FAURECIA : Strong organic* growth at +10.7% in Q3

Q3 2017 SALES

Strong organic* growth at +10.7% in Q3 (vs. +8.5% in H1) Increased outperformance vs. automotive production of 870bps in Q3 (vs. 550bps in H1) FY 2017 guidance (as recently upgraded on July 21) confirmed

Nanterre (France), October 12, 2017

• Continued momentum in sales; value-added sales of €3.790 billion in Q3
  • Up 10.7% on an organic* basis and 870 bps above worldwide automotive production growth (+2.0%**), both figures improving vs. H1
  • Up 7.3% on a reported basis, reflecting a negative effect of 3.3 percentage points due to currencies  
• Strong organic* growth in all three Business Groups
  • Seating up 9.5%, Clean Mobility up 10.1% and Interiors up 13.0%  
• Strong organic* performance in all regions
  • Europe up +8.7%, Asia up +25.1% and South America up +47.5%
  • Stability in North America despite a significant drop in North American automotive production (-8.1%**)  
• The full-year 2017 guidance, as recently upgraded on July 21, is confirmed

Patrick KOLLER, CEO of Faurecia commented: "In Q3 2017, our sales continued to demonstrate strong momentum. Organic* growth stood at +10.7%, above the first half of the year. We continued to significantly outperform the market. All Business Groups and Regions posted very good performances. This strengthens our strong confidence in achieving all our full-year financial targets, as recently upgraded on July 21."

Since January 1, 2017, Faurecia reports only value-added sales, which are total sales less monolith sales (a table in appendix details the reconciliation between total sales and value-added sales).

  *Organic: At constant exchange rates & scope, including JVs consolidation ** Source: IHS forecast as released on September 18, 2017

CONTINUED SALES MOMENTUM IN Q3

In Q3 2017, value-added sales amounted to €3.790 billion, up 7.3% on a reported basis  (vs. €3.531 billion in Q3 2016).

They included a negative currency effect of €117.5 million, i.e. 3.3 percentage points. Out of this effect, €62.9 million was attributable to the USD vs. the euro and 28.2 million was attributable to the CNY vs. the euro.

On an organic* basis, value-added sales were up 10.7%, reflecting continued strong growth (after the 8.5% recorded during the first six months of the year).                                                  Organic* growth included the positive effect of the consolidation since January 1, 2017 of two joint ventures that were previously accounted for by the equity method:

• Chang'An (China, Interiors) for €66.8 million during the quarter (€192.2 million since the beginning of the year),
• FCA-Pernambuco (Brazil, Interiors) for €51.7 million during the quarter (€127.1 million since the beginning of the year).

              This organic* growth reflected a strong market outperformance of 870 basis points  (vs. worldwide automotive production growth of +2.0%**), even stronger than the one recorded in the first six months of the year (reminder: in H1 2017, Faurecia's organic growth stood at +8.5% vs. worldwide automotive production growth of +3.0%, source: IHS dated June 2017, i.e. an outperformance of 550 basis points).

STRONG GROWTH IN ALL THREE BUSINESS GROUPS

• Seating (42% of Q3 value-added sales): VA sales totaled €1,613.2 million in Q3 2017, compared to €1,515.6 million in Q3 2016. They were up 6.4% on a reported basis and up 9.5% on an organic* basis, significantly outperforming worldwide automotive production growth (+2.0%**).  
• Clean Mobility (27% of Q3 value-added sales): VA sales totaled €1,017.7 million in Q3 2017, compared to €959.5 million in Q3 2016. They were up 6.1% on a reported basis and up 10.1% on an organic* basis, significantly outperforming worldwide automotive production growth (+2.0%**). Sales to Cummins continued to be a significant growth driver; commercial vehicle sales rose 48%*, now representing 11% of the Clean Mobility Business Group's value-added sales.  
• Interiors (31% of Q3 value-added sales): VA sales totaled €1,159.4 million in Q3 2017, compared to €1,056.1 million in Q3 2016. They were up 9.8% on a reported basis and up 13.0% on an organic* basis, significantly outperforming worldwide automotive production growth (+2.0%**). Organic growth included €118.4 million from the consolidation of two joint ventures (JV with Chang'An in China and JV with FCA in Brazil).

STRONG GROWTH IN ALL REGIONS

• Europe (48% of Q3 value-added sales): Sales momentum in a solid market

VA sales in the region totaled €1,830.2 million, compared to €1,694.6 million in Q3 2016. They were up 8.0% on a reported basis and up 8.7% on an organic* basis, significantly outperforming automotive production in Europe (incl. Russia) (+5.4%**).

