Financial Overview

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factor
Net Sales	18,028.6	17,364.5	3.8	1)
Operating Income	538.3	516.3	4.3	-

Factors
1) Net Sales
-In 2013, the Company's sales grew 3.8% to EUR 18,028.6 million compared to EUR 17,364.5 million in 2012. A contributing factor to the Company's growth was the 3.5% increase in global automotive production.

Sales Breakdown by Major Customer

	FY ended Dec. 31, 2013 Sales (in million EUR)	FY ended Dec. 31, 2013 Sales growth rate (%)*	% of the Company's total product sales*
VW Group	3,380.3	1.4	24.7
PSA Peugeot Citroen Group	1,912.2	1.9	14.0
Renault-Nissan Group	1,456.3	6.6	10.6
Ford Group	2,034.7	13.0	14.9
BMW Group	969.1	(7.7)	7.1
GM Group	1,088.5	0.8	7.9
Daimler Group	835.9	15.0	6.1
Fiat-Chrysler Group	-	(3.9)	6.1
Geely-Volvo	-	8.6	1.5
Hyundai/Kia	-	5.5	1.6
Toyota	-	9.1	-

*On a like-for-like basis.

Business Partnership

-The Company and Magneti Marelli Holding S.p.A. announced a collaboration agreement for the design, development and manufacturing of advanced human-machine interface (HMI) vehicle interior products. Through this agreement, the Company and Magneti Marelli expect to further expand their business portfolios in interior systems, adding HMI solutions to a broad product range including center stacks, fascias & overhead consoles, retractable touch screens and display, and the physical integration of nomadic devices such as smartphones and tablets. (From a press release on November 19, 2013)

-The Company announced that it has signed a three-year partnership agreement with FAW Foundry Co., Ltd. to develop magnesium alloy seat frames. FAW Foundry, based in Changchun, Jilin Province, is a wholly owned subsidiary of China FAW Group Corporation. The two companies will develop a new magnesium alloy frame that can offer a 25 percent weight reduction compared to the latest steel frame. (From an article in the Nikkan Jidosha Shimbun on July 19, 2013)

Joint Ventures

-Faurecia Emissions Control Technologies, a segment of the Company, set up a new joint venture with Suzhou PowerGreen Emission Solution System Co., Ltd. to jointly manufacture emissions control systems, excluding urea pumps and injections, in Shanghai, China. The Company holds a majority stake in the joint venture, which operates under the name of Faurecia PowerGreen Emissions Control Technologies Co., Ltd. The new Shanghai-based joint venture started operations on October 1, 2013 and mainly serves Guangxi Yuchai Machinery Company. (From a press release on October 4, 2013)

-NHK Spring Co., Ltd. announced that it set up a seat production joint venture in Indonesia with a local seat parts supplier and the Company. The joint venture will construct a plant in Purwakarta, West Java, which will supply automotive seats for Nissan Motor's new Indonesian-built model. Seat production is scheduled to begin in March 2014. Sales from the joint venture are expected to reach IDR 396 billion (JPY 3.5 billion) in fiscal year 2015.

-Faurecia Interior Systems, one of the Company's business segments, signed an agreement to establish a joint venture with Thailand-based automotive equipment manufacturer Summit Auto Seats to support Ford's growth strategy in Southeast Asia, especially in Thailand. The joint venture began operations in April 2013. (From a press release on April 22, 2013)

-The Company and Changan Automobile Group signed an agreement for the establishment of a new 50/50 joint venture, CSM Faurecia Automotive Systems Company Ltd (CFAS). An investment in excess of EUR 35 million (CNY 293 million) is planned for the joint venture. The joint venture will focus on the development, manufacturing and delivery of automotive interior equipment, including instrument panels, door panels, center consoles and cockpit modules. CFAS will primarily serve Changan Ford (CAF) as well as Changan Peugeot and Citroen (CAPSA), with which the joint venture has already secured new business programs. Based on the scope of the agreement, the partners will establish new manufacturing plants in Shenzhen (Guangdong Province) and Hangzhou (Zhejiang Province) while transferring the existing Company plant in Chongqing to the new joint venture. (From a press release on April 20, 2013)

-The Company, NHK Spring Co., Ltd., and Krishna Group of India set up a joint venture and a plant to produce automotive seats near Chennai, South India. The plant began production in December 2013. The joint venture, NHK F. Krishna India Automotive Seating Private Limited, is 51% funded by NHK Spring, 30% by Indian auto parts manufacturer Krishna Group, and 19% by the Company. The plant is located in the Oragadam Industrial Estate, near Chennai, and has a total floor space of 3,500 square meters on an 8,000-square-meter plot. The joint venture will supply seats to Nissan Motor in India.

