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Share Name | Share Symbol | Market | Type |
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Faurecia SE | BIT:EO | Italy | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.00 | - |
NANTERRE (FRANCE)FEBRUARY 19, 2024
2023 RESULTS ON TRACK WITH DELEVERAGING AND POWER25 OBJECTIVES
in €m | FY 2022* | FY 2023 | Change |
Worldwide automotive production** | 82,344 | 90,321 | +9.7% |
SalesAt constant scope & currencies | 24,574 | 27,248 | +10.9%+14.0% |
Operating incomeAs % of sales | 1,0614.3% | 1,4395.3% | +35.7%+100bps |
Adjusted EBITDAAs % of sales | 2,90711.8% | 3,32812.2% | +14.4%+40bps |
Net cash flowAs % of sales | 4832.0% | 6492.4% | +34.3%+40bps |
Net debt/Adj. EBITDA at year-end | 2.7x | 2.1x | -0.6x |
Net income, Group share | (382) | 222 | n/s |
* 2022 restated for SAS, presented as Discontinued operations as from January. 1, 2022; HELLA fully consolidated as from February 1, 2022** in 000 units, source: S&P Global Mobility (ex-IHS Markit) dated February 2024
SYNERGIES WITH HELLA AHEAD OF ROADMAP
INCREASED MOMENTUM ON DELEVERAGING, WITH CLOSE TO €1 BILLION NET DEBT REDUCTION IN 2023
STRONG AND SELECTIVE 2023 ORDER INTAKE OF €31 BILLION
2024 GUIDANCE ON TRACK TO POWER 2025 AMBITION
FORVIA ANNOUNCES TODAY ITS INTENTION TO LAUNCH “EU-FORWARD”, A FIVE-YEAR PROJECT TO REINFORCE THE COMPETITIVENESS AND AGILITY OF THE GROUP’S OPERATIONS IN EUROPE
Patrick KOLLER, Chief Executive Officer of FORVIA, declared:
“2023 has been a contrasted year with tailwinds, such as growing worldwide automotive production, driven by a robust demand and gradual improvement of the supply chain, and headwinds, such as strong inflation, but also high interest rates and adverse currency changes.
In this context, FORVIA’s performance has been solid. We delivered on our priorities. We generated profitable growth through strong sales organic growth, outperforming the market by 430 basis points, notably driven by market share gains in China, and through an improvement of our operating margin by 100bps to 5.3% of sales. Synergies with HELLA, ahead of our roadmap, contributed to this performance, and we are confident that we can expect higher synergies than initially expected by 2025.
We delivered on our top priority: further deleveraging the company after the acquisition of HELLA. We reduced our net debt by close to one billion euros over the year, thanks to the combination of strong cash generation and successful completion of the first one-billion-euro disposal program that was launched mid-2022.
We also achieved key milestones in different domains. We significantly improved profitability in our Seating North America, Clarion Electronics and Lighting activities. We accelerated the development of our hydrogen business by welcoming Stellantis, a major OEM, as a new partner in Symbio and inaugurating new production units for tanks and fuel cells. Regarding sustainability, which is core to our strategy and innovation, we stand one year ahead of schedule on our targets for scopes 1 & 2. The creation of Materi’Act, a company dedicated to the development of sustainable materials, will help the Group reaching its scope 3 objective and CO2 net-zero by 2045. Finally, we registered a strong and selective order intake of 31 billion euros, with profitability aligned with our Power25 targets and reduced upfront costs: this reflects the high attractiveness of our business, aligned with the industry megatrends.
Let me thank FORVIA’s teams for all efforts they have deployed to achieve this 2023 solid performance.
2024 will be another step forward on our Power25 trajectory. We will maintain strong focus on sustainable and profitable growth and accelerate deleveraging, thanks to our Manage by Cash program, as well as the second one-billion-euro disposal program that is already underway. We will also make sure to stay agile and take the necessary measures in the face of anticipated medium-term market evolution.
