Q1-2017: strong sales growth at +10.0%, (+9.8% organic*) 2017 guidance fully confirmed

Q1 2017

Faurecia’s value-added sales for the first quarter of 2017 climbed 10.0% to € 4.226 billion (€ 3.840 billion in 2016). Changes in exchange rates had a positive impact of € 66 million (+1.7%) whilst change in scope, mainly the divestment of the Fountain Inn plant, had a negative impact of € 58 million (-1.5%). This represented an organic* growth of 9.8% of which 1.7% came from consolidation of two  joint ventures  (JV with Chang’An and JV with FCA).

As announced on February 11, 2017, Faurecia is now communicating on its value-added sales. At the end of the press release, there is a table allowing reconciliation between total sales and value-added sales.

Sales by region: very good first quarter in China and in Americas

Value-added sales in Q1-2017 broke down as follows:

• In Europe, value-added sales rose by 3.5% to € 2.102 billion (€ 2.030 billion in 2016), posting an organic* growth of 4.1%, while automotive production grew 6.6%. Production disruption for two OEMs due to a fire in a supplier plant reduced Faurecia’s sales by around € 50 million (250bp) which will be recovered by year end.
• In North America, value-added sales rose by 11.3% to € 1.206 billion (€ 1.084 billion in 2016). The variation in exchange rate parity had a positive impact of € 41 million (+3.7%). Scope had a negative impact of € 58 million (-5.3%). This represented an organic* sales growth of 12.9%, against a 1.6% increase in automotive production.
• In Asia, value-added sales rose by 17.3% to € 688 million (€ 587 million in 2016). Currency exchange rates had a marginal negative impact of € 0.1 million. The consolidation of a JV with Chang’An in China had a positive impact of € 38 million (+6.4%).  Organic* growth was 17.3% of which 22.5% was in China compared to light vehicle production in Asia growing 4.4% (+5.6% in China). Faurecia posted € 534 million value-added sales in China +20.4% (vs 2016) or +22.5% organic*. Sales to local Chinese carmakers grew by an outstanding 89% and represented 17.5% of the Chinese sales.
• In South America, value-added sales rose by 73.3% to € 168 million (€ 97 million in 2016). The consolidation of the JV with FCA (production for Pernambuco plant) boosted sales by € 28 million. Currency fluctuation represented an increase of € 28 million (+28.6%); organic* growth was 44.7%.

Value-added sales by business group: strong growth for Seating and Interiors

Value-added sales in Q1-2017 broke down as follows:

• Sales for Seating grew by 13.1% (+11.5% organic*) to € 1.789 billion (€ 1.582 billion in 2016), spurred by the full year impact of new programs for Ford and BMW.
• Sales for Interiors stood at € 1.315 billion (€ 1.220 billion in 2016) up by 7.8%, representing an organic* growth of 11.4%. Scope had an overall negative impact of € 58 million (-4.7%) while the consolidation of two JVs had a positive impact on sales of € 65 million or +5.4%.
• Sales for Clean Mobility increased by 8.1% (+5.5% organic*) to € 1.122 billion (€ 1.038 billion in 2016). Sales to Cummins (+36%) were an important growth driver. Commercial Vehicles (CVE) sales rose 28% to € 133 million and now represent 12% of Clean Mobility’s sales.

Annual General Shareholder's meeting

The Board of Directors of Faurecia met in Caligny (France) on April 11, 2017 and approved the agenda of the Group’s annual shareholder’s meeting to be held on Wednesday May 30, 2017 at 10:00 am (Paris time) at Pavillon Gabriel (Paris) including the proposed payment in cash of a 90 euro cents dividend per share.

2017 Guidance is fully confirmed

• Q1 sales were slightly above Group expectations.
• The positive momentum will continue in Q2 2017.
• Therefore the Group fully confirms its 2017 guidance:
• Value-added sales: +6% (at constant currencies) or +400bp above worldwide automotive production growth.
• Operating margin: between 6.4% and 6.8% (of value-added sales).
• Net cash flow: > € 350 million
• Earnings per share: Around € 4

Next events:

• 2017 Investor Day with focus on “Sustainable Mobility”: Tuesday June 27, 2017 in London

“Sustainable Mobility” is one of the two pillars of Faurecia’s strategy combining very attractive growth and profitability prospects;

• AGM: Tuesday May 30, 2017 at 10.00am (Paris time);
• H1 2017 results: Friday July 21, 2017 (webcast)

Faurecia's financial presentation will be available at 5:45 pm today (Paris time) on the Faurecia website: www.faurecia.com. A conference call for financial analysts and media will be held today at 6:15 pm (Paris time). It can also be followed on the Faurecia website (www.faurecia.com)

Dial in numbers for the conference call:

• France: +33 (0) 1 76 77 22 27
• UK: +44 (0) 20 3427 1912
• USA: +1 646 254 3367

Access code: 5411171