Faurecia S.A. Business Report FY2011
Business Highlights
Financial Overview |
(in million euros) |
| FY2011 | FY2010 | Rate of change (%) |
Factor | |
| Sales | 16,190.2 | 13,795.9 | 17.4 | 1) |
| EBITDA | 1104.5 | 941.2 | 17.4 | - |
Factor
1)
-The Company's consolidated 2011 sales totaled 16,190.2 million euro, compared to 13,795.9 million euro in 2010. This includes the sales generated by Angell-Demmel (consolidated since January 1, 2011), in the amount of 117.4 million euro, as well as those derived from the seat systems plant in Madison (Mississippi, United States), acquired on April 4, 2011, in the amount of 108.3 million euro.
-The year-on-year growth rate of the Company's consolidated 2011 sales was 17.4% on a reported basis. On a like-for-like basis, sales were up 15.0% compared to 2010, breaking down as growth of 15.5% in the first half and 14.6% in the second.
Sales Breakdown by Customer
| FY2011 Sales (in million euros) |
FY2011 Sales growth rate (%)* |
% of the Company's total product sales* |
Sales growth rate by geographic area | |
| VW Group | 3,136.8 | 15.0 | 25.3 | -Europe:13.7% -North America:29.6% -Asia:18.1% -South America:5.5% |
| PSA Peugeot Citroen Group | 2,061.0 | 6.1 | 16.6 | -South America:34.5% -Asia:11.5% -Europe:3.3% |
| Renault-Nissan Group | 1,424.0 | 3.6 | 11.5 |
-North America:49.8% -South America:32.8% -Europe:(0.1%) -Asia:(0.2%) |
| Ford Group | 1,357.2 | 11.7 | 11.0 | -North America:28.9% -Europe:6.0% |
| BMW Group | 1,045.9 | 5.9 | 8.4 | -North America:11.7% -Europe:2.8% |
| GM Group | 1,052.8 | 2.7 | 8.5 | -Asia:22.8% -North America:4.6% -Europe:(19.5%) |
| Daimler Group | 584.9 | 15.6 | 4.7 | -North America:282.4% (Attributed to the start of deliveries of seats and interior parts for the new Mercedes M-Class.) -Europe:6.8% |
| Fiat-Chrysler Group | - | 83.3 | - |
- |
| Geely-Volvo | - | 12.9 | - |
- |
| Hyundai/Kia | - | 48.7 | - |
- |
| Toyota | - | (22.3) | - |
- |
Interior Modules
-Sales for the Interior Modules segment totaled 8,626.7 million euro in 2011, up 12.6% on a reported basis. On a like-for-like basis, they were up 10.8% (11.8% in the first half of the year, 9.8% in the second).
1. Automotive seating
-The Automotive Seating business generated 4,981.2 million euro in sales in 2011, up 9.0% compared to 2010 on a reported basis and 7.5% on a like-for-like basis.
<Europe>
-In Europe, product sales in 2011 rose by 2.2% year-on-year on a reported basis to 3,131.4 million euro (2.3% on a like-for-like basis).
<North America>
-With product sales totaling 880.0 million euro, North America recorded 38.4% increase in annual growth on a reported basis, including 52.5% growth in the second half of 2011 compared with the second half of 2010. These sales factor in the seat systems plant business in Madison, in the amount of 107.7 million euro for the year. On a like-for-like basis, growth was 26.4% for the year and 34.6% in the second half of the year. The gain was attributable in large part to the ramp-up of the new Mercedes M-Class and sustained sales to Volkswagen (Jetta, new Beetle, Passat in the new Chattanooga plant).
<South America>
-In South America, product sales totaled 265.8 million euro in 2011, a 32.1% increase from 2010 on a reported basis (35.3% on a like-for-like basis). In the second half of the year, the increase was 17.7% on a reported basis and 24.1% on a like-for-like basis.
<Asia>
-In Asia, product sales in 2011 totaled 464.9 million euro, up 8.8% over the full year on a reported basis (9.4% on a like-for-like basis) and 8.4% in the second half (8.3% on a like-for-like basis).
2. Interior Systems
-Interior Systems sales totaled 3,645.5 million euro in 2011, up 17.9% on a reported basis versus 2010, and 15.6% on a like-for-like basis.
<Europe>
-In Europe, product sales totaled 2,056.5 million euro in 2011, up 14.0% versus 2010 on a reported basis, and 8.4% on a like-for-like basis.
<North America>
-In North America, sales amounted to 622.3 million, euro up 29.9% on a reported basis versus 2010, or 35.6% at constant exchange rates.
<South America>
-In South America, product sales totaled 192.2 million euro in 2011, up 17.6% compared to 2010 on a reported basis, and 19.8% on a like-for-like basis.
<Asia>
-In Asia, the Interior Systems business product sales totaled 137.8 million euro, slightly decreasing 0.3% on a reported basis and 0.2% on a like-for-like basis. However, during the second-half of the year, product sales were up 7.1% and 6.5% respectively.
