FIRST-QUARTER 2024 SALES
NANTERRE (FRANCE)APRIL 18,
2024
FIRST-QUARTER 2024 SALES
Q1 2024 SALES OUTPERFORMANCE OF 390bps TO
REACH €6.531bnROBUST ORDER INTAKE OF €6.5bn, UP
€1bn vs. Q1 2023
in
€m |
|
Q1 2023 |
Currency effect |
Organic growth |
Scope effect |
Q1 2024 |
Reported change |
Group sales |
6,644 |
-281 |
206 |
-38 |
6,531 |
-1.7% |
% of last year's sales |
|
-4.2% |
+3.1% |
-0.6% |
|
|
Worldwide auto. prod.* (m units) |
21,365 |
|
-0.8% |
|
21,195 |
|
Outperformance (bps) |
|
|
390 |
|
|
|
*
Source: S&P Global Mobility dated April 2024 |
|
|
|
|
|
|
·SALES ORGANIC GROWTH OF +3.1%,
REFLECTING OUTPERFORMANCE IN ALL BUSINESS GROUPS, NOTABLY CLEAN
MOBILITY AND INTERIORS
o By region, Group’s
outperformance was driven by North America.
o Excluding negative geographical
mix of 140bps, outperformance stood at 530bps.
·BUILDING FURTHER MOMENTUM ON SALES AND
SUSTAINABILITY
- Robust and selective order intake of €6.5 billion in Q1 2024
vs. €5.5 billion in Q1 2023, mostly driven by Asia.
o New strategic joint venture
with Chery in China in the field of smart and sustainable cockpit
with the ambition to reach €1 billion in 2029.
o New developments for MATERI’ACT
with the signing of two key partnerships in the US and China to
promote recycled compounds and new materials.
·FOCUS ON DELEVERAGING AND DEBT
MANAGEMENT
o Circa 25% of the second €1
billion disposal program already achieved through the closing of
the sale by FORVIA HELLA of its 50% stake in BHTC and the agreement
to sell Hug Engineering for an enterprise value of c. €55m.
o Issuance of €1.2bn of new debt
instruments to replace significant part of 2024 and 2025 maturities
by 2029 and 2031 maturities.
·FY 2024 GUIDANCE CONFIRMED, ON TRACK TO
REACH POWER 2025 AMBITION
Patrick KOLLER, Chief Executive Officer
of FORVIA, declared:
“The first quarter demonstrated our capability
to grow organically in a market that dropped by 0.8% during the
period and characterized by the temporary slowdown in
electrification in Europe. This contributed to a solid
outperformance of 530bps, excluding the unfavorable geographical
mix.
During the period, FORVIA recorded an order
intake of €6.5 billion, an increase of c. €1
billion versus Q1 2023. It was largely driven by key awards in
Asia, where the Group also signed a new major strategic partnership
with Chery, a key Chinese technology-driven partner in the field of
smart and sustainable cockpit designed for safe, sustainable, and
customized end-user experiences.
Since the start of the year, we also made
significant progresses in the execution of our second
one-billion-euro disposal program with the closing of a first
transaction and the signing of second one, which combined represent
circa 25% of the targeted amount of cash proceeds. It highlights
our unwavering commitment towards the accelerated deleveraging of
the Group, our clear top priority.
From a financial point of view, leveraging on
the trust on FORVIA’s signature, we were able to issue new
long-term debts that allowed us to repay short-term debts and
extend our maturity profile.
Reflecting our strong focus on sustainability,
which is core to our strategy and innovation, MATERI’ACT, our
company dedicated to sustainable materials, signed two significant
partnerships in the US and China.
Lastly, the Group has started to deploy its
five-year EU-FORWARD project, which aims at fully restoring
competitiveness in Europe.
FORVIA is fully mobilized towards the execution
of its POWER25 plan and confirms its 2024 guidance.”
- The Board of Directors, under the chairmanship of
Michel de ROSEN, met on April 17 and reviewed the present press
release.
- All financial terms used in this press release are
explained at the end of this document, under the section
“Definitions of terms used in this document”.
- All figures related to worldwide or regional automotive
production refer to the S&P Global Mobility forecast dated
April 2024.
