The Faurecia route

The Faurecia routeVOLUME 1

Key figures

2000 2001 2002pro forma* pro forma*

€M % €M % €M %

SalesAutomotive seating 3,004.0 35.8 3,519.2 36.6 4,031.6 40.9Vehicle interior 2,860.0 34.1 3,297.6 34.3 3,462.8 35.1Exhaust system 1,969.6 23.5 2,219.3 23.1 1,777.7 18.0Front end 557.1 6.6 574.6 6.0 593.4 6.0

Total 8,390.7 100.0 9,610.7 100.0 9,865.5 100.0

Operating income 297.3 3.5 259.7 2.7 255.6 2.6

Other net income and (expenses) (79.0) (0.9) (53.0) (0.6) (70.4) (0.7)

Net income, —Group share– before goodwill amortization 48.9 0.6 60.0 0.6 54.5 0.6– after goodwill amortization (62.0) (0.7) (52.0) (0.5) (59.1) (0.6)

EBITDA** 594.7 7.1 567.6 5.9 586.1 5.9

Cashflow 401.1 4.8 356.7 3.7 374.2 3.8

Capital expenditure 434.3 5.2 438.2 4.6 380.0 3.9

Gross R&D expenses 599.3 7.1 648.1 6.7 615.9 6.2

Headcount*** 54,536 55,089 58,878

12/31/2000 12/31/2001 12/31/2002pro forma

Shareholders’ equity 2,131.6 2,064.4 1,903.5

Net financial debt 1,673.7 1,761.3 1,707.1

* Including the Sommer Allibert group, fully consolidated since the beginning of the year.** Operating income+depreciation, amortization and allowances for impairment in value of property, plant and equipment and intangible assets (see 5.4 in the appendix to the consolidated accounts).*** Including temporary staff.

Contents

Key figures

A global supplier

Banking on innovation and growth

Editorial by Pierre Lévi

Executive Committee

Faurecia, an international presence

Twofold expertise: engineering and manufacturing

Inventing today your car for tomorrow

Seat—Architect of the automobile seat

Instrument panel and cockpit—A concept of the future

Door and door modules—An opening to the future

Acoustic package—Silence and lightness

Front end—A rapidly developing module

Exhaust—Advanced technology and performance

People united by a passion for automobiles

A responsible Group

Stock market information

I

1 I

2 I

4 I

7 I

8 I

1 0 I

1 2 I

1 4 I

1 6 I

1 8 I

2 0 I

2 2 I

2 4 I

2 6 I

2 8 I

3 0 I

1

3,937.2

A global supplier

4,261.9

5,839.6

9,610.7 9,865.5

Sales1998-2002(in € millions)

Headcount*1998-2002* Including temporary staff.

Faurecia is currently the second largest automotive supplier in Europe and the ninth in the world. The Group is present in 27 countries worldwide and works with most major automakers. Faurecia is the result of the merger in 1997 of seat specialist Bertrand Faure with the Ecia group, an automotive supplier of exhaust systems, vehicle-interiormodules and front ends. Since its creation, the Group has workedtirelessly to strengthen its leadership on the automotive suppliersmarket, and took a big step forward on the North Americanexhaust-systems market in 1999, with the acquisition of Apas. It reached its current size and significantly improved its globalstanding in 2000 by acquiring Sommer Allibert.

Creating jobs

The beginnings of a major Group Focusing on core businesses

Customer proximity

Number of plants in 2002160, including 72 just-in-time

Sales breakdown1998-2002(in € millions)

Automotive seating

Vehicle interior

Exhaust system

Front end

3,937.2

9,865.5

2,634.0

4,031.6

3,462.8

1,777.7

593.4385.2

642.5275.5

1998 1999 2000 2001 2002 20021998

29,15431,808

36,390

55,08958,878

1998 1999 2000 2001 2002

2

Focusing on six major automotivemodules

Banking on innovation and growth

R&D effort and efficiency

5,000 R&D technicians and engineers22 R&D and D&D centers6.2% of 2002 sales

Co-development of new programs with global automakers

Internal growth has surpassed European automotive-production growth for several years, driven by the technological innovationpolicy.

Sustained organic growth(2) (%)

Faurecia’s strategy is based on two complementary policies: internal growth driven by technological innovation, and the company’s lasting profitability. In terms of innovation, this strategy entails the concentration of the company’s resources on six major automotive modules, R&D effort and efficiency, the co-development of new programs with global automakers and sustained growth. Faurecia’s growth policy must be continuous and profitable as well as complying with a sustainable development project that respects both the staff and their environment.

Seat

no.1 in Europeno.3 in the world

Instrument paneland cockpit


1.3%4.5%

6.3%

7.2%

10.0%

16.2%23.4%

25.7%

5.4%

Sales by customer

(1) Pro forma, including the Sommer Allibert Group.2000 2001 2002

+14.6+12.9

+7.8

–0.1 +0.2 –1.3

Pro forma internal growth (excluding sales of catalytic converters)

European automotive production

(2) Compared to previous year.

Toyota

BMW

DaimlerChrysler

GM Group

Ford Group

Renault/Nissan

VW Group

PSA Peugeot Citroën

Other

2000(1) 2001 2002

0.5% 0.9%

4.0% 4.4%

5.5% 6.0%

6.7% 6.1%

12.4% 10.4%

15.0% 15.9%

24.8% 22.9%

24.7% 25.9%

6.4% 7.5%

3

Looking after the environment

In 2002, the Group’s plants continued to set up environmental management systems, with ISO 14001 or the EuropeanEMAS certifications. Certified plants cover all the Group businesses and are located in the main countries and regionswhere the Group is present, such as Germany, France, Spain, North America, Mercosur, Northern Europe, etc. Training and awareness-raising exercises for all employees are being deployed to support the plants’ implementation of ISO 14001management systems.

