FORVIA Faurecia’s FY 2022 results
Nanterre (France), February 20, 2023
OUR ACHIEVEMENTS: GROWTH, RESILIENCE,
CASH GENERATION & DELEVERAGING
- GROWTH: SALES OF €25.5BN, +63% ON A REPORTED BASIS AND
+17% ON AN ORGANIC BASIS
- RESILIENCE: OPERATING MARGIN OF 5.0% IN H2 2022
AND 4.4% IN FY 2022
- CASH GENERATION: STRONG NET CASH FLOW OF
€471M
- DELEVERAGING: NET DEBT/ADJ. EBITDA RATIO AT 2.6x AT
YEAR-END VS. 3.1x AT JUNE 30
OUR PRIORITIES: DELEVERAGING, INTEGRATION
& SUSTAINABLE GROWTH
- DELEVERAGING: €1BN DISPOSAL PROGRAM FULFILLED THROUGH
CONTEMPLATED TRANASCTIONS ANNOUNCED TO DATE
- INTEGRATION OF HELLA: COST SYNERGIES UPGRADED TO >
€300M AND SALES SYNERGIES UPGRADED TO > €400M, SUPPORTED BY 2022
STRONG JOINT ORDER INTAKE OF €1.8BN
- SUSTAINABLE PROFITABLE GROWTH: STRONG 2022 ORDER INTAKE
OF €31BN AT AN AVERAGE MARGIN ABOVE 7%, SUPPORTING MEDIUM-TERM
PROFITABLE GROWTH TARGETS
in €m |
FY 2021(Faurecia
“stand-alone”) |
FY 2022(incl. 11 months of
HELLA) |
YoYchange |
Worldwide automotive production* |
77,197 |
82,375 |
+6.7% |
SalesAt constant scope & currencies |
15,618 |
25,458 |
+63.0%+17.0% |
Operating incomeAs % of sales |
8625.5% |
1,1154.4% |
+29.4% |
Adjusted EBITDAAs % of sales |
2,10913.5% |
3,01211.8% |
+42.8% |
Net cash flowAs % of sales |
3052.0% |
4711.9% |
+54.6% |
* in 000 units, source: S&P Global Mobility (ex-IHS Markit)
dated February 2023
FY 2023 GUIDANCE
Based on the following
assumptions:
- Worldwide automotive production of 82 million vehicles in 2023,
broadly flat vs. actual production in 2022,
- Average currency rates of USD/€ @ 1.10 and CNY/€ @ 7.50
FORVIA’s full-year 2023 guidance is as
follows:
- Sales between €25.2bn and €26.2bn (incl. an
estimated impact of €(1.3)bn from disposal transactions announced
to date)
- Operating margin between 5% and 6% of
sales
- Net cash flow exceeding 1.5% of sales
- Net debt/Adj. EBITDA ratio between 2.0x and 2.4x at
December 31, 2023, including the effect of the disposal program of
€1bn by end-2023
Patrick KOLLER, CEO of
Faurecia, declared:
“2022 has been a
historic year for the Group as we closed the acquisition of a
majority stake in HELLA to create FORVIA, the world’s 7th biggest
automotive technology player, combining the complementary offers
and strengths of the two companies.
2022, which was
initially expected to be a year of recovery from the Covid crisis,
turned out to be a year of continued semiconductor shortages and
supply chain issues heightened by the outbreak of the war in
Ukraine. The year was characterized by additional challenges, with
high inflation, a surge in energy prices, rising interest rates and
our disengagement from Russia.
In this uncertain
environment, FORVIA’s 2022 performance reflects the new size of the
Group, with consolidated sales above 25 billion euros, a resilient
operating margin that reached 5% of sales in the second half of the
year and a strong generation of net cash flow at 471 million
euros.
We have fully
refinanced the bridge-to-loan and bridge-to-equity to acquire
HELLA.
The disposals we have
announced to date fulfill our 1 billion euro divestment program of
non-strategic assets.
The significant
progress made in the integration of HELLA allows us to raise both
the cost and sales synergy targets.
With our assumption
that 2023 volumes will be at a similar level to 2022, we target to
improve our financial performance in 2023.
I would like to thank
all the Faurecia and HELLA teams for their commitment to the
creation of FORVIA, succeeding in a tough environment to deliver
resilient financial performance and to creating the conditions for
future success and profitable growth, comforted by the solid order
intake of 31 billion euros recorded last year.”
- The 2022 consolidated financial statements have been
approved by the Board of Directors, under the chairmanship of
Michel de ROSEN, at its meeting held on February 17,
2023.
- These financial statements have been
audited.
- There is no full comparability between figures reported
for 2021 and figures reported for 2022 as:
- Figures reported for 2021 are figures related to
Faurecia “stand-alone” as reported in February 2022,
- Figures reported for 2022 include a major scope effect,
i.e. the consolidation of HELLA since February 1, 2022 (i.e. 11
months in 2022, representing 26% of total Group
sales).
KEY ACHIEVEMENTS SINCE THE
START OF 2022
- 2022: FROM FAURECIA TO FORVIA, COMBINING FAURECIA’S AND
HELLA’S STRENGTHS AND CREATING FORVIA, THE WORLD’S 7th BIGGEST
AUTOMOTIVE TECHNOLOGY SUPPLIER, WITH SALES OF C. €30BN IN
2025
On January 31, 2022, Faurecia
closed the acquisition of a majority stake of 82% in HELLA. HELLA
has been consolidated in Faurecia’s accounts since February 1,
2022.
