Half-year 2021: strong operating leverage and cash generation with
operating margin of 6.6%, EBITDA margin of 14.2% and net cash flow
of €290M
Nanterre (France), July 26, 2021
HALF-YEAR 2021 RESULTS
STRONG OPERATING LEVERAGE AND CASH
GENERATIONWITH OPERATING MARGIN OF 6.6%, EBITDA
MARGIN OF 14.2% AND NET CASH FLOW OF €290M
STRONG
PERFORMANCE IN H1
2021
- Sales of
€7.8bn in H1,
up 32% on an organic basis
- Sales outperformance
of 760bps in Q2
and 170bps in
H1
- Strong operating
leverage and cash generation in H1:
operating margin of
6.6%, EBITDA
margin of 14.2% (above H1 2019) and net cash flow
of
€290m
(above H1 2019)
- Significant
deleveraging over H1 with
net-debt-to-EBITDA at
1.5x as
of June 30
-
Solid
order intake of
€12bn in
H1 2021, on track to reach the
targeted €26bn in FY
2021
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
6,084 |
7,783 |
+27.9% |
At constant scope and currencies |
|
|
|
+31.8% |
Operating income |
|
|
513 |
1,109 |
2.2x |
As % of sales |
|
|
8.4% |
14.2% |
+580bps |
Operating income |
|
|
(100) |
510 |
n/m |
As % of sales |
|
|
-1.6% |
6.6% |
+820bps |
Net cash flow |
|
|
(1,026) |
290 |
n/m |
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
UPGRADED
FY 2021
GUIDANCE
- Sales ≥ €16.5bn and strong
organic sales outperformance >
+600bps (confirmed)
- Operating margin of c. 7%
of sales, close to pre-Covid levels (confirmed)
- Net cash flow
> €500m (vs. c. €500m
previously) and net-debt-to-EBITDA ratio < 1.5x at
year-end
This guidance assumes worldwide automotive
production of at least 39 million vehicles in H2 and no major
lockdown impacting production or retail sales in any automotive
region during the period
FULLY
ALIGNED WITH “NEW
PERSPECTIVES” PRESENTED AT THE RECENT CAPITAL MARKETS
DAY
- New capital structure
through successful spin-off and employee
shareholding plan
- Focus on zero emissions
hydrogen solutions, through the acquisition of CLD in China, and on
ESG strategy, through
ambitious CO2
neutrality program and recent successful
issuance of green bonds
- Fully on track to reach
2022 targets and 2025 ambition
Patrick
KOLLER, CEO of Faurecia,
declared:
“We delivered a strong
performance in H1, despite two main adverse effects: the shortage
of semiconductors and raw material inflation. I would like to thank
all Faurecia teams for this performance.
Our operations proved
again very resilient with strong operating margin of 6.6% of sales,
demonstrating our efficient leverage. We delivered strong net cash
flow of 290 million euros and recorded a solid order intake of 12
billion euros, reflecting our potential for accelerating profitable
growth.
We are convinced that
automotive production has hit a low in Q2 and should gradually
rebound in the coming quarters, despite shortage of semiconductors
likely to last until the end of H1 2022. In this context, we will
pay strict attention to cost flexibilization and cash generation,
thus allowing deleveraging and profitable growth.” The
2021 half-year
consolidated financial statements have been approved by the
Board of Directors at its meeting held on
July 23,
2021, under the
chairmanship of Michel de
ROSEN. These financial statements have
been audited.
Operating income presented as Faurecia’s
main performance indicator is Operating income before amortization
of intangible assets acquired in business combinations. All other
definitions are explained at the end of this Press Release, under
the section “Definitions of terms used in this
document”.
All figures related to worldwide or
regional automotive production refer to IHS Markit forecast
dated July
2021
(vehicles segment in line with CAAM for
China).
IFRS 5 - Discontinued
Operations
- On February 18, Faurecia announced
that it had signed a Memorandum of Understanding for the sale of
its AST (Acoustics and Soft Trim) division and all conditions are
met to qualify this activity as discontinued, in compliance with
IFRS 5.
- Therefore, 2021 Group figures
exclude AST and 2020 Group figures are restated and presented
accordingly.
- This led to a restatement of H1
2020 sales to €6,084 million vs. €6,170 million released in July
2020 and to a restatement of H1 2020 operating income to €(100)
million vs. €(114) million released in July 2020.
