Faurecia Investor Day demonstrates strong profitable growth of its Clean Mobility business driven by innovation and breakthrough technologies
During this meeting Faurecia demonstrated the strong profitable growth potential of its Clean Mobility Business which will show over 7% CAGR over the next fifteen years, to reach above €10 billion of value added sales by 2030, with an operating margin of 15%. This will be achieved through accelerating new technologies for powertrain electrification and expanding breakthrough deNOx technologies for commercial vehicles, high horsepower and industrial applications.
Patrick Koller, Faurecia CEO said: “As regulations increase around the world for both CO2 and NOx emissions, the sustainable mobility market will grow by around €25 billion of value added sales by 2030. Faurecia, the leader in this market, will benefit from its strong technology and innovation portfolio to increase its content per vehicle for both passenger cars and commercial vehicles. It will also move into adjacent and new markets such as high horsepower and industrial applications, in particular using its breakthrough deNOx technology which was acquired with Amminex. Our ambition is to provide clean mobility solutions for all our customers and also expand our digital services offer to cities”.
Faurecia’s light vehicle ICE sales will outpace the market and are largely independent of the powertrain mix
The powertrain mix is evolving as CO2 and NOx emissions become more stringent in all markets. Faurecia estimates that by 2030 almost half of all vehicles will be electrified as either hybrids or full electric vehicles (battery electric vehicles or fuel cell electric vehicles). The regulations drive a strong increase in content per vehicle as new technologies become standard. Faurecia will benefit from this trend and its content per vehicle will increase in particular for hybrid and gasoline vehicles (+70% and +30% respectively by 2025). Faurecia Clean Mobility light vehicle sales will outpace market growth enabled by the Group’s innovation and technology portfolio. The Group is targeting €7.7 billion sales for ICE light vehicles in 2030.
Growth in commercial vehicle sales driven by regulations in China and India
New regulations in China and India will more than double the content per vehicle for both on and off-highway commercial vehicles. These countries represent 48% of the global market in volume. Through its strategic partnerships, joint ventures with key customers, its global footprint and its patented technologies and innovations, Faurecia will benefit strongly from the emissionization of these markets. Faurecia targets 27% market share, up from 12% today and €1.5 bn of sales for commercial vehicle sales in 2030.
Faurecia’s adjacent market opportunities in high horsepower and industrial deNOx applications
As key regulations for high horsepower engines and industrial applications come into force Faurecia estimates that 75% of engines will be emissionized in 2025 versus 25% today. Faurecia’s proprietary and scalable commercial vehicle technologies as well as its systems integration competencies will enable the Group to achieve 20% market share and € 0.7 billion of sales in this market by 2030.
Battery and fuel cell electric vehicles to contribute to Faurecia’s growth
Faurecia estimates that around 11% of vehicles will be electric vehicles by 2030. Whilst battery electric vehicles will be dominant, the Group considers that fuel cell electric vehicles will take off rapidly after 2025 due to their increased autonomy and refuel speed. Faurecia will develop technologies for both types of vehicle, including composite battery packs and fuel cell tanks. The Group is targeting an average content per vehicle of €300 and sales of €0.8 billion in 2030.
Accelerating profitable growth for Faurecia Clean Mobility
Stringent regulations and new ultra-clean technologies will drive Faurecia’s profitable growth. The Group is developing a strong technology ecosystem and accelerating its investment in innovation. Faurecia Clean Mobility has the ambition to become the leading clean mobility company with benchmark profitability and technologies and strategic freedom from the powertrain mix. Its financial targets for 2030 are:
- Value added sales of above €10 billion (CAGR of at least 7% 2016 – 2030)
- Above €1.5 billion in operating income resulting in an operating margin of 15% of value added sales (CAGR 11% 2016 – 2030)
- A cash flow conversion of above 55% of operating income
- ROCE above 30%
The Group also confirmed its 2018 objectives and 2017 guidance.