Faurecia SE

Earnings Release • Oct 16, 2014

Nanterre (France), October 16, 2014

Consolidated sales up 6.8% like for like in the third quarter of 2014

Faurecia's consolidated sales reached €4,385.6 million in the third quarter of 2014, up of 6.8% at constant exchange rates and scope. Growth in reported sales totaled 6.5%.

These figures break down as follows:

• Product sales (parts and components delivered to automakers) stood at €3,336.3 million in the third quarter of 2014, up 7.4% like-for-like and up 6.6% in reported sales;
• Monolith sales1 were up 10.9%, at €751.6 million like-for-like, an increase of 11.6% in reported sales;
• Development, tooling, prototyping and other services were down 4.8% like-for-like, representing a drop of 5.0% in reported sales, at €297.7 million, mainly due to an unfavorable comparison basis, following a 20.2% growth from Q3 2012 to Q3 2013.

PRODUCT SALES BY REGION

(All changes are shown on a comparable basis; please see the appendix for reported sales.)

• In Europe, product sales rose by 9.4% to €1,803.7 million, compared with €1,651.1 million in the third quarter of 2013. European automotive production (excluding Russia) grew by 2% according to Faurecia estimates, despite a somewhat unfavorable comparison, following a 5.9% growth in the third quarter of 2013. Faurecia largely outpaced the market mainly as a result of strong sales growth with Renault-Nissan (+20%), Daimler (+67%) and Ford (+12%).
• In North America, product sales stood at €855.0 million, an increase of 2.9%, with automotive production up nearly 8%, according to Faurecia estimates. Faurecia regained sales momentum with the ramp-up in production for a number of new Ford and Chrysler models. Sales growth will accelerate in the fourth quarter and into 2015, driven by the full-year effect of new programs launched in the second half of 2014.
• In Asia, Faurecia continued its strong growth with a 17.8% increase in product sales to €496.4 million, spearheaded by a 20.6% increase in China, which accounts for more than 80% of business in the region. Faurecia outperformed the market in Asia and China, where growth in automotive production stood at 4% and 10%, respectively, according to Faurecia estimates, and continued to gain new market share. Sales rose sharply with Dongfeng-PSA (+36%), SAIC-GM (+19%) and Brilliance-BMW (+76%).
• In South America, product sales fell by 17.0% to €145.4 million, with automotive production down by 20% according to Faurecia estimates. The economic situation continued to deteriorate, leading automakers to revise their production programs significantly downward. As a result, Faurecia now expects production to contract by around 15% in 2014.
• In the rest of the world (mainly South Africa), product sales increased by 25.5% to €35.7 million.

¹ Monoliths: precious metals and ceramics incorporated into emissions control systems.

PRODUCT SALES BY BUSINESS GROUP

(All changes are shown on a comparable basis; please see the appendix for reported sales.)

Automotive Seating

Product sales totaled €1,164.4 million, up 7.0%. Sales in Asia and Europe increased by 18.5% and 6.0%, respectively. Sales in North America regained momentum, up 7.1%, driven by a 16% increase in product sales with Nissan and an increase of 64% with Chrysler, with the ramp-up in production of the Chrysler 200. Sales growth in North America is expected to accelerate in the fourth quarter and into 2015, buoyed by new contracts with GM, Nissan and Ford, along with the full-year effect of programs launched in the second half of 2014.

Emissions Control Technologies

Product sales totaled €824.3 million, an increase of 3.7%, driven by sales in Asia (+12.8%) and the commercial vehicles business (+16%). The moderate sales growth of 1.6% in North America was largely spurred by changes to Ford models, with sales to Cummins up 18%.

Interior Systems

Product sales totaled €949.1 million, up 11.3%. European product sales surged by 20.5%, largely thanks to the ramp-up in Faurecia production for the new Mercedes-Benz S-Class, plus an increase of nearly 20% in Ford sales. Sales growth in Asia exceeded 30%, driven by new programs, while sales in North America fell by 3.2% as a result of changes to models made by Chrysler and Ford. Sales in North America are expected to grow in the fourth quarter with the ramp-up in production of a number of models made by Chrysler and Ford (including the F-150 and Mustang).

