Bond Faurecia Group 2.375% ( XS2081474046 ) in EUR

Faurecia Group

100 % ▲

France

XS2081474046 ( in EUR )

2.375% per year ( payment 2 times a year)

14/06/2027

Prospectus brochure of the bond Faurecia SA XS2081474046 en EUR 2.375%, maturity 14/06/2027

100 000 EUR

700 000 000 EUR

15/12/2025 ( In 50 days )

Faurecia SA is a French multinational automotive supplier specializing in automotive seating, interiors, and clean mobility solutions.

The Bond issued by Faurecia Group ( France ) , in EUR, with the ISIN code XS2081474046, pays a coupon of 2.375% per year.
The coupons are paid 2 times per year and the Bond maturity is 14/06/2027

EXHIBIT A
This document is not an offer of securities for sale in the United States. The notes being offered by Faurecia (the "2027
Notes") may not be sold in the United States unless they are registered under the Securities Act or are exempt from
registration. The offering of 2027 Notes described in this announcement has not been and will not be registered under the
Securities Act, and accordingly any offer or sale of 2027 Notes may be made only in a transaction exempt from the
registration requirements of the Securities Act.
It may be unlawful to distribute this document in certain jurisdictions. This document is not for distribution in Canada,
Japan or Australia. The information in this document does not constitute an offer of securities for sale in Canada, Japan
or Australia.
Promotion of the 2027 Notes in the United Kingdom is restricted by the Financial Services and Markets Act 2000 (the
"FSMA"), and accordingly, the 2027 Notes are not being promoted to the general public in the United Kingdom. This
announcement is for distribution only to, and is only directed at, persons who (i) have professional experience in matters
relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005, as amended (the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) (high
net worth companies, unincorporated associations, etc.) of the Financial Promotion Order, or (iii) are persons to whom
an invitation or inducement to engage in investment activity within the meaning of section 21 of the FSMA in connection
with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such
persons together being referred to as "relevant persons"). This announcement is directed only at relevant persons and
must not be acted on or relied on by anyone who is not a relevant person.
MiFID II professionals/ECPs-only/No PRIIPs KID Manufacturer target market (MIFID II product governance) is
eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document
(KID) has been prepared as the 2027 Notes are not available to retail in EEA.
Neither the content of Faurecia's website nor any website accessible by hyperlinks on Faurecia's website is incorporated
in, or forms part of, this announcement. The distribution of this announcement into jurisdictions other than the United
Kingdom may be restricted by law. Persons into whose possession this announcement comes should inform themselves
about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the
securities laws of any such jurisdiction.
No money, securities or other consideration is being solicited, and, if sent in response to the information contained
herein, no money, securities or other consideration will be accepted.

