
Changsha
East Region
2000
2004
2005
2008
2012
2012
2012
2012
2013
2014
Shanghai
Wuxi
Shanghai
Shanghai
Shanghai
Nanjing
Shanghai
Cixi
Yancheng
Nanjing
Cixi
Beilun
?
South Region
Exhaust Interior Seats R&D centers China Headquarter Exterior ?
2010
2010
2012
Guangzhou
Foshan
Foshan
2012
2012
2013
Foshan
Shenzhen
Shenzhen
Yantai
Qingdao
Beijing
2004
2007
2012
North-East Region
6
3
7
6
6
10
Investor Day –Shanghai –November 11, 2014 27
R&D Strategy FECT Tech Center Opened in April 2011
China HQ & New Tech Center Opened in March 2013 R&D and Program headcount evolution
? 3 fully owned R&D centers integrated
in the global network with 750 engineers
? Application centers in six regions
? Continuous reinforcement of local team
and competences
? More innovation focus
? Design and style as differentiation factor
R&D Strategy focused on competence and expertize
full localization under 100% Faurecia control
2014 2015 2017
750
900
1,200
Manufacturing strategy focused on best in class operations
through full FES deployment and margin enhancement
Investor Day –Shanghai –November 11, 2014 28
Recognized by Customers Among best performing plants Customer PPM [2014]
New Plant Launching Model
8 Chinese Plants in Group Top 10
22 Chinese Plants audited
82%@A Rank; Average 64%
(All plant managers are Chinese)
Dated on Sep. 2014
#1
#4
#8
Wuxi FAS
Nanjing
Guangzhou FAS
#9 Yantai FECT
#1 Anting FAS
#9 Chengdu FAS
#5 Wuhan FECT
FIS
#9
Wuhan
FIS
GM
“2013 GM
Supplier Quality
Excellence Award”
DPCA
“2013 GM Special
Award”
FAW-VW
“Top 10 Excellent
Quality Award”
KM&I
“2013 Best
Supplier Award”
FAS FIS FECT FAE
1
6
4
8
Faurecia China targets to double its size in the coming years
thanks to OEM volume growth and portfolio expansion
Investor Day –Shanghai –November 11, 2014 29
? Faurecia to grow twice as fast
as the market (15% CAGR)
? Strengthening relationships
with Chinese automakers:
? ChangAn for FIS, to extend
? Geely for FIS, FECT
? JMC for FECT
? Other opportunities
2016 2018 2014
> € 3bn
> € 4bn
? € 2.3bn
Sales forecast Comments
Investor Day –Shanghai –November 11, 2014 30
Partnerships objectives ChangAn Affiliated OEMs
JV footprint Interior Systems sales evolution
? 50/50 JV established in 2013
? Interior business as first step scope
? Potential extension to other Faurecia product lines
? Significant businesses award since creation
Faurecia‘s partnership with China ChangAn Group
progresses smoothly in line with the strategic plan
PV Volume
Growth
2014 YTD
1.7m
+26%
Chang'an
2016 2018 2020
~20
~150
~ 210
Faurecia will continute to deploy this strategy with other Chinese OEMs
€ M
Footprint strategy focused on business support
and capex optimization through volume massification
Investor Day –Shanghai –November 11, 2014 31
New footprint focus regions – OEM new entry points
Shenyang
Wuhan
Changchun
Beijing
Nanjing
Shanghai
Chengdu
Guangzhou
Chongqing
Changsha
Hangzhou
? Key Strategy
? Core technology / standard
product / techno plants:
densification of volume
? JIT to follow customers
? Cross BG building solution
? Capex optimization
? Vertical integration
to catch added value
? Plant Number
? 2014: 38
? 2018: 55
? 5 YR Investment: €400 M
Human Resources strategy focused on supporting
growth through leadership and competence build up
Investor Day –Shanghai –November 11, 2014 32
? Balance of nationality, seniority and competence
? Chinese people in key Division Management Positions
? 100% Plant Managers are Chinese
? Regular staffing reviews
? New employees induction and training plans
? Regular benchmarking to be competitive
? HR KPI close monitoring
? University campus campaigns for new graduates
? Clear career path for management evolution
? FES China School to prepare Faurecia mindset
DEVELOP A STRONG LEADERSHIP TEAM
? Multi-cultural
? Highlymotivated
? Result oriented
REINFORCE HR FOUNDATIONS
? Group keyvalues in team’s dailybehavior
? Full deployment of all Group HR tools
? C&B in line withGroup guidelines and market
PROVIDE RIGHT RESOURCES FOR GROWTH
? Reservoir and retention
? Career pathanticipation
? Training in China and abroad
Key takeaways
Investor Day –Shanghai –November 11, 2014 33
? A solid presence and good financial results
? A clear vision and target
? A clear strategic roadmap
? A motivated team
? Market providing significant growth potential
toward international standards
? Customer and product portfolio diversification focus
? Competition close follow-up and constant benchmarking
? Deliver budget year by year
? Raise contribution to Group earnings in mid-term plan
? HR and management development
Faurecia
China
Market environment
remains positive
High confidence
to respect commitment
to Group
Investor Day
Shanghai
November 11, 2014
Human Resources
FaureciaChina
Kathy Sun
November 11, 2014
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China demography overview
Source: Desktop research
? The most populous country:
1.37 billion, 20% of total worldwide
population; of which
the 770 million workforce
(56% of total Chinese population)
? Dense population in East
& Central China and sparse in
West; 240 million migrant workers
? Birth rate decreases because
of the family planning policy
from last century
? Unemployment rate is about
4.3% in recent 5-year average
? Manufacturing takes a larger
proportion of GDP (40%) & fiscal
revenue (50%)
Investor Day –Shanghai –November 11, 2014 36
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CAGR = +11%
CAGR = +28%
1 003
2 080
2 870
3 200
5 271
10 985
13 900
16 900
2010 2013 2015 2017
M&P* China all
Total Faurecia workforce in China reaches approx. 12,800
people in 2014 and will reach ~16,900 in 2017
Changchun
Shenyang
Beijing
Qingdao
Yantai
Nanchang
Nanjing
Yancheng
Wuxi
Shanghai
Anting
Cixi
Ningbo
Guangzhou
Foshan
Shenzhen
Chongqing
Chengdu
Wuhan
Xiangyang
Xiangtan
NORTHERN REGION
Total: 3,020
EASTERN REGION
Total: 3,280
SOUTH WESTERN REGION
Total: 2,350
CENTRAL REGION
Total: 2,750
SH Office: 1,400
SHANGHAI OFFICE
Distribution of Faurecia’s workforce in China (2014)
Total workforce in 2014: ?12,800
Evolution of Faurecia’s workforce
With CAGR at 28% in the past,
the increase in the coming years
is still significant, but at a moderate rate.
