Faurecia Investor Dresner

Driving progressat Faurecia

Dresdner Kleinwort Wasserstein IAA 2005 Automotive Conference

2005SEPTEMBER 14

2September 14, 2005

3September 14, 2005

4September 14, 2005

Europe 2004 World 2004 2004 sales: €10.7 billion

60,000 employees

28 R&D centers

160 sites

28 countries

Listed on Euronext Paris,Eurolist – SRD

Sales to OEMs (US$ billions)

2004 key figures

1.Bosch

16.6

2.Faurecia

11.3

3. Magna

8.8

4.JCI

8.2

5.Siemens VDO

7.8

6. ZF

7.2

7.Lear

6.7

8.Valeo

6.5

9.TRW

5.9

10.Continental

5.6

1.Bosch

27.2

2.Delphi

24.1

3.Magna

19.9

4.Denso

19.9

5. JCI

19.5

6.Visteon

17.7

7.Lear

17.0

8.Aisin Seiki

15.5

9.Faurecia

14.6

10.TRW

11.1

Source: Automotive News August 2005

Source: Automotive News April 2005

Faurecia is a world-class automotive equipment supplier

5September 14, 2005

3

Faurecia vision and strategic priorities

12

Grow faster than the marketthrough innovation

Become a global partner for all OEMs in six major modules

Steadily improve towards best-in-class profitability

6September 14, 2005

Faurecia vision and strategic priorities

1 Become a global partner for all OEMs in six major modules

32



7September 14, 2005

Door panel / Modules

Instrument panel / Cockpit

Front endSeating

Exhaust system

Acoustic package

Faurecia is an expert in 6 major modules1

Door panel / Modules n°1 in Europen°2 worldwide

Instrument panel / Cockpitn°1 in Europen°2 worldwide

Front endn°2 in Europe n°2 worldwide

Seating n°1 in Europen°3 worldwide

Exhaust systemn°1 in Europen°2 worldwide

Acoustic packagen°2 in Europen°4 worldwide

8September 14, 2005

Faurecia is partner with the world’s leading OEMs

> 2004 sales, breakdown by customer

BMW 5.6%

Toyota 1.5%

Others 3.9%

PSA Peugeot Citroën28.8%

VW Group22.2%

Renault-Nissan14.4%

Ford Group 8.6%

DaimlerChrysler 7.8%

GM Group 7.2%

1

9September 14, 2005

Faurecia diversifies its customerportfolio and regional markets1

> Change in first half 2005 sales*

*Excluding monoliths and at constant exchange rates and on a comparable basis September 14, 2005

• GM• Ford• BMW• VW• Chrysler• Honda• Nissan

• Hyundai • Nissan• VW• PSA

• PSA • Renault • VW• Ford• GM

Asia

+40%+14%

NorthAmerica

+23%

SouthAmerica

10September 14, 2005

12


Steadily improve towards best-in-class profitability3Grow faster

than the marketthrough innovation

Vision and strategic priorities


Faurecia's profitability needs to improve

> Operating Margin*

2003 2004 1H2005

0

1

2

3

4

5

6

7

8

Magna JCI Auto2 Lear Tenneco C&Aest. ArvinMeritor2

Delphi

Visteon

* Adjusted: excluding non-recurring items (% of sales)(1) Weighted average excluding Visteon & Delphi(2) Fiscal year ends September 30th

1H2005 average1: +3.7%

2003 average1: + 4.9%2004 average1: + 4.7%

2


Manufacturing and industrial footprint

Purchasing plan

Program management

R&D efficiency

Four improvement areas2


> Improvement of key indicators

Manufacturing process and industrial redeployment

68

2002

100

100

1H05

48

23

29

2003 2004

36

30

- 40 % / yr

- 44 % / yrDefects

Accidents

2


> Redeployment of industrial footprint

Manufacturing process and industrial redeployment

September 14, 2005

2004+10

Poissy - France - JIT* Rastatt - Germany - JIT*

Kosice - SlovakiaTalmaciu - Romania

Auburn Hills - USA - JIT*Lordstown - USA - JIT*Hermosillo - MexicoRosslyn - South Africa. - JIT*Changchun 3 - ChinaWuxi - China

Norfinch - Canada

-1

2005+9

Leipzig - Germany - JIT*

Jelcz - PolandWalbrzych - PolandHlohovec - SlovakiaLozorno - Slovakia - JIT*

Cleveland - USAChangchun 4 - ChinaWuhan - ChinaAnting - China

-1

* JIT: Just-In-Time plant

Openings

Closures

2006+6

Beaugency – France**

** Project

Fraser - USASterling Heights - USA - JIT*Sterling Heights - USAToledo - USA - JIT*