The newly combined FORVIA Group’s mission is:
“WE PIONEER TECHNOLOGY FOR MOBILITY EXPERIENCES THAT MATTER
TO PEOPLE”.
On November 3, 2022, Faurecia
and HELLA held their first joint Capital Markets Day in Paris,
during which FORVIA unveiled its Power25
medium-term plan to drive profitable growth, enhance cash
generation and accelerate Group deleveraging (all details available
on www.forvia.com).
FORVIA’s Power25 plan is focused on three key
strategic priorities:
- Drive sales growth through innovation and
sustainability,
- Enhance profitability and lower
breakeven,
- Generate strong cash conversion and actively manage
portfolio to accelerate Group deleveraging.
These ambitions are translated into the
following 2025 financial objectives (based on an assumption of
worldwide automotive production of 88 million units in 2025 and
after the estimated effect of the €1bn disposal program by
end-2023):
- 2025 sales of c. €30 billion,
- 2025 operating margin > 7% of sales,
- 2025 net cash flow at 4% of sales,
- Net-debt-to-adjusted-EBITDA < 1.5x at December 31,
2025
In January 2023, FORVIA
presented at CES 2023 in Las Vegas its combined portfolio of
Faurecia and HELLA technologies addressing megatrends in
electrification, automated driving, and personalized cockpits. The
world's first Solid State Lighting High-Definition headlamp (SSL |
HD) presented by the Group received a CES 2023 Innovation
Award.
As from 2023, Faurecia and
HELLA’s fiscal years are aligned on the calendar year.
Significant progress achieved in the
integration process of HELLA: cost synergies upgraded to more than
€300 million 2025 EBITDA run-rate (vs. > €250 million
previously) and sales synergies upgraded to more than €400 million
in 2025 (vs. between €300 million and €400 million previously),
supported by strong 2022 joint order intake for €1.8
billion
Since the effective entry of HELLA into the
Group’s consolidation scope, the two companies, under the
leadership of their respective management teams, have accelerated
collaboration and achieved significant progress in generating
synergies.
As regards cost synergies, over 200 individual
synergy measures have been validated by Faurecia’s and HELLA’s
teams. They can be broken down into more than 1,000 detailed
actions, with robust tracking and governance.
As a result, cost synergies and optimization
have been upgraded to more than €300 million 2025 EBITDA run-rate
(vs. more than €250 million previously).
Concerning sales synergies, Faurecia’s and
HELLA’s joined forces succeeded in generating a strong order intake
of €1.8 billion in 2022, demonstrating the potential for combined
commercial offers and opportunities in the coming years, notably
capitalizing on CES 2023 successes. The 2022 joint order intake of
€1.8 billion already represents more than €300 million of 2025
sales synergies or more than €400 million 2026 run-rate.
Sales synergies are now upgraded to more than
€400 million by 2025 (vs. between €300 million and €400 million
previously).
- SOLID ORDER INTAKE OF €31BN IN FY 2022 SUPPORTS
MEDIUM-TERM PROFITABLE GROWTH DRIVERS
In 2022, FORVIA (Faurecia + HELLA) recorded a
solid order intake of €31 billion, with an average operating margin
above 7%, already reaching the Power25 plan’s targeted
profitability.
New 2022 awards reflect FORVIA’s strategy to
focus on key activities; they included:
- €8.4 billion for Electronics, representing 27%
of the Group’s total order intake and demonstrating the strong
potential of Electronics,
- €13.3 billion for Electric Vehicles (BEVs and
FCEVs), representing 43% of the Group’s total order intake
and demonstrating acceleration on the Zero Emissions strategy,
- €6.2 billion for China, representing 20% of
the Group’s total order intake and reflecting the continued strong
growth of this highly profitable market,
- €18.8 billion for Premium Vehicles and SUVs,
representing 61% of the Group’s total order intake and reflecting
the Group’s strong positioning on segments with the highest content
per vehicle.
- REFINANCING OF THE ACQUISITION OF HELLA
COMPLETED
The acquisition of an 82% stake in HELLA
represented a total investment of €5.4 billion.
The financing was fully secured through a
committed bridge facility of €5.5bn, signed in August 2021. This
bridge facility included a bridge-to-equity component, whose
deadline was mid-February 2023, and a bridge-to-loan, whose
deadline was mid-August 2023.
The refinancing has been entirely
completed, although markets conditions have proven more
difficult since the outbreak of the war in Ukraine and the start of
a period of strong inflation.
Out of the total investment of €5.4 billion:
- €0.5 billion was paid in shares through a Faurecia capital
increase reserved to the Hueck/Roepke Family pool (now holding
9.22% of Faurecia’s share capital),
- €0.7 billion was financed through a capital increase with
preferential subscription rights issued in June 2022 (45,482,154
new shares at a subscription price of €15.50).
The rest was financed through debt issuances and
use of cash for a total amount of €4.2 billion.
Total HELLA-related average cost of financing
for this amount of €4.2billion is estimated at
c.
4.5% (estimation based on Euribor 1 month at 2.50%).
