Faurecia SE

Earnings Release • Jul 26, 2011

Nanterre, July 26, 2011

Sharp rise in Faurecia's results

Faurecia achieved a sharp rise in the first half results for 2011, driven by steady growth in all regions:

• 19% increase in sales to 8,150 million Euros (15,5% at constant exchange rates and scope);
• 57% rise in operating income to 340 million Euros at 4,2% of total sales, a 1-point increase over H1 last year;
• 82% increase in consolidated net income to 186 million Euros;
• 69% growth in net income per share at 1.57 Euro.

For 2011 overall

• Upward revision of sales target to 15.7-15.9 billion Euros;
• Operating income expected to be between 620 and 650 million Euros;
• Capital expenditure increased to 450 million Euros.

KEY FIGURES FOR THE FIRST HALF OF 2011 (AUDITED)

In million Euros (EUR)	st half 1 2010	st half 1 2011
Sales Like-for-like change yr-on-yr	6,825.9	8,150.3 15.5%
Product Sales Like-for-like change yr-on-yr	5,354.4	6,332.2 13.8%
Operating income as % of sales	216.5 3.2%	340.0 4.2%
Net income (Group share)	101.9	185.8
Net income per share (diluted, in €)	0.93	1.57
Capital expenditure	123.9	176.8
Net financial debt financial debt (at June 30)	1,348.5	1,255.2

ACTIVITIES

GROUP SALES

Faurecia's consolidated sales for the first half of 2011 stood at 8,150.3 million Euros, up 19.4% compared with the first half of 2010. They incorporate:

• the impact on Q1 2011 results of sales of 135.9 million Euros generated by Plastal Germany (consolidated from April 1, 2010);
• sales of 87 million Euros generated by Plastal Spain (consolidated from October 1, 2010);
• sales of 44.4 million Euros generated by Angell-Demmel (consolidated from January 1, 2011);
• sales of 34.3 million Euros, resulting from the acquisition of the Madison, Miss. (USA) seat assembly plant for Nissan on April 4, 2011.

€m	H1- 2011	H1-2010	Change	Change (*)
Consolidated sales	8,150.3	6,825.9	19.4%	15.5%
Product sales	6,332.2	5,354.4	18.3%	13.8%
Monolith sales	1,324.9	1,054.9	25.6%	26.2%
Development, tooling and prototyping costs for third-party customers	493.2	416.5	18.4%	11.1%

SALES

(*) at constant exchange rates & scope

At constant exchange rates and scope—with 2010 figures adjusted to include Plastal Germany's Q1 2010 sales and 2011 figures excluding Plastal Spain, Angell-Demmel and the Madison plant—sales were up 15.5% compared with the first half of 2010.

Sales of monoliths by Faurecia Emissions Control Technologies totaled 1,324.9 million Euros, up 25.6% (26.2% at constant exchange rates) compared with the first half of 2010.

Excluding sales of monoliths, sales stood at 6,825.4 million Euros, an increase of 18.3% (13.6% at constant exchange rates and scope).

Billing of development, tooling and prototyping costs amounted to 493.2 million Euros, up 18.4% (11.1% at constant exchange rates and scope) compared with the first half of 2010.

Product sales, including deliveries of parts and components to automakers, totaled 6,332.2 million Euros rising 18.3% and 13.8% at constant exchange rates and scope, compared with the first half of 2010.

Product sales by region for the first half of 2011:

• In Europe, product sales were up 15.3% (8.5% at constant exchange rates and scope), totaling 4,170.1 million Euros. In the first half of 2011, 65.9% of product sales were generated in Europe;
• In North America, they amounted to 1,223.6 million Euros (19.3% of total product sales), an increase of 28.6% or 30.1% at constant exchange rates and scope;
• In South America, they stood at 316.6 million Euros (5.0% of the total), an increase of 25.1% or 23.6% at constant exchange rates and scope;
• In Asia, product sales increased by 14.8% (16.2% at constant exchange rates and scope) to 507.6 million Euros (8.0% of the total), of which 11.8% in China and 29.4% in Korea;
• In other countries, product sales totaled 114.2 million Euros, up 27.5% or 24.6% at constant exchange rates and scope.

€m	H1 2011	H1 2010	Change	Change (*)
Product sales	6,332.2	5,354.4	18.3%	13.8%
- Europe	4,170.1	3,618.0	15.3%	8.5%
- North America	1,223.6	951.5	28.6%	30.1%
- South America	316.6	253.0	25.1%	23.6%
- Asia	507.6	442.3	14.8%	16.2%
of which China	398.3	360.5	10.5%	11.8%
- ROW	114.3	89.6	27.6%	24.6%

PRODUCT SALES BY REGION

(*) at constant exchange rates & scope

Product sales by Business Group:

Automotive Seating

Product sales totaled 2,450.0 million Euros (including 34.2 million Euros from the integration of the Madison plant), up 10.4% at constant exchange rates & scope.

