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Faurecia SE

Earnings Release Oct 23, 2012

1321_iss_2012-10-23_4c46c9b2-b924-40d5-b491-16edbe84bac0.pdf

Earnings Release

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Nanterre, October 23, 2012

Faurecia consolidated sales up 7.9% in third quarter 2012 Significant slow-down in European automotive production expected in the 4th quarter

Third quarter sales

Faurecia's consolidated sales, for the third quarter 2012, stood at €4,086 million, up 7.9% with respect to the third quarter of 2011 and stable like-for-like.

Product sales stood at €3,217 million, up 3.2% like-for-like.

They reflect1:

  • A strong sales growth in North America, up 19%;
  • Sustained business growth in Asia and South America, up 10%;
  • A significant sales drop of 4% in Europe;
  • Group sales growth above automotive production in each of its main regional markets;
  • A better geographical balance with sales outside Europe reaching 48% of sales in the third quarter of 2012, against 40% for the same period of 2011.

2012 outlook

All forecasts agree on an amplification of automobile production slowdown in Europe during the fourth quarter of 2012.

Faurecia therefore expects a sharp sales decline in Europe during the last quarter, which will affect its operating income.

In this context, the operating income for the full year 2012 is now expected to be above €500 million.

1 Like-for-like

GROUP SALES FOR THE THIRD QUARTER

Faurecia's consolidated sales for the third quarter of 2012 stood at €4,085.7 million, an increase of 7.9%. This includes €136.3 million resulting from a change in scope, mainly due to the acquisition of the Ford plant in Saline, Michigan (USA), consolidated on June 1, 2012, for €112.8 million.

Like-for-like (at constant exchange rates and scope), consolidated sales were stable with respect to the third quarter of 2011.

  • Product sales, parts and components delivered to automakers, reached €3,217.1 million in the third quarter, up 3.2%. This includes €135.8 million resulting from a change in scope, of which €112.8 million in product sales generated by the Ford plant in Saline.
  • Monolith sales2 reached €607.9 million, down 13.4%, mainly due to the drop in precious metal prices and its own sales drop in Europe.
  • Billing of development, tooling, prototyping and other services rose 0.2% to reach €260.7 million in the third quarter of 2012.

Excluding sales of monoliths by the Emissions Control Technologies Business Group, sales increased by 2.9%, to €3,477.8 million.

Sales by region

  • In Europe, product sales slipped 4.2% with respect to the third quarter 2011, to reach €1,675.2 million. This evolution is consecutive to the 7.0% slide in automotive production during the quarter (Source: IHS Automotive, October 2012).
  • In North America, product sales rose 19.2% to €964.3 million, for an automotive production up 14.1% (Source: IHS Automotive, October 2012). This growth reflects the continued strong sales dynamics of Faurecia in North America with the ramp-up of new programs for Daimler, Volkswagen and Nissan, as well as the rise in the commercial vehicle business of Faurecia Emissions Control Technologies.
  • In Asia, product sales also recorded a sustained growth. They reached €348.3 million, up 9.9% compared with an automotive production up 4.1% (Source: IHS Automotive, October 2012). Sales in China increased 11.6% taking advantage from the good sales dynamics acquired with international automakers.
  • In South America, product sales stood at €182.3 million, up 9.7% in the third quarter. At the same time, automotive production increased 2.0% (Source: IHS Automotive, October 2012).
  • Thus, in all its markets, Faurecia's business is progressing faster than the world's automotive production, indicating a noticeable increase of Faurecia market shares.
  • The share of sales in North America grew from 22 to 30% of total sales; the Asia share reached 11% while Europe went down from 60 to 52%. Faurecia is getting closer to its objective of strategically rebalancing its sales among the three main world markets where it operates.

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

Sales by Business Group

Automotive Seating

Product sales stood at €1,177.2 million, up 2.3% compared with the third quarter 2011, like-for-like

Interior Systems

Product sales totaled €889.7 million, including €124.3 million resulting from a change in scope, mainly the acquisition of the Saline plant in the USA. They increased 7.7% compared with the third quarter 2011, like-forlike.

Emissions Control Technologies

Product sales stood at €768.8 million, up 2.2% compared with the third quarter 2011, like-for-like.

Automotive Exteriors

Product sales totaled €381.4 million, including €11.6 million resulting from a change in scope following the integration of new composites business in France and the acquisition of the Plastal plant in Hambach (France). They scaled back 0.5% compared with the third quarter 2011, like-for-like.

2012 OUTLOOK

All forecasts agree on an amplification of automobile production slowdown in Europe during the fourth quarter of 2012. This is today estimated at 11% (Source: IHS Automotive, October 2012).

Despite the increased contribution of other regions and already significant cost adjustments, lower sales in Europe will affect the Group's profitability in the fourth quarter.

