BPL 5100: Is Faureica A Smart Investment Choice in the Automotive Parts Manufacturing Industry?

1. Automotive Parts Industry
Group G
Regina Kraft
Connor Levens
Magda Morales
Danielle Musca

2. Technical Perfection, Automotive
Passion
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3. Faurecia: Foundations
European company
specializing in
spring-based seat cushions
European
manufacturer of
seats, front ends and
vehicle interiors
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4. 34 Countries
94,000 Employees
320 Production Sites
30 R&D Centers
5,800 R&D Engineers
A Global Player
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5. To create and deliver high-quality and
innovative products, technical solutions
and services that contribute to our
customers' competitiveness and create
value for our employees and shareholders.
We are committed to environmental
preservation and social responsibility.”
Mission
“
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6. Be the global leader in each of our product lines.
We will do this by focusing on customer
satisfaction, becoming the reference in the
original equipment marketplace and serving all
major car manufacturers. We aim to grow faster
than the market and to generate sustainable
profitability. We strive for technical perfection
and we are driven by automotive passion.”
Vision
“
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7. Major Acquisitions
2009:Emcon Technologies:
Exhaust Systems
2010: Plastal
Plastic Exterior Parts
2012:Ford’s Saline,MI Plant
Interior Components
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8. Automotive ExteriorsEmissions ControlInterior SystemsAutomotive Seating
Market Segments
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9. Overall Strategy
Develop Value Creating Technologies Focused On:
Cleaner Cars with Lower Emissions
Lighter Cars for Fuel Economy
Cars with Custom Comfort and Style
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10. Customers
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11. Comparison to Market Leader
Market
Share:
Bosch:
3.3%
Faurecia:
2.1%
Industry
Average:
2.7%
USDMillions
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12. 12

13. Key Shareholders
Peugeot SA holds 51.70% of Faurecia’s capital.
Group’s Employees hold 0.25%,
Board Members hold 0.04%.
Treasury Shares comprised of 0.03%
Balance is Open to other Investors.
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14. Performance
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15. Performance
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16. Profitability AnalysisUSDMillions
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17. Accelerate in Asia
By 2018 $4.35 billion in sales
Over the 5 years invest $435 mill in China
Leverage Global Platforms
Expand Global Footprint by Developing Standard Products
Continue to Develop Value-Added Technologies
Controlled Growth Strategy
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18. • Sales above $22.8 Billion
• Operating Margin 4.5%-5.0%
• Net Cash Flow around $326 Million
2016 Targets
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19. Internal Analysis
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20. Profitability Comparisons
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21. Key Ratios
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22. R&D Strengths
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23. Organizational Culture:
“Being Faurecia”
Values Based on:
•Entrepreneurship
•Autonomy
•Accountability
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24. HR’s Mission
Human Resource Strengths
“To develop and retain the
talent we need to ensure
our future growth.”
2014 Revamped HR
Focused on Talent Management:
Developed a leadership competency
model
Adopting a new performance
assessment
Significantly expanded Faurecia
University training
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25. Why Faurecia?
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26. SWOT Analysis
Strengths Weaknesses
➔ Strong Market Position
➔ Diversified Product
Portfolio
➔ Strong R&D
Capabilities
➔ Wide Geographic
Presence
➔ Relies heavily on the
European customers
Opportunities Threats
➔ Favorable Market
Trends in China
➔ Increasing Demand for
Fuel Efficient Vehicles
➔ Intense Competition
➔ Fluctuating Foreign
Exchange Rates
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