CERTAIN DEFINITIONS
In this Offering Circular (except as otherwise defined in "Terms and Conditions of the Notes", for purposes
of that section only, or in our audited consolidated financial statements, which have been incorporated by
reference into this Offering Circular):
*
References to "our Group" or the "Group" are to Faurecia and its consolidated subsidiaries, whereas
references to "Faurecia" or the "Issuer" are to Faurecia S.E. References to "us", "we" or "our" are
to the Group or to Faurecia, as the context requires;
*
"2023 Notes" refers to 700 million in principal amount of 3.625% Senior Notes due 2023
(ISIN code: XS1384278203), which we issued on 1 April 2016. We have entered into a dealer
manager agreement with BNP Paribas and Natixis (who will act as the "Dealer Managers" and BNP
Paribas as the "Offeror") pursuant to which the Offeror will make a cash tender offer for 2023
Notes, subject to a maximum acceptance amount (the ``Tender Offer''), which was announced on
13 November 2019. On or about the Issue Date of the Notes offered hereby, the Offeror will transfer
to us all 2023 Notes validly tendered and accepted pursuant to the Tender Offer in exchange for an
equal principal amount of the Notes offered hereby. We intend to cancel any 2023 Notes which are
transferred to us by the Offeror. In addition, subject to the issuance of Notes offered hereby in an
amount which we deem to be sufficient, and to the extent that the proceeds of the issuance of the
Notes offered hereby are greater than the aggregate principal amount of 2023 Notes accepted for
purchase pursuant to the Tender Offer, we intend to redeem 2023 Notes that are not validly tendered
and accepted pursuant to the Tender Offer at their principal amount plus the applicable redemption
premium
(together
with
the
Tender
Offer,
the
"2023
Notes
Redemption").
The
2023
Notes Redemption is conditioned on the satisfaction, or waiver by the Offeror, of certain conditions,
including without limitation the pricing of this Offering;
*
"2025 Notes" refers to 700 million in principal amount of 2.625% Senior Notes due 2025, which we
issued on 8 March 2018;
*
"2026 Notes" refers to 750 million in principal amount of 3.125% Notes due 2026, comprising
500 million in principal amount of 3.125% Notes due 2026 which we issued on 27 March 2019 and
the Additional 2026 Notes;
*
"Additional 2026 Notes" refers to 250 million in principal amount of 3.125% Notes due 2026 which
we issued on 31 October 2019;
*
"Clarion" refers to Clarion Co, Ltd.;
*
"Clarion Acquisition" has the meaning ascribed to it in "Summary Our Company";
*
"CO " refers to carbon dioxide;
2
*
"Cockpit of the Future" refers to our development of products and technology for vehicle seating and
interiors which are aligned with the increasing connectedness and autonomy of vehicles;
*
"g" refers to the unit of mass, "gram";
*
"g/km" refers to grams per kilometer;
*
"HMI" refers to human-machine interfaces;
*
"Initial Purchasers" refers to BNP Paribas, Banco de Sabadell, S.A., Banco Santander, S.A.,
Commerzbank Aktiengesellschaft, Crédit Industriel et Commercial S.A., Mizuho Securities Europe
GmbH, MUFG Securities (Europe) N.V., Natixis, SMBC Nikko Capital Markets Europe GmbH and
Société Générale;
*
"IVI" refers to in-vehicle-infotainment;
*
"kg" refers to the unit of mass, "kilogram";
*
"km" refers to the unit of distance, "kilometer";
*
"OEMs" refers to Original Equipment Manufacturers;
*
"Offering" refers to the offering by the Issuer of the Notes;
7

*
"SAS Consolidation" has the meaning ascribed to it in "Summary Recent Developments";
*
"Schuldschein" refers to 700 million in principal of private placement under German law in multiple
tranches, which we issued in December 2018 and January 2019.
*
"Senior Credit Agreement" means the 1,200 million senior credit agreement among us as borrower
and various lenders, dated 15 December 2014 and amended and restated on 24 June 2016 and further
amended and restated on 15 June 2018. In June 2019, pursuant to the Senior Credit Agreement, we
exercised the maturity extension option, which was accepted by the lenders under the agreement. The
Senior Credit Agreement is composed of a facility now maturing in June 2024 for an amount of
1,200 million and was undrawn as at 31 December 2018 and as at the date of this Offering Circular.
The facility under the Senior Credit Agreement is referred to herein as the "Senior Credit Facility";
and
*
"Sustainable Mobility" refers to our development of products and processes which reduce CO2
emissions, improve air quality, weight reduction, size reduction, energy recovery and the development
of bio-sourced and renewable materials.
8