Improved safety

As soon as it was created in 1998, Faurecia declared its determination to pursue its industrial growthwhile respecting the health and safety of the employees and protecting the environment.

FR0 12/2001 FR0 2001-2000 FR0 12/2002 FR0 2002-2001

Group 28.1 –5% 20.8 –26%

(3) FRO is the number of accidents resulting in more than one day of lost time for each million man-hours.

Job creation

Headcount(excluding temporary staff)

–1.7% France

+9.0% Other Europeancountries

+12.4% Other countries

49,692

6,077

23,571

20,044

20022001

+5.2%5,500

1,900

2,300

1,300

100%

Recruitment

HSE certification(3)

1997 1998 1999 2000 2001 2002

OHSAS 18001or similar

ISO 14001

(1) HSE = Health, Safety and Environment.

Energy consumption

The sources of energy used by the Group in 2002 break down as follows:

Electricity 46%

Natural gas 36%

Propane 11%

Steam 4%

Oil 3%

Oil is gradually being replaced by cleaner fuels such as natural gas.

Front end


Door


Exhaust


Source: Faurecia

Acousticpackage


Frequency rate (FR0)(3)

Number of plants

52,226

19,699

25,695

6,832

24% France

42% Other Europeancountries

34% Other countries

Editorial by Pierre LéviChairman and CEO of Faurecia

5

For the Faurecia Group, the new major international player in automotive equipment, 2002 was marked both by theintroduction of operating principles and by the continuingpursuit of our two main goals: to concentrate on operationalefficiency in order to rapidly achieve the level of profitability that the Group deserves and, at the same time, to seek growththrough innovation.

Building a major worldwide automotiveequipment supplier

We have built Faurecia through internal and external growth, and have rapidly become one of the world’s biggest suppliers of automotive equipment in the space of just a few years.In four years, our sales have increased from under €4 billion to nearly €10 billion in 2002.The Group focuses on six modules: Seats, Instrument panels & cockpits, Doors, Acoustic packages, Front ends and Exhaust systems. For each module, the Group has a highlycompetitive position in first, second or third place, in Europeand worldwide. Faurecia employs a workforce of 59,000 at 160 sites in 27 countries. This new size and its competitive positionsenable the Group to work with nearly all the major automakersaround the world. Today, Faurecia is the second largest supplierto automakers in Europe and ranks ninth worldwide.But expansion alone does not create a truly great Group. It is also necessary to have the right kind of structure. To achieve this, we have:• defined a clear strategy. Our ambition is to generate lastinggrowth and profitability through a vigorous program of innovation, and to be recognized by all automakers as a specialist in each of our six modules;• introduced an organization based on accountability. In each of our 28 divisions, we are developing a results-driven culture.To reflect the new size of the Group and the demands that thisimposes, we have strengthened our workforce and devisedcommon assessment tools (budgets, plans, reporting,performance indicators, etc.);

• standardized our best practices and deployed them throughoutthe Group. They allow us rapidly to achieve the best solutionspossible in every area—it is from them that we derive ourstrength;• gradually defined the Faurecia culture. Based on commitmentand innovation, it can be summarized by our motto: “Technicalperfection, automotive passion”.We have set out our culture and practices in the “FaureciaExcellence System” in order to rapidly improve efficiency acrossthe Group in terms of quality, costs and flow.Our Faurecia Excellence System is based on four “pillars”:leadership (strategy, budget, etc.), development (research,program management, etc.), production (industrial efficiency)and customers (improving services, understanding needs, etc.).These pillars are themselves supported by two “cornerstones”:employee empowerment and supplier partnership. The pillars and cornerstones of our Faurecia Excellence System are translatedinto processes and deployed across our sites. Standard Group-wideindicators enable us to measure their progress.

Efficiency and profitability

In 2002, we focused our efforts on four key levers of improvement.

Optimization of manufacturing facilities First, we reorganized our manufacturing facilities to improveperformance. This involved opening new sites and rationalizingothers, and also included some closures. By the end of 2003,out of the 160 current sites, we will have opened 31 and closed9 since 2000. In 2002, we again made provisions for furtherrestructuring.Second, by deploying methods and experts at each site, the Group accelerated the process of optimizing productivity.

6

The purchasing planThis comprises two main parts. First, we are stepping up theprocess of streamlining our supplier portfolio in order to improvethe integration of suppliers into the development of our programs.Second, we have opened purchasing centers in central Europeand China. We have also introduced a system of e-bidding on our website. These initiatives should allow us to bring downour costs and improve the purchasing results of Faureciadivisions around the world.

Program managementThe recovery in Faurecia’s profitability depends on the continuedimprovement in both our management of new programs and in our bids for mass production projects. We are putting all our efforts into achieving this.We have therefore standardized and deployed a rigorous methodacross the Group, to control technical development and productlaunches and also their operational profitability and changes in our contractual obligations. This method consists of five separate key stages: the programaward, the design and launch of tools, industrialization and testing, the start-up of operations, and series production.The complete cycle lasts three years on average. We apply thismethod systematically, step by step, and in this way we control the economic and industrial feasibility of around 150 majorprograms.