Today, we announced our intention to launch “EU-FORWARD”, a project that is intended to be rolled out over the next five years to reinforce the competitiveness and agility of our operations in Europe and achieve significantly higher profitability. This objective is to be supported by FORVIA’s acceleration on Artificial Intelligence across the Group, aiming at optimizing R&D investment and costs as well as Program Management, while maintaining high level of technology and innovation. We keep building a stronger Group, able to compete in a fast-changing environment.”
Faurecia’s SAS Cockpit Modules division (assembly and logistics services), that was part of the Interiors Business Group and whose contemplated disposal was announced on February 19, 2023, is presented as Discontinued Operations.
2023 KEY ACHIEVEMENTS
At the end of Q3 2023, FORVIA had completed the first €1 billion disposal program launched in Q2 2022:
Thus, in less than 15 months, FORVIA has successfully achieved its target to fulfil its disposal program. All operations carried out under this program have strengthened the Group’s focus on its strategic priorities and were executed with good valuations.
In October 2023, FORVIA announced the launch of a second €1 billion disposal program that will further simplify the Group’s portfolio, as well as accelerate deleveraging beyond the initial POWER25 objective.
The first step of this second program is the disposal by HELLA of its 50% stake in BHTC, co-owned with MAHLE, which was already announced along with the launch of the second €1bn disposal program and represents a total enterprise value of c. €600m and cash proceeds to come estimated at c. €200 million for each of the two partners in the joint venture.
In 2023, the pace of the combination with HELLA accelerated and cumulated cost synergies generated at the end of 2023 amounted to €190 million, ahead of roadmap. This figure is to be compared with €51 million at the end of 2022.
This result was achieved through numerous projects in key areas, including procurements, freight, and SG&A. In July 2023, was created FH Services S.A.S., a joint venture co-owned and co-managed by HELLA and FORVIA and designed to leverage the combined strengths of a shared organization, that will serve as the global provider of leading IT and Indirect Purchasing solutions to FORVIA’s collective 150,000 internal business users worldwide.
Good progress since the start of the synergies program allows FORVIA to upgrade its previous target of reaching more than €300 million of cost synergies by 2025 to more than €350 million within the same timeframe.
In 2023, as regards commercial synergies, FORVIA and HELLA made joint presentations for the first time at the CES in Las Vegas, then at the Shanghai Auto Show and at the IAA Mobility fair in Munich. That was again the case at the CES in Las Vegas that took place early January 2024.
In 2023, FORVIA recorded an order intake of €31 billion, a high level reflecting strong momentum of all its Business Groups.
The order intake recorded in 2023 has an average operating margin aligned with the Group’s POWER25 objectives and will generate c. €300m savings versus initial upfront cost estimate.
In 2023, FORVIA improved it Sustainability ratings with MSCI to an A-rating and, early 2024, with CDP, also to an A-rating. The Group is also rated 11.3 by Sustainalytics (i.e. “low risk”).
As regards its roadmap to net-zero, at the end of 2023, FORVIA stands one year ahead of schedule for scopes 1 & 2, with over 40% CO2 reduction already achieved, a goal initially targeted for end-2024. FORVIA keeps committed to achieving CO2 neutrality for scopes 1 & 2 by end-2025 and to reduce scope 3 emissions by 45% by end-2030, before reaching net-zero all scopes by end-2045.
In November 2023, Materi’Act, FORVIA’s company dedicated to the development, industrialization, and marketing of unique, cutting-edge materials with a low CO2 footprint, inaugurated its headquarters and R&D center in Villeurbanne (France).This center brings together engineers, researchers, and data scientists, and is destined to become a world-class center of excellence, and one of Europe's leading centers in the field of materials with very low CO2 footprint.
In January 2024, FORVIA’s presence at the 2024 Consumer Electronics Show in Las Vegas reflected innovation focused on sustainable mobility.Each of FORVIA’s demonstrators at the 2024 CEs was designed for Scope 3, in order to respond to the industry's technical and technological evolution while reducing greenhouse gas emissions. In addition, FORVIA received 4 “Accolades” at the CES 2024 Innovation Awards in the category “Vehicle Tech & Advanced Mobility”.