- €1BN DISPOSAL PROGRAM OF NON-STRATEGIC ASSETS BY
END-2023 FULFILLED THROUGH CONTEMPLATED TRANSACTIONS ANNOUNCED TO
DATE
With yesterday’s announcement that the Motherson
group has committed to acquire Faurecia’s SAS Cockpit Modules
division, contemplated transactions announced to date fulfill
FORVIA’s €1 billion disposal program of non-strategic assets by
end-2023, designed to accelerate deleveraging after the HELLA
acquisition.
In July 2022:
- HELLA announced the sale of its 33.33% stake in HBPO to its
co-shareholder, Plastic Omnium, for a price of c. €290 million and
the transaction was closed, as expected, in December 2022.
In December 2022:
- Faurecia announced the sale of its Interiors business in India
to TAFE (Tractors and Farm Equipment Ltd),
- Faurecia, Michelin (its 50/50 partner in Symbio) and Stellantis
announced they were in exclusive negotiations for Stellantis to
acquire a substantial stake in Symbio, a leader in zero emission
hydrogen mobility. The closing of the transaction is expected to
occur in H1 2023 and is subject to customary closing conditions,
including regulatory approvals.
In February 2023:
- Faurecia and Cummins announced they are in exclusive
negotiations for the potential sale to Cummins of Faurecia’s
commercial vehicle exhaust aftertreatment business in Europe and
the United States for an enterprise value of €150 million.
- Faurecia announced yesterday that the Motherson group has
committed to acquire its SAS Cockpit Modules division (assembly and
logistics services), reported as part of its Interiors Segment, for
an enterprise value of €540 million.
- DISENGAGEMENT FROM RUSSIA
Faurecia has decided to disengage from Russia
and completed depreciation of related assets at the end of
2022.
H2 2022 & FY 2022 GROUP
SALES & PROFITABILITY
CONTINUED STRONG SALES OUTPERFORMANCE IN H2, INCLUDING
POSITIVE EFFECT FROM INFLATION PASS-THROUGH
IMPROVING OPERATING MARGIN OF 5.0% IN H2, UP 50BPS
YEAR-ON-YEAR AND UP 130BPS SEQUENTIALLY VS. H1 2022
GROUP (in €m) |
|
H2 2021 |
Currency |
Organic growth |
Scope effect |
H2 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
6 months) |
|
|
Worldwide auto. production (m units) |
37 786 |
|
|
|
43 395 |
14,8% |
Sales |
|
|
7 835 |
319 |
1 957 |
3 724 |
13 835 |
76,6% |
|
|
% of last year's sales |
|
4,1% |
25,0% |
47,5% |
|
|
|
|
outperformance (bps) |
|
|
1 020 |
|
|
|
Operating income |
|
352 |
|
|
|
689 |
95,7% |
|
% of sales |
|
4,5% |
|
|
|
5,0% |
+50bps |
In H2 2022:
- Sales amounted to €13,835 million, up 76.6% on a
reported basis and up 25.0% on an organic basis
- Currency effect of +4.1%, almost equivalent to that registered
in H1 2022 (mainly US dollar and Chinese yuan)
- Scope effect of +47.5% (or €3,724 million) related to the
consolidation of HELLA over the entire period
- Organic growth of +25.0% to be compared with 14.8% growth in
worldwide automotive production over the same period, i.e. an
outperformance of 1,020bps. This outperformance
included a very limited negative impact from geographic mix of c.
50bps and a positive impact of c. 620bps related to inflation
pass-through to customers during the period
- Operating margin stood at 5.0% of sales, up 50bps
year-on-year and up 130bps sequentially vs. H1 2022
- The sequential improvement of 130bps vs. H1 2022 mainly
reflected fewer supply chain disruptions, no Covid restrictions in
China in H2, reduced extra costs from the Seating program in
Michigan and improved efficiency of inflation pass-through to
customers
- Inflation pass-through to customers, which corresponds to sales
at zero margin, had a cumulated dilutive impact on operating margin
of c. 140bps in H2
STRONG SALES OUTPERFORMANCE IN FY 2022, INCLUDING
POSITIVE EFFECT FROM INFLATION PASS-THROUGH
RESILIENT OPERATING MARGIN OF 4.4% IN FY 2022, OR 5.6%
EXCLUDING A 120BPS DILUTIVE EFFECT FROM INFLATION
PASS-THROUGH (SALES AT ZERO MARGIN)
GROUP (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
15 618 |
674 |
2 654 |
6 512 |
25 458 |
63,0% |
|
|
% of last year's sales |
|
4,3% |
17,0% |
41,7% |
|
|
|
|
outperformance (bps) |
|
|
1 030 |
|
|
|
Operating income |
|
862 |
|
|
|
1 115 |
29,4% |
|
% of sales |
|
5,5% |
|
|
|
4,4% |
-110bps |
In FY 2022:
- Sales amounted to €25,458 million, up 63.0% on a
reported basis and up 17.0% on an organic basis
- Currency effect of +4.3%, mainly the US dollar and the Chinese
yuan vs. the euro
- Scope effect of +41.7% (or €6,512million) related to the
consolidation of HELLA over 11 months (since February 1, 2022)
- Organic growth of +17.0% to be compared with a 6.7% growth in
worldwide automotive production over the same period, i.e. an
outperformance of 1,030bps. This outperformance
included a negative impact from geographic mix of c. 200bps and a
positive impact of c. 540bps related to inflation pass-through to
customers during the period
- Operating margin stood at 4.4% of sales, down 110bps
year-on-year
- The full-year drop of 110bps in operating margin year-on-year
reflected the low level of operating margin in H1 (3.7% vs. 6.6% in
H1 2021) that was severely hit by the outbreak of the war in
Ukraine and its multiple consequences (supply chain disruptions,
raw materials and energy inflation…) and by Covid restrictions in
China, in addition to continued shortage of semiconductors and
still significant extra costs from the Seating program in
Michigan
- Inflation pass-through to customers, which corresponds to sales
at zero margin, had a cumulated dilutive impact on operating margin
of c. 120bps in the full year
In FY 2022, inflation generated more than €1 billion of
additional costs vs. 2021 for FORVIA operations (Faurecia + HELLA)
and pass-through to customers generated additional sales of close
to €1 billion through contractual mechanisms in place and specific
negotiations and claims to customers, i.e. a pass-through that
exceeded 85%.