Effective research and developmentThe optimization of our development costs is an area in whichwe want to make significant progress, in order to improve ourservice offering and consolidate our efforts to restore the Group’sprofitability. This is particularly important given the change in the Group’s size and the increasing transfer of responsibilitiesfrom automakers to equipment suppliers. Faurecia runs a majorR&D program involving 5,000 engineers and technicians and a budget of 6.2% of total sales. By structuring its resources and increasing its efficiency, Faureciahas therefore made clear improvements in its operations. In termsof the first three points described, i.e. industrial progress,purchasing and program management, the Group generatedsavings of more than €100 million in 2002.The results, however, are not yet up to the standards we require.

The Group’s growth has been based on programs won severalyears ago in already tight conditions of forecast profitability.These acquisitions occurred at a time when automakers weresignificantly increasing their quality criteria and level of automobile equipment, and were diversifying their productranges in order to attract an increasingly demanding customerbase. In this context, they handed more responsibility fordevelopment over to the equipment suppliers.For the latter, this resulted in lower margins than those of previousgenerations of programs, as well as excessive development and start-up costs, in order to take a great number of programsto their successful conclusion.Our progress was therefore absorbed by lower margins on theseprograms. Nonetheless, in 2002 we succeeded in stabilizing the Group’s operating margin and started to improve it in thesecond half of the year. Furthermore, new programs due to go into production in 2003 have benefited from our newmanagement approach and will therefore progress in a morefavorable environment. Concentration on the operational efficiency and rigorousmanagement of programs are therefore two decisive factors in terms of improving Faurecia’s profitability. The Group will alsobenefit from a policy of internal growth supported by innovation.

A strategy of growth founded on innovation

In 2002, Faurecia’s capacity to develop innovative new productsresulted in the launch of 32 new vehicles and a growth rate thatoutperformed the market.The Group’s sales for the financial year increased by 7.8%,excluding fluctuations in precious metal prices, while Europeanautomobile production declined by nearly 2%.The Group wants to reinforce its position, especially in terms of technical innovation, as a specialist recognized for each of its six modules by automakers worldwide. In 2002, Faureciaachieved further progress in this respect, and supplied parts for most new vehicles launched in Europe last year.Our Group has now become a major equipment specialist of international repute. It is focusing its efforts squarely on profitability and growth through innovation.These missions and goals unite our people, who together aim for “technical perfection” and who are already driven by “automotive passion”.

7

Executive Committee(at December 31, 2002)

Philippe Guillemot

Automotive Seating Business Group

Jean-MarcHannequin

Exhaust Systems Business Group

Gérard Breining

Group Purchasing

Arnaud de David-Beauregard

Group Development

Caspar Baumhauer

Modules and Systems Business Group

Patrick Bikard

Group Technical Management

Jean-MarcSalvanes

Group Human Resources

Pierre-JeanSivignon

Chief Financial Officer

Pierre Lévi

Chairman and Chief Executive Officer

Laurent Hebenstreit

Interior Systems Business Group

Thierry Lemâne

Group Communications

Jean-Michel Elter

Group CustomerDevelopment

8Alfa Roméo – Audi – Bentley – BMW – Bugatti – Buick – Cadillac – Chevrolet – Chrysler – Citroën – Dacia – Daihatsu – Dodge – Ferrari – Fiat – Ford – GMC – Hyundai – Infinity – Jaguar – Jeep – Lamborghini – Lancia – Land Rover – Lexus

North America

13 plants,

including 2 just-in-time

3 R&D and D&D centers

12%

South America

14 plants,


2%

Other countries

18 plants,


1%

Other European countries

18 plants,


1 R&D and D&D center

9%

Faurecia, an international presence

Faurecia is the partner of the major global automakers

9– Lincoln – Maserati – Mazda – Mercedes – Mercury – Mini – Mitsubishi – Nissan – Opel – Peugeot – Pontiac – Renault – Rolls-Royce – Saab –Samsung – Saturn – Scion – Seat – Skoda – Smart – Toyota – Vauxhall – Volkswagen – Volvo…

Breakdown of 2002 salesby area of destination (%)

France

38 plants,



34%

Germany

25 plants,



Spain Portugal

30 plants,


1 R&D and D&D center

United Kingdom

4 plants,


5%

23%

14%

10

Serving the major automakers

In most of its activities, Faurecia’s growth policy and technologicalexpertise have enabled it to become the leader in Europe and in the top three worldwide, depending on the module. Faureciahas an effective, customer-focused organization and the capacity to manage major programs, offer just-in-timedeliveries and organize Tier Two suppliers. All this allowsFaurecia to meet manufacturers’ needs in terms of quality,reliability, deadlines and costs. Furthermore, its network of sitesacross 27 countries and 4 continents gives it a major advantagein the challenging context of globalization.

Staying ahead through innovation

With more than 6% of its sales invested in research anddevelopment, Faurecia brings its customers unique, value-addedexpertise. Working in 22 R&D and D&D centers (technicalresearch and developement centers), Faurecia’s 5,000 engineersand technicians work closely alongside automakers, universitiesand research laboratories studying the vehicle of tomorrow.

Safety, comfort, acoustics, lightweight materials, pollutioncontrol and recycling are just some of the areas in whichFaurecia works to innovate—and thus to convince itscustomers— resulting in many new patents every year. By staying ahead of the industry, the Group can anticipate the needs of end-users and enhance its own customers’reputations as technological experts.

Quality at the best price

To remain one of the few Tier One equipment suppliers, Faurecia must strive daily to strike a balance between cost and performance. Being a winner means innovating andsatisfying the market’s needs, but also maintaining profitabilitydespite the trend for lower margins. So the optimization of manufacturing facilities, processes and purchasing practicesis a constant challenge for Faurecia.In order to control its commercial and industrial expansion,Faurecia has identified 30 projects to improve competitiveness,both at the corporate level and in each branch of activity.

