FORVIA FAURECIA: FIRST-QUARTER 2023 SALES
Nanterre (France), April 17, 2023
FIRST-QUARTER 2023 SALES
SALES GROWTH OF +29% IN THE QUARTER TO
€6.6bn
DRIVEN BY ORGANIC GROWTH OF
+17.6%
in
€m |
|
Q1 2022 as |
Q1 2022 |
Currency |
Organic |
Scope effect |
Q1 2023 |
Reported |
|
|
released in April 22 |
IFRS 5* |
effect |
growth |
(Hella 1 month) |
|
change |
Group sales |
|
5,322 |
5,149 |
-30 |
908 |
617 |
6,644 |
+29.0% |
% of last year's sales |
|
|
-0.6% |
+17.6% |
+12.0% |
|
|
Worlwide auto. prod.** (m units) |
|
19,924 |
|
+2.7% |
|
20,469 |
|
FORVIA's outperformance (bps) |
|
|
|
1,490 |
|
|
|
*
Restated for SAS (part of the "Interiors" Business Group),
presented as Discontinued operations as from January 1, 2022 |
|
|
**
Source: S&P Global Mobility (ex-IHS) dated March 2023 |
|
|
|
|
|
Strong outperformance of 1,490bps in the quarter
included:
- Favorable geographic mix impact of c. 400bps
- Positive impact related to inflation pass-through of c.
240bps
All business groups outperformed global market growth;
all three main regions outperformed their geographies
Full-year 2023 guidance confirmed
On track to achieve year-end deleveraging target,
closing of previously announced transactions on
schedule
Patrick KOLLER, CEO of
Faurecia, declared:
“The first quarter of
2023 marked a good start of the year for FORVIA, with strong sales
growth, despite a persistently uncertain environment. Organic sales
significantly outperformed worldwide automotive production growth,
boosted by a favorable geographic mix effect and an additional
month of consolidation of HELLA.
We remain focused on
our three drivers: generate solid sales growth driven by innovation
and sustainability; lower the cost base and breakeven point of
operations; enhance cash conversion and close the announced
divestments to accelerate Group deleveraging, our top
priority.”
- The Board of Directors, under the chairmanship of
Michel de ROSEN, met on April 14, 2023 and, during this meeting,
reviewed the present Press Release.
- All definitions are explained at the end of this Press
Release, under the section “Definitions of terms used in this
document”.
- IFRS 5 - Discontinued operations
Faurecia’s SAS Cockpit Modules division
(assembly and logistics services), whose contemplated disposal was
announced on February 19, 2023, is now presented as Discontinued
operations with the following impact on the Group’s 2022
consolidated quarterly sales figures:
- All figures related to worldwide or regional automotive
production refer to the S&P Global Mobility (ex-IHS Markit)
forecast dated March 2023.
Q1 2023 GROUP
SALES
In Q1 2023, FORVIA’s consolidated sales
grew by 29.0% to €6,644 million, of which:
- A very limited negative currency effect of €30 million or -0.6%
of last year’s sales; the negative year-on-year effect of the
Chinese yuan, the British pound and Turkish lira vs. the euro more
than offset the positive effect from the US dollar vs. the
euro
- A scope effect of €617 million or +12.0% of last year’s sales,
due to one month of additional consolidation of HELLA (whose
consolidation in the Group’s accounts started on February 1,
2022)
- Organic growth of €908 million or +17.6% of last year’s
sales.
Organic growth of +17.6% compares with
+2.7% growth in worldwide automotive production over the same
period, i.e. an outperformance of 1,490 basis points.
This outperformance of 1,490 basis points
includes a favorable geographic mix estimated at c. 400 basis
points and a positive impact related to inflation pass-through to
customers estimated at c. 240 basis points.
SALES BY BUSINESS
GROUP
SEATING (31% of Q1 2023 Group
consolidated sales)
Organic growth of +22.5% in the quarter mainly
reflected organic growth in Europe and China:
- In Europe: mainly with VW, Stellantis, RNM, Daimler and
BMW
- In China: mostly with Chinese OEMs (notably BYD).
INTERIORS (18% of Q1 2023 Group
consolidated sales)
Organic growth of +17.3% in the quarter mainly
reflected organic growth in Europe and North America:
- In Europe: mainly with Stellantis, RNM, BMW (ramp-up of
7-Series) and JLR (Range Rover Sport)
- In North America: mainly with Ford, Tesla and new EV OEMs
(Lucid, Rivian,…).
CLEAN MOBILITY (18% of Q1 2023 Group
consolidated sales)
Organic growth of +11.2% in the quarter mainly
reflected organic growth in Europe and Asian countries (excluding
China):
- In Europe: mainly with VW (including Audi C8 & Q7)
- In Asian countries (excluding China): mostly with HKMC
(clearance of backlogs caused by chip shortage issue).