Automotive Exteriors

Product sales totaled €398.5 million, up 7.4%, largely as a result of a 5.3% increase in Europe, slightly outpacing the market, and in North America, with the ramp-up in production of the Chrysler 200.

OUTLOOK FOR 2014

Faurecia has reaffirmed its objectives for fiscal year 2014, including:

• an increase in total sales of between 2% and 4% (at constant exchange rates and scope);
• growth in operating margin of between 30 and 60 basis points;
• positive net cash flow.

A conference call with Michel Favre, CFO, will be held this evening (October 16, 2014) at 6:15 pm (CET). Telephone numbers: France: +33 1 76 77 22 25 / UK: +44 203 427 1907 / USA: +1 212 444 08 95 Confirmation code: 565 1382

You can also follow the teleconference on our website at www.faurecia.fr or www.faurecia.com. A financial presentation providing further details is available to download from the Faurecia website.

Faurecia will hold its annual Investor Day in Shanghai (China), on Tuesday, November 11, 2014. The visit of three R&D centers is scheduled along with presentations on Faurecia in China and an update on the group's 2016 targets.

Note for Q3 2014:

The Faurecia Board of Directors met in Paris on October 16, 2014, to review the 2014 third quarter sales figures and the outlook for the remaining months of the year.

Press release

Contacts Press Olivier Le Friec Head of Media Relations Tel.: +33 (0)1 72 36 72 58 Cell: +33 (0)6 76 87 30 17 olivier.lefriec@faurecia.com Analysts/Investors Eric-Alain Michelis Director of Financial Communications Tel.: +33 (0)1 72 36 75 70 Cell: +33 (0)6 64 64 61 29 eric-alain.michelis@faurecia.com

APPENDIX

Sales by type, Q3 2014

Sales by type	Products	Monoliths	R&D &	Total
in € million			Tooling
Automotive Seating	1,164.4		66.2	1,230.6
Emissions Control Technologies	824.3	751.6	39.8	1,615.7
Interior Systems	949.1		156.3	1,105.4
Automotive Exteriors	398.5		35.4	433.9
TOTAL	3,336.3	751.6	297.7	4,385.6

Change in sales by category

In € million	Q3 2013	Currencies	Scope	Reclassification	Organic	Q3 2014
	Reported				Like for like*	Reported
Product sales	3,129.9	-14.3		-9.5	230.2	3,336.3
Change		-0.5%		-0.3%	7.4%	6.6%
Total sales	4,116.9	-10.6			279.3	4,385.6
Change		-0.3%			6.8%	6.5%

* At constant exchange rates and scope.

Total sales & product sales by business group

In € million	Q3 2013	Q3 2014	Change	Change
			Reported	Like for like*
Total sales
Automotive Seating	1,155.0	1,230.6	6.5%	7.1%
Emissions Control Technologies	1,525.9	1,615.7	5.9%	5.7%
Interior Systems	1,011.9	1,105.4	9.2%	9.7%
Automotive Exteriors	424.1	433.9	2.3%	2.8%
TOTAL	4,116.9	4,385.6	6.5%	6.8%
Product sales
Automotive Seating	1,094.8	1,164.4	6.4%	7.0%
Emissions Control Technologies	806.2	824.3	2.2%	3.7%
Interior Systems	856.1	949.1	10.9%	11.3%
Automotive Exteriors	372.8	398.5	6.9%	7.4%
TOTAL	3,129.9	3,336.3	6.6%	7.4%

* At constant exchange rates and scope.

Product sales by region

Product sales by region	Q3 2013	Q3 2014		Change
in € million			Reported	Like for like*	LV production**
Europe	1,651.1	1,803.7	9.2%	9.4%	0%
North America	834.8	855.0	2.4%	2.9%	8%
Asia	422.9	496.4	17.4%	17.8%	4%
South America	190.3	145.4	-23.6%	-17.0%	-20%
Rest of the World	30.7	35.7	16.3%	25.5%	N/A
TOTAL	3,129.9	3,336.3	6.6%	7.4%	3%

* At constant exchange rates and scope; ** Faurecia estimates, October 13, 2014

Sales by type, 9 months 2014

	9M 2014
Sales by type	Products	Monoliths	R&D &	Total
in € million			Tooling
Automotive Seating	3,631.1		230.1	3,861.2
Emissions Control Technologies	2,539.5	2,273.7	131.2	4,944.4
Interior Systems	2,970.1		503.2	3,473.3
Automotive Exteriors	1,285.2		149.8	1,435.0
TOTAL	10,425.8	2,273.7	1,014.4	13,713.9