PRESENTATION OF FINANCIAL AND OTHER INFORMATION
Faurecia is the parent company of the Group. This Offering Circular includes (i) unaudited consolidated
financial statements of Faurecia as at and for the six months ended 30 June 2019 ("2019 H1 Financial
Statements") and 30 June 2018 and (ii) audited consolidated financial statements of Faurecia as at and for
the years ended 31 December 2018 ("2018 Consolidated Financial Statements") and 2017 ("2017
Consolidated Financial Statements"). Our (i) 2019 H1 Financial Statements, (ii) 2018 Consolidated
Financial Statements, and (iii) 2017 Consolidated Financial Statements, incorporated by reference herein, also
present comparable financial data for the six months ended 30 June 2018, the year ended 31 December
2017 and the year ended 31 December 2016, respectively. Our audited and unaudited consolidated financial
statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as
adopted by the European Union. Our (i) 2019 H1 Financial Statements, (ii) 2018 Consolidated Financial
Statements and (iii) 2017 Consolidated Financial Statements, have been approved by our Board of Directors
on 22 July 2019, 15 February 2019 and 15 February 2018, respectively. Our statutory auditors are
Mazars LLP and Ernst & Young Audit. Mazars LLP replaced PricewaterhouseCoopers Audit as part of our
standard audit rotation policy on 28 May 2019.
The unaudited financial information for the last twelve months ("LTM") ended 30 June 2019 presented in
this Offering Circular has been derived by adding the audited financial information for the fiscal year ended
31 December 2018 to the corresponding unaudited financial information for the six months ended 30 June
2019 and subtracting the corresponding unaudited financial information for the six months ended 30 June
2018. Operating results for the LTM ended 30 June 2019 are not necessarily indicative of results for a full
year or for any other period.
In this Offering Circular, references to "euro" and "" refer to the lawful currency of the member states
participating in the third stage of the Economic and Monetary Union under the Treaty Establishing the
European Community, as amended from time to time.
We publish our audited and unaudited consolidated financial statements in euros. Some financial information
in this Offering Circular has been rounded and, as a result, figures shown as totals in this Offering Circular
may vary slightly from the exact arithmetic aggregation of the figures that precede them.
Constant Basis Presentation and Other Non-IFRS Measures
Figures presented in this Offering Circular are calculated on an actual historical basis and, where noted, on
a constant or "like-for-like" basis, which means that comparable items are presented using a constant
consolidation scope but not using constant exchange rates, unless otherwise indicated. The percentage
change from one period to another has generally been given on a "like-for-like" basis in order to eliminate
the impact of changes in consolidation scope (that is, changes in the entities that we consolidate in our
audited and unaudited consolidated financial statements due to acquisitions, divestures or mergers).
For comparison purposes, we restate sales to factor in acquisitions and joint ventures, which we refer to as
"bolt ons". Exchange rates are restated only for sales which are reported in a currency other than euro and
where we compare by applying the previous year U.S. dollar/euro exchange rate to both the previous year
and the current year sales. The scope is restated by calculating this year sales as at the last year perimeter.
In our 2017 Consolidated Financial Statements, we restated sales to factor in exchange rate fluctuations and
changes in perimeter, which we referred to as organic growth.
In this Offering Circular, we present our estimated order book (calculated on a three-year rolling basis) as of
31 December 2018, 2017 and 2016. Our order book represents the sales that we expect to record when we
receive firm production orders, under contracts for vehicle programs that we have been awarded but which
are not yet in production. The value of our order book as of any given date is based on the estimated
production volumes of vehicle programs as well as their estimated lifetime. We discount the production
volumes indicated by our customers based on factors including our management's knowledge of such
customer, our historical relationship with such customer and internal and external industry forecasts. We do
not increase the estimated production volumes beyond those estimates provided to us by our customers.
In addition, this Offering Circular includes certain supplemental indicators of performance and liquidity that
we use to monitor our operating performance and debt servicing ability. These indicators include EBITDA,
net debt, net cash flow, the value of our order book and, for periods prior to our implementation of
IFRS 15, value added sales (as discussed below). These measures are unaudited and we are not required to
present them under IFRS. Such indicators have limitations as analytical tools, and investors should not
consider them in isolation from, or as a substitute for analysis of, related indicators derived in accordance
9