- A table in appendix presents 2020
restated figures; only Interiors, as regards Business Groups, and
Europe, as regards regions, are impacted by this restatement.
KEY ACHIEVEMENTS IN H1 2021
New shareholding structure through
the successful distribution of
the Faurecia shares previously held by PSA, then Stellantis, and
recent non-dilutive Employee Shareholding Plan
(faur’ESO)
- In March,
Stellantis distributed the shares held in Faurecia to its
shareholders. This contributed to increase Faurecia’s free float to
85% with an enlarged international shareholder base and an
increased share liquidity.
The four major historic shareholders of PSA and
FCA now hold a combined stake of 13.2% of Faurecia: Exor with 5.5%,
Peugeot 1810 with 3.1%, Bpifrance with 2.4% and Dongfeng with 2.2%.
As a reminder, all four shareholders have undertaken a lockup
agreement for a period of 180 days following the completion of the
distribution by Stellantis.
- In addition,
Faurecia launched its first Employee Shareholding Plan, named
“faur’ESO”, that had great success with a high subscription rate of
22%. The completion of the capital increase, for a global amount of
€100 million, and the settlement-delivery of the shares to
employees are scheduled for July 28. As it is a non-dilutive plan,
the shares that were purchased in H1 through a share buyback
program will be cancelled to neutralize the dilution.
Acquisitions of CLD and
designLED, fully in line with
Sustainable Mobility and Cockpit of the
Future strategic priorities
- In April, in line
with its strategic focus on hydrogen zero emissions solutions,
Faurecia acquired a majority stake in CLD, one of the leading
Chinese manufacturers of hydrogen tanks. Headquartered in ShenYang,
CLD employs around 200 people and operates 2 plants in Liaoning
with a capacity of 30,000 tanks per year. CLD, which has
significant growth potential in the China market, has been recently
certified by the Chinese central government as the sole domestic
producer of Type IV hydrogen tanks.
- In June, to
strengthen its offer for display technologies and enrich its
immersive experiences for the Cockpit of the Future, Faurecia
acquired designLed, a Scotland-based company, specialized in
advanced backlighting technologies. Combined with the IRYSTec’s
strength in image experience and processing, designLED will enable
Faurecia to develop new types of advanced backlighting for use
cases that promote safety, personalization, and convenience.
Long-term
partnerships with Palantir
to boost digital
transformation
- In March, Faurecia
entered into a six-year strategic partnership with Palantir
Technologies Inc. to accelerate its digital transformation and
ambition to be CO2 neutral.
- Palantir Foundry
was designed to help organizations integrate disparate data sources
and make the best possible use of their data. Faurecia will use
Palantir's Foundry software to gain further insight into its data
across the company, from manufacturing to purchasing, from
engineering to finances.
- Built on top of
Faurecia’s IT portfolio and contracted cloud services, Palantir
Foundry will allow Faurecia to reduce raw material consumption,
improve R&D competitiveness, secure purchasing excellence and
track and measure overall CO2 neutrality efforts.
Partnerships with
Schneider Electric and KPMG for renewable electric
production to accelerate
Faurecia’s CO2
neutral program
- In April, Faurecia
signed an exclusive advisory contract with Schneider Electric to
procure offsite renewable electricity as part of its CO2 neutral
program. Under this agreement, Faurecia will benefit from Schneider
Electric’s support in the development and deployment of competitive
processes for power purchase agreement sourcing to cover all
Faurecia sites in Europe, North America, China and Brazil. Faurecia
intends to procure 1,200 GWh/y of offsite renewable electricity
through development partners, representing 90% of its global
consumption, in compliance with the most stringent industry
standards for CO2 emissions calculation.
- In June, Faurecia
selected KPMG as its partner for on-site power purchase agreements
advisory services. Under this partnership, Faurecia will benefit
from KPMG’s expertise to prepare, execute and implement its solar
panel equipment program across all facilities, worldwide. As
Faurecia will delegate the installation and the operation of these
renewable electricity production assets to third parties
(“developers”), KPMG will advise and support Faurecia to identify
and contract the right developers.
Financing operations to
continuously strengthen financial
structure and enhance financial flexibility
- In February,
Faurecia issued additional bonds of €190 million, due in 2027 at
2.26%.