Contracts

-The Company announced that its Exhaust Heat Recovery Manifold (EHRM), designed specifically for gas-electric hybrids, is available on the Ford Fusion in North America and on the Ford C-Max hybrid. In addition, the interior of the Mercedes-Benz SL-Class is loaded with innovations developed by Faurecia for the instrument panel, door panels and center console. (From a press release on April 19, 2013)

Awards

-In June 2013, the Company won a Supplier Innovation Award from PSA Peugeot Citroen in the "Value Creation" category. The award acknowledged the work done in three of the Company's business areas.

• Interior Systems, for a two-tone sparkle-effect instrument panel.
• Automotive Seating, for a new lightweight seat frame and calf support on the front passenger seat.
• Emissions Control Technologies, for its compact diesel exhaust system with selective catalytic reduction system.

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	916.5	943.0	759.6

R&D Structure

-The Company has 5,800 engineers and technicians working in 30 R&D centers across 11 countries.

R&D Facilities

<China>
-The Company has opened a second TechCenter in Shanghai, China as a new R&D hub for three of the Company's business divisions: Automotive Seating, Interior Systems and Automotive Exteriors. Faurecia's first TechCenter in Shanghai is dedicated to its Emission Control Technologies segment. The addition of a second technology base will allow the firm to expand its R&D capability in China. The new TechCenter has five laboratories: a testing lab, acoustic lab, air bag lab, complete seat lab and quality inspection lab. Other facilities include an industrial design facility, two showrooms and various prototype workshops including a laser welding workshop. The TechCenter plans to eventually employ 800 technicians and engineers. (From an article in the Nikkan Jidosha Shimbun on July 18, 2013)

Capital Expenditure by Business Segment

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Automotive Seating	117.9	113.1	99.1
Emission Control Technologies	126.4	152.7	143.3
Interior Systems	187.1	179.6	148.6
Automotive Exterior	60.9	88.8	47.1
Other	25.7	23.1	13.3
Total	518.0	557.3	451.4

 

Capital Expenditure by Geographic Area

(in million EUR)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
France	79.2	72.5	85.2
Germany	51.2	55.0	49.2
Other European Countries	113.9	152.3	106.8
North America	132.2	104.7	76.1
South America	57.0	87.2	43.9
Asia	81.1	82.6	65.3
Other countries	3.4	3.0	24.9
Total	518.0	557.3	451.4

Investment Outside France

<China>
-The Company announced the opening of Faurecia Wuhan Automotive Seating Industrial Park in Wuhan, Hubei Province, China. The industrial park covers an area of 60,000 square meters. Construction on the park started on June 2012 and was handed over to the Company in August 2013. FGW and FWAC, the two existing automotive seating plants in Wuhan, have moved into this new industrial park and will provide seat frames and complete seats to both Donfeng Peugeot Citroen and Nissan. Production processes and technologies such as cutting, foaming and covering will also be introduced through the automotive seating D&D center located in the park. (From a press release on November 13, 2013)

<Poland>
-The Company opened a new plant in Legnica (Poland) for the production of aluminum trim parts. The new 13,000-square-meter plant will eventually have approximately 300 employees producing aluminum trim parts for vehicle interiors such as instrument panels, center consoles, and door panels. (From a press release on July 2, 2013)

<India>
-The Company announced that it inaugurated its new plant in Bidadi near Bangalore, India. The plant, which began operations in September 2012, was set up specifically to manufacture hot end, cold end and instrument panel reinforcement tubes for Toyota India. Faurecia Emissions Control Technologies (FECT) in Bangalore started production for Toyota in March 2004. The new plant provides for over 300,000 parts per annum to the Toyota plant. (From a press release on January 21, 2013)