Investor Day –Shanghai –November 11, 2014 37
* Managers and professionals
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Faurecia China has developed a local management team
with limited expatriate support
The expatriate structure analysis
Expat vs total M&P Expat category Expat in mgt team
All Plant Managers are Chinese.
With 27 expatriates dedicated to China, 14 are for Technical/Expert positions
The strategy is to promote Chinese people for the management functions
and to have technical expatriates to transfer the know how
38
Source: Desktop research
1%
99%
Expatriate
Total M&P
48%
52%
Management Technical
expert
15%
85%
Local
Expatriate
38 Investor Day –Shanghai –November 11, 2014
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HR Mission
HR STRATEGY
Develop strong leadership team and ensure
key technical competence on board
Anticipate key resources growth
to meet future business needs
Retain talents with Faurecia Values
HR foundation: make sure country
alignment while managing diversity
Work on Employer Branding
to boost company attractiveness
? Promote in media communication channel
? Deploy CSR program in China
? Extend cooperation with target universities
? Golden Triangle and localization deployment
? Strategic recruitment for next generation leaders
? Young Talents program to stabilize talent foundation
? Promote Management & Technical parallel career path
? Prepare new leaders through Leadership & Management
program and Individual Development Plan
? Focus on talent identification and internal mobility
? Individual Career path designed in advance
? Provide competitive package for talents
? Ensure legal compliance and group alignment
? Respect regional guidelines
? HR Information System fully on board
KEY ACTIVITIES
Provide talented and committed people on time through systematic
anticipation to enrich talent pipeline and develop Faurecia Culture
Investor Day –Shanghai –November 11, 2014 39
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Faurecia golden triangle plan has been developed
to ensure that new plants launch at Faurecia standards
New plant Mother plant
28
54
82 people
moved
& promoted
Plant
mgr
1 key
funct. Mgr
1 key
funct. Mgr
? Golden Triangle: 1+2
? 1 plant manager
? 2 of 6 key functions filled internally
6 key functions = HR, ME, Quality, UAP, FES, PC&L
? Local hiring in advance and train in mother plant
? For tech. plant, internal transfer experience
? JP: "Young Talents Program"
? Operator: train in mother plant and involve from PMS phase 2
1
st
level: Plant Management Team
2
nd
level: Engineer & Professional
Below level: J unior Professional & operator
Investor Day –Shanghai –November 11, 2014 40
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Faurecia university in Asia is also aimed at developing the Faurecia
culture/value and strengthening the competency management
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Induction Program
Faurecia University in Asia
No. of trainees covered:
2014 –1,000; 2015 –1,200
41 Investor Day –Shanghai –November 11, 2014
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2012
113 hired
2013
177 hired
2014
140 planned
Faurecia China talent acquisition strategy
… Acquire Talents for Future
Executive
Sr. Manager
1st Line Manager
Junior Professional
Professional Experienced
Strategic
Recruitment
Young Talents
Program
83%
Retained
Till 2013
2012
25 hired
2013
30 hired
2014
50 planned
Investor Day –Shanghai –November 11, 2014 42
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? In 2014 the Group launched a
cultural transformation project called
Being Faurecia based on three key
managerial values
? Entrepreneurship
? Autonomy
? Accountability
Culture transformation in line with new values
fully underway in China
Investor Day –Shanghai –November 11, 2014 43
? In China this has been received
with enthusiasm as it is in line with
the way that we manage our
business through taking initiatives,
focus on performance and results
and celebrating success
Exemplarity: Tracy LI
(Chengdu FAS Plant Manager, Value: Entrepreneurship)
Wuxi Model Line
Value: Autonomy
Accountability
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Key take-away for Faurecia China HR
1
2
3
4
5
Investor Day –Shanghai –November 11, 2014 44
China headcount will increase from 12,800 today to 16,900 in 2017
China Government trend is to support the workers with more protection
through regulations and salary increase in order to maintain social harmony.
Productivity is becoming a key objective.