- In March, Faurecia
issued green notes of €400 million, due in 2029 at 2.375%. It was
the inaugural issuance of green bonds under Faurecia's Green Bond
Framework established in March 2021. The net proceeds will be used
to finance or refinance, in whole or in part, eligible green
projects in accordance with its green bond framework. It is fully
in line with Faurecia’s commitment to sustainable mobility, and in
particular with the Group’s ambition to invest in hydrogen mobility
which is gaining momentum around the world.
- In May, Faurecia
amended and extended its long-term syndicated credit line,
initially signed in December 2014 and already amended in June 2016
and June 2018. Through the new agreement, the line, which is
undrawn, is increased from €1.2 billion to €1.5 billion and its
maturity is extended from June 2023 to May 2026, with two one-year
extension options until May 2028. The interest rate of the credit
line will vary depending upon the reduction of Faurecia’s CO2
emissions between 2019 and 2025, when the Group aims at being CO2
neutral for scopes 1 & 2.
SOLID ORDER INTAKE OF
€12bn in H1
2021
Faurecia recorded a solid order intake of €12
billion in H1 and confirms its objective to reach €26 billion in
2021.
Order intake was particularly strong with the VW
Group for €2.6 billion, including Complete Seats and Instrument
Panel/Door Panel for the Passat/Superb.
China represented c.25% of total order intake in
H1, of which 67% with Chinese OEMs.
BEVs represented more than 20% of total order
intake.
Faurecia Clarion Electronics recorded €1.3
billion, confirming the full-year target of at least €2.5
billion.
Hydrogen represented €280 million (incl. 100% of
Symbio), confirming full-year target of at least €500 million.
In H1 2021, Faurecia has successfully launched a
record number of 120 projects.
H1 2021 SALES AND
PROFITABILITY AT GROUP LEVEL
|
H1 2020* |
H1 2021 |
YoY change |
Sales (€m) |
6,084 |
7,783 |
+27.9% |
At constant scope and currencies |
|
|
+31.8% |
Operating income
(€m) |
(100) |
510 |
n/m |
% of sales |
-1.6% |
6.6% |
+820bps |
*H1
2020 figures restated for IFRS 5 (see in appendix)
Sales amounted
to
€7,783
million in H1
2021, up
27.9% on a
reported basis,
including:
-
A negative currency effect of € (296) million euros or -4.9% of
last year’s sales, mostly reflecting unfavorable impacts from the
US dollar, the Brazilian real and the Turkish lira.
-
A positive scope effect of €60 million or +1.0% of last year’s
sales, due to one month of consolidation of SAS (January), whose
consolidation started in February 2020.
At constant scope and currencies, sales
were up 31.8% in
H1 2021
-
Product sales were up 34.5%, of which +11.4% in Q1 and +74.0% in
Q2
-
Tooling and other sales were up 2.1%, of which +29.9% in Q1 and
-10.7% in Q2
All Business Groups recorded strong
double-digit organic growth in H1: Seating was up 34.1%, Interiors
up 31.9%, Clean Mobility up
29.4% and Clarion Electronics up
27.0%.
Sales outperformance of 760bps in Q2 and
170bps in H1
As expected,
the significant
unfavorable geographic mix effect that impacted organic
sales in Q1 turned around in Q2, leading to a
760bps outperformance in Q2
(+61.7% for Faurecia vs.
+54.1% for worldwide automotive
production).
In H1, due to the relative weight of Q1
and Q2, outperformance was 170bps
(+31.8% for Faurecia vs.
+30.1% for worldwide automotive
production), with outperformance in all geographies (Europe, North
America, Asia and South
America).
Reminder: Faurecia’s exposure to Europe and
North America (c. 70% of sales in H1 2021) is higher than worldwide
automotive production (c. 40% of vehicles produced in H1 2021)
while its exposure to Asia (c. 25% of sales in H1 2021) is lower
than worldwide automotive production (c. 50% of vehicles produced
in H1 2021). As in Q1 2021, most of the recovery in volume came
from Asia, Faurecia was penalized by its sales geographic mix.
Conversely, as in Q2 2021, most of the recovery in volume came from
Europe and North America, Faurecia was favored by its sales
geographic mix.
Operating
income was a profit of
€510 million in H1 2021 vs. a
loss of €(100) million in H1
2021 and it included:
-
A net charge of €25 million due to the impact the strong
year-on-year increase in raw material prices and the time lag to
benefit from hedging policy in place
-
A profit of €13 million due to tax recovery (PIS-Cofins) in
Brazil
-
A charge of €14 million due to the Employee Shareholding Program,
“faur’Eso”
Operating margin of
6.6% with sales of €7.8
billion in H1 2021 is to be
compared with an operating margin of 6.2% and €8.4 billion of sales
in H2 2020 and demonstrates Faurecia’s
strong operating leverage despite the negative impact
of raw material prices
in H1 2021.