ELECTRONICS (15% of Q1 2023 Group
consolidated sales)
Organic growth of +13.3% in the quarter
represented the combined growth of HELLA Electronics and Faurecia
Electronics. The performance of HELLA Electronics (c. three
quarters of total Electronics reported sales in the quarter) was
driven by continuous demand for electrification components such as
high-voltage battery management systems and radar applications.
LIGHTING (14% of Q1 2023 Group
consolidated sales)
Organic growth of +22.6% in the quarter mainly
reflected the strong demand for premium lighting solutions and
continuous program ramp-ups.
LIFECYCLE SOLUTIONS (4% of Q1 2023 Group
consolidated sales)
Organic growth of +15.4% in the quarter mainly
reflected a strong spare parts business, successful market launch
of a core workshop product and growing commercial vehicles
business, especially for agricultural and construction machinery,
as well as bus and trucks.
SALES BY REGION
EMEA (49% of Q1 2023 Group consolidated
sales)
Organic growth of +22.4% in the quarter (vs.
automotive production growth of +8.7% in the region) mainly
reflected organic growth of +22.3% in Europe, around two thirds of
which were attributable to Seating and Interiors.
AMERICAS (26% of Q1 2023 Group
consolidated sales)
Organic growth of +9.7% in the quarter (vs.
automotive production growth of +7.1% in the region) reflected:
- Organic growth of +7.0% in North America, representing c. 90%
of sales in Americas, driven by Interiors, Electronics and
Lighting
- Organic growth of +34.6% in South America, representing c. 10%
of sales in Americas, driven by Seating, Interiors and Clean
Mobility.
ASIA (25% of Q1 2023 Group consolidated
sales)
Organic growth of +17.6% in the quarter (vs.
automotive production drop of -1.3% in the region) reflected:
- Organic growth of +15.2% in China, representing c. 75% of sales
in Asia, driven by Seating and Lighting
- Organic growth of +25.9% in other Asian countries, representing
c. 25% of sales in Asia, driven by Clean Mobility and Faurecia
Electronics.
UPDATE ON
DISPOSAL PROGRAM
On February 20, along with the FY 2022 results
release, FORVIA announced it had completed its €1 billion disposal
program through contemplated transactions announced to date.
The Group confirms it is fully on track to have
cashed in total proceeds for at least €1 billion by the end of
2023, including the disposal by HELLA of its 33% stake in HBPO,
which was already closed in 2022.
FY 2023
GUIDANCE CONFIRMED
The Group confirms its FY 2023 guidance,
as announced on February 20, 2023:
- 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 is based on the following
main 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
This guidance assumes no major lockdown
impacting production or retail sales in any major automotive region
during the year.
ON TRACK TO ACHIEVE FY 2025
TARGETS (incl. estimated impact of the disposal program of
€1bn by end-2023)
The Group also confirms its FY 2025
targets, as presented at the Capital Markets Day held on November
3, 2022:
- 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
These targets are based on the following
main assumptions:
- Worldwide automotive production of 88 million vehicles in 2025,
more conservative than S&P’s latest forecast of 90 million
- 2025 currency rates of USD/€ @ 1.05 and CNY/€ @ 7.00
These targets assume no major lockdown impacting
production or retail sales in any major automotive region over the
period.
FINANCIAL
CALENDAR
- 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.
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
2022 Universal Registration Document filed by Faurecia with the AMF
on February 28, 2023 under number D. 23-0064 (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.
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.
A webcast will be held on Monday April 17 at 8:00am
(Paris time).
Faurecia's Q1 2023 sales presentation will be available
before the webcast on FORVIA’s website:
www.forvia.com
If you wish to follow the presentation using the webcast, please
access the following link:
https://edge.media-server.com/mmc/p/pmk4bp6y
A replay will be available as soon as possible.
You may also follow the presentation via conference call:
- France:
+33 (0)1 70 91 87 04
- United Kingdom:
+44 (1) 212 818 004
- United States:
+1 718-705-8796
Confirmation code:
888652
Contacts Press Christophe
MALBRANQUE Media Relations Director
christophe.malbranque@forvia.com |
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Analysts/Investors Marc MAILLET Head of Investor
Relations Tel: +33 (0)1 72 36 75 70 marc.maillet@forvia.com |
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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 Faurecia
Faurecia, 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 HELLA
HELLA, 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
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 Q1 2023 SALES vdef
Grafico Azioni Faurecia (BIT:1EO)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Faurecia (BIT:1EO)
Storico
Da Apr 2023 a Apr 2024