ROBUST ORDER
INTAKE OF €6.5BN IN Q1 2024 (VS. €5.5BN IN Q1 2023)
FORVIA recorded a robust order intake in
Q1 2024, totaling €6.5 billion, while pursuing its commercial
selectivity aiming at generating an average operating margin above
7% with reduced upfront costs.
The Group reinforced its momentum in
fast-growing segments:
- Electronics represented 36% of the order
intake,
- Order intake with Premium models was close to
€2 billion, including a major conquest with a premium German OEM in
Seating,
- Awards in Asia represented €3.6 billion, a
majority of which being signed with fast-growing Chinese OEMs, such
as BYD and Li Auto.
CHERY AND
FORVIA DEEPEN STRATEGIC PARTNERSHIP WITH A FIRST JOINT VENTURE ON
SMART AND SUSTAINABLE COCKPIT
On April 11, 2024, FORVIA signed a JV
agreement with the leading Chinese automaker Chery to deepen
cooperation in the field of smart and sustainable
cockpit.
FORVIA and Chery will establish a “Cockpit of
the Future” JV in Wuhu to design, develop, manufacture, and supply
the full cabin scope related systems and modules including seats,
interiors and cockpit electronics with low CO2 emission materials
and processes.
It is the first Joint Venture of that kind in
China and will be consolidated by FORVIA with a sales ambition of €
1bn by 2029.
It will include an R&D center dedicated to
industrial design and cockpit integration capabilities, enabling
both FORVIA and Chery to offer disruptive, sustainable, and
competitive consumer experiences.
The JV plans to launch two production sites in
H1 2024 to support Chery fast growth.
FURTHER
MILESTONES ON SUSTAINABILITY
MATERI’ACT, FORVIA’s company dedicated
to sustainable materials, signed two significant partnerships since
the start of the year in North America and China.
- In January, MATERI’ACT created MATERI’ACT Dallas, a JV set up
with PCR Recycling, to accelerate the development and delivery of
recycled compounds for sustainable automotive products with up to
85% CO2 reduction in 2030.
This JV combines the strength of each of its
parent companies, PCR Recycling bringing its capacities in
feedstock access and recycling, and MATERI’ACT bringing its
expertise in refining, adaptative formulations, compounding, and
post processing capabilities.
It is expected to help spark demand in North
America for use of recycled plastics in automotive and other
industries.
- In April, MATERI’ACT joined forces with GREE Green Recycle
Resource to promote new materials and applications for a low CO2
economy in China.
MATERI’ACT and GREE Green Recycle Resources, a
company of GREE Electric Appliances, will set up by the end of 2024
joint-ventures to develop, manufacture and sell recycled
plastics.
The objective is to create a best-in-class
sustainable material offer, with a sales target of 150,000 tons of
compound by 2030. This for the automotive, home appliances and
other industrial sectors.
PROGRESS IN
THE EXECUTION OF THE GROUP’S SECOND €1 BILLION ASSET DISPOSAL
PROGRAM
Since the start of the year, FORVIA made
good progress in the execution of its second €1 billion disposal
program with the closing of the disposal by FORVIA HELLA of its
stake in BHTC and the signing of an agreement to sale Hug
Engineering. The two transactions represent c. 25 % of total
contemplated proceeds.
- On April 2, FORVIA HELLA announced the closing of the sale of
its 50% stake in BHTC to AUO Corporation. This transaction
represented net cash proceeds of €205 million.
- On April 15, FORVIA announced that the signing of the transfer
of its fully owned subsidiary Hug Engineering, a major player in
depollution systems for high horsepower engines within the Clean
Mobility division, to OGECAR. Expected cash proceeds should
represent around €50 million and closing is expected by the end of
H1 2024.
These transactions together represent c. €250
million of cash proceeds, representing
c. 25%
of the second disposal program for €1 billion that was announced by
FORVIA in October 2023, designed to accelerate the Group’s
deleveraging and further simplifying the Group’s portfolio.
The execution of the second disposal program for
€1 billion will contribute to improve the Groups’ Net debt/Adjusted
EBITDA ratio objective beyond the below 1.5x objective, that was
part of the POWER25 plan presented at the Capital Markets Day in
November 2022.