For the full year 2012, Faurecia now expects an operating income above €500 million, versus an estimated operating income between €560 and €610 million in July 2012.

APPENDIX

Consolidated sales, per type of sales

Type of sales (in € million) Q3-12 Q3-11 Change
(%)
Org.* (%) 9M-12 9M-11 Change
(%)
Org.* (%)
Product sales 3,217.1 2,865.6 12.3 3.2 9,970 9,197.8 8.4 2.8
Monolith sales 607.9 667.6 (8.9) (13.4) 2,018.2 1,992.6 1.3 (2.0)
Development, tooling, prototyping and other 260.7 254.2 2.6 0.2 862.1 747.4 15.3 13.4
services
TOTAL DES VENTES 4,085.7 3,787.4 7.9 0.1 12,850.3 11,937.7 7.6 2.6

Consolidated sales, per business group

Consolidated sales (in € million) Q3-12 Q3-11 Change
(%)
Org.* (%) 9M-12 9M-11 Change
(%)
Org.* (%)
Automotive Seating 1,225.5 1,152.8 6.3 1.8 3,894.0 3,700.4 5.2 0.8
Interior Systems 1,027.7 808.5 27.1 7.8 3,096.6 2,647.1 16.8 7.1
Total Interior Modules 2,253.2 1,961.3 14.9 4.3 6,986.6 6,347.5 10.1 3.4
Emissions Control Technologies 1,417.8 1,414.5 0.2 (4.8) 4,572.9 4,263.2 7.3 3.6
Automotive Exteriors 414.7 411.6 0.8 (3.1) 1,290.9 1,327.0 (2.7) (4.2)
Total Other Modules 1,832.5 1,826.1 0.4 (4.4) 5,863.8 5,590.2 4.9 1.8
TOTAL 4,085.7 3,787.4 7.9 0.1 12,850.3 11,937.7 7.6 2.6

Product sales, per region

Product sales (in € million) Q3-12 Q3-11 Change Org.* (%) 9M-12 9M-11 Change Org.* (%)
(%) (%)
Europe 1,675.2 1,716.4 (2.4) (4.2) 5,670.5 5,904.7 (4.0) (4.9)
North America 964.3 636.8 51.4 19.2 2,658.6 1,860.4 42.9 20.9
South America 182.3 177.2 2.9 9.7 499.1 493.8 1.1 6.3
Asia 348.3 282.8 23.2 9.9 999.0 790.4 26.4 14.4
Other 46.9 52.3 (10.3) (8.4) 142.8 148.4 (3.8) 0.4
TOTAL 3,217.1 2,865.6 12.3 3.2 9,970.0 9,197.8 8.4 2.8

Product sales, per business group

Product sales (in € million) Q3-12 Q3-11 Change
(%)
Org.* (%) 9M-12 9M-11 Change
(%)
Org.* (%)
Automotive Seating 1,177.2 1,101.4 6.9 2.3 3,735.2 3,551.3 2.2 0.6
Interior Systems 889.7 684.0 30.1 7.7 2,623.4 2,623.9 15.7 4.8
Total Interior Modules 2,066.9 1,785.4 15.8 4.3 6,358.6 5,818.2 9.3 2.2
Emissions Control Technologies 768.8 711.9 8.0 2.2 2,428.6 2,168.3 12.0 7.9
Automotive Exteriors 381.4 368.3 3.6 (0.5) 1,182.8 1,211.2 (2.3) (3.9)
Total Other Modules 1,150.2 1,080.2 6.5 1.3 3,611.4 3,379.5 6.9 3.7
TOTAL 3,217.1 2,865.6 12.3 3.2 9,970.0 9,197.8 8.4 2.8

* Like-for-like

Faurecia will hold a teleconference in English with Frank Imbert, Chief Financial Officer on Tuesday October 23, 2012 at 8:00am Paris time (7:00am London time). To participate, please call:

France: +33 1 70 77 09 43

UK: +44 20 33 67 94 61

[No pass code needed].

You can also follow the teleconference on our website: www.faurecia.fr or www.faurecia.com.

Faurecia will be holding an Investor Day in London on Monday, November 12, 2012: details available of www.faurecia.com.

About Faurecia

Faurecia is the world's sixth-largest automotive equipment supplier with four key Business Groups: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. In 2011, the Group posted total sales of €16.2 billion. At December 31, 2011, Faurecia employed 84,000 people in 33 countries at 270 sites and 40 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange. For more information, visit: www.faurecia.com

Contacts Press

Olivier Le Friec Media Relations Manager Tel.: +33 1 72 36 72 58 Mob: +33 6 76 87 30 17 [email protected] Analysts/Investors Eric-Alain Michelis Investor Relations Tel.: +33 1 72 36 75 70 Mob: +33 6 64 64 61 29 [email protected]

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