Change in sales by category

in € million	9M 2013	Currencies	Scope	Reclassification	Organic	9M 2014
	Reported				Like for like*	Reported
Product sales	10,267.5	-236.5	-18.9	-26.5	440.2	10,425.8
Change		-2.3%	-0.2%	-0.3%	4.3%	1.5%
Total sales	13,382.0	-295.1	-18.9		645.9	13,713.9
Change		-2.2%	-0.1%		4.8%	2.5%

* At constant exchange rates and scope.

Total sales & product sales by business group

In € million	9M 2013	9M 2014	Change	Change
			Reported	Like for like*
Total sales
Automotive Seating	3,873.6	3,861.2	-0.3%	2.0%
Emissions Control Technologies	4,725.9	4,944.4	4.6%	7.0%
Interior Systems	3,373.3	3,473.3	3.0%	6.2%
Automotive Exteriors	1,409.2	1,435.0	1.8%	2.5%
TOTAL	13,382.0	13,713.9	2.5%	4.8%
Product sales
Automotive Seating	3,686.4	3,631.1	-1.5%	0.8%
Emissions Control Technologies	2,506.9	2,539.5	1.3%	5.3%
Interior Systems	2,841.2	2,970.1	4.5%	7.7%
Automotive Exteriors	1,233.1	1,285.2	4.2%	4.8%
TOTAL	10,267.5	10,425.8	1.5%	4.3%

* At constant exchange rates and scope.

Product sales by region

Product sales by region	9M 2013	9M 2014	Change
in € million			Reported	Like for like*	LV production**
Europe	5,535.4	5,921.1	7.0%	7.5%	4%
North America	2,830.3	2,557.0	-9.7%	-5.9%	5%
Asia	1,222.1	1,429.8	17.0%	20.7%	5%
South America	560.9	416.2	-25.8%	-11.0%	10%
Rest of the World	118.8	101.7	-14.4%	-0.4%	N/A
TOTAL	10,267.5	10,425.8	1.5%	4.3%	4%

* At constant exchange rates and scope; ** Faurecia estimate, October 13, 2014

Reclassification

An un-material amount of R&D sales was mistakenly booked by Faurecia Emissions Control Technologies as product sales in 2013. We have restated 2013 figures accordingly.

Sales by type	Q3 2013	Reclassification	Q3 2013	9M 2013	Reclassification	9M 2013
in € million	Reported		Adjusted	Reported		Adjusted
Products	3,129.9	-9.5	3,120.4	10,267.5	-26.5	10,241.0
Monoliths	673.7		673.7	2,061.1		2,061.1
R&D, Tooling & Other	313.4	9.5	322.9	1,053.3	26.5	1,079.8
TOTAL	4,116.9	0.0	4,116.9	13,382.0	0.0	13,382.0

Press release

FECT sales	Q3 2013	Reclassification	Q3 2013	9M 2013	Reclassification	9M 2013
in € million	Reported		Adjusted	Reported		Adjusted
Product	806.2	-9.5	796.7	2,506.9	-26.5	2,480.4
Monoliths	673.7		673.7	2,061.1		2,061.1
R&D, Tooling & Other	46.0	9.5	55.5	157.9	26.5	184.4
TOTAL	1,525.9		1,525.9	4,725.9		4,725.9
Product sales by region	Q3 2013	Reclassification	Q3 2013	9M 2013	Reclassification	9M 2013

Product sales by region	Q3 2013	Reclassification	Q3 2013	9M 2013	Reclassification	9M 2013
in € million	Reported		Adjusted	Reported		Adjusted
Europe	1,651.1	-4.9	1,646.2	5,535.4	-13.3	5,522.1
North America	834.8	-2.6	832.2	2,830.3	-7.5	2,822.8
Asia	422.9	-1.8	421.1	1,222.1	-5.4	1,216.7
South America	190.3	-0.2	190.1	560.9	-0.3	560.6
Rest of the World	30.7		30.7	118.8		118.8
TOTAL	3,129.9	-9.5	3,120.4	10,267.5	-26.5	10,241.0