Faurecia has a well-established position among the top ten automotive equipment suppliersworldwide, specializing in the design and assembly of six major vehicle modules: the seat, cockpit, door, acoustic package, front end and exhaust. These activities help Faurecia to contribute to the safety and comfort of passengers, the performance and design of vehicles, and the protection of the environment. In addition to its know-how in all key aspects of its industry, Faurecia has developed strong upstream expertise in engineering and services.

Twofold expertise: engineering and manufacturing

11

These projects cover strategy, customer and supplier relations,industrial organization, program management, human resources,training and the environment. In 2002, Faurecia’s purchasing was equivalent to 63% of its sales.Through its website, the Group initiated a policy of e-bidding, or reverse auctions. The gains were instant, resulting in savings of more than 10%, a wider supplier base, and a negotiationprocess reduced from three months to six weeks. Followinginitial trials based on standard parts, Faurecia is now testing thisprocess with more complex products. In addition to the reducedprices, the aim is to involve suppliers more closely in R&D.

Mastering just-in-time

Just-in-time, or JIT, is a complex and demanding process, achievedby perfecting even-flow production. Today, 72 out of 160 siteswork in JIT mode. Their challenge is to deliver the right module at the right time to the automaker’s assembly line in completesynchronous flow with vehicle production. Only a few years ago, delivery times were expressed in days, butnow they are expressed in hours and sometimes even minutes at Faurecia. The Group is locating an increasing number of itsproduction sites right next to the automakers’ assembly plants.An example of JIT in daily life at Faurecia: it takes 182 minutesbetween receipt of the maker’s order for a complete set of seatsand the start of mounting them on the manufacturer’s assemblyline (including manufacturing and transport times).

Managing major projects

Bringing complex, international projects to successful completionis another of the Group’s strengths. When automakers developseveral vehicles on the same platform in different parts of theworld, Faurecia’s technical departments, which operate as anetwork, are at their side. The Group sets up dedicated teams towork alongside the automaker to develop a product that is suitablein terms of its functionalities, style, cost and brand positioning

From the first stroke of the pencil to the finished module readyfor installation in the vehicle, Faurecia draws on its technicalexpertise and its tried-and-tested working methods to developthe product, approve it and put it into production, to coordinatea large number of contributors from different areas, to select and manage suppliers, to organize information flows and physicallogistics and to make just-in-time deliveries when required.

The FaureciaExcellence System

The Faurecia Excellence Systemwas introduced to structure the Group and give it a cleargoal: making Faurecia an international leader in each of its activities throughthe systematic application of best practice at every level.This system is based on fourlevers of change—leadership,development, production and customers—and adheres to two key principles: employeeempowerment and partnershipswith suppliers.

The system’s progress ismonitored every month acrossthe Group using 20 indicatorsto measure aspects such asstock levels, respect of deadlinesand any deviation from the“zero defect” strategy. In termsof production organization, The Faurecia Excellence Systemhas already raised performanceat a number of sites to thehighest levels worldwide, thanksto the management of productionin Kanban driven flow, the optimization of internal and external logistics circuits,the reduction of waste and the increase in the capacityutilization rate of equipment.

12

One of Faurecia’s great strengths is that it tests all innovationsaccording to a strict program of virtual and real-life trials.Sophisticated computer simulations guarantee the reliability of the development process and limit the number and cost of tests without diminishing the effectiveness of the approvalprocess. Tests ensure that each product meets the requiredstandards and that it is assembled correctly. Most consumershave no idea of the technology involved in ensuring theirsafety. A two-level airbag means nothing to them. Yet roadsafety is an increasingly high priority for the public. When it comes to safety, requirements are generally reflected—evenanticipated—by regulations. For the manufacturer, safety is not only a powerful marketing tool but also a question of brand image. Faurecia anticipated this market demand and has created an interdisciplinary expertise and research unit dedicatedentirely to safety. The Group takes part in research programsthat require knowledge of accident analysis and biomechanics.These programs are carried out in partnership with insurers,automakers and a number of independent and officialorganizations such as the NHTSA (National Highway TrafficSafety Administration) in the United States.

Faurecia is also focusing its efforts on anticipating regulatorychange. Its recognized expertise enables it to participate in defining regulations. Faurecia worked with internationalauthorities, for example, towards the adoption of additionalseat-belt force limiters.

Virtual development to improve the real product

The Group employs more than 100 scientific-calculationspecialists, uses the best simulation tools in the automotiveindustry and contributes to their development. In partnershipwith leading manufacturers, European universities andsoftware publishers, Faurecia is also the only automotivesupplier taking part in the European R&D project, Humos 2, to construct an even more accurate digital version of a humanbeing. In addition to the virtual simulation of real-life tests, most of Faurecia’s safety equipment is tested in the vehicleenvironment. A person is filmed while driving to identify whatmovements are made to activate a new control, i.e. theposition of the driver’s hands, the direction of vision, the timetaken and so on. Thousands of measurements are recorded and analyzed.

5,000 engineers and technicians working in 22 R&D and D&D centers reflect Faurecia’s continuingemphasis on innovation. In a competitive market, innovation is the best way to offer value to automakers, drivers and vehicles whose comfort, reliability and safety are a key influence on buying choices. That is why the Group now allocates more than 6% of its sales to research and development. This innovation policy is applied in many fields related to the anticipation of market needs, in the form of new functionalities, for example, and to the specific constraints of automakers such as ease of assembly, weight, strength, cost, recyclability and pollution control.