Year-on-year, operating
leverage (whose calculation is detailed in appendix)
stood at
36%.
H1 2021 SALES AND
PROFITABILITY BY BUSINESS GROUP
Seating (38% of Group
sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
2,270 |
2,967 |
30.7% |
At constant scope and currencies |
|
|
|
34.1% |
Operating income |
|
|
(23) |
196 |
|
As % of sales |
|
|
-1.0% |
6.6% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Strong outperformance of 400bps in
H1 2021 (vs. worldwide automotive production growth of 30.1%,
source: IHS Markit July 2021), driven by Europe and Asia (mostly
China)
- Confirmed outperformance of 700bps
expected in 2021, thanks to significant starts of production mostly
impacting H2 (mainly Daimler C-class, BMW X1 & X2 and Jeep
Grand Wagoneer)
Operating income
Operating margin at 6.6% in H1 2021 demonstrated
strong operating leverage vs. H2 2020 (margin stood at 6.5% with
sales of €3.3 billion)
Interiors (31% of Group
sales)
|
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
1,837 |
2,376 |
29.4% |
At constant scope and currencies |
|
|
|
31.9% |
Operating income |
|
|
(78) |
117 |
|
As % of sales |
|
|
-4.2% |
4.9% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Outperformance of 180bps in H1
2021(vs. worldwide automotive production growth of 30.1%, source:
IHS Markit July 2021), led by strong growth with Stellantis in all
regions
Operating income
- Operating margin of 4.9% in H1 2021
improved by 50bps vs. the 4.4% recorded in H2 2020 (restated for
IFRS 5)
Clean Mobility (26% of Group
sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
1,646 |
2,040 |
23.9% |
At constant scope and currencies |
|
|
|
29.4% |
Operating income |
|
|
10 |
198 |
|
As % of sales |
|
|
0.6% |
9.7% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Slight underperformance in H1
2021(vs. worldwide automotive production growth of 30.1%, source:
IHS Markit July 2021), mostly due to lower volume with Ford in the
US
Operating income
- Operating margin of 9.7% in H1
2021, a strong improvement of 100bps vs 8.7% recorded in H2 2020
(restated for IFRS 5)
Clarion Electronics (5% of
Group sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
331 |
400 |
20.9% |
At constant scope and currencies |
|
|
|
27.0% |
Operating income |
|
|
(9) |
(1) |
|
As % of sales |
|
|
-2.7% |
-0.2% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Sales organic growth of 27.0% in
H1 2021(vs. worldwide automotive production growth of 30.1%,
source: IHS Markit July 2021); this Business Group was the most
impacted by the shortage of semiconductors and priority was given
to serve OEMs at the expense of other more profitable sales
channels
Operating income
- Strong year-on-year reduction in
operating loss. Operating income should be back to profit in H2
2021, even if shortage of semiconductors remains a headwind
H1
2021 SALES AND
PROFITABILITY BY REGION
Europe (49% of Group sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
2,942 |
3,806 |
29.4% |
At constant scope and currencies |
|
|
|
29.6% |
Operating income |
|
|
(99) |
206 |
|
As % of sales |
|
|
-3.4% |
5.4% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Sales
outperformance of 120bps in H1 2021 (vs. European automotive
production growth of 28.4%, source: IHS Markit July 2021), mostly
reflected outperformance of Seating and Interiors
Operating
income
- Operating margin
of 5.4% in H1 2021, an improvement of 50bps vs. 4.9% recorded
in H2 2020 (restated for IFRS 5)
North America (23% of Group
sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
1,475 |
1,780 |
20.7% |
At constant scope and currencies |
|
|
|
30.8% |
Operating income |
|
|
(84) |
61 |
|
As % of sales |
|
|
-5.7% |
3.4% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Sales
underperformance in H1 2021 of 120bps (vs. North American
automotive production growth of 32.0%, source: IHS Markit July
2021), mostly impacted by lower sales volume with Ford
Operating income
- Operating margin
of 3.4% in H1 2021 (vs. 5.4% in H2 2020, restated for IFRS 5)