Faurecia HR KPIs are globally outperforming the market, which is well
highlighted by the company's internal Employee Engagement Survey of 2013
Internal promotion, talent attraction, retention and management development
remain the key challenges, as the market will grow even more competitive,
especially at the manager level
Faurecia China organization has been reinforced with creation of Divisions
supported by corporate functions, keeping Faurecia culture and value as a priority
Investor Day
Shanghai
November 11, 2014
Automotive Seating
FaureciaChina
Sam Xia
November 11, 2014
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FAS China growth at 18% CAGR in the past 4 years
Investor Day –Shanghai –November 11, 2014 47
? € 830m Total Sales
10 Plants
? 4,900 employees
€M
€M
2014: 10 Plants
? Complete Seat (3 Plants)
? Front Seat Frame (5 Plants)
? Mechanisms - Recliners (1 Plant)
? Mechanisms -Tracks (1 Plant)
R&D
2 centers
300 engineers
CAGR = 18%
2014 Forecast Total Sales
Plant Number
Business Awards
5
8
9
10 10
2010 2011 2012 2013 2014
1,560
1,920
>2,400
2009+2010 2011+2012 2013+2014e
423
466
583
712
2010 2011 2012 2013 2014e
? 830
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FAS China is composed of 4 product families
Investor Day –Shanghai –November 11, 2014 48
First operation
2003: Wuhan
2014 operation scale
650k carsets/year
2014 Market Share 5%
First operation
2002: Changchun
2014 operation scale
2,700k carsets/year
2014 Market Share 13%
First operation
2004: Wuxi
2014 operation scale
15M recliners /year
15M tracks/year
2014 Market Share 16%
Frames
Comfort &Trim
First operation
2013: Wuhan
2014 operation scale
350k carsets/year
Complete Seat Mechanisms
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FAS China business development strategy
3 priorities to secure the sales growth
Investor Day –Shanghai –November 11, 2014 49
1
2
3
"Partnership for
Complete Seat"
"Global Platform
for Frames"
"New Customers"
? Leverage the existing Faurecia JV
? Develop new partnership projects
? Other opportunities
? Secured the business awards of Global Generic Platforms
with VW, PSA, Nissan, BMW, GM and Ford
? Benefit from the new generation of Mechanisms
? Product 100% localization strategy for cost competitiveness
? Further develop new emerging customers in China
e.g. Renault, Fiat-Chrysler
? Confirm 2013 business breakthrough with Ford
? Opportunities with Japanese/Korean OEMs following
global approach, e.g. Hyundai
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FAS China profitability enhancement strategy
6 Priorities to sustain profitability
Investor Day –Shanghai –November 11, 2014 50
1
2
4
"Customer mix"
"Vertical integration"
"Footprint optimization"
? Focus on Premium brands: BMW, Audi, Cadillac …
? Focus on product innovation & generic system solutions
? Vertical integration for Complete Seat (Foams, Covers & Accessories)
? Stamping & painting for Frames
? Maximum loading of current metal plants (fixed cost optimization)
? Low CAPEX JIT Plants
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5
"Cost improvement"
? Purchasing (supplier panel, mandatory supplier management)
? Focus on value analysis / value engineering (VA/VE) & 6 sigma
? Engineering Change Request (ECR) managements in serial life phase
6
"Business Development
& Program Management"
? Constantly improve operating income / Upfront costs / IRR / Max Cash
Out during each program phase
? Reduce D&D, development core team cost
? Control the total upfront / CAPEX optimization
3
“Product mix"
? Maintain leadership in highly profitable mechanisms business
? Value-creating innovation in mechanisms and frames
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FAS China is balancing its customer portfolio
Key accounts remain global OEMs
Investor Day –Shanghai –November 11, 2014 51
? VW remains 1
st
key account
? 2018 Sales split
? European 65%
? Japan/Korean 19%
? American 11%
? Chinese 5%
? 4 customers
above € 200m Sales
2016 2018 2014
€ 1.2bn
€ 1.7bn
€ 830m
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Mechanisms
FAS China will have 17 plants in 2018: 6 new JIT plants
and 1 new metal plant are in preparation
Investor Day –Shanghai –November 11, 2014 52
Number of plants every year
+ 1 plant + 6 plants + 0 plant
• Northeast 1
• Central 2
• Northeast 1
• Central 2
• East 1
• South 1
• East 2
5 plants 3 plants 2 plants
"Footprint Centralization"
"JIT Module"
"Base Area"
JIT plants: Plan 6 new footprints
Metal plants: Densify the production by main
automotive regions to benefit from volume effect
Mechanisms plants: Fully load the current ones
JIT Frame
‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Year
10 10 14 15 16 17 Plan number
2014
10 plants
2018
+7 plants
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Investor Day –Shanghai –November 11, 2014 53
FAS China R&D strategy
Global network and local presence with customer proximity
R&D Strategy China HQ & New Tech Center Opened in March 2013
Validation Recognized by OEM
VW 100%
Ford 85%
GM
Local OEM
R-N
100% PSA
90%
100%
100%
146
196
244
300
2011 2012 2013 2014
CAGR 28%
Headcount Evolution
? 2 (Shanghai and Wuxi) fully owned R&D centers,
1 D&D plateau in Wuhan, 1 JV R&D in Changchun,
integrated in the global R&D network,
? Test facilities certified by global OEMs
? Continuous reinforcement of local team and competences
? Industrial style as differentiation factor
? “East Works” for advanced innovation
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FAS China product plan on Complete Seats