In July 2023, Stellantis acquired an equal stake with FORVIA and Michelin in Symbio, a leader in zero-emission hydrogen mobility. The entry of a major OEM, Stellantis, in the joint venture that was previously co-owned (50/50) by FORVIA and Michelin will not only increase Symbio’s capabilities but will also accelerate and globalize Symbio’s growth to the benefit of its customers.
Early October 2023, FORVIA inaugurated in Allenjoie (France) its first mass production plant of hydrogen storage tanks for mobility applications in Europe. This new site is sized to produce 100,000 tanks a year by 2030 and will reduce by five times its production costs between 2023 and 2025. The complete hydrogen storage systems produced at Allenjoie already equip commercial fleets of Stellantis (Opel Vivaro-e, Citroën e-Jumpy, Peugeot e-Expert) and Hyvia (Renault Master Van H2 Tech).
Early December 2023, Symbio inaugurated in Saint-Fons (France) its first gigafactory SymphonHy, Europe's largest integrated site producing hydrogen fuel cells with a target to produce 50,000 fuel cell systems by 2026.This gigafactory is part of HyMotive, a strategic €1 billion project to develop disruptive technology, supported by the European Union and the French government as part of the IPCEI (Important Project of Scientific Interest) program.
As regards significant hydrogen awards, it is worth mentioning two new contracts signed late 2023 in North America, whose production will start in 2025:
Effective end of the loss-making Michigan JIT Seating program in North America, successful turnaround of Clarion Electronics, within the Electronics Business Group, and significant improvement in profitability of the Lighting Business Group
As already mentioned in previous communications, FORVIA closed its Michigan Seating JIT (Just-In-Time) operations for the Jeep Grand Wagoneer at the end of September 2023 (the remaining part of this program having been transferred to FORVIA’s Seating plant in Monterrey, Mexico). The extra-costs generated by this program in the first nine months of 2023 still amounted to €30 million, an improvement of €50 million over the €80 million incurred in 2022. The movement of the program will contribute to further improve profitability of the Group’s North American Seating operations in 2024.
In 2023, Clarion Electronics, the former Electronics activity of Faurecia before the acquisition of HELLA now combined within the Electronics Business Group of FORVIA, has successfully managed the turnaround of its operations. In H1 2023, these operations, representing about 25% of FORVIA’s Electronics Business Group, recorded an operating loss that mainly reflected high increase in freight costs to maintain supply of semiconductors and an unfavorable geographic mix. In H2 2023, thanks to gradual improvement of the supply chain and strong organic growth, Clarion Electronics was back to significant profit, more than compensating the loss recorded in H1.
In 2023, the Lighting Business Group confirmed its recovery in operating margin to 5.1% of sales in 2023 (vs. 3.5% of sales in 2022), tracking ahead of its POWER25 objective.
2023 KEY FIGURES
Worldwide automotive production showed strong dynamics in 2023, with a global production of 90.3 million light vehicles, corresponding to a 9.7% growth year on year.
The market was supported by a robust global demand and gradual improvement of semi-conductor’s supply.
The 2023 level exceeded the c. 89 million LV production reached in 2019 (pre-Covid level), but with a different regional mix:
In 2023, China represented 32% of worldwide LVP (vs. 27% in 2019) and Europe represented 20% (vs. 24% in 2019).
GROUP (in €m) | 2022* | Currency | Organic | Scope | 2023 | Reported | |
effect | growth | effect | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | ||||
Sales | 24,574 | -1,272 | 3,431 | 515 | 27,248 | 10.9% | |
% of last year's sales | -5.2% | 14.0% | 2.1% | ||||
outperformance (bps) | +430bps | ||||||
Operating income | 1,061 | 1,439 | 35.6% | ||||
4.3% | 5.3% | +100bps | |||||
* 2022 restated for SAS, presented as Discontinued operations as from Jan. 1, 2022; HELLA fully consolidated as from Feb.1, 2022 |
2023 consolidated sales of €27,248 million: +10.9% on a reported basis and +14.0% on an organic basis, representing an outperformance of +430bps
Out of the +430bps, +250bps came from volumes, +80bps from inflation pass-through and +100bps from a favorable regional mix. The end of the JIT part of the Michigan program at the end of Q3 2023 represented lost sales of c. €55 million in Q4 2023 vs. Q4 2022 and the UAW strike in the US represented lost sales of c. €90 million, mostly in Q4 2023 vs. Q4 2022.