Inventing today your car for tomorrow

13

Innovations that protect us

Already in use on the roads,the Spinal Care and ComfortSystem (SCCS) has beendesigned to prevent whiplash.Activated by pressure from the occupant’s pelvis in a collision, the upper part of the seat back is raisedautomatically to protect the head. The system has beenincorporated into numerousvehicles. Whether the occupantis an adult or child, sittingerect or hunched, the BioVolumeseat’s electronic captors and algorithms, developed by Faurecia, providepersonalized protection byresponding to the morphologyand position of each individual.In the event of a collision, the speed and force of airbagdeployment adjustsautomatically to their profileand specific externalconditions. Seats fitted withthis system meet the new USstandard, FMVSS 208, whichrequires the passenger seatairbag to be deactivated in certain conditions. It is true that, when deployed,the airbag module cover canbreak the windshield and even

hit the passenger. To avoid this,Faurecia has designed the LowRisk Deployment Flap. Whendeployed, the flap retractsinside the dashboard.Competitive compared to traditional modules, thissystem also meets therequirements of standardFMVSS 208. While head,thorax and abdomen injuriesare finally being reduced, therisk of lesions of the lumbarvertebrae and the femurremains high. Using its ownbiomechanical analysisfacilities, Faurecia hasconducted a study ofsubmarining movements whichresulted in the Lower Limbs & Lumbar Care System (L3CS),whereby, in a frontal collision,the base of the seat is raisedwithin 20 milliseconds by a crossbar. This prevents the pelvis sliding forward, while controlling the body’sdeceleration.Other systems integrated intothe Faurecia cockpit providefurther protection for the lowerlimbs: the Knee Care System(KCS) for the driver andGlovebox Integration Knee CareSystem (GIKCS) for thepassenger.

Progress for tomorrow

To stay ahead in its use of technology and to make the vehiclesof tomorrow even safer for their occupants and for pedestrians,Faurecia’s engineers are currently working in some promisingnew fields.

One of the most complex areas of study is the prevention of accidents caused by the driver’s loss of attention. A system of captors analyzes a driver’s reactions, for example the evennessand fluidity of movements made at the wheel. At the slightestsign of drowsiness, countermeasures instantly correct anydeviation in direction, while a raft of signals warn the driver to regain control of the vehicle… or to take a break.

Faurecia is closely involved in European Union researchprograms, and is developing solutions that in a few years’ timewill help protect pedestrians. This system will cut in when a collision with a pedestrian becomes imminent, activating the bumper at the same time as the brake assistance and alteringits angle in order to minimize injuries.

For passengers, Faurecia is developing an ergonomic harnesssystem based partly on technology used in Formula Onevehicles, which completely eliminates the risk of submarining.Fitted on the seat, the harness follows the position of the seat at all angles. The symmetry and evenness of anchorage pointsreduces the pressure exerted on the passenger’s thorax in the case of a frontal collision.

Main models fitted

Audi A3, A4 and A8Chevrolet MalibuCitroën Picasso, C5 and C8Ford Connect and ExpeditionLincoln NavigatorOpel Vectra/VauxhallPeugeot 206, 307 et 807Renault Mégane, Scenic, VelSatisand EspaceRolls-Royce PhantomVolkswagen Polo

Architect of the automobile seat Today’s drivers want vehicles which express their lifestyle. The automotive market is thereforeexperiencing a dramatic increase in the number of vehicle versions. Automakers are looking for highly customized seat sets to help differentiate their vehicles and meet the growing demandfor individuality in vehicle design. Faurecia’s challenge is to offer this diversity while reducing the cost of complexity at the sametime. As an architect of automobile seats, Faurecia designs flexible metal structures that can be adapted to a range of vehicle variants on one or more platforms. This architectural flexibilitymeans that one structure can be supplied to different automakers, who thus benefit from the financial advantages of a shorter development time and standard product components in large quantities.

SeatC O M F O R T – S A F E T Y – D E S I G N – F L E X I B I L I T Y – M O D U L A R I T Y

1515

Right from the design stage, Faurecia takes into considerationthe automaker’s objectives in terms of cost and weight, as well as all the regulatory specifications concerning safetyand the environment. The Group has devised its own development methods thatrespect the principles of design and make the best use of its vast experience. Faurecia, one of the three biggest automobile seat manufacturersworldwide, is number one in Europe. The Group works withleading automakers around the world to produce vehicles for the European, American and Asian markets. Faurecia acquired its leadership through the concept of flexibleseat structures that can be adapted to a wide range of vehicles,but are based on identical components. Faurecia’s expertise in vehicle interiors covers a range of elements such as comfort,safety, acoustics, style and space management. This expertiseis applied to all types of vehicles, from small city models to 8-seat minivans. Faurecia’s greater worldwide presence and a policy of permanentinnovation are rapidly increasing its market share. To anticipatemarket trends, Faurecia maintains constant efforts to understandthe needs of local consumers and to satisfy the global needs of automakers.

Components at the best level

Faurecia currently operates an international manufacturingnetwork that produces key seat components such as frames,adjusters, foam pads and trim covers, drawing on itscomprehensive knowledge of manufacturing procedures and advanced technologies. In the production of its seat frames, Faurecia masters a widerange of materials such as steel, high-strength steel, or aluminumand magnesium for ultra-lightweight seats. Faurecia offerssolutions for the integration of various features andfunctionalities such as safety belts or crash-active backrests.