Global & Customization – Next generation
Investor Day –Shanghai –November 11, 2014 54
We Focus
We Focus
Offboard Wellness Assessment
Foot massage module 2
nd
social row Removable cover Safety Cover Carving
Air Cleaner Bamboo
Luxury trend for brand
Personalized trend
Environment trend
OEM Focus
End User Focus
Global Concern
Self Adjustment Connected with smart accessories Shape adjustment for comfort Tactile Seat Display Smart Fit
Audio & comfort Health “Magic” flexibility Heat & Vent
We Focus
Customization - Integrated Intelligence
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FAS China product plan on Front Seat Structure
Generic & Modular – Next generations with weight & cost reduction
Investor Day –Shanghai –November 11, 2014 55
1-2
3-1
1-1
3-2
10.5 Kg
2009 SOP 2011 2013 2012 2014 2006 2015 2016
8.5 Kg
12.0 Kg
11.5 Kg
5-1
11.9 Kg
? 2013-2018
? CHINA
? 2013-2022
? CHINA
? 2013-2022
? CHINA
? 2014-2021
? CHINA
Next generation
5-2
11.5 Kg
11.5 Kg
~15.0 Kg
2-1
17.07 Kg
2-2
15.59 Kg
? 2015-2023
? CHINA
Developed in China
4-2
11.5 Kg
4-1
13.7 Kg
4-3
Customer A
Customer C
Customer D
Customer E
Customer B
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FAS China product plan on Mechanisms
Global & Standard – Next generations with size, weight & cost reduction
Investor Day –Shanghai –November 11, 2014 56
Recliner III Recliner IV Recliner II
Track III Track II Track I
E-PumpI E-PumpII
2006 SOP 2008 2011 2010 2012 2003 2013 2014
Recliners
Tracks
E-Pumps
2015 2016
Recliner I
-19% vs. Recliner I -35% vs. Recliner III
-16% vs. Track II
-10% vs. E-pump1
Only 1 worldwide production facility in
China
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Key takeaways
Investor Day –Shanghai –November 11, 2014 57
1
2
3
4
FAS China achieved 18% CAGR in the past 4 years, reaching €830m by 2014.
It has developed leading market shares in Frames (#2 at 13%)
and Mechanisms (#1 at 16%)
FAS China targets to maintain sales at 20% CAGR in the next 4 years
which will lead to 3% to 6% market share increase per product line,
sales of €1.7b in 2018
FAS China has formulated clear customer, product, manufacturing strategies
to ensure growth and profitability, including customer mix, footprint optimization,
vertical integration, and program cost improvements
FAS China benefits from solid HR foundation on which it will further develop
the organization strength and competitiveness, with 7,700 people in 2018
Investor Day
Shanghai
November 11, 2014
Emissions Control Technologies
FaureciaChina
Thierry Aubry
November 11, 2014
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Investor Day –Shanghai –November 11, 2014 60
CAGR = 23%
2014 Forecast Total Sales
Total Plants
Business Awards
2009+2010 2011+2012 2013+2014e
2010 2012 2014e
? € 1.1bn Total Sales
? € 660m Product Sales
15 Plants
> 4,400 employees
R&D
1 center
288 engineers
9
11
12
14
15
2010 2011 2012 2013 2014
2011 2013
FECT is the market leader of emission control in China
499
607
778
990
? 1,100
1,680
2,440
~2,300
€m
€m
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FECT China is composed of 4 product families
Investor Day –Shanghai –November 11, 2014 61
Catalytic Converters
Complete Lines Manifolds Mufflers
First operation
2008: Qingdao
2014 operation scale
> 2 Mio parts / year
First operation
1998: Changchun
2014 operation scale
> 4 Mio parts / year
First operation
1994: Wuhan
2014 operation scale
> 3 Mio parts / year
First Operation
1994: Wuhan
2014 operation scale
> 1 Mio parts / year
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3 priorities have been strategically planned
for the next 5 years by FECT
FECT China strategy
62
? Strengthen customer partnerships through JV activities
? Reinforce customer relationship to improve business opportunity
? Achieve win-win for both OEM and FECT
Build customer alliance
throughout China
Reinforce market driven
innovation
? Marketing driven innovation focus on China requirements
? Speed up innovation to market
? Build up innovation experts and specialists team locally in China
Drive the growth
of commercial vehicle
emission business
? Strengthen China CVE product portfolio to meet the demand
of stricter China emission standards
? Alliance market approach with Cummins Emission System
? Leverage LVE footprint, experience and size to support CVE
China Innovation
Commercial
Vehicles
OEM Alliance
Investor Day –Shanghai –November 11, 2014
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63
FECT in superior position through technology
and global organization
? FECT is clear market leader
with 27% market share
? Diversified competition
? Technology is FECT strength
? Global program management
is key competitive advantage
Market share in 2013
Competition landscape in China
Source: FECT China
Tenneco
27%
Faurecia
Sejong
Calsonic Kansei
Sango
Lihe
Others
Total
of around 20
Competitors
Investor Day –Shanghai –November 11, 2014
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FECT China with very balanced customer portfolio
64
2016 2018 2014
€ 1.4bn
€ 1.6bn
€ 1.1bn
LVE
CVE
Investor Day –Shanghai –November 11, 2014
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FECT China will reach 30% market share in CVE in 2018
Investor Day –Shanghai –November 11, 2014 65
CVE Business development
Market volume evolution on road (M Units)
? Driving CVE business growth by the alliance with CES (Cummins Emission System)
and partnership with local players
? Develop technology co-operation with Chinese CV OEMs
After treatment systems shall reach 3.6 M Units in 2018
FECT is targeting to reach 30%