Other Modules
-Sales for the Other Modules business totaled 7,563.5 million euro in 2011, up 23.3% on a reported basis. On a like-for-like basis, and excluding catalytic converter monoliths, sales in this segment increased by 17.5% (17.0% in the first half, 17.9% in the second).
1. Emissions Control Technologies
-The Emissions Control Technologies business generated total sales of 5,779.3 million euro in 2011, up 20.9% on a reported basis and 20.5% at constant exchange rates and excluding sales of catalytic converter monoliths.
-By geographic region, product sales in 2011 (excluding catalytic converter monoliths) rose by 11.9% in Europe (11.7% on a like-for-like basis), 26.4% in North America (32.0% on a like-for-like basis) and 27.8% in Asia (28.7% on a like-for-like basis). They were down 5.7% in South America (-3.9% on a like-for-like basis).
-In the second half of 2011, product sales rose by 6.7% in Europe (6.8% on a like-for-like basis), 25.8% in North America (31.9% on a like-for-like basis) and 26.9% in Asia (27.3% on a like-for-like basis). They were down 9.4% in South America (-4.5% on a like-for-like basis).
2. Automotive Exteriors
-Sales from the Automotive Exteriors business totaled 1,784.2 million euro in 2011, up 32.1% compared to 2010 on a reported basis, and 12.1% on a like-for-like basis. The reported change in sales factors in the contribution from Plastal Germany in the first quarter of 2011, in the amount of 135.9 million euro, and that of Plastal Spain in the first nine months of the year, in the amount of 121.6 million euro.
-During the second half of 2011, product sales increased 17.4% compared with the same period of 2010 on a reported basis and 12.5% on a like-for-like basis.
Acquisitions
-The Company will acquire 21.2% stake in a Denmark-based company Amminex A/S for 146.4 million DKK, i.e. 19.6 million euros. Amminex is a supplier of the Ammonia Storage and Delivery System (ASDS) for NOx emission control. The Amminex ASDS is a gaseous Selective Catalytic Reduction (SCR) system, as an alternative to liquid SCR systems, which delivers precise amounts of ammonia to a catalyst in the exhaust line. This step enables efficient removal of NOx from diesel engine exhaust gases for both passenger cars and commercial vehicles. Faurecia has also concluded a technological cooperation agreement with Amminex to develop and industrialize the technology for diesel engines. Pre-development activities have already started with several carmakers. (From a press release on January 17, 2011)Business Partnership
-The Company and Ningbo Huazhong Plastic Products Co., Ltd. of China signed an agreement to form a 50/50 joint venture which manufactures automotive exterior parts. The new entity, Changchun Huaxiang Faurecia Automotive Plastic Components Co., Ltd. is based on the existing plant of Changchun Huaxiang Automotive Plastic Manufacture Co., Ltd., a subsidiary of Ningbo Huazhong Plastic Products. The new joint venture will carry on Changchun Huaxiang's current bumper systems business for FAW-VW's Volkswagen Magotan (the Chinese Passat) vehicle assembled at FAW-VW's Changchun plant. Furthermore, Changchun Huaxiang Faurecia was recently awarded additional automotive exteriors business from FAW-VW for the new Audi A6. The new entity will be the first joint venture for the automotive exteriors activity of Faurecia in China. (From a press release on January 24, 2011)Contracts
-The Company announced that it will supply various components for the 2012 Volkswagen Passat, which will be built at VW's new Chattanooga plant in Tennessee, U.S. Faurecia Emissions Control Technologies will provide complete exhaust systems for three engines: a 2.5L gasoline engine, a 2.0L TDI clean diesel engine and a 3.6L VR6 engine. Faurecia Automotive Seating supplies manual front seat structures and power front seat backrests. The interior of the new Passat will feature instrument panels from Faurecia Interior Systems. The Automotive Exteriors business group provides a lightweight front-end carrier. The VW group is the Company's largest customer worldwide, accounting for 24.4 percent of its sales. (From a press release on February 22, 2011)Award
-The Company announced that its Chinese joint ventures, Faurecia GSK Wuhan Automotive Seating Co. and Faurecia Tongda Exhaust System (Wuhan) Co. Ltd., were awarded "Best Suppliers 2010" from Dong Feng Peugeot Citroen Automotive (DPCA). (From a press release on February 7, 2011)Outlook
-The Company announced that it is aiming at 20 billion euros sales by 2015, an increase of 25% compared with the 2011 estimate. A portfolio of contracts under development represents product sales of approximately 34 billion euros over the lifetime of the contracts, i.e. more than 2.7 times the estimated product sales for 2011. (From a press release on November 7, 2011)-The Company's objective for 2012 total sales is between 16.3 and 16.7 billion euro, which is a 1 to 3% increase of sales. This is due to the sales in North America will be favorably impacted by new programs launched in 2011 and 2012 and gains in market share. In China, the Company should benefit from starting its new production sites and starting business with new carmakers.
-The Company's objective for 2012 operating income is between 610 million and 670 million euro. Operating income should be impacted by the drop in automobile production in southern Europe. This negative impact should be absorbed by a better outlook in northern Europe and through flexible cost structures.