FY 2022 SALES AND PROFITABILITY BY BUSINESS
GROUP
SEATING (30% of Group consolidated sales)
SEATING (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
6 049 |
331 |
1 324 |
|
7 704 |
27,4% |
|
|
% of last year's sales |
|
5,5% |
21,9% |
|
|
|
|
|
outperformance (bps) |
|
|
1 520 |
|
|
|
Operating income |
|
285 |
|
|
|
197 |
-30,8% |
|
% of sales |
|
4,7% |
|
|
|
2,6% |
-210bps |
Sales
Strong organic growth of +29.9% in H2, resulting
in +21.9% in FY. All regions contributed to the full-year organic
growth: China and North America grew in strong double-digits, while
Europe grew in high single-digits. North America was driven by
Stellantis (as the Michigan program only got underway in H2 2021)
and China was driven by very strong growth from Chinese OEMs
(mostly BYD) and a US EV carmaker present in China.
Operating income
Operating income in H2 recovered to 3.2% of
sales from 1.8% of sales in H1, resulting in full-year operating
margin of 2.6% of sales, down 210bps year-on-year. The sequential
improvement in H2 reflected continued reduction in extra costs
related to the Michigan plant (€35 million in H2 2022 after €45
million in H1 2022 and €100 million in H2 2021). Excluding these
extra costs, operating margin in 2022 stood at 4.0% of sales in H2
and 3.6% of sales in FY.
INTERIORS (22% of Group consolidated sales)
INTERIORS (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
4 641 |
110 |
779 |
|
5 529 |
19,2% |
|
|
% of last year's sales |
|
2,4% |
16,8% |
|
|
|
|
|
outperformance (bps) |
|
|
1 010 |
|
|
|
Operating income |
|
190 |
|
|
|
246 |
29,4% |
|
% of sales |
|
4,1% |
|
|
|
4,4% |
+30bps |
Sales
Strong organic growth of +29.1% in H2, resulting
in +16.8% in FY. Organic growth was mainly driven by Europe and
North America, which both grew in double-digits. North America
reflected growth with GM, Ford, a US EV carmaker and new entrants,
while Europe reflected strong growth with Ford and BMW.
Operating income
Operating income in H2 improved to 5.2% of sales
from 3.6% of sales in H1. In the full-year, operating income was
4.4% of sales, up 30bps vs. FY 2021. This year-on-year improvement
mainly reflected better fixed cost absorption through higher sales
volume and positive effect from repricing in North America.
CLEAN MOBILITY (19% of Group consolidated
sales)
CLEAN MOBILITY (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
4 091 |
199 |
446 |
|
4 736 |
15,8% |
|
|
% of last year's sales |
|
4,9% |
10,9% |
|
|
|
|
|
outperformance (bps) |
|
|
420 |
|
|
|
Operating income |
|
389 |
|
|
|
336 |
-13,5% |
|
% of sales |
|
9,5% |
|
|
|
7,1% |
-240bps |
Sales
Organic growth of +15.1% in H2, resulting in
+10.9% in FY. Organic growth was mainly driven by Europe and North
America and, to a lesser extent, South America. In the three
regions, sales grew organically in double-digits. In Europe,
organic growth was driven by Ford and sales related to commercial
vehicles, while in North America it was also Ford and commercial
vehicles, as well as GM. In South America, increase in sales
to GM was the main driver for sustained organic growth.
Operating income
Operating income in H2 improved to 7.5% of sales
after 6.6% of sales in H1, resulting in 7.1% of sales in FY, down
240bps vs. FY 2021. This year-on-year deterioration mainly
reflected dilutive impact from inflation pass-through for c.
100bps, some operational extra costs for c. 40bps and the
development of zero-emissions sales, which are not yet profitable,
for another 60bps.
ELECTRONICS (14% of Group consolidated
sales)
ELECTRONICS (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
838 |
34 |
105 |
2 545 |
3 522 |
320,5% |
|
|
% of last year's sales |
|
4,1% |
12,5% |
303,9% |
|
|
|
|
outperformance (bps) |
|
|
580 |
|
|
|
Operating income |
|
-2 |
|
|
|
141 |
n/s |
|
% of sales |
|
-0,2% |
|
|
|
4,0% |
n/s |
Sales
Step change in size (sales multiplied by more
than 4x between 2021 and 2022) as Electronics now aggregates the
Electronics activity of Faurecia (€977 million vs. €838 million in
2021) and the Electronics activity of HELLA (€2,545 million of
scope effect for 11 months in 2022). Organic growth (only related
to Faurecia’s Electronics activity) stood at 12.5% with
double-digit growth in all regions.