with IFRS. We use these non-IFRS financial measures in this Offering Circular because we believe that they
can assist investors in comparing our performance to that of other companies on a consistent basis.
However, our computation of EBITDA, net debt, net cash flow, value added sales and other non-IFRS
financial measures may not be comparable to similarly titled measures of other companies. For example,
depreciation and amortization can vary significantly among companies depending on accounting methods,
particularly where acquisitions or non-operating factors including historical cost bases are involved. We
believe that EBITDA, net debt and net cash flow, order book and the other non-IFRS financial measures, as
we define them, are also useful because they enable investors to understand our performance over time,
without the impact of various items that we believe do not durably affect our operating performance.
However, investors should not consider these measures as alternatives to measures of financial performance,
operating results or cash flows that are determined in accordance with IFRS.
Restatement of Comparative Financial Statements
Application of IFRS 15 Revenue from Contracts with Customers
We have adopted IFRS 15 (Revenue from Contracts with Customers) with effect from 1 January 2018. Our
2018 Consolidated Financial Statements, including "sales", therefore reflect the adoption of IFRS 15. As our
application of IFRS 15 is retrospective, the consolidated financial figures as at and for the year ended
31 December 2017 which are included in our 2018 Consolidated Financial Statements for comparison
purposes ("2017 Comparative Consolidated Financial Information") have been restated to reflect the
application of IFRS 15. Financial information which is presented in this Offering Circular as at and for the
year ended 31 December 2017 has been extracted from the 2017 Comparative Consolidated Financial
Information and is presented as "restated".
We have set out at note 1.B to our 2018 Consolidated Financial Statements additional information relating
to the adoption of IFRS 15, including tables setting out our consolidated statement of comprehensive
income, consolidated balance sheet and consolidated cash flow statement as at and for the year ended
31 December 2017 showing the adjustments made as a result of the application of IFRS 15. We have also
set out at note 1.7 to the Business Review section which is contained in our 2018 Annual Results (as
defined below) (and incorporated by reference into this Offering Circular) further information showing the
reconciliation of sales and operating income as a result of the adoption of IFRS 15 for each of our business
groups and regions as at and for the year ended 31 December 2017. For further information, see note 1.B
to our 2018 Consolidated Financial Statements and note 1.7 of the Business Review section of our 2018
Annual Results.
We have not restated our consolidated financial statements as at and for the year ended 31 December 2017
or for any period prior to that date to reflect the adoption of IFRS 15 and therefore financial information
presented in this Offering Circular in respect of such dates or periods may not be directly comparable to
financial information extracted from our 2018 Consolidated Financial Statements or our 2017 Comparative
Consolidated Financial Information.
Prior to the adoption of IFRS 15, we reported "total sales" and "value added sales" in our audited
consolidated financial statements both for the Group and by operating segment. Total sales consisted of sales
of automotive parts and components to customers, or product sales, sales of tooling, research and
development ("R&D"), prototypes and other services and sales of catalytic converter monoliths. Value added
sales consisted of our total sales excluding sales of catalytic converter monoliths. Catalytic converter
monoliths are a pre-packaged raw material component for catalytic converters, which are chosen by
customers and sold on a "pass-through" basis with no mark-up. There was no difference between value
added sales and total sales for our Faurecia Interiors and Faurecia Seating business groups. Following the
adoption of IFRS 15, we report "sales" and no longer report "total sales" or "value added sales", with
operating margins calculated using "sales".
Application of IFRS 16
We have applied IFRS 16 (Leases) with effect from 1 January 2019. Our 2019 H1 Financial Statements
therefore reflect the adoption of IFRS 16. We have applied IFRS 16 using the simplified retrospective
method and, consequently we have not restated any of our consolidated financial statements for any prior
period (including our unaudited consolidated financial statements as at and for the six months ended 30 June
2018, which are included in our 2019 H1 Financial Statements for comparison purposes). As a result, our
2019 H1 Financial Statements may not be comparable to prior periods.
10

IFRS 16, which is applicable to accounting periods beginning on or after 1 January 2019, eliminates the
classification of leases as either operating leases or finance leases, as required by International Accounting
Standards ("IAS") 17, and, instead, introduces a single lease accounting model.
We have set out at note 1.B to our 2019 H1 Financial Statements (which are incorporated by reference into
this Offering Circular) additional information relating to the adoption of IFRS 16, including transition
measures, general principles and the main impact of the first application of IFRS 16 on the 2019 H1
Financial Statements. See note 1.B to our 2019 H1 Financial Statements for further information.
11