All Business Groups recorded an organic growth in the double-digits.
2023 consolidated operating income of €1,439 million, up 100bps to 5.3% of sales
The year-on-year net increase mainly reflected on the positive side…
…and on the negative side:
2023 SALES AND PROFITABILITY BY BUSINESS GROUP
SEATING (in €m) | 2022 | Currency | Organic | 2023 | Reported | |
effect | growth | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | |||
Sales | 7,704 | -404 | 1,251 | 8,551 | 11.0% | |
% of last year's sales | -5.2% | 16.2% | ||||
outperformance (bps) | +650bps | |||||
Operating income | 197 | 315 | 59.7% | |||
2.6% | 3.7% | +110bps |
Sales
Operating income
INTERIORS (in €m) | 2022* | Currency | Organic | 2023 | Reported | |
effect | growth | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | |||
Sales | 4,645 | -258 | 536 | 4,923 | 6.0% | |
% of last year's sales | -5.6% | 11.5% | ||||
outperformance (bps) | +180bps | |||||
Operating income | 191 | 201 | 5.0% | |||
4.1% | 4.1% | stable | ||||
* Restated for SAS (part of the "Interiors" Business Group), presented as Discontinued operations as from January 1, 2022 |
Sales
Operating income
CLEAN MOBILITY (in €m) | 2022 | Currency | Organic | Scope | 2023 | Reported | |
effect | growth | effect | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | ||||
Sales | 4,736 | -342 | 540 | -102 | 4,832 | 2.0% | |
% of last year's sales | -7.2% | 11.4% | -2.1% | ||||
outperformance (bps) | +170bps | ||||||
Operating income | 336 | 384 | 14.1% | ||||
7.1% | 7.9% | +80bps |
Sales
Operating income
ELECTRONICS (in €m) | 2022 | Currency | Organic | Scope | 2023 | Reported | |
effect | growth | effect | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | ||||
Sales | 3,522 | -154 | 523 | 247 | 4,138 | 17.5% | |
% of last year's sales | -4.4% | 14.8% | 7.0% | ||||
outperformance (bps) | +510bps | ||||||
Operating income | 141 | 219 | 55.8% | ||||
4.0% | 5.3% | +130bps |
Sales
Operating income
LIGHTING (in €m) | 2022 | Currency | Organic | Scope | 2023 | Reported | |
effect | growth | effect | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | ||||
Sales | 3,074 | -78 | 468 | 281 | 3,746 | 21.9% | |
% of last year's sales | -2.5% | 15.2% | 9.2% | ||||
outperformance (bps) | +550bps | ||||||
Operating income | 107 | 193 | 80.9% | ||||
3.5% | 5.1% | +160bps |
Sales
Operating income
LIFECYCLE SOLUTIONS (in €m) | 2022 | Currency | Organic | Scope | 2023 | Reported | |
effect | growth | effect | change | ||||
Worldwide auto. production (m units) | 82,344 | 90,321 | 9.7% | ||||
Sales | 893 | -37 | 114 | 88 | 1,058 | 18.5% | |
% of last year's sales | -4.2% | 12.8% | 10.0% | ||||
outperformance (bps) | +310bps | ||||||
Operating income | 89 | 128 | 44.2% | ||||
9.9% | 12.1% | +220bps |
Sales
Operating income
2023 SALES AND PROFITABILITY BY REGION
EMEA | Americas | Asia | TOTAL | |
% of 2023 consolidated sales | 46% | 27% | 27% | 100% |
Regional auto. prod. YoY | 11.5% | 8.6% | 9.4% | 9.7% |
2022* sales (€m) | 11,050 | 6,823 | 6,701 | 24,574 |
Currency effect | -2.5% | -6.3% | -8.5% | -5.2% |
YoY organic | 14.0% | 10.9% | 17.0% | 14.0% |
Outperformance | +250bps | +230bps | +760bps | +430bps |
Scope effect | 3.0% | 1.0% | 1.8% | 2.1% |
2023 sales (€m) | 12,651 | 7,207 | 7,390 | 27,248 |
YoY reported | 14.5% | 5.6% | 10.3% | 10.9% |
2022* operating income (€m) | 175 | 176 | 710 | 1,061 |
% of sales | 1.6% | 2.6% | 10.6% | 4.3% |
2023 operating income (€m) | 316 | 308 | 815 | 1,439 |
% of sales | 2.5% | 4.3% | 11.0% | 5.3% |
YoY change | +90bps | +170bps | +40bps | +100bps |