Operating income
Operating income stood at 4.0% of sales in FY,
or €141 million. This included an operating loss of €10 million
related to Faurecia’s Electronics activity and a negative
accounting impact of €19 million linked to asset revaluations in
the context of HELLA’s opening balance-sheet exercise.
Restated for this last accounting item,
operating income was €160 million, representing 4.5% of total
Electronics sales, of which:
- A loss of 1.0% of sales from Faurecia’s Electronics activity
(but at breakeven in H2 2022),
- A profit of 6.7% of sales from HELLA’s Electronics
activity.
LIGHTING (12% of Group consolidated sales)
LIGHTING (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
|
|
|
3 074 |
3 074 |
|
|
|
% of last year's sales |
|
|
|
|
|
|
|
|
outperformance (bps) |
|
|
|
|
|
|
Operating income |
|
|
|
|
|
107 |
|
|
% of sales |
|
|
|
|
|
3,5% |
|
Sales
This activity is consolidated for the first year
in Faurecia’s consolidated accounts. Sales for 11 months amounted
to €3,074 million.
Operating income
Operating income stood at 3.5% of sales in FY.
Operating income of €107 million included a positive accounting
impact of €40 million linked to asset revaluations in the context
of HELLA’s opening balance-sheet exercise.
Restated for this accounting item, operating
income was €67 million, representing 2.2% of Lighting sales.
LIFECYCLE SOLUTIONS (3% of Group consolidated
sales)
LIFECYCLE SOLUTIONS (in €m) |
|
FY 2021 |
Currency |
Organic growth |
Scope effect |
FY 2022 |
Reported |
|
|
|
(Faurecia |
effect |
(Faurecia |
(HELLA |
FORVIA |
change |
|
|
|
stand-alone) |
|
stand-alone) |
11 months) |
|
|
Worldwide auto. production (m units) |
77 197 |
|
|
|
82 375 |
6,7% |
Sales |
|
|
|
|
|
893 |
893 |
|
|
|
% of last year's sales |
|
|
|
|
|
|
|
|
outperformance (bps) |
|
|
|
|
|
|
Operating income |
|
|
|
|
|
89 |
|
|
% of sales |
|
|
|
|
|
9,9% |
|
Sales
This activity is consolidated for the first year
in Faurecia’s consolidated accounts. Sales for 11 months amounted
to €893 million.
Operating income
Operating income stood at 9.9% of sales in FY.
The operating income of €89 million included a negative accounting
impact of €2 million linked to asset revaluations in the context of
HELLA’s opening balance-sheet exercise. Restated for this
accounting item, operating income was €91 million, representing
10.2% of Lifecycle Solutions sales.
FY 2022 SALES &
PROFITABILITY BY REGION
|
Europe |
North Am. |
South Am. |
Americas |
Asia |
% of 2022
consolidated sales |
44% |
25% |
3% |
28% |
27% |
Regional auto. prod. YoY* |
-0,5% |
9,7% |
8,4% |
9,4% |
8,2% |
2021 sales (€m) |
6 996 |
3 725 |
543 |
4 268 |
4 167 |
Currency
effect |
-2,4% |
14,8% |
-1,9% |
12,7% |
7,2% |
YoY organic |
10,1% |
20,7% |
34,3% |
22,4% |
21,6% |
Scope effect |
52,0% |
36,6% |
4,1% |
32,4% |
34,3% |
2022 sales (€m) |
11 165 |
6 410 |
741 |
7 151 |
6 795 |
YoY reported |
59,6% |
72,1% |
36,4% |
67,6% |
63,1% |
2021
operating income (€m) |
292 |
49 |
44 |
92 |
458 |
% of sales |
4,2% |
1,3% |
7,9% |
2,2% |
11,0% |
2022 operating income (€m) |
180 |
142 |
51 |
193 |
723 |
% of sales |
1,6% |
2,2% |
6,9% |
2,7% |
10,6% |
* Regional automotive production 2022 vs. 2021, source: S&P
Global Mobility (ex-IHS Markit) dated February 2023
Sales
All regions reported double-digit sales outperformance vs.
regional automotive performance.
Operating income
- In Europe (44% of Group sales), operating
margin dropped by 260bps, mainly due to the consequences of the war
in Ukraine.
- In North America (25% of Group sales),
operating margin increased by 90bps to 2.2% (extra costs from the
Michigan plant decreased every half from €100m in H2 2021 to €45m
in H1 2022 and €35m in H2 2022).
- In Asia (27% of Group sales), operating margin
stood above 10%.
2022 CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
in €m |
2021 |
2022 |
Sales |
15 618 |
25 458 |
Reported
growth |
|
+63.0% |
Organic growth |
|
+17.0% |
Operating income (before amort. of
acquired intangible assets) |
862 |
1 115 |
Amort. of int.
assets acquired in business combinations |
(93) |
(219) |
Operating income (after amort. of acquired
intangible assets) |
769 |
896 |
Restructuring |
(196) |
(352) |
Other
non-recurring operating income and expense |
(42) |
(97) |
Net interest
expense & Other financial income and expense |
(254) |
(523) |
Income before tax of fully consolidated
companies |
276 |
(75) |
Income taxes |
(139) |
(186) |
Net income of fully consolidated companies |
137 |
(262) |
Share of net income of associates |
(25) |
11 |
Net
income from continued operations |
113 |
(250) |
Net
income from discontinued operations |
(96) |
|
Consolidated net income before minority
interest |
16 |
(250) |
Minority interest |
(95) |
(131) |
Consolidated net income, Group share |
(79) |
(382) |
Reminder: 2021 figures are Faurecia “stand-alone” figures while
2022 figures include the impact of the consolidation of HELLA since
February 1, 2022 (11 months) as well as the cost of financing the
acquisition.