• North America (26% of Q3 value-added sales): Stable organic sales despite market decrease, thanks to commercial vehicles, SUVs and Light truck sales

VA sales in the region totaled €986.4 million, compared to €1,050.7 million in Q3 2016. They were down 6.1% on a reported basis, impacted by a negative currency effect of €62.9 million, and broadly stable (-0.1%) on an organic* basis, significantly outperforming automotive production in North America (-8.1%**). Organic sales were resilient thanks to commercial vehicles, SUVs and light trucks.

• Asia (18% of Q3 value-added sales): Continued strong growth in China, driven by market share gains and sales to Chinese OEMs

      VA sales in the region totaled €700.8 million, compared to €587.5 million in Q3 2016. They were up 19.3% on a reported basis and up 25.1% on an organic* basis, significantly outperforming automotive production in Asia (+2.9%**). Organic growth in the region included €66.8 million from the consolidation of the joint venture with Chang'An in China.       VA sales in China totaled €535.1 million, compared to €448.0 million in Q3 2016. They were up 19.4% on a reported basis and up 25.7% on an organic* basis, significantly outperforming automotive production in China (-1.4%**). Out of these sales in China, sales to Chinese OEMs totaled €76.3 million, compared to €51.0 million in Q3 2016, up 58% on an organic* basis.

• South America (5% of Q3 value-added sales): Continued sales turnaround supported by a gradual market recovery

VA sales in the region totaled €201.2 million, compared to €142.7 million in Q3 2016. They were up 41.0% on a reported basis and up 47.5% on an organic* basis, significantly outperforming automotive production in South America (+25.0%**). Organic growth in the region included €51.7 million from the consolidation of the joint venture with FCA (production for the Pernambuco plant).

FULL-YEAR 2017 GUIDANCE CONFIRMED

On July 21, 2017, Faurecia upgraded its full-year 2017 guidance as follows:

• FY 2017 value-added sales growth: +7% (at constant currencies), around 500bps above worldwide automotive production growth,
• FY 2017 operating margin between 6.6% and 7.0% of value-added sales,
• FY 2017 net cash flow above €350m,
• FY 2017 earnings per share above €4.00.

This full-year 2017 guidance was based on the assumption that worldwide automotive production should grow by around 2% in 2017 vs. 2016; the latest forecast from IHS (dated September 18, 2017) confirms this assumption.

The continued momentum in Q3 sales and the expected performance in Q4 allow Faurecia to confirm its full-year 2017 financial targets.

As regards full-year 2018 financial targets, they will be announced on February 16, 2018, when Faurecia will release its full-year 2017 results. Faurecia remains strongly committed to its profitable growth trajectory.

Faurecia's financial presentation will be available at 6:00 pm today (Paris time) on the Faurecia website: www.faurecia.com .

A conference call for financial analysts and media will be held today at 6:30 pm (Paris time). It can also be followed on the Faurecia website ( www.faurecia.com )

Dial in numbers for the conference call:

·             France +33(0)1 76 77 22 28

·             UK           +44(0)20 3427 0503

·             USA        +1 646 254 3367

Access code:    9333749

Calendar

January 7-12, 2018:                          First presence at CES (Consumer Electronics Show) in Las Vegas

February 16, 2018:                            FY 2017 results announcement (before market hours)

Second quarter 2018:                     Capital Markets Day "Smart Life on Board"

About Faurecia

Founded in 1997, Faurecia has grown to become a major player in the global automotive industry. With 300 sites including 30 R&D centers, 100 000 employees in 35 countries, Faurecia is now a global leader in its three areas of business: automotive seating, interior systems and clean mobility. Faurecia has focused its technology strategy on providing solutions for smart life on board and sustainable mobility.  In 2016, the Group posted total sales of €18.7 billion and value-added sales of €15.6 billion. Faurecia is listed on the NYSE Euronext Paris stock exchange and trades in the U.S. over-the-counter (OTC) market. For more information, visit www.faurecia.com    

Contacts

Definitions of terms used in this document:

1. Organic Variation at constant exchange rates and consolidation scope, including JVs consolidation.
2. Value-added sales Total sales less monolith sales.

*Organic: At constant exchange rates & scope, including JVs consolidation

** Source: IHS forecast as released on September 18, 2017

APPENDIX - SEE "VERSION PDF" ATTACHED

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