Financial Overview

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change (%)	Factor
Sales	17,364.5	16,190.2	7.3	1)
EBITDA	1,009.4	1,104.5	(8.6)	-

Factor
1)
-The sales in 2012 generated by the Saline plant (Michigan, USA), acquired from Ford and consolidated since June 1, 2012, totaling 281.3 million euro;

-The impact, in the first quarter of 2012, of the sales generated by the seat assembly plant in Madison (Mississippi) that serves Nissan and that has been consolidated since April 4, 2011, totaling 43.8 million euro;

-The sales generated by the new Interior Modules operations acquired in the first half of 2012: the Saint-Quentin plant, acquired from Borgers, plus the Mornac plant in France and the Pardubice plant in the Czech Republic acquired from Mecaplast, totaling 42.5 million euro;

-The sales generated by the new Automotive Exteriors composites operations acquired on July 13, 2012, totaling 17.3 million euro;

-The sales generated by the Plastal France plant in Hambach, acquired on August 30, 2012, totaling 26.8 million euro.

Sales Breakdown by Customer

	FY ended Dec. 31, 2012 Sales (in million euros)	FY ended Dec. 31, 2012 Sales growth rate (%)*	% of the Company's total product sales*	Sales growth rate by geographic area
VW Group	3,365.3	3.9	25.3	-Europe:1.4% -North America:54% -Asia:20.2% -South America:4.9%
PSA Peugeot Citroen Group	1893.6	10.4	14.2	-Europe:(11.7%) -South America:(9.7%) -Asia:33.5%
Renault-Nissan Group	1,402.7	(6.5)	10.5	-North America:31.0% -Europe:(13.4%)
Ford Group	1,754.8	6.6	13.2	-North America:85.7% -Europe:(8.9%)
BMW Group	1,066.4	2.2	8.0	-North America:4.7% -Europe:(7.3%)
GM Group	1,119,0	0.2	8.4	-Asia:47.0% -North America:6.0% -Europe:(8.2%) -South America:(9.1%)
Daimler Group	710.2	15.7	5.3	-
Fiat-Chrysler Group	-	17.4	-	-
Geely-Volvo	-	(5.6)	-	-
Hyundai/Kia	-	18.5	-	-
Toyota	-	(22.1)	-	-

*On a like-for-like basis.

Acquisitions

-The Company announced the acquisition, effective August 30, 2012, of Plastal France (Plastal S.A.S.), a supplier of plastic body parts for the smart brand (Daimler). The body parts are made of injected thermo-plastic using the Mold in Color (MIC) technology. This deal follows the previous acquisitions of Plastal Germany and Plastal Spain in 2010. The acquisition covers the manufacturing and assembly plant and its operational headquarters located in Hambach (France). This activity generates annual sales of around 50 million euros with a total staff of 250. (From a press release on September 3, 2012)

-The Company announced the acquisition of the automotive business of Sora Composites, a France-based company which possesses an established expertise in the field of composite plastics and the use of glass and carbon fiber for automotive applications. The two plants affected by this acquisition are located in Theillay and Saint-Meloir-des-Ondes, with the operational headquarters based in Change (all three sites in France). This business generates annual sales of around 70 million euros with a total staff of 500. The parts produced in both plants of Sora Composites include body and structural parts for both automakers such as Renault and PSA Peugeot Citroen, as well as Aston Martin, Audi, Lotus and McLaren Automotive. Faurecia's objective is to bring composite materials towards the mass serial production of automotive parts. To that effect, the Company has set up a number of R&D partnerships, with the Fraunhofer Institut in Karlsruhe (Germany), the French Center for Advanced Studies in Composite Materials for Transport applications (CEMCAT), the French ESTACA engineering school and with the French Ecole Centrale de Nantes engineering school. (From a press release on July 19, 2012)

-The Comapny acquired the Saline, Michigan, the U.S., interior components business, which is currently operated by Ford Motor Company's Automotive Components Holdings, LLC (ACH). The Saline business generates 1.1 billion USD annual sales (835 million euros) and supplies cockpit modules, instrument panels, door panels and center consoles for 12 vehicle programs assembled at eight Ford plants throughout North America. (From a press release on May 3, 2012)