market share in the next 5 years
After treatment system Non emissionized
2014 2015 2016 2017 2018
3.6
3.8
4.1
4.4
4.5
2020
3.6
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CVE
FECT China Footprint
Investor Day –Shanghai –November 11, 2014 66
Number of plants every year
+ 3 plants
+ 0 plant
+ 0 plant
6 plants 8 plants 1 plant
"JIT Sequence delivery"
"Technology capacity"
JIT plants: Plan 3 new footprints
Techno plants: Complete exhaust system
production capacity, key components manufacturing
CVE: Fully loading the current one
and use LVE actual footprints
Techno plants JIT plants
2014
15 plants
2018
+3 plants
‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Year
14 15 16 17 18 18 Plan number
• Central 2
• East 3
• South 1
• Central
• Northeast:1
• Central 2
• East: 4
• West: 1
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Acoustic Performance EDST
(3)
Noise dampers EVO valve/Electric valve
Emissions reduction ASDS
(2)
GPF
(1)
Weight reduction LW hot end Brazed cold end
Energy recovery EHRM
(4)
Compact EHRS
(5)
Rankine Direct oil gear box heating
Fabricated T Manifold
Mono and Airgap
Closed couple SCR :
U shape –C-mixer
Ultra light-weight cold end
Modular NVH solution
Our focus in the next 5 years will be reinforcing
product strategy and promoting innovation
Investor Day –Shanghai –November 11, 2014 67
2015 2020 2013 2017
1. Gasoline Particulate Filter
Product & Technology roadmap
3. Exhaust Dynamic Sound Technologies
2015 2020 2013 2017
5. Exhaust Heat Recovery System 4. Exhaust Heat Recovery Manifold 2. Ammonia Storage and Delivery System
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Key takeaways
Investor Day –Shanghai –November 11, 2014 68
1
2
3
4
FECT has a clear market leader position on China market
with over 25% market share
With 10% CAGR over the 2014-2018 period,
FECT will increase market share in China
Innovation and technology, strong growth in CVE market and alliance strategy
with OEMs as main pillars of FECT China strategy plan
FECT China has proven operational excellence including program management,
footprint optimization and talent management and retention
Investor Day
Shanghai
November 11, 2014
Interior Systems
FaureciaChina
Richard Zhang
November 11,2014
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FIS China Growth at 24% CAGR in the past 4 years
Investor Day –Shanghai –November 11, 2014 71
? € 270m Total Sales
13 Plants
? 2,800 employees
€m
€m
2014: 13 Plants
? 12 Technology Plants
? 1 JIT Plant
R&D
1 center
300 engineers
CAGR = 24%
2014 Forecast Total Sales
Plant Number
Business Awards
257
477
>1,000
2009+2010 2011+2012 2013+2014e
116
136
~270
2010 2012 2014e
5
8
13
2010 2012 2014
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FIS China is Composed of 4 product families
Investor Day –Shanghai –November 11, 2014 72
Instrument Panel
Acoustic Modules Cockpit Door Panel
First operation
2006: Chongqing
2013 operation scale
> 300k units / year
First operation
2005: Changchun
2013 operation scale
1 Mio parts / year
First operation
2005: Changchun
2013 operation scale
2.2 Mio parts / year
First operation
2010: Changchun
2013 operation scale
0.7 Mio parts / year
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Investor Day –Shanghai –November 11, 2014 73
Current merging of the market leaders open
great opportunities for Faurecia Interior Systems
Market share in 2014 Market consolidation underway
Current merging of both leaders combined with an "over-splitting" of the market by local players
is creating a very favorable business and partnership momentum for Faurecia Interior System
? Yanfengand Visteon had long-standing joint venture
covering all automotive regions and OEMs
? Yanfengpurchased all shares of joint venture in 2013
? Yanfeng Interior China estimated sales €2.1 bn
in 2012
? Yanfengis now in the process of absorbing
JCI Interiors (excluding electronics)
? JCI Interiors has JVs with FAW, BAIC
and GAC groups
? JCI China Interior sales (excluding electronics)
€1.04 bn
Yanfeng
JCI
Yanfeng
Others
Mobis
Calsonic Kansei
Faurecia
4%
Number
of player
42 (mainly
Chinese)
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Our sustainable business model is based on 4 key drivers
Toward 10% Market Share through a sustainable business model
Strategic
Partnership
Product &
Innovation
Programs &
Operations efficiency
Entrepreneur and
committed People
74 Investor Day –Shanghai –November 11, 2014
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Partnership and customer strategy
Strategic partnership will be a key success factor
Standalone approach Diversification Strategic Partnerships
Select Relevant
and Sustainable Business
SVW
FVW
Geely
Diversify customer portfolio
Guangdong Auto Group-CFA
Others
Enhance Market Share
Chang An
(Ford , DS and CA own brand)
Other opportunities
Reinforced customer intimacy, to better address:
1
? Ford remains our Number one customer
? 2018 Sales split
? European 38%
? Japan/Korean 18%
? American 32%
? Chinese 12%
? CAGR around 30%
75 Investor Day –Shanghai –November 11, 2014
Expected turnover
€ 270m
~ € 400m
~ € 750m
2014 2016 2018
2 3 4
Our customer strategy is based on 4 main pillars
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Industrial Strategy
Priority is to saturate our existing "Technology" footprint
Investor Day –Shanghai –November 11, 2014 76
Number of plants every year
+ 6 plants
+ 1 plant
2014
13 plants
2018
+7 plants
1 plant 12 plants
"Fast response"
"Ensure capacity"
Techno plants: To saturate our existing footprint
which covers the main automotive basins.