Interior Systems

Product sales amounted to 1,583.0 million Euros (including 41.8 million Euros from the activities of Angell-Demmel), up 13.8% at constant exchange rates and scope.

Emissions Control Technologies

Product sales (excl. monoliths) reached 1,456.4 million Euros, up 22.6% at constant exchange rates and scope.

Automotive Exteriors

Product sales totaled 842.9 million Euros (including 118.0 million Euros from the Q1 activities of Plastal Germany and 76.7 million Euros from the H1 activities of Plastal Spain), up 9.3% at constant exchange rates and scope.

RESULTS

Operating income stood at 340.0 million Euros, up 123.4 million Euros, a 57% increase compared with the same period the previous year. This represents 4.2% of total sales compared with 3.2% in the first half of 2010. The improvement is a result of the rapid growth in sales volume and a further reduction in fixed costs in Europe, while the large number of new programs and plants starting up in North and South America as well as in Asia has contributed to an increase in fixed costs outside Europe. The significant rise in steel and plastics prices in the first half of the year had only a limited net impact on operating income (29 million Euros).

Gross R&D expenditure totaled 383.5 million Euros and 4.7% of sales compared with 339.9 million Euros and 5.0% of sales in the first half of 2010.

Earnings before interest, tax, depreciation and amortization (EBITDA) totaled 572.9 million Euros and 7.0% of sales compared with 459.9 million Euros and 6.7% of sales in the first half of 2010.

DEBT

Capital expenditure totaled 176.8 million Euros, representing 2.2% of sales, compared with 123.9 million Euros (1.8% of sales) in the first half of 2010.

The appreciable increase in capital expenditure stems from the steady growth, both current and projected, of the Group's four Business Groups, mainly outside Europe.

After 64 million Euros cashed out for acquisitions (Angell Demmel and Amminex mainly) and 28 million Euros in dividends paid to shareholders, net financial debt at June 30, 2011, stood at 1,255 million Euros, compared with 1,197 million Euros at December 31, 2010 and 1,349 million Euros at June 30, 2010.

OUTLOOK

With the rapid growth recorded by the Group in the first half of the year and the increase in profitability (a 1-point increase in operating margin to 4.2%), Faurecia is now one year ahead of schedule in its 2010-2014 plan presented in June 2010.

Growth should remain steady in the second half of the year in all regions and is expected to remain solid in medium term driven by a high level of new program acquisitions.

Against this backdrop, Faurecia has revised its 2011 targets as follows:

• Consolidated sales between 15,700 and 15,900 million Euros (compared with 14,800-15,300 million Euros targeted in February 2011)
• Operating income between 620 and 650 million Euros (compared with 580-640 million Euros in February 2011)
• Capital expenditure allowance increased to 450 million Euros (compared with 350 million Euros expected initially), net cash flow¹ at around 100 million Euros.

¹ Net cash flow: change in net debt – change from sale of receivables – net debt linked to acquisitions – impact of exchange rates on debt.

APPENDIX

PRODUCT SALES

In million Euros		First half 2011First half 2010	Change	Change (*)
Product sales	6,332.2	5 354.4	18.3%	13.8%
Automotive Seating	2,450.0	2,202.7	11.2%	10.4%
Interior Systems	1,583.0	1,365.2	16.0%	13.8%
Interior Modules (total)	4,032.9	3,567.9	13.0%	11.7%
Emissions Control Technologies	1,456.4	1,202.2	21.1%	22.6%
Automotive Exteriors	842.9	584.4	44.2%	9.3%
Other modules (total)	2,299.3	1,786.5	28.7%	17.7%

(*) at constant exchange rates & scope

SALES

In million Euros	First half 2011	First half 2010	Change	Change (*)
Total sales	8,150.3	6 825.9	19.4%	15.5%
- Automotive Seating	2,547.6	2,313.7	10.1%	9.4%
- Interior Systems	1,838.6	1,565.5	17.4%	15.5%
Interior Modules (total)	4,386.2	3,879.2	13.1%	11.8%
- Emissions Control Technologies	2,848.8	2,317.7	22.9%	22.1%
- Automotive Exteriors	915.4	629.0	45.5%	8.5%
Other modules (total)	3,764.1	2,946.7	27.7%	17.0%

(*) at constant exchange rates & scope

2011 targets	Announced in February		Revised in July
Sales	14.8/15.3 € billion		15.7/15.9 € billion
Operating income	580/640 € million		620/650 € million
Net cash flow	> 200 € million		≈ 100 € million

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 2010, the Group posted total sales of 13.8 billion Euros. It employs 75,000 people in 33 countries at 238 sites and 38 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 (0)1 72 36 72 58 Mob: +33 (0)6 76 87 30 17 olivier.lefriec@faurecia.com

Analysts/Investors Eric-Alain Michelis Investor Relations Tel: +33 (0)1 72 36 75 70 Mob: +33 (0)6 64 64 61 29 eric-alain.michelis@faurecia.com