ACTIVE DEBT
MANAGEMENT AND EXTENSION OF GROUP AVERAGE MATURITY
The Group issued cumulated amount of
€1.2 billion of new debt instruments essentially maturing in 2029
and 2031. The proceeds were used to buy back 2025 and 2026
maturities, as well as refinance a 2024 bond, thus extending the
Group average debt maturity.
During the first quarter, FORVIA issued a one
billion euros senior bond, consisting of €500 million 5.125%
senior notes due 2029 and €500 million 5.50% senior notes due 2031.
Taking into consideration the interest rate pre-hedging arrangement
executed in December 2023 and January 2024, the economic yield of
the new notes amounts to 4.96% for the notes due 2029 and 5.37% for
the notes due 2031.
An associated tender allowed to buy back €800
million of the Group’s existing maturities, consisting of c. €580
million of its 2.625% senior notes due 2025 and €220 million of its
7.250% sustainability-linked notes due 2026, which have now been
cancelled. FORVIA intends to use the remaining net proceeds to
repay certain outstanding indebtedness.
FORVIA HELLA also placed a €200 million
Schuldschein with terms of 3, 5 and 7 years, aiming at refinancing
a bond maturing in May 2024.
These transactions reflect the market’s trust on
FORVIA’s signature and allowed FORVIA to extend its average debt
maturity.
Q1 2024 MARKET
ENVIRONMENT
Worldwide automotive production in Q1
was down by 0.8% at 21.2 million Light Vehicles (source:
S&P dated April 2024).
In FORVIA’s main regions, trends were as
follows:
- Europe ex. Russia (47% of
Group sales in Q1): production was down 4.7% at 4.2 million
LVs,
- North America (24% of Group sales in Q1):
production was up 1.4% at 3.9 million LVs,
- China (19% of Group sales in Q1):
production was up 4.3% at 6.1 million LVs.
Q1 2024 SALES
AT GROUP LEVEL
in
€m |
|
Q1 2023 |
Currency effect |
Organic growth |
Scope effect |
Q1 2024 |
Reported change |
Group sales |
6,644 |
-281 |
206 |
-38 |
6,531 |
-1.7% |
% of last year's sales |
|
-4.2% |
+3.1% |
-0.6% |
|
|
Worldwide auto. prod.* (m units) |
21,365 |
|
-0.8% |
|
21,195 |
|
Outperformance (bps) |
|
|
390 |
|
|
|
*
Source: S&P Global Mobility dated April 2024 |
|
|
|
|
|
|
In Q1 2024, consolidated sales amounted
to €6,531 million: -1.7% on a reported basis and +3.1% on an
organic basis, representing an outperformance of
390bps
- Sales change included a significant negative currency effect of
€281 million or
-4.2% of last year’s sales, more than half of
which being imputable to the Argentinian peso and the Turkish
lira.
- Negative net impact of the scope of consolidation was €38
million. It included:
- A negative impact of €116 million related to the disposal of
CVI’s activities in North America and Europe that was closed on
October 2, 2023,
- A positive impact of €78 million related to the consolidation
as of January 1st, 2024, of HBBL, a joint venture in Lighting held
by FORVIA HELLA in China (previously consolidated by the equity
method).
- Organic growth amounted €206 million or +3.1% of last year’s
sales, representing an outperformance of 390bps compared to
worldwide automotive production that was down 0.8% during the
period.
Out of the 390bps:
-
- c. +530bps came from volumes, mix and pricing,
- c.-140bps came from negative regional mix.
All Business Groups recorded an
outperformance vs. market production.
