H1 2023 results on track with priorities & power25 plan

In the first half of the year, worldwide automotive production grew by more than 10%, driven by sustained demand and gradual improvement in semiconductors supply. In this context and in a persistent inflationary environment, we posted strong organic growth and outperformance, improved our profitability, and generated solid cash flow. 

Our deleveraging trajectory is reflected in a continued reduction of our net-debt-to-adjusted-EBITDA ratio at June 30. Deleveraging remains our top priority. 

Our first-half performance is enhanced by HELLA’s contribution and good progress on synergies, ahead of our plans, confirming the strong rationale of combining our forces.

We recorded in the first half a healthy order intake of 15 billion euros with an average profitability above our POWER25 objectives, reflecting the compelling appeal of the Group’s technology offerings and adequation with the megatrends in the automotive industry while being selective in the programs we acquire.

FORVIA is in line with its priorities and on track to achieve its POWER25 objectives. I would like to thank the FORVIA teams around the world for their strong determination and commitment.

The Group should post further performance improvement in the second half of the year. Operating margin should improve over the first half, mainly driven by ramp-up of synergies, increased benefit from inflation pass-through and confirmed resolution by the end of the third quarter of the challenges related to a Seating program in Michigan. Deleveraging will also be accelerated through the effective closing in Q3 of the transactions already announced under our disposal program, and cash generation.  

Lastly, taking into account the market’s evolution since the beginning of the year, our latest estimate for worldwide automotive production is now revised to around 86 million light vehicles vs. our initial estimate of 82 million in February and this leads us to adjust upward our full-year 2023 guidance.