* 2022 restated for SAS, presented as Discontinued operations as from Jan. 1, 2022; HELLA fully consolidated as from Feb.1, 2022 |
Sales
Operating income
As regards FORVIA’s future business developments with Chinese OEMs in China and outside China:
2023 CONSOLIDATED STATEMENT OF INCOME
in €m | 2022* | 2023 | Change |
Sales | 24,574 | 27,248 | +10.9% |
Organic growth | +14.0% | ||
Operating income (before amort. of acquired intangible assets) | 1,061 | 1,439 | +35.7% |
Amort. of int. assets acquired in business combinations | (190) | (193) | |
Operating income (after amort. of acquired intangible assets) | 871 | 1246 | +43.1% |
Restructuring | (349) | (171) | |
Other non-recurring operating income and expense | (93) | (11) | |
Net interest expense & Other financial income and expense | (495) | (459) | |
Income before tax of fully consolidated companies | (67) | 606 | |
Income taxes | (177) | (232) | |
Net income of fully consolidated companies | (244) | 373 | |
Share of net income of associates | 11 | (2) | |
Net income from continued operations | (233) | 371 | |
Net income from discontinued operations | (18) | (5) | |
Consolidated net income before minority interest | (250) | 366 | |
Minority interest | (131) | (143) | |
Consolidated net income, Group share | (382) | 222 | |
* 2022 restated for SAS, presented as Discontinued operations as from Jan. 1, 2022; HELLA fully consolidated as from Feb.1 |
As detailed above by Business Groups and regions, operating income (before amortization of acquired intangible assets) rose by 35.7% from €1,061 million in 2022 to €1,439 million in 2023, an improvement of 100bps as a percentage of sales, from 4.3% in 2022 to 5.3% in 2023.
Income before tax of fully consolidated companies was a profit of €606 million vs. a loss of €67 million in 2022.
After deduction of:
the consolidated net income, Group share was back to profit at €222 million in 2023 vs. a loss of €382 million in 2022.
2023 CONSOLIDATED CASH FLOW STATEMENT
in €m | 2022* | 2023 | Change |
Operating income | 1,061 | 1,439 | +35.7% |
Depreciation and amortization, of which: | 1,847 | 1,889 | |
- Amortization of R&D intangible assets | 685 | 712 | |
- Other depreciation and amortization | 1,162 | 1,177 | |
Adj. EBITDA | 2,907 | 3,328 | +14.5% |
% of sales | 11.8% | 12.2% | +40bps |
Capex | (1,137) | (1,137) | |
Capitalized R&D | (954) | (1,046) | |
Change in WCR (excl. factoring) | 405 | 659 | |
Change in factoring | 183 | 111 | |
Restructuring | (182) | (170) | |
Financial expenses | (362) | (529) | |
Taxes | (362) | (515) | |
Other (operational) | (15) | (51) | |
Net cash flow | 483 | 649 | +34.3% |
% of sales | 2.0% | 2.4% | +40bps |
Dividends paid incl. minorities | (55) | (133) | |
Net financial investment & Other** | (4,511) | 567 | |
IFRS16 impact | (310) | (131) | |
Change in net debt | (4,392) | 952 | |
Net debt at the beginning of the period | (3,467) | (7,939) | |
Impact of IFRS 5 restatement on debt at Dec. 31, 2022 | (80) | ||
Net debt as published at the end of the period | (7,939) | (6,987) | |
Net-debt-to-Adj. EBITDA ratio | 2.7x | 2.1x | |
* 2022 restated for SAS, presented as Discontinued operations as from Jan. 1, 2022; HELLA fully consolidated as from Feb.1** Includes impacts of Discontinued operations for €(13)m in 2022 and €(108)m from January 1, 2023 to July 31, date of closing of the sale of SAS Cockpit Modules |
Adjusted EBITDA increased by 14.5% to €3,328 million representing 12.2% of sales (vs. €2,907 million and 11.8% of sales in 2022).