reflected the lack of compensation of downtimes at short
notice
Asia (24% of Group sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
1,470 |
1,857 |
26.3% |
At constant scope and currencies |
|
|
|
28.3% |
Operating income |
|
|
101 |
201 |
|
As % of sales |
|
|
6.9% |
10.8% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Sales in China
amounted €1.353 billion, up 32.3% on an organic basis, i.e. an
outperformance of 450bps (vs. Chinese automotive production growth
of 27.8%, source: IHS Markit July 2021), driven by Seating and
Clarion Electronics that more than doubled sales year-on-year in
the country
- Strengthened
customer base with Top-10 including 5 Chinese and 2 EV OEMs (one
Chinese and one US)
Operating income
- Strong
double-digit operating margin in H1 2021, at 10.8% of sales, up
70bps compared to H2 2020 (restated for IFRS 5)
South America &
Rest of the World (4% of Group sales)
in €m |
|
|
|
H1 2020* |
H1 2021 |
YoY change |
Sales |
|
|
|
198 |
340 |
71.9% |
At constant scope and currencies |
|
|
|
98.5% |
Operating income |
|
|
(18) |
42 |
|
As % of sales |
|
|
-9.1% |
12.3% |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
|
Sales
- Sales in South
America amounted to €247 million, up 94.0% on an organic basis,
strongly outperforming the market (vs. South American automotive
production growth of 61.5%, source: IHS Markit July 2021)
- Sales in the
Rest of the World amounted to €92 million
Operating income
- Operating income
stood at €42 million, of which €13 million came from PIS-Cofins tax
recovery in Brazil
OPERATING INCOME OF
€510 MILLION AND
6.6% OF SALES,
UP 820bps YEAR-ON-YEARNET INCOME
GROUP SHARE OF
€146
MILLION VS. A LOSS OF
€(433)
MILLION IN H1 2020
Group operating
income was a profit of
€510
million vs.
a loss of
€(100)
million in H1 2020 that
was heavily impacted by the
Covid crisis.
It represented 6.6% of
sales vs. -1.6% in H1 2020.
-
Amortization of intangible assets acquired in business
combinations: net charge of €45 million vs. a net charge
of €46 million in H1 2020.
-
Restructuring costs: net charge
of €46 million vs. a net charge of €89 million in H1 2020;
restructuring costs should not exceed 120 million euros in FY 2021
(vs. €285 million in FY 2020) and be back to a normalized level of
€80 to €100 million as from 2022.
- Other
non-recurring operating income
and expenses: net loss of €6 million vs. a net profit of
€16 million in H1 2020; mostly linked to spin off costs
- Net
financial result: net charge of €106 million, stable vs.
H1 2020.
- Income
tax: net charge of €82million vs. a net charge of €67
million in H1 2020.
- Share of
net income of associates: charge of €8 million vs. a
charge of €12 million in H1 2020; it included a negative
contribution from Symbio of €11 million (vs. €7 million in H1
2020).
Net income from
continued operations was a
profit of
€219
million vs. a
loss of
€(403)
million in H1
2020.
Net income from discontinued
operations (AST Acoustics and Soft Trim) was
a loss of
€(31)
million vs. a loss of
€(17)
million in H1 2020.
Consolidated net income was a profit of
€188 million vs.
a loss of
€(420)
million in H1 2020.
Minority interests amounted to €42 million vs.
€13 million in H1 2020.
Net income
(Group share) was a profit
of
€146
million vs. a
loss of
€(433)
million in H1
2020.
EBITDA MARGIN OF 14.2%, ABOVE H1 2019
PRE-COVID LEVEL
STRONG NET CASH
FLOW OF
€290
MILLION VS.
NEGATIVE CASH OF
€1 BILLION IN H1
2020
SIGNIFICANT DELEVERAGING
WITH NET-DEBT-TO-EBITDA
RATIO AT 1.5x
AS OF JUNE 30
INCREASED
LIQUIDITY OF
€4.5 BILLION AT JUNE 30
EBITDA stood at
€1,109
million, vs.
€513 million
in H1 2020, mostly reflecting the upswing in
operating income. EBITDA margin represented 14.2% of sales
vs. 8.4% in H1 2020, above pre-Covid level of 13.1% in H1 2019.
- Capital
expenditure was contained to an outflow of €214 million
broadly stable vs. an outflow of €226 million in H1 2020. In FY
2021, capital expenditure should be below €600 million.
- Capitalized
R&D was an outflow of €310 million vs. an outflow of
€302 million in H1 2020.