Q1 2024 SALES
BY BUSINESS GROUP
in
€m |
Seating |
Interiors |
Clean Mobility |
Electronics |
Lighting |
Lifecycle Sol. |
GROUP |
Q1 2023 |
2,036 |
1,188 |
1,209 |
1,009 |
922 |
280 |
6,644 |
Currency effect |
-81 |
-48 |
-92 |
-30 |
-19 |
-10 |
-281 |
% of last year's sales |
-4.0% |
-4.1% |
-7.6% |
-3.0% |
-2.1% |
-3.4% |
-4.2% |
Organic growth |
21 |
57 |
82 |
31 |
12 |
3 |
206 |
% of last year's sales |
1.0% |
4.8% |
6.8% |
3.1% |
1.3% |
1.1% |
3.1% |
Outperformance (bps) |
180 |
560 |
760 |
390 |
210 |
190 |
390 |
Scope effect |
|
|
-116 |
|
78 |
|
-38 |
% of last year's sales |
|
|
-9.6% |
|
8.5% |
|
-0.6% |
Q1 2024 |
1,976 |
1,196 |
1,082 |
1,010 |
994 |
273 |
6,531 |
Reported change |
-2.9% |
0.7% |
-10.5% |
0.1% |
7.7% |
-2.4% |
-1.7% |
* Source:
S&P dated April 2024 |
|
|
|
|
|
|
|
- SEATING (30% of Group consolidated sales in the
period)
Seating posted organic growth of 1.0%, an
outperformance of 180bps. Excluding the lost sales of c. €40
million due to the voluntary exit from the loss-making program in
Highland Park (Michigan, USA) on September 30, 2023, the activity
recorded organic growth of 3.0%, a clear outperformance vs. the
market. This performance reflected:
- High double-digit sales increase in North America, despite the
exit of Highland Park, mostly driven by Ford,
- A single-digit sales decrease in China, as rapid growth with
other Chinese OEMs (such as Li Auto) and with German premium
carmakers did not fully offset sales drop with BYD,
- A sales drop in Europe, as a few ends of production were not
compensated by slower than expected starts of production.
- INTERIORS (18% of Group consolidated sales in the
period)
Interiors posted organic growth of 4.8%, an
outperformance of 560bps, driven by strong outperformance in China
and Europe:
- In Europe, the business grew high single-digit, notably driven
by Renault and JLR,
- In China, business grew in the high teens, thanks to strong
activity with several Chinese OEMs,
- Organic sales rose slightly in North America, driven by
GM.
- CLEAN MOBILITY (17% of Group consolidated sales in the
period)
Clean Mobility posted an organic growth of 6.8%,
an outperformance of 760bps, which reflected market share gains and
the slowdown in the pace of electrification in some markets,
notably in Europe.
By region, the performance reflected:
- Slight organic growth in Europe driven by Renault, VW and
Ford,
- Mid-single-digit growth in North America driven by Ford,
- Decline in China, as electrification continues to gain
momentum.
- ELECTRONICS (16% of Group consolidated sales in the
period)
Electronics posted an organic growth of 3.1%, an
outperformance of 390bps, driven by Clarion Electronics.
By geography, the activity registered:
- Good momentum in Asia with Japanese OEMs,
- Low single-digit growth in North America, driven by Ford and
Nissan-Mitsubishi,
- A slight decline in Europe, where HELLA Electronics was
penalized by a slowdown in the pace of electrification.
- LIGHTING (15% of Group consolidated sales in the
period)
Lighting posted an organic growth of 1.3%,
representing an outperformance of 210bps. Excluding currency
effect, growth stood at 9.8% thanks to the consolidation by FORVIA
HELLA of HBBL, a joint venture that was previously accounted for by
the equity method.
By geography, growth was driven by:
- Low single-digit growth in Europe, mostly driven by VW,
- Mid-single-digit growth in North America, driven by ramp-up of
new programs.
- LIFECYCLE SOLUTIONS (4% of Group consolidated sales in
the period)
Organic growth of 1.1% mainly reflected
continuous growth in the spare part business in Europe. In the
commercial vehicle activity, weakness in the Agriculture and
Trailer segments was partially offset by growth in the Truck and
Bus segment.