SUMMARY
The following summary highlights selected information contained elsewhere in this Offering Circular. Accordingly, this
summary may not contain all of the information that may be important to you. We urge you to carefully read and
review this Offering Circular in full, including the documents incorporated by reference herein, in order to fully
understand the Group. You should also read the "Risk Factors" section in this Offering Circular to determine
whether an investment in the Notes is appropriate for you.
Our Company
We are one of the world's ten largest automotive equipment suppliers by revenue. We develop, manufacture and sell
high-quality and highly-engineered products and we operate through four business groups: Faurecia Seating, Faurecia
Interiors, Faurecia Clean Mobility and Faurecia Clarion Electronics. We are adapting our business and aligning our
strategy to take advantage of the significant trends impacting the automotive industry. As a result, we are developing
into a technology company which provides solutions for sustainable mobility and cockpit systems. We estimate that at
least one third of vehicles in service in the world were originally equipped with at least one product manufactured by
us.
Faurecia Seating. We estimate we are currently the world's leading supplier of seat frames and mechanisms and the
number three supplier of complete seats. We design and manufacture seat systems, as well as components, including
frames, mechanisms, foam, seat covers, electronic systems, mechatronics and pneumatics. During the manufacturing
process, we assemble the various components to create complete systems for both front seats and rear seats, delivered
on a just-in-time basis to our customers' plants. We develop solutions for our Cockpit of the Future strategy with an
emphasis on advanced safety, comfort, health and wellbeing, quality and versatility. In 2018, sales reached
7,347.9 million (43% of sales).
Faurecia Interiors. We estimate we are currently one of the two global leaders in the supply of automotive interior
systems. We manufacture cockpit modules (instrument panels and central consoles), door panels, as well as smart
surfaces and solutions for human machine interfaces ("HMI"), personalized cabin climate comfort and air quality. Our
solutions incorporate the use of natural and recycled materials. In 2018, sales reached 5,471.7 million (31% of sales).
Faurecia Clean Mobility. We estimate that we are currently the world's leading supplier of exhaust systems and
components (including mufflers, manifolds, particulate filters and catalytic converters). We develop and manufacture
innovative solutions for reducing emissions (including zero emissions solutions) and improving energy efficiency,
acoustic performance and powertrain electrification. We develop and manufacture complete exhaust systems, including
components reducing emissions, as well as components for exhaust system acoustics. In 2018, sales reached
4,615.0 million (26% of sales).
Faurecia Clarion Electronics. On 1 April 2019, we launched our fourth business group, Faurecia Clarion Electronics,
which is comprised of three main companies: (i) Clarion, a leading Japanese developer, manufacturer and supplier of
in-vehicle-infotainment ("IVI"), audio equipment, connected service platforms for vehicles and HMI and advanced
driver assistance systems, which we acquired in 2019; (ii) Parrot Automotive SAS ("Parrot Automotive"), a leader in
automotive connectivity and infotainment; and (iii) Jiangxi Coagent Electronics Co. Ltd ("Jiangxi Coagent
Electronics"), which develops HMI and IVI including displays, voice recognition and smartphone applications. We
completed our acquisition of all outstanding shares in Clarion in March 2019 following a tender offer (the "Clarion
Acquisition"). We believe that Clarion's core competences in electronics and software integration and our
complementary geographic presence and customer portfolios will help position Faurecia as a leading provider of
cockpit systems integration and advance our "Cockpit of the Future" strategy. Faurecia Clarion Electronics employs
almost 9,200 people with more than 1,650 software engineers.
For the year ended 31 December 2018, our sales amounted to 17,524.7 million compared to 16,962.1 million in
2017 and our EBITDA amounted to 2,140.6 million compared to 1,950.9 million in 2017. For the six months
ended 30 June 2019, our sales amounted to 8,972.0 million compared to 8,991.3 million in the six months ended
30 June 2018, and our EBITDA amounted to 1,170.8 million compared to 1,060.8 million in the six months ended
30 June 2018. As at 31 December 2018, we employed approximately 114,693 people (including temporary workers)
in 37 countries, spread over approximately 300 sites.
For the year ended 31 December 2018, our order book for sales (calculated on a three-year rolling basis) was
63 billion, a record level for us, compared to 62 billion at the end of 2017 and 53 billion at the end of 2016.
Strategic priorities
We are undertaking a significant transformation in our business and strategy to enable us to seize new opportunities in
a rapidly changing automotive industry. Our strategy seeks to accelerate profitable growth by developing higher value
and innovative products in response to the significant global trends impacting the automotive sector. These global
trends include, in particular, climate change, resource scarcity, growing and ageing populations, economic power
16