Group operating income stood at €1,115 million (4.4% of
sales) vs. €862 million in 2021 (5.5% of sales).
- Amortization of intangible assets acquired in business
combinations: net charge of €219 million, including a
charge of €131 for the amortization of the goodwill related to the
acquisition of HELLA since February 1, 2022 (11 months), vs. €93
million in 2021.
- Restructuring expenses of €352 million, vs.
€196 million in 2021; 2022 restructuring expenses included €208
million of restructuring costs (vs. €138 million in 2021) and €144
million of asset write-downs (vs. €59 million in 2021), of which
the main part was related to Russia for €104 million.
- Other non-recurring operating income and
expense was a net charge of €97 million (vs. a net charge
of €42 million in 2021); 2022 net charge included €43 million of
non-recurring costs related to the acquisition of HELLA and €27
million of non-recurring costs related to operations in
Russia.
- Net financial charge of €523 million (vs. a
net charge of €254 million in 2021) included financial costs for
€385 million (vs. €239 million in 2021) and other financial
expenses for €189 million (vs. €47 million in 2021) that included a
charge of €41 million for hyperinflation, a charge of €43 million
related to currencies and a charge of €34 million for costs related
to the acquisition of HELLA.
Income before tax of fully consolidated
companies was an operating loss of €75 million (vs. an operating
profit of €276 million in 2021); it included €130 million from
costs related to the ecision to disengage from Russia and €195
million from integration and integration and financial costs
related to the acquisition of HELLA.
- Income tax was a charge of €186 million in 2022 (vs. a
charge of €139 million in 2021) that mainly reflected an
unfavorable geographic mix as most of the 2022 profit was recorded
in Asia.
- Share of net income from associates was a profit of €11
million (vs. a loss of €25 million in 2021).
- Net income of discontinued operations in 2021 was a loss of €96
million in 2021, due to the divestment of AST.
- Minority interest (including the c. 18% minority
interest in HELLA) amounted to €131 million (vs. €95
million in 2021).
Net income, Group share was a loss of
€382 million (vs. a loss of €79 million in 2021), mainly impacted
by:
- One-off charges (mainly asset impairment) of €143 million
related to the decision to disengage from Russia,
- Integration costs related to the acquisition of HELLA for €51
million,
- One-off restructurings of €86 million,
- Hyperinflation costs for €41 million.
2022 CONSOLIDATED CASH FLOW
STATEMENT
in €m |
2021 |
H1 2022 |
2022 |
Operating
income |
862 |
426 |
1 115 |
Depreciation and
amortization, of which: |
1 247 |
895 |
1 897 |
- Amortization of
R&D intangible assets |
487 |
320 |
687 |
- Other
depreciation and amortization |
760 |
575 |
1 210 |
Adj. EBITDA |
2 109 |
1 321 |
3 012 |
% of sales |
13,5% |
11,4% |
11,8% |
Capex |
-530 |
-523 |
-1 177 |
Capitalized
R&D |
-670 |
-470 |
-966 |
Change in
WCR |
-19 |
22 |
374 |
Change in
factoring |
72 |
234 |
183 |
Restructuring |
-175 |
-93 |
-184 |
Financial
expenses |
-230 |
-182 |
-373 |
Taxes |
-243 |
-220 |
-384 |
Other
(operational) |
-10 |
13 |
-14 |
Net cash flow |
305 |
102 |
471 |
Dividends paid
incl. mino. |
-201 |
-5 |
-55 |
Share
purchase |
-26 |
|
|
Net financial
investment & Other |
-126 |
-4 863 |
-4 539 |
Discontinued
operations |
-49 |
|
|
IFRS16 impact |
-241 |
-162 |
-349 |
Change in net debt |
-339 |
-4 928 |
-4 472 |
Net debt at the
beginning of the period |
-3 128 |
-3 467 |
-3 467 |
Net debt at the
end of the period |
-3 467 |
-8 394 |
-7 939 |
Net-debt-to-Adj. EBITDA ratio |
1.6x |
3.1x |
2.6x |
Reminder: 2021 figures are Faurecia
“stand-alone” figures while 2022 figures include the impact of the
consolidation of HELLA since February 1, 2022 (11 months) as well
as the cost of financing the acquisition.
Net debt / Adjusted EBITDA ratio is Net
financial debt at the end of each period vs. Adjusted EBITDA over
the last 12 months; at December 31, 2022, as HELLA has been
consolidated only since February 1, 2022 (11 months), one
additional month of contribution from HELLA has been taken into
account for the calculation of the ratio.
Adjusted EBIDTA amounted to €3,012 million representing
11.8% of sales (vs. €2,109 million and 13.5% of sales in
2021).
- Capex amounted to €1,177 million (vs. €530
million in 2021), of which €608 million for Faurecia (3.2% of
sales, down 20bps vs. 2021) and €569 million for HELLA (8.7% of
sales), whose capital intensity is higher than Faurecia’s.
- Capitalized R&D amounted to €966 million or 3.8% of
sales (vs. €670 million or 2.4% of sales in 2021).