Q1 2024 SALES
BY REGION
in
€m |
EMEA |
AMERICAS |
ASIA |
GROUP |
Q1 2023 |
3,245 |
1,751 |
1,648 |
6,644 |
Currency effect |
-69 |
-112 |
-100 |
-281 |
% of last year's sales |
-2.1% |
-6.4% |
-6.1% |
-4.2% |
Organic growth |
3 |
214 |
-12 |
206 |
% of last year's sales |
0.1% |
12.2% |
-0.7% |
3.1% |
Regional auto prod.* (m units) |
-1.6% |
0.3% |
-0.9% |
-0.8% |
Outperformance (bps) |
170 |
1,190 |
20 |
390 |
Scope effect |
-45 |
-72 |
78 |
-38 |
% of last year's sales |
-1.4% |
-4.1% |
4.8% |
-0.6% |
Q1 2024 |
3,135 |
1,782 |
1,615 |
6,531 |
Reported change |
-3.4% |
1.7% |
-2.0% |
-1.7% |
* Source:
S&P dated April 2024 |
|
|
|
|
- EMEA (48% of Group consolidated sales in the
period)
In Europe excluding Russia (representing over
97% of the region), sales declined marginally by 0.3%, while
automotive production was down 4.7%.
Outperformance of 440bps was mainly attributable
to Interiors and, to a lesser extent, Lighting and Clean
Mobility.
- AMERICAS (27% of Group consolidated sales in the
period)
In North America (representing c. 90% of the
region), sales grew organically by 6.8%, while automotive
production was up 1.4%, i.e., an outperformance of 540bps. Organic
growth was essentially driven by Seating, while Clean Mobility,
Electronics and Lighting posted growth in the mid-single
digits.
Strong organic growth in South America was
mostly driven by inflation in Argentina.
Combined outperformance stood at 1,190bps for
Americas.
- ASIA (25% of Group consolidated sales in the
period)
In Asia, sales in local
currency grew by 4.0% and were down 0.7% on an organic basis,
broadly in line automotive production in Asia (-0.9%). This
reflected contrasted situation between China and Rest of Asia.
In China (representing c. 80% of the
region), sales in local currency grew by 3.6%, including
positive scope effect from HBBL. Organically, sales were down 2.5%,
while automotive production was up 4.3%. This underperformance was
mainly attributable to a temporary unfavorable effect of customer
mix evolution:
- Regarding Chinese OEMs, Q1 year-on-year sales drop with BYD was
not fully offset by rapid ramp-up with other Chinese OEMs (such as
Li Auto, Chery and Leap Motor, that grew in the
double-digits),
- Regarding international OEMs, Q1 year-on-year sales drop with a
large US EV carmaker was more than offset by sales expansion with
other carmakers, notably German premium OEMs.
Difficult base of comparison that penalized
FORVIA’s sales growth in Q4 2023 and Q1 2024 (mostly related to
BYD), should start normalizing as from the second half of the year.
Sales in China in 2024 will be driven by growing business with new
Chinese OEMs and international premium OEMs.
In the Rest of Asia (representing c. 20%
of the region), sales were up 5.3% on an organic basis,
while automotive production was down 6.3%. This strong
outperformance was driven by very high growth in Japan (mainly
Honda) and double-digit growth in India (mainly Suzuki and VW).
CONFIRMED 2024
GUIDANCE
This guidance is based on:
- Broadly stable worldwide automotive production in 2024 vs.
2023, in line with S&P’s latest forecast dated April 2024 that
estimates 90.3 million light vehicles produced in 2024, stable vs.
2023,
- Average 2024 currency rates of 1.10 for €/USD and of 7.50 for
€/CNY,
and assumes no major disruption materially
impacting production or retail sales in any automotive region
during the year.It takes into consideration:
- A limited negative scope effect on sales of c. €50 million as
the net effect of the disposal of the CVI business to Cummins
(deconsolidated as from Q4 2023) for € (300) million will be almost
offset by the consolidation as from January 1, 2024, of HELLA’s
joint venture in Lighting in China for c. €250 million,
- The impact of the closing of the disposal by FORVIA HELLA of
its 50% stake in BHTC, contributing €205 million of cash
proceeds.