Faurecia is the world’s leading manufacturer of adjustermechanisms such as seat-back recliners, slider tracks and height adjusters. Faurecia manufactures its mechanismsusing precision cutting processes to make them noiseless and play-free, but strong enough to ensure occupant safety in the event of impact. The foam pads that Faurecia delivers for seat and backresttrim and for armrests and headrests contribute to seat stylingand occupant comfort. By using traditional, bonding and foam-in-place technology, Faurecia can offer an extended range of seat shapes to automakers’ designers. The covers produced by Faurecia give the seat its particularstyle and look. Faurecia’s cut and sew operations are able to handle different materials, woven or non-woven fabrics,velvet, alcantara or leather, to enhance a particular style and distinguish between various levels of interior trim.

Activity and highlights

Number one in Europe and number three worldwide on the seatsmarket, this activity expanded significantly in 2002 and registered a major increase in sales of complete seats.This was the result of a number of factors: increasedproduction of recent models (the Audi A4, the Peugeot 307and the Toyota Yaris), the launch of new models (the FordExpedition in the United States, the Opel Vectra in the UK, the new PSA-Fiat MPV’s, the new Renault Espace) and theopening of new sites (at Deeside in the UK, Golçuk in Turkey,Neuenstadt in Germany, Vigo in Spain, Wuhan in China and Vesoul in France) including five offering just-in-timeservices. The year 2002 was also marked by the rise in component manufacturing in Poland (seat adjusters and frames, start-up of the headrest activity). Finally, Faureciasupplies equipment for top-of-the-range models such as the Audi A8, the BMW series 7 and the Rolls-Royce Phantom.

Each year Faurecia produces:4 million complete seat sets 43 million longitudinal adjusters 34 million recliner systems 25 million seat frames 9 million foam pads 8 million height adjusters 6 million headrests 3 million seat covers

Faurecia assemblescomplete seats and manufacturesseat components at more than 60 sites in 19 countries.

Main models supplied

BMW Z4 and X5Citroën C3, C5 and C8Lancia PhedraMercedes C, E and S-ClassOpel CorsaPeugeot 307, 607 and 807Renault Mégane, VelSatis and EspaceSaturn IonVolkswagen Polo, Golf, Passat and TouaregVolvo S60 and V70

A concept of the futureThe cockpit is a complex module requiring a great number and variety of components and technologies. It includes elements as diverse as the instrument panel, the cross-car beam, the steering column, the center console, the firewall, the dash insulator, the pedals, the electric and electronic systems, the safety and restraint systems, the HVAC unit and the air-distribution system.

E R G O N O M I C S – F O R M – C O N F I D E N C E – S A F E T Y – D E S I G N

Instrument paneland cockpit

17

Faurecia’s experience in the production of key components and its specialized expertise have made it number one in Europe and number two worldwide in the instrument-panelmarket. In the cockpits sector, Faurecia is steadily increasingits market share. A pioneer of the modular approach, Faureciaoffers automakers a concept that simplifies assembly and allows them to take full advantage of functional integration.Through SAS, a joint venture established with Siemens,Faurecia integrates electric and electronic components to deliver cockpits that are fully equipped with all safety and comfort features.

Mastering complexity

A major part, the instrument panel sets the tone for the vehicleinterior. Acting as both surface finish and structure, it mustoffer the consumer a combination of ergonomic design and perceived quality. The steering column plays an importantsafety role in the moving vehicle, by linking the driver with the wheels. The cross-car beam is the backbone to which allother components are attached. It requires an optimalweight/rigidity ratio and the highest degree of functionalintegration. For example, Faurecia has developed innovativesolutions to ensure the perfect deployment of airbagscombined with a seamless flap design. In addition to meetingsafety, functionality and appearance requirements, the cockpitmust fulfill consumers’ needs in terms of comfort. Faureciaapplies its extensive expertise in the areas of acoustics,temperature control and the production of hybrid materials.Texture, appearance, light and comfort all play key roles in the design of Faurecia’s stylish vehicle interiors.

Making more room for style

Respect for the environment drives Faurecia’s search for newlightweight, recyclable and recycled materials. For example,Faurecia has developed a new procedure to producepolyurethane cast skin without the addition of PVC. Its superiorfeel and excellent grain and pattern definition provide a highdegree of design freedom. Looking to maintain its position as a technological leader, Faurecia is designing the cross-carbeam of the future. It provides an improved space-savingconfiguration as well as cost and weight reductions bycombining structural aspects with the air ducts. XRI/XREtechnology, used to produce structural elements, meets allspecific mechanical requirements and allows materialproperties to be adjusted to the required specifications.


In 2002, Faurecia outperformed the market. The financial year saw an increase in production of the Peugeot 307,Volkswagen Polo and Renault VelSatis. At the same time, many new models were launched, such as the Citroën C3, new PSA-Fiat minivans, the Mercedes E-Class, the VolkswagenTouareg, the Saturn Ion from General Motors and the RenaultEspace and Mégane. To ensure just-in-time delivery of the latter, two production sites were started up, one in Douai(France), the other in Palencia (Spain). At São Bernardo do Campo in Brazil, Faurecia opened a new site dedicated to General Motors, Ford and Volkswagen.

Each year Faurecia produces: 6.9 million instrument panels 2.8 million center consoles 1.4 million cockpit modules2.5 million steering columns

Faurecia supplies all the world’sautomakers with instrumentpanels and cockpitmodules.


