Faurecia is a leading global automotive supplier with €10.7 billion in sales. It aims to grow faster than the market through innovation, become a global partner for all automakers in six major modules, and steadily improve profitability. Faurecia focuses on seating, cockpits, door modules, front ends, acoustic packages and exhaust systems. It has expanded globally and diversified its customer base, with plans to further improve manufacturing efficiency and purchasing.
1. Driving progress at Faurecia Dresdner Kleinwort Wasserstein IAA 2005 Automotive Conference 2005 SEPTEMBER 14
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5. Faurecia vision and strategic priorities 3 1 2 Grow faster than the market through innovation Become a global partner for all OEMs in six major modules Steadily improve towards best-in-class profitability
6. Faurecia vision and strategic priorities 1 Become a global partner for all OEMs in six major modules 3 2 Grow faster than the market through innovation Steadily improve towards best-in-class profitability
7. Faurecia is an expert in 6 major modules 1 Door panel / Modules Instrument panel / Cockpit Front end Seating Exhaust system Acoustic package Door panel / Modules n°1 in Europe n°2 worldwide Instrument panel / Cockpit n°1 in Europe n°2 worldwide Front end n°2 in Europe n°2 worldwide Seating n°1 in Europe n°3 worldwide Exhaust system n°1 in Europe n°2 worldwide Acoustic package n°2 in Europe n°4 worldwide
8. Faurecia is partner with the world’s leading OEMs > 2004 sales, breakdown by customer B MW 5.6% Toyota 1.5% Others 3.9% PSA Peugeot Citroën 28.8% VW Group 22.2% Renault-Nissan 14.4% Ford Group 8.6% DaimlerChrysler 7.8% GM Group 7.2% 1
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10. Vision and strategic priorities 1 2 Become a global partner for all OEMs in six major modules Steadily improve towards best-in-class profitability 3 Grow faster than the market through innovation
11. Faurecia's profitability needs to improve > Operating Margin * 2003 2004 1H2005 0 1 2 3 4 5 6 7 8 Magna JCI Auto 2 Lear Tenneco C&A est. Arvin Meritor 2 Delphi Visteon * Adjusted: excluding non-recurring items (% of sales) (1) Weighted average excluding Visteon & Delphi (2) Fiscal year ends September 30 th 1H2005 average 1 : +3.7% 2003 average 1 : + 4.9% 2004 average 1 : + 4.7% 2
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13. Manufacturing process and industrial redeployment > Improvement of key indicators 68 2002 100 100 1H05 48 23 29 2003 2004 36 30 - 40 % / yr - 44 % / yr Defects Accidents 2
14. Manufacturing process and industrial redeployment > Redeployment of industrial footprint September 14, 2005 2004 +10 Poissy - France - JIT* Rastatt - Germany - JIT* Kosice - Slovakia Talmaciu - Romania Auburn Hills - USA - JIT* Lordstown - USA - JIT* Hermosillo - Mexico Rosslyn - South Africa. - JIT* Changchun 3 - China Wuxi - China Norfinch - Canada -1 2005 +9 Leipzig - Germany - JIT* Jelcz - Poland Walbrzych - Poland Hlohovec - Slovakia Lozorno - Slovakia - JIT* Cleveland - USA Changchun 4 - China Wuhan - China Anting - China -1 * JIT: Just-In-Time plant Openings Closures 2006 +6 Beaugency – France** ** Project Fraser - USA Sterling Heights - USA - JIT* Sterling Heights - USA Toledo - USA - JIT* Western Europe Central Europe Outside Europe Banbury - UK - JIT* Trnava - Slovakia - JIT* 2
15. Purchasing plan 14% 2002 10% 2,700 1H05 1,950 21% 2004 18% 2,100 2,400 2003 lower-cost country purchasing suppliers 40% 1,500 Mid-term objectives > Reduce number of suppliers > Increase lower-cost countries sourcing 2
16. Program Management System Technical and financial control 5 SERIES PRODUCTION Gate Review 4 SOP Gate Review 3 PRODUCTION SET-UP & PRE-SERIES Gate Review 2 PRODUCT & PROCESS DESIGN & DEVELOPMENT Gate Review 1 CUSTOMER INQUIRY AWARD PROGRAM PROPOSAL LAUNCH LAUNCH TOOL PRODUCTION PART APPROVAL 2
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19. Towards best-in-class profitability 2002 2003 2004 1H04 5.9 6.3 6.6 8.7 4.0 2.6 3.0 3.4 9,866 10,123 10,720 5,521 -59.1 10.1 83.7 59.7 French GAAP IFRS Sales* (in € millions) EBITDA (% of sales) Operating income (% of sales) Net income (in € millions) 1H05 7.1 2.9 5,613 34.5 2
20. Vision and strategic priorities 3 1 2 Grow faster than the market through innovation Become a global partner for all OEMs in six major modules Steadily improve towards best-in-class profitability
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22. High-potential market of €120 billion Acoustic package 10 Exhaust 18 Seats 35 Door modules 15 Cockpit 30 Front end 12 Source: Faurecia 3 > Global module market (estimate 2010*)
24. Functional development is a key driver through innovation Source Faurecia, C-segment Europe > Example: C segment (€ / vehicle) Rear seats 5% on average / year Front seats 3% on average / year 1995 2000 2005 2010 325 130 170 200 230 260 215 275 3
25. Highly integrated player: complete seat & components Mechanisms Frames N°1 Worldwide N°1 Europe N°1 Worldwide N°1 Europe Complete seat N°3 Worldwide N°1 Europe 3
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27. High-potential market of €120 billion Acoustic package 10 Exhaust 18 Seats 35 Door modules 15 Cockpit 30 Front end 12 Source: Faurecia > Global module market (estimate 2010*) 3
28. Exhaust systems Increasing value Acoustic After-treatment + Ford GM DaimlerChrysler Hyundai-Kia PSA Renault-Nissan Toyota VW 3
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30. 3 Exhaust System Growth driven by innovation > Diesel particulate filter market 2004 2005 2006 2007 2008 2009 2010 2011 2012 400 1400 2300 3500 5000 8000 8700 9000 6500 Units in 000 Source: Faurecia 3
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32. High-potential market of €120 billion Acoustic package 10 Exhaust 18 Seats 35 Cockpit 30 Front end 12 > Global module market (estimate 2010*) Source: Faurecia Door modules 15 3
33. Door panel: N°2 Worldwide, N°1 Europe > Average price: €100 Audi BMW Fiat Ford GM Lancia Mazda Mercedes PSA Renault Seat Toyota Volvo VW 3
34. Highly Integrated Module Capture value through innovation Reduction in weight and cost through innovation 3 kilos per vehicle €15 per vehicle 2010 market size 4 million per year DaimlerChrysler Ford 3 > Average price increases to €300
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36. High-potential market of €120 billion Acoustic package 10 Exhaust 18 Seats 35 Door modules 15 Cockpit 30 Front end 12 > Global module market (estimate 2010*) Source: Faurecia 3
37. Front End Module N°3 Worldwide, N°1 Europe BMW DaimlerChrysler VW Group 3