Joint Ventures

-The Company entered into a new joint venture with the U.S.-based Rush Group Ltd. The joint venture, called Detroit Manufacturing Systems (DMS), will do injection molding and assembly interior trim components from a new facility in Detroit, Michigan. Rush Group will hold the majority of the capital of the new company, while the Company will own 45 percent. As a result, the Saline plant will focus in the future on core technologies such as injection molding, skin manufacturing and foaming operations with annual revenues of nearly 400 million USD, 300 million euros.(From a press release on May 3, 2012)

Business Partnership

-The Company established Faurecia Howa Interiors (FHI) in Atsugi, Japan, a 50/50 joint-venture with Howa Textile Industry Co., Ltd. It will develop vehicle interior systems including door panels, in-vehicle insulation and soft trims. The partnership will make the Company a major Nissan supplier in Japan for door panels and soft trims. The Company and Howa will split manufacturing of Nissan products among their respective plants on a global basis, except for Mexico and China, where FHI will set up joint production facilities. (From an article in the Nikkan Jidosha Shimbun on April 20, 2012)

-The Company and LG Hausys of Korea, which develops and produces specialty decoration materials and films for the housing, electronic and automotive industry, have signed a strategic partnership to jointly develop next-generation vehicle interior decoration films. Through this partnership with LG Hausys, Faurecia Interior Systems enlarges its product and technology offering to cover the broad range of interior decoration solutions, including paint, real metal, fibers, wood and films. (From a press release on January 11, 2012)

Award

-The Company has received a Quality Award from Renault. (From a press release on July 18, 2012)

Outlook

-The Company has set a sales target of 22 billion euros (approximately 2.22 trillion yen) for 2016, which is a 35.8 percent rise from the 2011 result. Faced with the floundering European economy, the Company has decided to shift its focus to the North American and Asian markets. The Company is looking to raise the ratio of sales it generates outside Europe to 55 percent by 2016, up 18 percentage points from 37 percent in 2011. (From an article in the Nikkan Jidosha Shimbun on Nov. 27, 2012)

R&D Expenditure

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	943.0	759.6	689.1

R&D Structure

-The Company holds 5,500 engineers and technicians and 30 Research & Development and Design & Development centers.

R&D Facilities

<France>
-The Company has opened a new electronics lab at its TechCenter in Brieres-les-Scelles, France. The "e-lab" is set to become a center of excellence in the use of electronics for automotive seating. The e-lab has nearly 1,000 square meters of floor space and employs a team of 20 people, which is due to increase to 50 by 2014, with additional support from a network of specialists in the U.S., Germany and China. (From a press release on October 8, 2012)

<China>
-The Company and FAW-Volkswagen Group opened a new R&D center in Changchun, Jilin Province, China. The new R&D center will focus on the design, development and testing of a variety of products, such as car seats, instrument panels and door panels. It will also serve as the head office of Changchun Faurecia Xuyang Automotive Technology, a joint venture formed by the Company, Changchun Xuyang Group and Jilin University. With the help of Jilin University, the center will also focus on the research and development of new materials. (From a press release on September 19, 2012)

<India>
-The Company inaugurated in Pune, India its new TechCenter for automotive interior systems, automotive seating and automotive exteriors, three of its four business groups. The TechCenter is designed to accommodate 800 of India's automotive engineers. Every year, the group's R&D teams at the TechCenters in India mastermind over 200 projects. Globally, the Company has registered 300 patents during the year 2011. (From a press release on June 21, 2012)

<Japan>
-Faurecia Japan KK will begin to make automotive seat prototypes and conduct their testing this summer in Japan. Special equipment will be installed at its headquarters and engineers dedicated to the project will be assigned for developing seating systems locally in Japan. Having development functions in Japan is meant to reduce time and cost in facilitating development. The Company wishes to increase order volumes from Japanese automakers, including Nissan, in a bid to expand its business scope. A new facility with a floor space of about 700 square meters will be built at the new head office that was moved to Yokohama in February 2012. Equipment required for developing seats, such as a 3D measuring device and a welding machine for fixing seats will be installed. The Company has plans to more than double sales in Asia, including Japan, from the current 1.5 billion euros to 4 billion euros by 2015, and is aggressive in making new investment in Japan. It is also strengthening alliance with Faurecia Nippatsu, a joint venture with NHK Spring, which is in partnership with the Company in the seat business. Hereafter, it is set to step up seat development function further in Japan by reinforcing engineering staff. (From an article in the Nikkan Jidosha Shimbun on May 10, 2012)