Audi A4 CabrioletBMW Z4 and X5Fiat UlysseFord Fiesta and FusionMazda 2Mercedes C-Class and CLKPeugeot 307, 607 and 807Renault Laguna, VelSatis and EspaceToyota YarisVolkswagen Polo, Golf, Bora and New Beetle

An opening to the future A key contributor to the visual impact of the vehicle interior, the door panel also helps to create a comfortable, ergonomic and safe environment within the vehicle. A successful combination of surface materials (plastic, leather, fabric), control positions, storage options, armrest position,protection for occupants in case of lateral impact and the effect on the acoustic performance of the loudspeakers are some of the many criteria that must be optimized in the design. Bringingtogether all these functions, Faurecia’s door modules simplify assembly, drive down costs and reduce the weight of the vehicle.

Door and doormodules

E R G O N O M I C S – F O R M – L I G H T – S A F E T Y – C O M F O R T

19

Faurecia ranks first worldwide in door panel production and is currently developing new concepts that will revolutionizedoor architecture. To meet the increasing demand amongautomakers for outsourcing design and production, Faureciawas the first supplier to offer a door module concept to allowpre-assembly and a high degree of function integration. Today,Faurecia can supply complete door assemblies, mounted on the painted external door delivered by the automaker. This modular approach is leading the way in a rapidly changingmarket constantly on the look-out for new innovations.

The worldwide integration standard

Constantly pushing back the boundaries of technology,Faurecia designed the High Integrated Door Module (HIM).This innovative module combines, on a plastic carrier frame,window controls, locking system and external handle, airbags,lateral shock absorbers, loudspeakers and wiring. With a completedoor, Faurecia assembles the door module, window and sealson the external door. Thanks to its know-how, materialsexpertise, wide range of technology developed and progress in modular solutions, the Group can meet all the style andtechnical specifications of automakers.

Know-how that creates value

Lignoflax, a new generation of natural fiber (flax) materials,simplifies the manufacture of lightweight yet highly impact-resistant parts. Faurecia has developed a new armrest thatabsorbs energy in case of side impact, at a low cost andweight. The Mercedes CLK comes with Faurecia door panelsthat incorporate particularly soft, padded armrests. The airbagcovers are invisible, either hidden by the centerpieces or,on the cabriolet, behind the door panel carrier.The next generation of HIM modules will feature new electricand mechanical functions while facilitating door assembly and reducing costs and weight even further. Faurecia’s mainobjective is to offer increasing value to automakers and theircustomers.


The leader in Europe and ranked third worldwide on the doormarket, Faurecia benefited in 2002 from intensifiedproduction of the Peugeot 307, the Mercedes C-Class and CLKand the Renault VelSatis. In addition, 2002 saw the start-upof production of the Citroën C3, the Ford Fiesta, the PSA-Fiatminivans, the Seat Ibiza and Cordoba, and the Renault Espaceand Mégane. The Group established a module and completedoor production unit at the Cologne plant in Germany, for Ford.

Each year Faurecia produces:8.1 million door panel sets450,000 door module sets 300,000 complete door sets

The leader in door trim, Faurecia develops the modular conceptsof the future.


Audi A6BMW X5Fiat UlysseFord Fiesta, Focus and MondeoNissan Micra and PrimeraOpel Corsa and AstraPeugeot 307 and 807Renault Clio, Mégane, Laguna,VelSatis and EspaceVolkswagen Polo, Golf, Bora and Sharan

Silence and lightnessThe issue of automotive acoustics can be likened to the task of squaring a circle. How canthe vehicle weight be lessened in order to reduce consumption and pollution while improving acoustic performance, both inside and outside the vehicle, and at the same time optimizing costs and facilitating recycling? Faurecia has dedicated teams working in this field and uses advanced technology to find innovative solutions for each vehicle. The second player in Europe on this market, which offers a high growth potential, Faurecia works with the leading automakers.

Acoustic packageS I L E N C E – F L E X I B I L I T Y – S A F E T Y – C O M F O R T – L I G H T N E S S

21

A systemic approach

Drawing on its expertise in both acoustics and materials,Faurecia supplies complete acoustic systems and products for three applications: the vehicle interior, the luggagecompartment and the engine compartment. All soundproofingneeds are covered by the floor carpets and interior insulation,parcel shelf, side trim and load floors, and finally the enginehood insulators and absorbers. In tune with the major market trend towards modularization,Faurecia delivers acoustic modules with a number of integratedfunctions, which can be fitted directly at the vehicle assemblystage. For example, a new parcel shelf module made fromSommold, a new thermoplastic material developed by Faurecia,can incorporate the seatbelt retractors, loudspeakers, wiring,sun shades and the third brake light. It offers a weightreduction of up to 30%, excellent rigidity and impactresistance and, of course, unequalled acoustic performance.Another example within the vehicle interior is a new generationof false trays developed by Faurecia which, in addition to offeringthe standard functions (tray, storage, trim and acoustics),provides wiring and air conditioning facilities too. The productis almost ready to go into production.

Let there be light

The reduction in vehicle weight is a key concern for manufacturersbecause of its effect on energy consumption and thereforepollution. When we consider that insulation representsbetween 50% and 60% of the weight of the vehicle trim, we can see the importance of this issue, which must be reconciledwith increasingly restrictive standards as well as the growingdemands of end consumers in terms of acoustic comfort. This situation encouraged Faurecia to develop its Light Weightconcept. By identifying the perfect balance between insulationand absorption, it reduces the weight of the acoustic packageby 25% while improving its performance.