JIT plants: To set up 6 new JITs supplied
by our technoplant an ensuring quick response
to customer needs while limiting investments.
Techno JIT
‘14 ‘15 ‘16 ‘17 ‘18 Year
13 14 15 18 20 Plan number
• Northeast 1
• East 3
• South 2
• Central 2
• Central 1
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Product & innovation strategy
Addressing upgrading, personalization and environment trend
Upgrading
Premium
Quality
Cut & Sew LOCOP Slush Lite Decostitich Piping IMP
Personalized
trend
Aluminum Ambient Lighting Sliding Dock Wi-charging
Environment
trend
Air Purification NAFI
77 Investor Day –Shanghai –November 11, 2014
Matching with growing perceived quality expectations of Chinese market
Addressing enrichment and technology trends of Chinese market
Introducing global green technologies as well as specific technologies for China
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Key Takeaways
78 Investor Day –Shanghai –November 11, 2014
1
2
3
4
FIS China has engaged a successful growth and profitability allowing
to target more than € 750m total sales by 2018
Strategic partnership with OEM is a key driver to address this ambitious plan.
Our recent but successful CCAG JV is demonstrating the relevance of this approach
Operations and programs optimization are a must to be able to propose
a competitive and profitable business model in China Interior market
People are at the center of this strategy. Priority is to develop and reinforce our team,
enhancing entrepreneurship, continuous improvement and execution mindset
Investor Day
Shanghai
November 11, 2014
Investor Day
Strategyupdate
Yann Delabrière
November 11, 2014
? Benefit from selective resource allocation strategy
? Accelerate in Asia
? Leverage global platforms
? Develop value-added technologies
2014 - 2016: Selective growth strategy confirmed
Investor Day –Shanghai –November 11, 2014 81
Faurecia Automotive Seating
On track to meet its 2016 targets
Investor Day –Shanghai –November 11, 2014 82
Key drivers
? Mechanisms leadership and Generic frames
? China and Asian customer growth
? Customer diversification in particular growth with Nissan and Ford
? Value creating innovations based on fuel economy (weight reduction) and
smart comfort
Update on priorities ? Mechanisms and frames on track to reach over 8% operating margin in 2016
? Back to growth in North America, with significant launches in H2 2014
and operational turnaround confirmed
? Single European division successfully created, profitability improving
? Renault-Nissan on track to become second largest client
? China opportunities confirmed
2016 Targets
? Total sales > € 7.1bn
? Operating margin > 5.0%
? ROCE* > 20%
Faurecia Emissions Control Technologies
Ahead of its roadmap, 2016 targets upgraded
Investor Day –Shanghai –November 11, 2014 83
Key drivers
? Capture the growth of the Commercial Vehicle markets especially in China
? Increase value-added through innovations: environmental performance
(NOx and particulates); fuel economy (weight reduction, energy recovery);
acoustic performance (sound design)
Update on priorities
? Europe recovery is well engaged, further optimization to come
? North America turnaround ahead of plan
? Product and process standardization well underway
? CVE growth rate of around 20% CAGR confirmed, driven by partnership
with Cummins and regulation introduction especially in China moving
to Euro 5
? Business awards for energy recovery systems and SCR and interest
in sound design demonstrate relevance of technology strategy
2016 new Targets
? Total sales > € 7.4bn (value-added sales > € 4.0bn)
? Operating margin close to 5.0%, (up from > 4.0%)
now above 8.0% on value-added sales
? ROCE* > 25% (up from around 25%)
*: Pre-tax and including goodwill
Faurecia Interior Systems
Improving in evolving environment, 2016 targets adjusted
Investor Day –Shanghai –November 11, 2014 84
Key drivers
? Selective growth strategy with focus on cash model
? Profitability increased through operational improvement
? Benefit from trend towards consolidation in the market
? Accelerate in Asia
? Expand higher profitability product lines (decoration, HMI)
Update
? Consolidation underway should improve competitive environment
? Strong operational improvement in Europe, North America
is progressing
? China growth acceleration confirmed
? Breakthrough in bio materials with clear roadmap
towards 30% weight reduction
2016 Targets
? Total sales > € 4.5bn
? Operating margin > 4.0% (from > 4.5%)
? ROCE* around 15% (from around 20%)
*: Pre-tax and including goodwill
Faurecia Automotive Exteriors
On track to meet its 2016 targets
Investor Day –Shanghai –November 11, 2014 85
Key drivers
? Remain market leader in Europe
? Front End Modules (FEM) strategic review
? South America turnaround
? Develop long term potential for Composite Technologies
Priorities update
? Awarded first composite tailgate business and composite floors
co-development with OEMs
? Margin improvement actions in North Europe (ex. Plastal) to accelerate
? South America capacity utilization rate close to 100% in 2016
and operational cost management underway
2016 Targets
? Total sales > € 2.0bn (or > € 1.5bn excl. FEM)
? Operating margin 4.5% - 5.0%
? ROCE* > 20%
*: Pre-tax and including goodwill
? Being Faurecia: Major initiative launched in 2014
to transform corporate culture with two main axes
? New values of entrepreneurship, autonomy
and accountability to drive focus on performance
and value creation
? Strengthened people management
and people development in order
to better develop talent internally
? Executive Committee will be strengthened and diversified
with three new appointments effective in the first quarter 2015.