shifting to Asia, accelerating technological advancements and increasing urbanization. The products we are developing
range from energy efficient and zero emissions technologies to connected and predictive cockpits. We refer to our
strategic priorities in these areas as "Sustainable Mobility" and "Cockpit of the Future". Sustainable Mobility involves
our development of products and processes which reduce CO2 emissions, improve air quality, weight reduction, size
reduction, energy recovery and our development of bio-sourced and renewable materials. Cockpit of the Future
involves our development of products and technology for vehicle seating and interiors which are aligned with the
increasing connectedness and autonomy of vehicles. We refer to the potential market for products and services which
meet these strategic priorities as "New Value Spaces".
In 2018, our order intake for sales in New Value Spaces represented 2.7 billion of which commercial vehicles and
high horsepower engines represented 1.2 billion of orders and Cockpit of the Future represented 1.5 billion of
orders.
Innovation
We have developed an open innovation ecosystem to accelerate the integration of new competences and improve the
time-to-market of our products. This innovative, collaborative ecosystem incorporates non-rival alliances with global
leaders as well as investment in start-ups and collaboration with academic institutions through four models of
collaboration:
(i)
strategic and technology partnerships with key players in different industrial and technology sectors;
(ii)
academic partnerships with universities and scientific institutes;
(iii) investment in start-ups through Faurecia Ventures; and
(iv) technology platforms to collaborate with local start-up ecosystems.
Customers
We maintain close relationships with almost all of the world's leading car manufacturers and work closely with
customers to develop the design and functionality of our products. Each of Ford, Volkswagen, the Renault-Nissan-
Mitsubishi group, the PSA Peugeot Citroën group and Fiat Chrysler accounted for more than 1.0 billion of our sales
in 2018. We have a broad geographic footprint, and are one of the few automotive equipment suppliers with the
capacity to supply automakers' global programs where the same car model is produced throughout several regions.
We are involved in all stages of the automotive equipment development and supply process. We design and
manufacture automotive equipment adapted to each new car model or platform, and conclude contracts to provide
these products throughout the anticipated life of the model or platform (usually between five and ten years). Our
customers rely increasingly on global platforms, based upon which they will produce a variety of car models. This
allows us to decrease costs through a greater commonality of components, and to benefit from components or
modules which can be used in more than one generation of cars. We participate in this evolution by offering generic
products associated with our customers' platforms, such as standard seats frames. At the end of 2018, we had over
700 programs in the development phase and, in 2018, we successfully launched over 220 programs, including for
vehicles such as the Peugeot 508, Dodge RAM 150, Nissan Altima and Ford Focus. In addition, we regularly benefit
from a high renewal rate of our programs (91.7% in 2018).
Our Competitive Strengths
Leading market positions in our underlying markets
Based on our estimates, we have leading market positions in three of our four business groups. In 2018, we estimate
that Faurecia Seating was, globally, a leader in seating solutions and the leading supplier of frames and mechanisms
for seats and the number three supplier of complete seats, Faurecia Interiors was one of the two leading suppliers of
interior systems and Faurecia Clean Mobility was the leading supplier of clean mobility solutions, achieving the
following results:
*
Faurecia Seating's sales reached 7,347.9 million (43% of sales). We believe that in 2018 we had a 11.4%
global market share by value;
*
Faurecia Interiors' sales reached 5,471.7 million (31% of sales). We believe that in 2018 we had a 13% global
market share by value; and
*
Faurecia Clean Mobility's sales reached 4,615.0 million (26% of sales). We believe that in 2018 we had a
32.7% global market share by value.
Faurecia Clarion Electronics, our fourth business group, was launched on 1 April 2019 and integrates Parrot
Automotive, Jiangxi Coagent Electronics and Clarion, which we acquired in March 2019. As a result, we are not able
to provide sales figures for Faurecia Clarion Electronics for the year ended 31 December 2018 or the six month
period ended 30 June 2019.
17