- Change in working capital was an inflow of €374
million (vs. an outflow of €19 million in 2021); it
reflected first positive effects from the “Manage by Cash” program
that was presented at the recent Capital Markets Day, mainly
improved cash collection from receivables and reduction by 0.6 days
in inventories, representing a positive effect of €85 million.
- Change in factoring was an inflow of €183
million (vs. an inflow of €72 million in 2021), mainly
reflecting the extension to HELLA of the existing program in place
at Faurecia; factoring stood at €1.3 billion at the end of 2022 vs.
€1.1 billion at the end of 2021.
- Restructuring cash-out amounted to €184
million (vs. €175 million in 2021), financial
expenses cash-out amounted to €373 million (vs. €230
million in 2021), mainly reflecting the increase in net debt
related to the acquisition of HELLA, and cash-out from
taxes amounted to €384 million (vs. €243 million in
2021).
Net cash flow amounted to €471 million, representing
1.9% of sales (vs. €305 million, 2.0% of sales in
2021).
- Net financial investment and other for a net outflow €4.6
billion represented mostly the investment in HELLA, reduced by
inflows from (i) the capital increase with preferred subscription
rights issued in June for €0.7 billion and (ii) the proceeds of
€0.3 billion from the sale by HELLA of its 33% stake in HBPO.
Net financial debt at the end of 2022 stood at €7.9
billion (including an IFRS16 impact of €349 million), representing
a Net debt / Adjusted EBITDA ratio of 2.6x, significantly reduced
vs. 3.1x six months earlier.
As announced on November 3 at the
Capital Markets Day, the Board of Directors, at its meeting held on
November 2, decided to propose at Faurecia’s next Shareholders’
meeting that no dividend be paid in 2023.
AVAILABLE CASH OF €4.2 BILLION
AT THE END OF 2022
As of December 31, 2022, Group liquidity
amounted to €6.2 billion, of which €4.2 billion of available cash,
€1.5 billion from the fully undrawn Faurecia Senior Credit Facility
(maturity: May 2026, with options up to 2028) and €0.5 billion from
HELLA Senior Credit Facility.
FY 2023 GUIDANCE
Based on the following
assumptions:
- Worldwide automotive production of 82 million vehicles in 2023,
broadly flat vs. actual production in 2022 and more conservative
than S&P’s latest forecast of 85 million
- Main currency rates of USD/€ @ 1.10 and CNY/€ @ 7.50
FORVIA’s full-year 2023 guidance is as
follows:
- Sales between €25.2bn and €26.2bn including an
estimated impact on sales of €(1.3)bn from disposals announced to
date (mainly SAS deconsolidation as from January 1, 2023
to comply with IFRS 5 and business to be sold to Cummins as from
July 1, 2023)
- Operating margin between 5% and 6% of
sales
- Net cash flow exceeding 1.5% of sales
- Net debt/Adj. EBITDA ratio between 2x and 2.4x at
December 31, 2023, including the effect of the disposal program of
€1bn by end-2023
This guidance assumes no major lockdown
impacting production or retail sales in any major automotive region
during the year.
FY 2025 TARGETS CONFIRMED
(after estimated impact of the disposal program of €1bn by year-end
2023)
FORVIA’s full-year 2025 targets, as presented at
the recent Capital Markets Day held on November 3, 2022, are fully
confirmed (based on an assumption of worldwide automotive
production of 88 million vehicles in 2025, more conservative than
S&P’s latest forecast of 90 million, and on 2025 currency rates
of USD/€ @ 1.05 and CNY/€ @ 7.00):
- Sales of c. €30bn
- Operating margin > 7% of sales
- Net cash flow > 4% of sales
- Net debt/Adjusted EBITDA ratio < 1.5x at December
31, 2025
FINANCIAL
CALENDAR
- April 17, 2023: Q1 2023 sales (before market
hours)
- May 30, 2023: Annual Shareholders’ Meeting
(Nanterre)
- July 27, 2023: H1 2023 results (before market
hours)
- October 20, 2023: Q3 2023 sales (before market
hours)
- “Operating income” presented as Faurecia’s main
performance indicator is Operating income before amortization of
intangible assets acquired in business combinations.
- “Adjusted EBITDA” is Operating income as defined above
+ depreciation and amortization of assets; to be fully compliant
with the ESMA (European Securities and Markets Authority)
regulation, this term of “Adjusted EBITDA” will be used by the
Group as of January 1, 2022 instead of the term “EBITDA” that was
previously used (this means that “EBITDA” aggregates until 2021 are
comparable with ‘Adjusted EBITDA” aggregates as from
2022).
- “Debt covenant” is the ratio “Net financial debt at the
end of the period” vs. “Adjusted EBITDA over the last 12 months”;
it is tested twice every year, at June 30 and at December 31
(except for June 30, 2022 when covenant was not tested as agreed
during April 2022 negotiations with banks).
- As mentioned above, in the calculation of Net debt /
Adjusted EBITDA at December 31, 2022, adjusted EBITDA was taken
into account over the last 12 month-period; as HELLA has been
consolidated only since February 1, 2022 (11 months), one
additional month of contribution from HELLA has been taken into
account for the calculation of the ratio.
- 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 the S&P Global Mobility (ex-IHS Markit)
forecast dated February 2023.