- Change in
working capital requirement was an inflow of €57 million
vs. an outflow of €673 million in H1 2020.
-
Factoring
of receivables stood at €991 million at June 30,
broadly stable vs. the end of 2020 and should remain at a capped
level of c. €1 billion at year-end
-
Restructuring represented an outflow of €74
million vs. an outflow of €54 million in H1 2020; this increased
reflected the cash impact of decisions taken in H2 2020. In FY
2021, the cash outflow from restructurings should not exceed €170
million.
- Net
financial expense was an outflow of €109
million vs. an outflow of €92 million in H1 2020.
- Income
tax was an outflow of €149 million vs. an outflow of €109
million in H1 2020.
- Other
operational items represented an outflow of €39 million
vs. an outflow of €14 million in H1 2020.
Net cash flow stood at
€290
million, vs.
€(1,026)
million in H1 2020 that
was heavily impacted by the Covid
crisis.
- Dividend paid (incl.
minorities) was an outflow of 160 million vs. a limited
outflow of €5 million in H1 2020; in H1 2021, it included the
resumption of dividend payment to Faurecia’s shareholders with €1
per share paid in June, while in H1 2020 it only reflected dividend
paid to minority interests as no dividend to shareholders was paid
due to the extraordinary context of the Covid crisis.
- Share purchase was
an outflow of €129 million vs. €1 million in H1 2020; it reflected
share purchases in order to cover the employee shareholding plan
“faur’Eso”, whose share delivery is planned on July 28. As a
consequence, the inflow of €100 million from employee contribution
to the plan will contribute only to H2 2021 statements.
- Net financial investments
and other cash elements was an outflow of €53 million vs.
an outflow of €369 million in H1 2020, which included the
investment (50%) in SAS.
- Impact from discontinued
operations (AST Acoustics and Soft Trim) was an outflow of
€26 million vs. an outflow of €19 million in H1 2020.
After a negative impact of
€93 million related to
IFRS16 (vs. a negative impact of €91 million in H1
2020), the Group’s net financial
debt stood at
€3,300
million as of
June 30, 2021 (vs. €4,034 million
as of June 30, 2020).
Average cost of long-term debt is below 2.8%
(excluding IFRS debt) and there is no major debt repayment before
2025.
Net-debt-to-EBITDA ratio
stood was reduced to
1.5x EBITDA
as of June
30, 2021 vs.
2.3x
as of June 30, 2020 and
1.9x as
of December 31,
2020.
As of
June 30, 2021,
liquidity was increased
to €4.5 billion, of which
available cash for €3.0 billion
and undrawn Syndicated Credit Facility (SCF) for
€1.5 billion.
This compares to €3.1 billion at June 30, 2020
(€2.5 billion available cash and €0.6 billion SCF) and €4.3 billion
at December 31, 2020 (€3.1 billion available cash and €1.2 billion
SCF).
UPGRADED FY 2021
GUIDANCE
Despite
continuing uncertainty in H2 related to
Covid-19 variant or shortage of semiconductors,
Faurecia confirms its FY 2021 sales and operating margin
targets and upgrades its FY 2021 net cash flow target to more than
€500m (vs. “c. €500m” previously):
- Sales
of at least €16.5 billion and sales
outperformance >
+600bps
- Operating
margin of c. 7% of
sales, close to pre-Covid levels
- Net cash
flow >
€500 million
(vs. c.500m previously) and net-debt-to-EBITDA
ratio < 1.5x at
year-end
The 2021 guidance assumes worldwide automotive
production of at least 39 million vehicles in H2 and no major
lockdown impacting production or retail sales in any automotive
region during the period.
All 2021 financial targets are based on full
year average currency rates of 1.21 for USD/€ and 7.80 for
CNY/€.
Even if shortage of semiconductors
should continue to weigh on the first
half of 2022, Faurecia remains confident that
worldwide automotive production should
rebound over the next years to meet
unsatisfied demand for vehicles and return to
pre-Covid production
levels.
In this context, Faurecia confirms its
2022 financial targets and 2025 ambition as presented at its recent
Capital Market Day in February
2021.