Net cash flow increased by 34.3% to €649 million, representing 2.4% of sales (vs. €483 million in 2022).
As a result, net financial debt at year-end 2023 stood at €6,987 million vs. €7,939 million at year-end 2022, a reduction of close to €1 billion.
Net debt/Adj. EBITDA ratio at year-end 2023 stood at 2.1x, significantly reduced vs. 2.7x a year ago, and 100bps below the 3.1x ratio recorded 18 months ago, as of June 30, 2022, right after the impact of the acquisition of HELLA.
Net financial debt reduction and net debt/Adj. EBITDA ratio improvement reflect that FORVIA is fully in line with its commitment to rapidly deleverage the company, after the acquisition of HELLA.
AVAILABLE LIQUIDITY OF €6.2 BILLION AT DECEMBER 31, 2023
As of December 31, 2023, Group liquidity amounted to €6.2billion, of which €4.3 billion of available cash, €1.5 billion from the fully undrawn FORVIA Senior Credit Facility and €450 million from the fully undrawn HELLA Senior Credit Facility.
FORVIA’s proactive debt management actions in 2023 included:
Between August and November 2023, all three rating agencies have upgraded their outlook from negative to stable.
LAUNCH OF “EU-FORWARD”, A FIVE-YEAR PROJECT TO REINFORCE THE COMPETITIVENESS AND AGILITY OF THE GROUP’S OPERATIONS IN EUROPE
While the European automotive market does not offer volume dynamics in the coming years and remains significantly below its 2019 level, it still represents the largest market for the Group with EMEA at 46% of sales in 2023, but only 22% of operating income.
Between 2019 and 2023:
In addition, latest forecasts anticipate almost no growth between 2023 and 2030 in European automotive production, while they anticipate production in the rest of the world to grow by c. 9% during the same period.
During the same 2019-2023 period:
In front of this evolution, FORVIA needs to take appropriate measures to reinforce the competitiveness and agility of its European operations (including addressing structural overcapacities) and achieve significantly higher profitability. This would rebalance the contribution of the different regions to the Group’s operating income, thus reducing the Group’s dependency to China, while continuing to grow in this region.
FORVIA announces today its intention to launch a project, named “EU-FORWARD”, of which the FORVIA European Committee bureau is informed today.
This project has the objectives to:
The project should be rolled-out across the Group’s European operations and run over a period of five years, from 2024 to 2028.
Over this period, the Group intends to concentrate its efforts on the adaptation of the regional manufacturing and R&D set-up to the new European environment, through benefiting from generative AI adoption and addressing structural overcapacities.
This project could impact up to 10,000 jobs over the five- year period (to be compared with c. 75,500 at end-2023) and should need incremental restructuring costs:
Expected savings should reach c. €500 million on an annual basis in 2028.
At Group level:
To minimize as much as possible the impact of employment at the 2028 horizon, on top of natural attrition, FORVIA is targeting immediately and drastically reducing recruitment in Europe, adapting the level of non-permanent employment, and strongly reducing the usage of external R&D resources.