Western Europe

Central Europe

Outside Europe

Banbury - UK - JIT*

Trnava - Slovakia - JIT*

2


Purchasing plan

14%

2002

10%

2,700

1H05

1,950

21%

2004

18%

2,100

2,400

2003

lower-cost country purchasing

suppliers

40%

1,500

Mid-term objectives

> Reduce number of suppliers> Increase lower-cost countries sourcing

2


Program Management System

Technical and financial control

5

SERIES PRODUCTION

Gate Review

4SOP

Gate Review

3

PRODUCTION SET-UP & PRE-SERIES

Gate Review

2

PRODUCT & PROCESS DESIGN & DEVELOPMENT

Gate Review

1CUSTOMER INQUIRY

AWARD PROGRAM

PROPOSAL LAUNCH

LAUNCHTOOL

PRODUCTION PART APPROVAL

2


R&D efficiency

Organized by areas of expertise

Consolidating and modernizing facilities

Implementing common group-wide processesand tools

"1,000 ideas" initiativeto boost innovation

Key figures 5,000 engineers /

technicians 28 R&D / D&D

centers 5.6% of

2004 sales

2


Canada

Brazil

South Africa

Korea

IndiaTurkeyPortugal Spain

France

UK

Luxemburg

Netherlands

BelgiumGermany

Poland

Czech Republic

China

Sweden

USA

Mexico

Argentina

Tunisia

Romania

Slovakia

The Faurecia Excellence System

> Deployment worldwide is the key

Experts networks Workshops Indicators Audits Best practices Training …

46

29

229

4

5

5

21

1

7

3

9

9

2

6

2

1

2

1

7

1

21

2


2002 2003 2004 1H04

5.9

6.36.6

8.7

4.02.6

3.03.4

9,86610,123

10,720

5,521

Towards best-in-class profitability

-59.1 10.1 83.7 59.7

French GAAP IFRS

Sales* (in € millions)

EBITDA(% of sales)

Operating income (% of sales)

Net income(in € millions)

1H05

7.1

2.9

5,613

34.5

2


3

Vision and strategic priorities

12





Acoustic package

10

Exhaust

18

Seats

35

Cockpit

30

Front end

12

3

Source: Faurecia

High-potential market of €120 billion

> Global module market (estimate 2010*)

Modules

Functionality

Outsourcing

Innovation

Key driversDoor

modules

15


Acoustic package

10

Exhaust

18

Seats

35

Door modules

15

Cockpit

30

Front end

12

Source: Faurecia

3 High-potential market of €120 billion


23

Seating functionality increase3

September 14, 2005 24

Functional development is a key driver through innovation

Source Faurecia, C-segment Europe

> Example: C segment (€ / vehicle)

Rear seats 5% on average / year

Front seats 3% on average / year

1995 2000 2005 2010

325

130

170

200

230

260215

275

3


Highly integrated player:complete seat & components

Mechanisms

Frames

N°1 Worldwide N°1 Europe


Complete seat


3


Seating's growth strategy

1995 2004 2010

1,900

4,800

Growth in Seat market

Consolidation of European market shares

Further growth outside Europe

> Sales (€ millions)

3


Acoustic package

10

Exhaust

18

Seats

35

Door modules

15

Cockpit

30

Front end

12

Source: Faurecia



3


Exhaust systemsIncreasing value

AcousticAfter-treatment +

Ford GM DaimlerChrysler Hyundai-Kia PSA Renault-Nissan Toyota VW

3


Exhaust systems Increasing value

600

1990 20101993 2000 2005

500450

80

250 100% Diesel Particulate Filter

Fabricated insulated manifold

Thermal management

> Diesel exhaust line price (€)

3


3 Exhaust System Growth driven by innovation

> Diesel particulate filter market

2004 2005 2006 2007 2008 2009 2010 2011 2012

400

1400

2300

3500

5000

8000

87009000

6500

Units in 000

Source: Faurecia

3


Exhaust System Growth driven by innovation

422

758

1,715

1995 1999 2005 2010

EURO 2

• First converters in Europe

EURO 4 / US LEV1

• Development of DPF

• Hot end growth in US

• EURO 2 in China

Source: Faurecia

EURO 5 / US LEV2

Diesel development in Europe

Growth in US

Asia expansion

EURO 3

• Development of manifold


3


Acoustic package

10

Exhaust

18

Seats

35

Cockpit

30

Front end

12


Source: Faurecia


Door modules

15

3


Door panel: N°2 Worldwide, N°1 Europe

> Average price: €100

Audi BMW Fiat Ford GM Lancia Mazda Mercedes PSA Renault Seat Toyota Volvo VW

3


Highly Integrated ModuleCapture value through innovation

Reduction in weight and cost through innovation3 kilos per vehicle

€15 per vehicle

2010 market size

4 million per year

DaimlerChrysler Ford

3> Average price increases to €300


Faurecia's Door Module


Innovative concepts under validation with several OEMs

2000 200420032002 2005 2007 2010

HIM introduction

50

400

Door trim not included Source: Faurecia

3


Acoustic package

10

Exhaust

18

Seats

35

Door modules

15

Cockpit

30

Front end

12


Source: Faurecia

High-potential market of €120 billion 3


Front End Module N°3 Worldwide, N°1 Europe

BMW DaimlerChrysler VW Group

3


Front End Module Create growth by innovation

Source: Faurecia


3

50

200

370

600

200

400

600

1995 2000 2005 2010

• FEM entry at Audi

• Hybrid carrier launched

• FEM entry at DC Group USA

• FEM entry at BMW,expansion at Audi

• Restructured and launched new plants

• Xri carrier and mEasy

launched


Sustained organic growth

* Organic growth 1998-2004

> Faurecia sales (Proforma in € billions)

1998 1999 2000 2001 2002 2003 2004

6.4

7.0

8.9

9.69.9

10.1

10.7

+9% p.a

3

Driving progressat Faurecia

Dresdner Kleinwort Wasserstein IAA 2005 Automotive Conference

2005SEPTEMBER 14

Business

Faurecia Investor Dresner