Our market leadership in Faurecia Seating, Faurecia Interiors and Faurecia Clean Mobility, and our global platforms
are significant strategic advantages as customers typically look to well-established suppliers when awarding new
business.
We believe that our leading market share in three of our four business groups positions us well for future growth,
allows us to negotiate favorable terms from our suppliers and to further diversify our business model.
Highly diversified business model
We believe that the high degree of diversification through our business groups, our geographic presence, and our
number of customers and range of products limits our exposure to adverse changes in the global or local economic
environment and in the various end-markets we serve, while simultaneously mitigating counterparty risk. This high
degree of diversification in turn supports the resilience of our revenues and our profitability.
The following charts show our sales for the six months ended 30 June 2019 by region, business group and customer.
Sales by Business Group (H1 2019)
Sales by Region (H1 2019)
South
ROW
Faurecia Clarion Electronics
America
1%
3%
Clean
4%
Mobility
Asia
Seating
19%
Europe
26%
40%
50%
9.0bn
26%
31%
North
Interiors
America
Sales by Customer (H1 2019)
JLR
Others
HKMC
2%
7%
CVE
3%
Daimler 3%
VW
4%
19%
BMW
4%
Ford
Chinese OEMs
15%
5%
GM
FCA
PSA
5%
7%
13%
13%
Renault-Nissan-
Mitsubishi
----------
* Clarion accounted for only two months of Faurecia Clarion Electronics' sales, in April and May, for the first six months of 2019.
In the six months ended 30 June 2019, sales in Europe, North America, Asia and South America were 50.4%, 25.5%,
19.1% and 3.8%, respectively, compared to 52.6%, 24.8%, 17.2% and 4.0%, respectively in the six months ended
30 June 2018. We also further diversified our sales by business group in the six months ended 30 June 2019 with the
introduction of our new business group, Faurecia Clarion Electronics on 1 April 2019, which accounted for 3.0% of
sales in the six months ended 30 June 2019.
In recent years we have further increased our customer diversification. In 2018, our two largest customers accounted
for 34.8% of sales compared to approximately 47.8% of total sales in 2008. We also further increased our geographic
diversification by increasing the share of our Asian sales. In 2018, sales in Europe, North America and Asia were
50.5%, 25.5% and 18.6% of sales, respectively compared to approximately 74.4%, 14.8% and 5.9% of total sales,
respectively, in 2008. This increased diversification reduces our exposure to a single geographic area, end-market,
automaker or car model.
We benefit from a global customer base. Although Japanese and South Korean automakers tend to use their own
network of suppliers, we managed to become a supplier to Nissan and Hyundai. We are present on most market
segments, from entry-level models to premium and luxury cars, which make us less vulnerable to the parameters
18

which may affect one particular segment. We also benefit from revenue visibility and stability, due to the inherent
difficulties automakers face when changing suppliers in the midst of the development and production of a car model,
and from a high renewal rate of our programs (91.7% in 2018).
Attractive underlying market fundamentals
Significant global trends are impacting the automotive industry. Those global trends include, in particular, climate
change, resource scarcity, growing and ageing populations, economic power shifting to Asia, accelerating technological
advancements and increasing urbanization. The consequence of these trends on the automotive industry is a radical
increase in mobility which is becoming connected, autonomous, shared and electrified. We have anticipated these
trends and developed a strategy to benefit from them by developing into a technology company which provides
solutions for sustainable mobility and cockpit systems.
Connectedness
Vehicles with connected capabilities already exist and are becoming increasingly common. The trend for connected
vehicles is driven by legislation for increasing safety, increasing customer expectations for infotainment and
technological developments for autonomous cars. Connectivity will allow continuous monitoring of vehicles and
passengers, the ability to upgrade software in vehicles and will provide passengers with access to a wide range of
services. The introduction of mobile 5G will enhance connectivity through better quality network coverage and higher
bandwidth. We currently estimate that 90% of vehicles will be connected by 2025.
Autonomous
Autonomous vehicles will provide drivers with the opportunity to engage in activities not previously possible while
driving, such as relaxing, working and socializing. Accordingly, we expect the automotive industry will need to extend
its value-proposition to deliver new user experiences. In this context, we expect vehicle interiors will undergo a
significant evolution and the Cockpit of the Future will be connected, versatile and predictive. We currently estimate
that between 8 to 12% of vehicles will allow at least SAE level 3 category of driving automation, as defined by SAE
International, by 2025.
Shared mobility
Connectivity is also impacting the way users see mobility, as they begin to use new solutions, particularly in urban
settings. Ride-sharing services such as car-pooling or ride-hailing, are experiencing significant growth. This trend is
the result of the emergence of new peer-to-peer services, made possible by the current digital revolution. Users of
shared mobility will demand personalization of their interiors and digital continuity.
Electrification
The powertrain mix is rapidly evolving towards electrification, due to environmental concerns and pressure from
regulators and society. Whilst different countries are moving towards zero emissions at a different pace, we expect
there will be a rapid increase in the number of hybrid vehicles and battery electric vehicles and that fuel cell electric
vehicles will co-exist as zero emissions alternatives. We currently estimate that, by 2023, 50% of new cars sold will
be electrified, including hybrid vehicles.
We estimate that the addressable market for Sustainable Mobility will reach 51 billion by 2030. We estimate that the
addressable market for the Cockpit of the Future will reach 81 billion by 2030.
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