2024 guidance is on track to reach
POWER25 ambition:
- Sales of between €27.5 billion and 28.5
billion
- Operating margin between 5.6% and 6.4% of
sales
- NCF ≥ 2023 in value (reminder: €649m)
- Net debt/Adjusted EBITDA ratio ≤ 1.9x at Dec. 31,
2024
ON TRACK TO
POWER25 AMBITION
The Group reiterates its FY2025 objectives, as
presented at the Capital Markets Day held in November 2022:
- Sales of c. €30bn
- Operating margin > 7% of sales
- NCF of 4% sales
- Net debt/Adjusted EBITDA ratio of < 1.5x at Dec. 31,
2025
These objectives were based on average 2025
currency rates of 1.05 for €/USD and of 7.00 for €/CNY and assumed
no major disruption materially impacting production or retail sales
in any major automotive region over the period.These objectives,
evidently, did not take into consideration any impact from the
second €1 billion disposal program that was announced in October
2023.
DIVIDEND
PAYMENT
At its meeting held on February 16, 2024, the
Board of Directors decided to propose at the next Annual
Shareholders’ Meeting to be held in Nanterre (France) on May 30,
2024, the payment of a dividend of €0.50 per share to be paid in
cash.
Upon the vote of the shareholders, the payment
of the proposed dividend will be made according to the following
calendar:
- Ex-date: June 4, 2024
- Record date: June 5, 2024
- Payment date: June 6, 2024
2024 CALENDAR
(provisional)
- May 30:
AGM in Nanterre (France)
- July 24:
H1 2024 Results (before market hours)
- October 21:
Q3 Sales (before market hours)
A webcast will be held today, Thursday April 18, 2024, at 8:00am
(Paris time).
FORVIA’s Q1 2024 sales presentation will be available before the
webcast on FORVIA’s website: www.forvia.com
If you wish to follow the presentation using the webcast, please
access the following
link:https://edge.media-server.com/mmc/p/yjapw3rs
A replay will be available as soon as possible.
You may also follow the presentation via conference call:France:
+33 1 70 91 87 04United Kingdom:
+44 1 212 818 004United States:
+1 718 705 8796
Code: 888652
PRESS |
ANALYSTS/INVESTORS |
Christophe MALBRANQUEGroup Influence Director+33
(0) 6 21 96 23 53christophe.malbranque@forvia.com |
Marc MAILLETGroup Head of Investor Relations+33
(0) 1 72 36 75 70marc.maillet@forvia.com |
Iria MONTOUTOGroup Media
Relations Officer+33 (0) 6 01 03 19 89iria.montouto@forvia.com |
Sébastien LEROYDeputy Head
of Investor Relations +33 (0) 1 72 36 78
74sebastien.leroy@forvia.com |
About FORVIA, whose mission is: “We pioneer technology
for mobility experiences that matter to people”.
FORVIA, 7th global automotive technology
supplier, comprises the complementary technology and industrial
strengths of Faurecia and HELLA. With over 290 industrial sites and
76 R&D centers, 157,000 people, including more than 15,000
R&D engineers across 40+ countries, FORVIA provides a unique
and comprehensive approach to the automotive challenges of today
and tomorrow. Composed of 6 business groups and a strong IP
portfolio of over 14,000 patents, FORVIA is focused on becoming the
preferred innovation and integration partner for OEMS worldwide. In
2023, the Group achieved a consolidated revenue of 27.2 billion
euros. FORVIA SE is listed on the Euronext Paris market under the
FRVIA mnemonic code and is a component of the CAC Next 20 and CAC
SBT 1.5° indices. FORVIA aims to be a change maker committed to
foreseeing and making the mobility transformation happen.
www.forvia.com
DISCLAIMER
This presentation contains certain
forward-looking statements concerning FORVIA. Such forward-looking
statements represent trends or objectives and cannot be construed
as constituting forecasts regarding the future FORVIA’s results or
any other performance indicator. In some cases, you can identify
these forward-looking statements by forward-looking words, such as
"estimate," "expect," "anticipate," "project," "plan," "intend,"
"objective", "believe," "forecast," "foresee," "likely," "may,"
"should," "goal," "target," "might," "would,", “will”, "could,",
"predict," "continue," "convinced," and "confident," the negative
or plural of these words and other comparable terminology. Forward
looking statements in this document include, but are not limited
to, financial projections and estimates and their underlying
assumptions including, without limitation, assumptions regarding
present and future business strategies (including the successful
integration of HELLA within the FORVIA Group), expectations and
statements regarding FORVIA's operation of its business, and the
future operation, direction and success of FORVIA's business.