Faurecia's financial report will be available at 9:30am today
(Paris time) and the financial presentation at 10.15am (Paris time)
on FORVIA’s website: www.forvia.com
A webcasted meeting will be held today at 10:30am (Paris
time) at Faurecia’s HQ in Nanterre.
If you wish to follow the presentation using the webcast, please
access the following link:
https://www.sideup.fr/webcast-forvia-annual-results-2022
A replay will be available as soon as possible.
You may also follow the presentation via conference call:
- France: +33 (0)1 70 95 01 03
- United Kingdom: +44 (0)208 080 6592
- United States: +1 360-209-5623
Confirmation code: 85861392528#
ContactsPressChristophe
MALBRANQUEMedia Relations
Directorchristophe.malbranque@forvia.com |
|
|
|
|
Analysts/InvestorsMarc MAILLETHead of Investor
RelationsTel: +33 (0)1 72 36 75 70marc.maillet@forvia.com |
|
|
About FORVIA, whose mission is: “We
pioneer technology for mobility experiences that matter to
people”.FORVIA comprises the complementary technology and
industrial strengths of Faurecia and HELLA. With over 290
industrial sites and 76 R&D centers, 157,000 people, including
more than 15,000 R&D engineers across 40+ countries, FORVIA
provides a unique and comprehensive approach to the automotive
challenges of today and tomorrow. Composed of 6 business groups and
a strong IP portfolio of over 14,000 patents, FORVIA is focused on
becoming the preferred innovation and integration partner for OEMS
worldwide. FORVIA aims to be a change maker committed to foreseeing
and making the mobility transformation happen.www.forvia.com
About FaureciaFaurecia, the
parent company of the FORVIA Group, is a global automotive
technology leader. In 2022, the Group reported consolidated sales
of €25.5 billion.Faurecia is listed on the Euronext Paris market
and is a component of the CAC Next 20, CAC 40 ESG and CAC SBT 1.5°
indexes.www.faurecia.com
About HELLAHELLA, a company of
the FORVIA Group, is an internationally positioned automotive
supplier.For its fiscal year starting June 1, 2021 and ending May
31, 2022, HELLA reported consolidated sales of €6.3 billion.HELLA
is listed on the Frankfurt Stock Exchange and is a component of the
SDAX index.www.hella.com
DISCLAIMER
This presentation contains certain
forward-looking statements concerning Faurecia. Such
forward-looking statements represent trends or objectives and
cannot be construed as constituting forecasts regarding the future
Faurecia’s results or any other performance indicator. In some
cases, you can identify these forward-looking statements by
forward-looking words, such as "estimate," "expect," "anticipate,"
"project," "plan," "intend," "objective", "believe," "forecast,"
"foresee," "likely," "may," "should," "goal," "target," "might,"
"would,", “will”, "could,", "predict," "continue," "convinced," and
"confident," the negative or plural of these words and other
comparable terminology. Forward looking statements in this document
include, but are not limited to, financial projections and
estimates and their underlying assumptions including, without
limitation, assumptions regarding present and future business
strategies (including the successful integration of HELLA within
the Faurecia Group), expectations and statements regarding
Faurecia's operation of its business, and the future operation,
direction and success of Faurecia's business. Although Faurecia
believes its expectations are based on reasonable assumptions,
investors are cautioned that these forward-looking statements are
subject to numerous various risks, whether known or unknown, and
uncertainties and other factors, all of which may be beyond the
control of Faurecia and could cause actual results to differ
materially from those anticipated in these forward-looking
statements. For a detailed description of these risks and
uncertainties and other factors, please refer to public filings
made with the Autorité des Marchés Financiers (“AMF”), press
releases, presentations and, in particular, to those described in
the section 2."Risk factors & Risk management” of Faurecia's
2021 Universal Registration Document filed by Faurecia with the AMF
on April 6th, 2022 under number D. 22-0246 (a version of which is
available on www.faurecia.com). Subject to regulatory requirements,
Faurecia does not undertake to publicly update or revise any of
these forward-looking statements whether as a result of new
information, future events, or otherwise. Any information relating
to past performance contained herein is not a guarantee of future
performance. Nothing herein should be construed as an investment
recommendation or as legal, tax, investment or accounting advice.
The historical figures related to HELLA included in this
presentation have been provided to Faurecia by HELLA within the
context of the acquisition process. These historical figures have
not been audited or subject to a limited review by the auditors of
Faurecia. HELLA remains a listed company. For more information on
HELLA, more information is available on www.hella.com. This
presentation does not constitute and should not be construed as an
offer to sell or a solicitation of an offer to buy Faurecia
securities.
APPENDICES
DEFINITIONS OF TERMS USED IN THIS
DOCUMENT
- 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 2021, 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.
- Operating income
Operating 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.
- Adjusted EBITDA
Adjusted EBITDA is Operating income as defined
above + depreciation and amortization of assets; to be fully
compliant with the ESMA (European Securities and Markets Authority)
regulation, this term of “Adjusted EBITDA” will be used by the
Group as of January 1, 2022 instead of the term “EBITDA” that was
previously used (this means that “EBITDA” aggregates until 2021 are
comparable with ‘Adjusted EBITDA” aggregates as from 2022).
- Net cash-flow
Net 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.
- Net financial debt
Net 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).
- FORVIA Faurecia PRESS RELEASE FY 2022 RESULTS def GB
Grafico Azioni Faurecia (BIT:1EO)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Faurecia (BIT:1EO)
Storico
Da Apr 2023 a Apr 2024