All these appointments are internal promotions.
? This management reinforcement at all levels will facilitate our ability
to implement our strategic plan
Management transformation and reinforcement
to support deployment of strategy
Investor Day –Shanghai –November 11, 2014 86
2016 Targets are fully confirmed
Investor Day –Shanghai –November 11, 2014 87
Sales above 21 billion euros
Operating margin 4.5 – 5.0%
Net cash flow around 300 million euros
ROCE* > 20%
*: Pre-tax and including goodwill
Investor Day
Shanghai
November 11, 2014
Investor Day
Group financial strategy and targets
Michel Favre
November 11, 2014
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? Increasing operating
margin from 3.0% in 2013
to 4.5% - 5.0% in 2016
? Capex + capitalized R&D
around € 800m
? Asset turn to improve
by 20bp to close to 5x
* Pre-tax and including goodwill
2012 2013 2014 2015 2016
Reminder of financial targets
ROCE to increase by 50% from 14% in 2013 to over 20% in 2016
> 20%
13%
14%
Investor Day –Shanghai –November 11, 2014 90
ROCE *
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? Increasing EBITDA margin
(>150bps gain or > € 300m
contribution)
? Improved Capital Employed
? Additional factoring
of receivables in 2014
? Reduced financial
expenses (€ 150m objective
in 2016 vs € 200m in 2013)
2013 2014 2016
Positive
144
Around 300
Reminder of the financial targets
Net Free Cash Flow generation around € 300m in 2016
Investor Day –Shanghai –November 11, 2014 91
Net Free Cash Flow in €m
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? Priority to strategic OEMs
? Priority to the two Business Groups (Emissions Control Technologies
and Automotive Seating) which require lower Capex and capitalized R&D
? Priority to new footprint expansion mainly in Asia
? Negotiate better financing terms with OEMs for development cost
Reminder of the financial targets
Optimize resource allocation
4 key priorities
Investor Day –Shanghai –November 11, 2014 92
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Financial priorities and resource allocation
? € 100m per year dedicated to research and innovation expenses
(within the R&D budget)
? € 50m per year from 2015 onwards for restructuring expenses to continue
to optimize the industrial footprint and increase the average size of our plants
? € 100m of Capex for process standardization
? Around € 100m capital allocation over 2015-2016 to buy-back minorities
Investor Day –Shanghai –November 11, 2014 93
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Main profitability drivers by region
Asia >8% and N. America and Europe >4% operating margin
Investor Day –Shanghai –November 11, 2014 94
Main drivers
Growth
(volume & mix)
? Asia is our top priority and it is where growth prospects are the best
? North America is restarting a cycle of secular growth
Commercial margin
(Project management & re-pricing)
? North America is where better project and commercial management should
help the most
? In South America, re-pricing to take into account high inflation,
lower volumes and currency swing is key to a margin recovery
Footprint optimization ? Footprint optimization is an ongoing process and will lead to sizeable
margin expansion
Standardization ? North America and Europe is where standardization is expected
to yield savings
Operational performance ? North America and to a certain degree South America will benefit
from operational improvements
Geographical mix ? With Asia being the fastest growing region and also the most profitable
region, it is helping overall margin expansion
Operating margin improvement
(2014-2016)
? 100 – 150bp
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Investor Day –Shanghai –November 11, 2014 95
Financial targets by region (updated vs initial)
> 21.0 (> 20.5 excl. FEM)
4.5% to 5.0%
Group total sales (in €bn)
Operating margin
as % of total sales
> 10.7 (> 10.2 excl. FEM)
> 5.4
Close to 4.0
Close to 1.0
Total sales (in €bn)
Europe
North America
Asia
South America & rest of world
4.5% - 5.0%
> 4.0%
> 8.0%
Breakthrough in profitability
and focus on cash generation
Operating margin
(% of total sales)
Europe
North America
Asia
South America & rest of world
2016 updated FAURECIA Comment
Depending on strategic
review outcome
Depending on strategic
review outcome
Upgraded
Adjusted
Upgraded
Upgraded
Adjusted
> 21.0
4.5% to 5.0%
> 10.7
> 5.4
> 3.8
> 1.1
4.0% - 5.0%
5.0%
> 7.0%
Breakthrough in profitability
and focus on cash generation
2016 initial
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2014 2016
56%
25%
14%
5%
Europe
North
America
South America
& rest of world
Asia
26%
52% Europe
18%
4%
South America
& rest of world
North
America
Asia
Investor Day –Shanghai –November 11, 2014 96
Regional perspective
Better balanced portfolio
Product sales by region
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Investor Day –Shanghai –November 11, 2014 97
Main profitability drivers by Business Group
All Business Groups above 4% operating margin
Main drivers
Growth
(volume & mix)
? Automotive Seating & Emissions Control Technologies
are the fastest growing Business Groups
Commercial margin
(Project management & re-pricing)
? Interior Systems will benefit the most from improved project
management and also re-pricing
Footprint optimization ? Automotive Seating, Emissions Control Technologies and Interior
Systems will benefit the most from continuous footprint optimization
Standardization ? Automotive Seating with generic frames and Emissions Control
Technologies with industrial standardization will generate sizeable
savings
Operational performance ? Interior Systems is where improved operational performance
especially in North America will yield significant margin expansion
Geographical mix ? Interior Systems will grow very fast in Asia where margins are higher
and therefore will benefit from a favorable mix improvement.
