Faurecia says it is looking for sales growth of 7% to EUR20bn (US$24bn) by 2020 and EUR30bn of sales by 2025.
“Faurecia’s strategy is aligned with the four automotive megatrends: Connectivity, Autonomous Driving, Ride-Sharing and Electrification,” said Faurecia CEO, Patrick Koller at the supplier’s recent Capital Markets Day in Paris.
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“The Group has a first-mover position and has rapidly deployed a technology ecosystem which will enable accelerated growth in both Sustainable Mobility and Smart Life on Board. We have already received EUR3.5bn of orders for these technologies and by 2025 sales in New Value Spaces will reach over 20% of the Group’s targeted EUR30bn of sales.
“Faurecia will improve its profitability to reach an operating margin of 8% of sales in 2020 and generate around EUR2bn of cumulated net cash flow between 2018 and 2020 (reaching 4% of sales) whilst accelerating its investment in innovation.”
2020 Financial Targets:
- After three years of record order intake, Faurecia has secured growth of above 7% CAGR (including a 2% annual market growth assumption) between 2017 and 2020 to reach sales of more than EUR20bn. The Group will double its sales in China to reach EUR4.5bn.
- An operating margin of 8% of sales in 2020 (a 110 basis point improvement versus 2017) will be achieved through leverage on sales and major Group Initiatives, including digital transformation. Combined, these initiatives will provide around 125 bps of improved operating margin, a part of which will finance an acceleration in innovation.
- The Group targets a Net Cash Flow of 4% of sales by 2020 driven by its “Convert2Cash” initiative.
- Faurecia will continue its strategy aimed at de-risking the Group’s profile and increasing its resilience.