Faurecia's financial presentation and financial
report will be available at 8:30am today (Paris time) on the
Faurecia website: www.faurecia.com
A webcast will be held today at 9:00am (Paris
time). If you wish to follow the presentation using the webcast,
please access the following link:
https://www.sideup.fr/webcast-faurecia-h1-2021
A replay will be available as soon as
possible.You may also follow the presentation via conference
call:
- France: +33 (0)1
76 77 25 07
- United Kingdom:
+44 (0)330 336 9434
- United States: +1
323-994-2093
Confirmation code: 4378369
Financial
calendarOctober 26,
2021: Q3 2021 sales
(before market hours)
About FaureciaFounded in 1997,
Faurecia has grown to become a major player in the global
automotive industry. With 266 industrial sites, 39 R&D centers
and 114,500 employees in 35 countries, Faurecia is a global leader
in its four areas of business: Seating, Interiors, Clarion
Electronics and Clean Mobility. Faurecia has focused its technology
strategy on providing solutions for the “Cockpit of the Future” and
“Sustainable Mobility”. In 2020, the Group posted sales of €14.7
billion. Faurecia is listed on the Euronext Paris stock exchange.
For more information, please visit www.faurecia.com
Contacts PressEric
FOHLEN-WEILLHead of Corporate CommunicationsTel: +33 (0)1 72 36 72
58eric.fohlen-weill@faurecia.com |
|
|
|
Analysts/InvestorsMarc MAILLETHead of Investor
RelationsTel: +33 (0)1 72 36 75 70marc.maillet@faurecia.com |
Matthieu
FERNANDEZDeputy Head of Investor RelationsTel: +33 (0)6 22 02 11
54matthieu.fernandez@faurecia.com |
APPENDICES
Definitions of terms used in this
document
1. Sales growth
Faurecia’s year-on-year sales
evolution is made of three components:
- A “Currency
effect”, calculated by applying average currency rates for
the period to the sales of the prior year,
- A “Scope
effect” (acquisition/divestment),
- And “Growth
at constant currencies”.
As “Scope effect”, Faurecia presents all
acquisitions/divestments, whose sales on an annual basis amount to
more than €250 million.
Other acquisitions below this threshold are
considered as “bolt-on acquisitions” and are included in “Growth at
constant currencies”.
In 2020, there was no effect from “bolt-on
acquisitions”; as a result, “Growth at constant currencies” is
equivalent to sales growth at constant scope and currencies also
presented as organic growth.
2. Operating incomeOperating
income is the Faurecia group’s principal performance indicator. It
corresponds to net income of fully consolidated companies
before:
- Amortization of intangible assets
acquired in business combinations;
- Other non-recurring operating
income and expense, corresponding to material, unusual and
non-recurring items including reorganization expenses and early
retirement costs, the impact of exceptional events such as the
discontinuation of a business, the closure or sale of an industrial
site, disposals of non-operating buildings, impairment losses
recorded for property, plant and equipment or intangible assets, as
well as other material and unusual losses;
- Income on loans, cash investments
and marketable securities; Finance costs;
- Other financial income and expense,
which include the impact of discounting the pension benefit
obligation and the return on related plan assets, the ineffective
portion of interest rate and currency hedges, changes in value of
interest rate and currency instruments for which the hedging
relationship does not satisfy the criteria set forth in
relationship cannot be demonstrated under IFRS 9, and gains and
losses on sales of shares in subsidiaries;
- Taxes.
3. Net cash-flowNet cash-flow
is defined as follow: Net cash from (used in) operating and
investing activities less (acquisitions)/disposal of equity
interests and businesses (net of cash and cash equivalents), other
changes and proceeds from disposal of financial assets. Repayment
of IFRS 16 debt is not included.
4. Net financial debtNet
financial debt is defined as follow: Gross financial debt less cash
and cash equivalents and derivatives classified under non-current
and current assets. It includes the lease liabilities (IFRS 16
debt).
IFRS 5 – Discontinued
Operations
On February 18, Faurecia announced that it had
signed a Memorandum of Understanding for the sale of its AST
(Acoustics and Soft Trim) division and all conditions are met to
qualify this activity as discontinued, in compliance with IFRS
5.
Therefore, Group figures in 2021 exclude the AST
sales and previous periods are restated and presented
accordingly.
