Strong recovery and overachievement of targets in h2, notably cash generation

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2021 guidance reflects strong sales outperformance, solid operating leverage and cash generation in a context of market rebound

Based on the prudent assumption that worldwide automotive production should reach 76.6 million vehicles in 2021, up 8% year-on-year, Faurecia’s full-year 2021 guidance is as follows:

• Sales ≥ €16.5bn (including a negative effect of c. €610m from scope and currencies) and strong organic sales outperformance > +600bps
• Operating margin of c. 7% of sales, close to pre-Covid levels
• Net cash flow of c. €500m (including c. €180m of cash outflow from restructurings) and net-debt-to-EBITDA ratio < 1.5x at year-end

Back to dividend payment with €1 per share (to be proposed at next shareholders’ meeting)

Capital Markets Day to be held today will present Faurecia’s “new perspectives”, ahead of the upcoming change in capital structure (see separate press release issued today)

• Reaffirming the Group’s strategy and its key orientations, including investment in hydrogen mobility
• Confirming 2022 guidance
• Announcing 2025 ambition by Business Group and at Group level

In the second half of the year, thanks to excellent preparation for production restart as well as resilience actions implemented since the beginning of the crisis, Faurecia overachieved all its financial targets. This was particularly true for cash generation, which offset the consumption of the first half and contributed to significant debt reduction. We are proud, in such a difficult year, to have further strengthened the confidence of our customers as reflected in a new record order intake of 26 billion euros. I would like to thank all the Faurecia teams, who have done an extraordinary job, for their contribution to this successful performance, whilst strictly respecting our Covid-19 protocol. In 2021, we will resume strong sales outperformance, be back to profitability close to pre-crisis level and generate solid cash flow that will further contribute to our deleveraging. Our confidence in Faurecia’s future prospects, which will be presented today at our Capital Markets Day, allows us to resume dividend payment in 2021, offering a fair remuneration to our shareholders.”
Patrick Koller, CEO of Faurecia