Although FORVIA believes its expectations are based on reasonable
assumptions, investors are cautioned that these forward-looking
statements are subject to numerous various risks, whether known or
unknown, and uncertainties and other factors, all of which may be
beyond the control of FORVIA and could cause actual results to
differ materially from those anticipated in these forward-looking
statements. For a detailed description of these risks and
uncertainties and other factors, please refer to public filings
made with the Autorité des Marchés Financiers (“AMF”), press
releases, presentations and, in particular, to those described in
the section 2."Risk factors & Risk management” of FORVIA's 2023
Universal Registration Document filed by FORVIA with the AMF on
February 27, 2024 under number D. 24-0070 (a version of which is
available on www.forvia.com). Subject to regulatory requirements,
FORVIA does not undertake to publicly update or revise any of these
forward-looking statements whether as a result of new information,
future events, or otherwise. Any information relating to past
performance contained herein is not a guarantee of future
performance. Nothing herein should be construed as an investment
recommendation or as legal, tax, investment or accounting advice.
The historical figures related to HELLA included in this
presentation have been provided to FORVIA by HELLA within the
context of the acquisition process. These historical figures have
not been audited or subject to a limited review by the auditors of
FORVIA. HELLA remains a listed company. For more information on
HELLA, more information is available on www.hella.com. This
presentation does not constitute and should not be construed as an
offer to sell or a solicitation of an offer to buy FORVIA
securities.
DEFINITIONS OF TERMS USED IN THIS
DOCUMENT
Sales growth
FORVIA’s year-on-year sales evolution is made of
three components:
-
- A “Currency effect”, calculated by applying average currency
rates for the period to the sales of the prior year,
- A “Scope effect” (acquisition/divestment),
- And “Growth at constant currencies”.
As “Scope effect”, FORVIA presents all
acquisitions/divestments, whose sales on an annual basis amount to
more than €250 million.
Other acquisitions below this threshold are
considered as “bolt-on acquisitions” and are included in “Growth at
constant currencies”.
In 2021, there was no effect from “bolt-on
acquisitions”; as a result, “Growth at constant currencies” is
equivalent to sales growth at constant scope and currencies also
presented as organic growth.
Operating income
Operating income is the FORVIA group’s principal
performance indicator. It corresponds to net income of fully
consolidated companies before:
-
- Amortization of intangible assets acquired in business
combinations.
- Other non-recurring operating income and expense, corresponding
to material, unusual and non-recurring items including
reorganization expenses and early retirement costs, the impact of
exceptional events such as the discontinuation of a business, the
closure or sale of an industrial site, disposals of non-operating
buildings, impairment losses recorded for property, plant and
equipment or intangible assets, as well as other material and
unusual losses.
- Income on loans, cash investments and marketable securities;
Finance costs.
- Other financial income and expense, which include the impact of
discounting the pension benefit obligation and the return on
related plan assets, the ineffective portion of interest rate and
currency hedges, changes in value of interest rate and currency
instruments for which the hedging relationship does not satisfy the
criteria set forth in relationship cannot be demonstrated under
IFRS 9, and gains and losses on sales of shares in
subsidiaries.
- Taxes.
Adjusted EBITDA
Adjusted EBITDA is Operating income as defined
above + depreciation and amortization of assets; to be fully
compliant with the ESMA (European Securities and Markets Authority)
regulation, this term of “Adjusted EBITDA” will be used by the
Group as of January 1, 2022 instead of the term “EBITDA” that was
previously used (this means that “EBITDA” aggregates until 2021 are
comparable with ‘Adjusted EBITDA” aggregates as from 2022).
Net cash flow
Net cash flow is defined as follow: Net cash
from (used in) operating and investing activities less
(acquisitions)/disposal of equity interests and businesses (net of
cash and cash equivalents), other changes and proceeds from
disposal of financial assets. Repayment of IFRS 16 debt is not
included.
Net financial debt
Net financial debt is defined as follow: Gross
financial debt less cash and cash equivalents and derivatives
classified under non-current and current assets. It includes the
lease liabilities (IFRS 16 debt).
- 2024 04 18 Q1 2024 SALES DEF
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