This restatement impacts only:
- Interiors, as
regards Business Groups,
- Europe, as regards
regions.
in €m |
|
Q1 2020 |
Q2 2020 |
H1 2020 |
Q3 2020 |
Q4 2020 |
|
H2 2020 |
FY 2020 |
Sales |
|
|
|
|
|
|
|
|
|
as previously released |
3,739 |
2,431 |
6,170 |
3,874 |
4,610 |
|
8,484 |
14,654 |
restated for IFRS5 |
3,678 |
2,406 |
6,084 |
3,823 |
4,538 |
|
8,361 |
14,445 |
Operating income |
|
|
|
|
|
|
|
|
as previously released |
|
|
(114) |
|
|
|
520 |
406 |
restated for IFRS5 |
|
|
(100) |
|
|
|
518 |
418 |
Operating leverage
calculation
YEAR-ON-YEAR OPERATING LEVERAGE
(H1 2021 vs. H1 2020) |
Sales €m |
|
|
Operating income €m |
|
|
H1 2020 restated IFRS
5 |
6,084 |
|
H1 2020 before one-offs |
(80) |
(3) |
Currency effect |
(296) |
(1) |
One-offs |
|
(20) |
|
Scope effect |
60 |
|
H1 2020 restated IFRS
5 |
(100) |
|
Organic |
|
1,934 |
(2) |
Volume impact |
456 |
|
H1 2021 |
|
7,783 |
|
Raw materials impact |
(25) |
|
|
|
|
|
Resilience actions |
177 |
|
|
|
|
|
Scope & other |
3 |
(4) |
|
|
|
|
H1 2021 before one-offs |
511 |
(5) |
|
|
|
|
Employee Shareholding Plan |
|
(14) |
|
|
|
|
|
Tax recovery in Brazil |
|
13 |
|
|
|
|
|
H1 2021 |
|
510 |
|
|
|
|
|
|
|
|
|
Operating leverage
(5-3-4)/(1+2) |
|
|
|
36% |
|
Increase in operating income excluding Scope & other and
one-offs |
588 |
|
Increase in sales excluding scope effect |
1,639 |
|
Profit and Loss Statement
in €m |
H1 2020* |
H1 2021 |
Change |
Sales |
6,084 |
7,783 |
+27.9% |
Organic Growth (%) |
|
|
+31.8% |
Operating income (before amort. of
acquired intangible assets) |
(100) |
510 |
609 |
Amort. of int. assets acquired in business combinations |
(46) |
(45) |
|
Operating income (after amort. of acquired
intangible assets) |
(145) |
465 |
|
Restructuring |
(89) |
(46) |
|
Other non-recurring operating income and expense |
16 |
(6) |
|
Net interest expense & Other financial income and expense |
(106) |
(106) |
|
Income before tax of fully consolidated
companies |
(324) |
308 |
|
Income taxes |
(67) |
(82) |
|
as % of pre-tax income |
n/a |
-27% |
|
Net income of fully consolidated companies |
(391) |
226 |
617 |
Share of net income of associates |
(12) |
(8) |
|
Net income from continued operations |
(403) |
219 |
|
Net income from discontinued operations |
(17) |
(31) |
|
Consolidated net income before minority
interest |
(420)(13) |
188(42) |
|
Minority interest |
Consolidated net income, Group share |
(433) |
146 |
578 |
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
Cash Flow Statement
in €m |
H1 2020* |
H1 2021 |
Change |
Operating income |
(100) |
510 |
610 |
Depreciation and amortization, of which: |
613 |
599 |
|
- Amortization of R&D intangible assets |
247 |
228 |
|
- Other depreciation and amortization |
366 |
371 |
|
EBITDA |
513 |
1,109 |
596 |
% of sales |
8.4% |
14.2% |
|
Capex |
(226) |
(214) |
|
Capitalized R&D |
(302) |
(310) |
|
Change in WCR |
(673) |
57 |
|
Change in factoring |
(69) |
19 |
|
Restructuring |
(54) |
(74) |
|
Financial expenses |
(92) |
(109) |
|
Taxes |
(109) |
(149) |
|
Other (operational) |
(14) |
(39) |
|
Net cash flow |
(1,026) |
290 |
1,316 |
Dividends paid (incl. mino.) |
(5) |
(160) |
|
Share purchase |
0 |
(129) |
|
Net financial investment & Other |
(369) |
(53) |
|
Discontinued operations |
(19) |
(26) |
|
IFRS16 impact |
(91) |
(93) |
|
Change in net debt |
(1,510) |
(172) |
|
Net debt at the beginning of the period |
(2,524) |
(3,128) |
|
Net debt at the end of the period |
(4,034) |
(3,300) |
|
Net-debt-to-EBITDA ratio |
2.3x |
1.5x |
|
*H1 2020 restated for IFRS 5 (see in appendix) |
|
|
|
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