Operating margin improvement (2014-2016) ? 100 – 150bp
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98
Financial targets by Business Group (updated vs initial)
> 21.0 (> 20.5 excl. FEM)
4.5% to 5.0%
> 20%
around 300
Group total sales (in €bn)
Operating margin
as % of total sales
ROCE *
Net cash flow (in €m)
> 7.4
Total sales (in €bn)
Emissions Control Technologies
> 4.5 Interior Systems
> 2.0 (>1.5 excl. FEM) Automotive Exteriors
> 7.1 Automotive Seating
close to 5.0%
Operating margin (% of total sales)
> 4.0%
4.5% - 5.0%
> 5.0%
Emissions Control Technologies
Interior Systems
Automotive Exteriors
Automotive Seating
around 15%
ROCE **
> 20%
> 25%
> 20%
Emissions Control Technologies
Interior Systems
Automotive Exteriors
Automotive Seating
* pre-tax and including goodwill
2016 updated FAURECIA
Investor Day –Shanghai –November 11, 2014
Comment
Depending on strategic review outcome
Depending on strategic review outcome
Upgraded (> 8.0% on value-added sales)
Adapted
Upgraded
Adapted
> 21.0
4.5% to 5.0%
> 20%
around 300
> 7.4
> 4.5
> 2.0
> 7.1
> 4.0%
> 4.5%
4.5% - 5.0%
> 5.0%
around 20%
> 20%
around 25%
> 20%
2016 initial
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Significant profitability
increase from 3.0%
to 4.5% - 5.0% OM
Capex and
capitalized R&D
around at € 800m
Tight WCR control
€ 5m additional for 1%
sales change
Investor Day –Shanghai –November 11, 2014 99
Generate strong cash flow in 2016
Free cash flow before interest and tax of around 80% of operating income
Optimize financial expenses and taxes (around 32% tax rate)
Net cash flow around € 300m
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Investor Day –Shanghai –November 11, 2014 100
Cash Flow generation
Main drivers
EBITDA
Change in WCR
Capex + capitalized R&D
Restructuring
Finance expenses
Tax & Other
Net cash flow
Driver
? Higher operating income (> 150bp margin improvement between 2013 and 2016)
and higher D&A
? Improvement partially offsetting sales growth
? Strong discipline and selective capital allocation according to new footprint
opportunities
? Continuous footprint optimization
? Refinancing will generate sizeable savings (Objective € 150m in 2016 vs
€ 200m in 2013)
? Higher taxes from higher PBT to be partially offset by recovery of tax losses
carry forward
? Objective of around € 300m by 2016
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Investor Day –Shanghai –November 11, 2014 101
WCR optimization
Zoom on main drivers
Driver
Receivables
? Reduction of customer overdues & alignment of customer terms
? Factoring programs extension with additional lines in new countries and general
business growth
Inventories ? Reduction of minimum 1 day (out of 11 days)
Payables ? Gain of 1 day through alignment and reverse factoring
Other ? Geographical mix & contingencies will weigh on WCR
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? Objective to be 100% financed by capital markets
(factoring customer receivables and issuing bonds)
? Ensure liquidity and independence through a 5 year syndicated credit
facility (€1.2bn) with our core international partner banks
? Go back to the bond market to refinance our existing and expensive bonds
through a new bond
Investor Day –Shanghai –November 11, 2014 102
Debt & financing
Financing strategy
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Investor Day –Shanghai –November 11, 2014 103
Debt & financing
Reduce net debt & financial expenses
Net debt / EBITDA ratio of around or below 1.0x by 2016
Status
Conversion of the 2015 Oceane in December 2013
?
Debt reduction from net cash flow generation in 2013 and 2014
?
Rating improvement (Fitch at BB-)
?
Increase factoring (cheapest way to be financed)
?
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Investor Day –Shanghai –November 11, 2014 104
Update on refinancing
Status
Renewal of the € 1.2bn, 5 year syndicated facility
at better conditions
?
Refinancing of the 2019 HY bond (€ 250m) at better conditions Call option in June 2015
Refinancing of the 2016 HY bond (€ 490m) at better conditions Maturity in December 2016
Conversion of the 2018 convertible bond (€ 250m)
Option to force conversion in early
January 2016 if share price above € 25
Net debt / EBITDA ratio of around or below 1.0x by 2016
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Investor Day –Shanghai –November 11, 2014 105
Conclusion
Large opportunities with refinancing
First phase is accomplished
Faurecia is well on track to achieve its 2016 targets
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106
Contact & Share data
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
2013 Results & 2014 Objectives –February 12, 2014
Bonds ISIN Codes
2016 bonds : XS0704870392 2019 bonds : XS0778917814
2018 convertible : FR0011321363
Investor Day –Shanghai –November 11, 2014
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107
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
uponour current expectationsandvariousassumptions, andapplyonlyasof thedateof thisreport.
Our expectationsandbeliefsareexpressedingoodfaithandwebelievethereisareasonablebasisfor 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
outcomecoulddiffer materiallyfromthoseset out inthestatements.
Except for our ongoing obligation to disclose information under law, we undertake no obligation to update
publicityanyforward-lookingstatementswhether asaresult of newinformationor futureevents.
Investor Day –Shanghai –November 11, 2014
Investor Day
Shanghai
November 11, 2014
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