Through the implementation of this project, FORVIA would significantly enhance the sustainable competitiveness of its operations in EMEA and targets by 2028:
This goal will be supported by the deployment of a global initiative named “AI/GenAI TRANSFORMATION” aiming at optimizing R&D investment and costs as well as Program Management, while maintaining high level of technology and innovation
Leveraging on the huge potential offered by AI and GenAI, FORVIA will accelerate on innovation at lower cost and increased efficiency.
Actions will include:
More than 250 most promising AI uses cases will be promoted and prioritized across the Group, not only for R&D but also for Program Management, and high benefit use cases will be driven at scale.
The ambition of this project is to achieve up to 50% of efficiency gains on R&D and core teams.
PROPOSED DIVIDEND OF €0.50 PER SHARE
At its latest meeting held on February 16, 2024, the Board of Directors decided to propose at the next Annual Shareholders’ Meeting to be held in Nanterre (France) on May 30, 2024, the payment of a dividend of €0.50 per share to be paid in cash.
This dividend:
The proposed amount, below the stated dividend policy, reconciles the Group’s willingness to reward its shareholders, after two years of dividend payment suspension, with that of pursuing accelerated deleveraging and financing transformative projects to further enhance the Group’s competitiveness.
2024 GUIDANCE
This guidance is based on:
and assumes no major disruption materially impacting production or retail sales in any automotive region during the year.
It takes into consideration:
2024 guidance is on track to reach POWER25 ambition:
ON TRACK TO POWER25 AMBITION
The Group reiterates its FY2025 objectives, as presented at the Capital Markets Day held in November 2022:
These objectives were based on average 2025 currency rates of 1.05 for €/USD and of 7.00 for €/CNY and assumed no major disruption materially impacting production or retail sales in any major automotive region over the period.
These objectives, evidently, did not take into consideration any impact from the second €1 billion disposal program that was announced in October 2023.
FINANCIAL CALENDAR
FORVIA's financial report will be available at 9:30am today (CET) and the financial presentation at 10:15am (Paris time) on the FORVIA’s website: www.forvia.com
A webcasted meeting will be held today at 10:30am (CET) at FORVIA’s HQ in Nanterre (France).
If you wish to follow the presentation using the webcast, please access the following link: https://www.sideup.fr/webcast-forvia-2023-fy-results/signin/en
A replay will be available as soon as possible.
You may also follow the presentation via conference call:
Confirmation code: 82117057174#
PRESS | ANALYSTS/INVESTORS |
Christophe MALBRANQUEGroup Influence Director+33 (0) 6 21 69 23 53christophe.malbranque@forvia.com | Marc MAILLETGroup Investor Relations Director+33 (0) 1 72 36 75 70marc.maillet@forvia.com |
Iria MONTOUTOGroup Media Relations Officer+33 (0) 6 01 03 19 89iria.montouto@forvia.com | Sébastien LEROYGroup Deputy Investor Relations Director+33 (0) 6 26 89 33 69sebastien.leroy@forvia.com |
About FORVIA, whose mission is: “We pioneer technology for mobility experiences that matter to people”.
FORVIA, 7th global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With close to 260 industrial sites and 78 R&D centers, 153,000 people, including 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 six Business Groups and a strong IP portfolio of over 13,400 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMS worldwide. In 2023, the Group recorded consolidated sales above 27 billion euros. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the CAC Next 20 and CAC SBT 1.5° indices. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. www.forvia.com
DISCLAIMER
This presentation/document contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future FORVIA’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", "guidance", "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 FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes that these forward-looking statements are based on reasonable assumptions at the time of publication of this presentation/document, 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 FORVIA 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.forvia.com). Subject to regulatory requirements, FORVIA 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. The historical figures related to HELLA included in this presentation/document have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. HELLA remains a listed company. For more information on HELLA, more information is available on www.hella.com. This presentation/document does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities in any jurisdiction.
DEFINITIONS OF TERMS USED IN THIS DOCUMENT
Sales growth
Faurecia’s year-on-year sales evolution is made of three components:
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:
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).
Attachment
1 Year Faurecia Chart |
1 Month Faurecia Chart |
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