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Driving  progress at Faurecia Dresdner Kleinwort Wasserstein  IAA 2005 Automotive Conference 2005 SEPTEMBER 14
 
 
Faurecia is a world-class  automotive equipment supplier Europe 2004 World 2004 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sales to OEMs  (US$ billions ) 2004 key figures 1. Bosch 16.6 2. Faurecia 11.3 3.  Magna   8.8 4. JCI 8.2 5. Siemens VDO  7.8 6. ZF 7.2 7. Lear   6.7 8. Valeo 6.5 9. TRW 5.9 10. Continental 5.6 1. Bosch  27.2 2. Delphi 24.1 3. Magna 19.9 4. Denso 19.9 5. JCI 19.5 6. Visteon 17.7 7. Lear 17.0 8. Aisin Seiki   15.5 9. Faurecia 14.6 10. TRW 11.1 Source:  Automotive News  August 2005 Source:  Automotive News  April 2005
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
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
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
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
Faurecia diversifies its customer portfolio and regional markets 1 > Change in first half 2005 sales * *Excluding  monoliths  and at constant exchange rates and on a comparable basis September 14,  2005 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Asia +40% +14% North America +23% South America
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
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
Four improvement areas ,[object Object],[object Object],[object Object],[object Object],2
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
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
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
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
R&D efficiency ,[object Object],[object Object],[object Object],[object Object],Key figures ,[object Object],[object Object],[object Object],2
The Faurecia Excellence System Canada Brazil South Africa Korea India Turkey Portugal Spain France UK Luxemburg Netherlands Belgium Germany Poland Czech Republic China Sweden USA Mexico Argentina Tunisia Romania Slovakia > Deployment worldwide is the key ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2 46 29 22 9 4 5 5 2 1 1 7 3 9 9 2 6 2 1 2 1 7 1 2 1
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
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
High-potential market of  €120 billion   Acoustic package  10 Exhaust  18 Seats  35 Cockpit  30 Front end  12 3 Source: Faurecia > Global module market (estimate 2010*) ,[object Object],[object Object],[object Object],[object Object],Key drivers Door  modules  15
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*)
Seating functionality increase 3
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
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
Seating's growth strategy 1995 2004 2010 1,900 4,800 ,[object Object],[object Object],[object Object],> Sales  (€ millions) 3
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
Exhaust systems Increasing value Acoustic After-treatment + Ford GM DaimlerChrysler Hyundai-Kia PSA Renault-Nissan Toyota VW  3
Exhaust systems  Increasing value 600 500 450 80 250 ,[object Object],[object Object],[object Object],>  Diesel exhaust line price (€) 3 1990 2010 1993 2000 2005
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
Exhaust System  Growth driven by innovation 422 758 1,715 1995 1999 2005 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Faurecia ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],> Sales  (€ millions) 3
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
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
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
Faurecia's Door Module > Sales  (€ millions) ,[object Object],2000 2004 2003 2002 2005 2007 2010 ,[object Object],50 400 Door trim not included  Source: Faurecia 3
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
Front End Module  N°3 Worldwide, N°1 Europe BMW DaimlerChrysler VW Group  3
Front End Module  Create growth by innovation Source: Faurecia > Sales  (€ millions) 3 50 200 370 600 200 400 600 1995 2000 2005 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sustained organic growth * Organic growth 1998-2004 > Faurecia sales  ( Proforma in € billions)   1998 1999 2000 2001 2002 2003 2004 6.4 7.0 8.9 9.6 9.9 10.1 10.7 +9% p.a 3
Driving  progress at Faurecia Dresdner Kleinwort Wasserstein  IAA 2005 Automotive Conference 2005 SEPTEMBER 14

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Faurecia Investor Dresner

  • 1. Driving progress at Faurecia Dresdner Kleinwort Wasserstein IAA 2005 Automotive Conference 2005 SEPTEMBER 14
  • 2.  
  • 3.  
  • 4.
  • 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
  • 9.
  • 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
  • 12.
  • 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
  • 17.
  • 18.
  • 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
  • 21.
  • 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
  • 26.
  • 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
  • 29.
  • 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
  • 31.
  • 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
  • 35.
  • 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
  • 38.
  • 39. Sustained organic growth * Organic growth 1998-2004 > Faurecia sales ( Proforma in € billions) 1998 1999 2000 2001 2002 2003 2004 6.4 7.0 8.9 9.6 9.9 10.1 10.7 +9% p.a 3
  • 40. Driving progress at Faurecia Dresdner Kleinwort Wasserstein IAA 2005 Automotive Conference 2005 SEPTEMBER 14