R&D Activities

-The Company and the Fraunhofer ICT (Institut fur Chemische Technologie) announced the signature of a framework agreement to jointly perform R&D work on "Engineering and prototypes for advanced industrial processes for composites" for applications in the automotive field. The objective of the agreement is to further develop composite industrial processes applied to structural parts enabling weight reduction (20% to 50% compared to traditional materials). The Fraunhofer ICT already has its own pilot production lines enabling validation of these new composite technologies and processes. Faurecia's objective is to implement these materials in mass serial production of automotive parts by 2020. (From a press release on November 8, 2012)

-The Company and Mitsubishi Chemical Corporation (MCC) announced on November 5 that the company and the Company and MCC agreed on joint development of bioplastics for automotive interior parts. The two companies will pursue development and early commercialization of plant-derived poly-butylene succinate (PBS) that is suitable for automotive interior materials by 2014. (From an article in the Nikkan Jidosha Shimbun on Nov. 7, 2012) 

Product Development

Cockpit for commercial vehicles
-Continental AG and SAS Automotive Systems, a joint venture of Continental and Faurecia S.A. specializing in the development, assembly and logistics of customized cockpits, have developed the T.Dash concept cockpit for commercial vehicles. Its T structure makes it extremely flexible and modular. For example, the center console and glove compartment area can be simply repositioned. In addition, the new instrumentation solutions are built in: The study includes a 12" digital instrument cluster that displays the relevant driving and vehicle information in clearly arranged 2D and 3D graphics. (From a press release on September 18, 2012)

Capital Expenditure by Business Segment

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Interior Modules	292.7	247.7	172.5
Other Modules	241.5	190.4	124.4
Other	23.1	13.3	7.4
Total	557.3	451.4	304.3

 

Capital Expenditure by Geographic Area

(in million euros)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
France	72.5	85.2	63.2
Germany	55.0	49.2	27.1
Other European Countries	152.3	106.8	52.6
North America	104.7	76.1	72.4
South America	87.2	43.9	23.2
Asia	82.6	65.3	42.6
Other countries	3.0	24.9	23.3
Total	557.3	451.4	304.4

Investment Outside France

<India and Indonesia>
-In Nov. 2011, the Company is going to step up its seat business in emerging countries. The Company will establish new seat production facilities in India and Indonesia through a joint investment with NHK Spring. The seats produced at the new plants will be used in low-priced vehicles Nissan is assembling in emerging markets. (From an article in the Nikkan Jidosha Shimbun on Nov. 26, 2012)

<Brazil>
-The Company inaugurated in Limeira (State of Sao Paulo, Brazil) its new emissions control technologies production facility, an associated TechCenter and the product group's headquarters for South America. The new Limeira plant is producing emissions control systems and parts such as manifolds, catalytic converters, diesel particulate filters, and mufflers, for both passenger and commercial vehicles, following the Euro 5 (P7) emissions regulations. The new plant and TechCenter received a total investment of 60 million Brazilian real, approximately 30 million USD, and occupies a total productive surface of 30,000 square meters, offering a total annual manufacturing capacity in Brazil to be mounted on 1.4 million passenger vehicles and 60,000 commercial vehicles. The TechCenter offers advanced engineering and development activities for South America-based automakers. (From a press release on July 5, 2012)

<USA>
-The Company opened a new Automotive Exteriors plant in Belvidere, Illinois, the U.S. At the plant, the Group produces the front-end modules for the Dodge Dart. (From a press release on June 19, 2012)

<Korea>
-Faurecia Automotive Seating Korea, Ltd., a subsidiary of the Company, will establish a new company in Yeongcheon, Gyeongsangbuk-Do, Korea to produce seat frames. Construction of the plant will begin in September 2012. Once the plant goes online in September 2013, it plans to mass-produce seat frames in the range of 600,000 units annually. The Company is investing 21 million dollars. (From a May 18, 2012 press release)

<China>
The Company has begun to construct a new Chinese plant in Dongguan, Guangdong Province. Interior Systems, Automotive Seating and Emissions Control Technologies will each be present at this 20,000 square meters new site. The new site will begin to produce components for Changan PSA Automobiles (CAPSA) at the end of 2012. (From a press release on March 7, 2012)