R&D
R&D Expenditure |
(in million euros) |
| FY2011 | FY2010 | FY2009 | |
| Gross Costs | 759.6 | 689.1 | 493.2 |
R&D Structure
-The Company holds 5,000 engineers and technicians and 40 Research & Development and Design & Development centers.-VISTAGY, Inc., a U.S. provider of engineering software and services, said that Faurecia, a French-based automotive equipment supplier of automobile seat and exhaust gas control technologies, had purchased VISTAGY Seat Design Environment TM (SDE) software and curtailed time to make prototypes for the seat cover trim by 20 percent. Introduction of SDE also enables Faurecia to prepare master models to meet the needs of seat trim engineers and to improve accuracy of bidding, leading to an eventual reduction in cost of the whole procedures. In addition, by sending data directly to suppliers and automakers for cost models, SDE makes it possible to simplify bidding procedures and come to an early result in the bidding based on parameters and conditions provided. Fast and accurate cost calculations also help reduce risks in profit and loss calculations and enhance a competitive edge. (From an article in the Nikkan Jidosha Shimbun on July 15, 2011)
R&D Facilities
-The Company announced that it has opened its new TechCenter in Brieres-les-Scelles (France) dedicated to the development of automotive seating. A total of nearly 5 million euros have been invested in this site. The TechCenter at Brieres is now organized around five key areas: "Seats"; an "Innovation Plateau", a "Seating Engineering Academy"; a "TechForum", and "FrameTech." With the new facilities, Brieres will take its place in the global network of FAS TechCenters alongside Stadthagen (Germany), Shanghai (China), Troy (U.S.), and Caligny (France). (From a press release on October 6, 2011)-The Company, a French-based major auto parts supplier, has inaugurated its new Asian headquarters & China R&D Center for emissions control technologies. The company is investing approximately 5 million euros in this project in Shanghai with the aim of enhancing its capabilities to develop products that meet tighter emissions regulations in China and other Asian countries. The Company has as much as 25 percent of the global market of emissions control technology. The company aims to further increase its worldwide presence by expanding operations in the fast growing market of China. (From an article in the Nikkan Jidosha Shimbun on April 16, 2011)
R&D Activities
-The Company, a France-based auto parts supplier, announced that it will develop lightweight seat structural components using plastics. The development project will be conducted jointly with Rhodia, a specialty chemicals supplier of France. Faurecia is intending to introduce the new technology to automotive seat systems for the next generation, looking to achieve a significant weight reduction compared with conventional products made from high-strength steel sheet. (From an article in the Nikkan Jidosha Shimbun on May 28, 2011)-A joint R&D approach with automakers to further progress as below;
1) Seat frames and mechanisms with GM.
2) Diesel particulate filters and exhaust heat recovery systems with PSA.
Product Development
-The Company will showcase various technologies at the 2011 LA Auto Show in U.S. Faurecia's Performance Seat is 30 percent thinner than conventional seats and weighs 20 percent less. It features the "compliant shell" that conforms to the varying posture, body size and body types of drivers and passengers by changing as the occupant moves. When the occupant moves, the shell changes shape to give increased support to the lumbar area, upper shoulders and pelvis. The company will also present the GPSFit, an app for the Company's SmartFit seat, which is a seat adjustment system that utilizes a smart phone application to allow the seat to make adjustments for users based on a few simple input measurements. The GPSFit pulls data from the vehicle's GPS to readjust the seat's position in advance of changing road or driving conditions. In addition, the Company will present its technology such as new interior system "Pret-a-Porter" Demonstrator, exhaust system for range-extender hybrids, Pedestrian-safety system, and others. (From a press release on November 16, 2011)-At the 81st Geneva International Motor Show, the Company is showcasing its interior system modules and emissions control systems it developed for European automakers. The France-based auto parts supplier's technologies are featured on ten new models unveiled at the auto show, including the Audi A6 and the BMW1 series M Coupe. Among the highlights is the High-comfort Seat in the Audi 6, which has a luxury massage function that uses ten pneumatic units to give passengers a back massage. Other technologies now on display include the Hi-tech Aluminum & Sport-look Instrument Panel, interior system products, front-end modules, and emission control devices such as mufflers. (From an article in the Nikkan Jidosha Shimbun on March 8, 2011)
Investment Activities
Capital Expenditure by Business Segment |
(in million euros) |
| FY2011 | FY2010 | FY2009 | |
| Interior modules | 247.7 | 172.5 | 114.6 |
| Other modules | 190.4 | 124.4 | 45.9 |
| Other | 13.3 | 7.4 | 8.6 |
| Total | 451.4 | 304.3 | 169.1 |
Capital Expenditure by Geographic Area |
(in million euros) |
| FY2011 | FY2010 | FY2009 | |
| France | 85.2 | 63.2 | 68.7 |
| Germany | 49.2 | 27.1 | 18.0 |
| Other European Countries | 106.8 | 52.6 | 43.4 |
| North America | 76.1 | 72.4 | 23.2 |
| South America | 43.9 | 23.2 | 10.0 |
| Asia | 65.3 | 42.6 | 15.6 |
| Other countries | 24.9 | 23.3 | 11.2 |
| Total | 451.4 | 304.4 | 190.1 |