A worldwide premiere

The R&D center at Mouzon, in the Ardennes, has developed a new acoustic simulation method. The research, requested by a leading automaker, was based on digital mock-ups to reproduce the sound of a vehicle interior experienced by its occupants. This method avoids laborious testing andgenerates incredible savings in terms of time and money,which is particularly advantageous at a time when automakersare seeking drastic reductions in the development time of newmodels. And Faurecia can boast the most state-of-the-artcenter for acoustic development and testing in Europe, in Sassenburg (Germany). Its test chambers analyze the soundlevel of vehicles, including four-wheel drives, in all conditionswhether in the middle of the countryside or round hairpinbends, at speeds of up to 240 km per hour.


Ranked second in Europe in the acoustics market, Faurecia sawthe start of several major programs in 2002. The replacementfor the Citroën Xsara will come with a Faurecia interioracoustic package, while the replacement for the RenaultTwingo, due for launch in 2004, will be fitted with Faurecia’sSommold parcel shelf. The same goes for the Ford Fusion, the 5-door Ford Fiesta and the Citroën C3. Faurecia has alsobeen retained for the restyling of the Renault Master. An innovative “water collector” concept has been integratedinto the new Renault Mégane. Faurecia has succeeded in combining two functions, watertightness and soundproofing,in a single part that is lighter and cheaper to produce. Nearlyall the interior acoustic elements of the Nissan Primera and Micra are supplied by Faurecia. Finally, a new productionsite was opened at Legnica in Poland.

Each year Faurecia produces:23 million square meters of carpeting 2.75 million sound insulators

Faurecia producesand assemblesacoustic packages at 12 plants around the world.


Audi A2, A3, A4 and A6BMW 3 Series Citroën C3, C3 Pluriel and C5MiniNissan MicraPeugeot 206, 307 and 607Renault Clio, Laguna, VelSatis and EspaceVolkswagen Sharan and Phaeton

A rapidly developing moduleThe front end comprises the front end carrier, bumpers, shock absorbers, cooling fan system, water and engine-oil cooling radiators, condenser for the air-conditioning system, radiator grill,headlights, wiring harness and various sensors. Designed and assembled as a single unit, the front end unites essential vehicle functions in terms of performance, appearance and safety.

Front endD E S I G N – S A F E T Y – P E R F O R M A N C E – S T Y L E – L I G H T

23

The number of vehicles fitted with Faurecia’s front ends hasmore than doubled in the past five years in Europe alone. They will pass the 6 million mark in 2003. Automakers clearlyappreciate the modular approach with its simplified assembly,shorter development times, reduced industrial investment,functional integration and fewer components. A technologicalpioneer and major player both in Europe and worldwide,Faurecia has gained a privileged position from which to profitfrom the rapid expansion of this new market.

Perfecting the module and the components

Faurecia offers the design and production of front end modules and several of its components, such as the front endcarrier, bumpers and cooling-fan systems. Faurecia worksclosely with automakers on the design of the module and the components. Its experts propose technical concepts and manufacturing solutions tailored to customers’ demands in terms of weight, cost and performance. Faurecia uses the most sophisticated simulation, calculation and testfacilities which are essential at every stage in design. For example, when painting bumpers, a model production line is used during product development to reduce the pre-production launch time in line with automakers’demands for rapid response. In addition to its own know-how,Faurecia benefits from the expertise of its carefully selectedsuppliers, whom it involves closely in the logistical planningfor just-in-time delivery.

Technological and industrial know-how

In 2002, Faurecia built on its strategy for front end modulesand components by winning new markets, launching a numberof groundbreaking solutions and starting up the production of new products. The Measy system, devised by Faurecia’sR&D teams, is being developed to provide a front end platform. Production will begin in 2004. Measy is used to ensure the perfect alignment of vehicle headlights and wings to offset permissible variances in the bodywork. The fan cooling system, featuring a new integrated electronicswitch, is being launched on the Citroën C3 and is the focus of several programs in development, which will further boostFaurecia’s growth. The Group is maintaining its leadership on the composite front end market, with its metal-plastichybrid material used on the VW Phaeton, launched in 2002,and the XRI material, patented by Faurecia, which offers weightadvantages and excellent performance in terms of energyabsorption, thermal resistance, rigidity and appearance.


Faurecia is ranked second in Europe and second worldwide in the front end market. It achieved growth on the front endmodule and component market in 2002, supplying equipmentfor a number of new models including the Citroën C3 andPluriel, the Renault Espace, the Nissan Micra and the Audi A4Cabriolet. In addition, Faurecia received a number of majororders, including for the front end carrier for a new Renaultplatform and front end modules for BMW and Audi.

Each year Faurecia produces:2.6 million cooling fan systems 4.1 million bumpers2 million front end carriers 650,000 front end modules

Faurecia, a leader in front end modules, is also a major supplier of its key components.


Audi A4 and A6Cadillac CTS and SRXCitroën C3 and C3 PlurielFord FocusMercedes C and E-ClassPeugeot 307 and 607Renault EspaceSaturn IONSeat Ibiza and CordobaToyota YarisVolvo S60, S80 and XC90Volkswagen Polo

Advanced technology and performanceThe exhaust is an integral system combining advanced technology and performance. Faurecia usesits expertise and knowledge of exhaust systems to bring to the market the most innovative solutions at the best prices. Faurecia objectives are to expand its product range, reduce development times and life cycles, and achieve quality gains through the application of high standards. Constantly working to reducecosts, Faurecia offers its customers high-performance, competitive, integrated systems as well as tailor-made solutions. Faurecia focuses its research on three areas: emissions control, acoustics and durability, in order to meet current and future needs.

ExhaustPURITY – S I LENCE – CONF IDENCE – PERFORMANCE – EM ISS IONS CONTROL

25

Meeting and exceeding customers’ demands

Faurecia develops effective, lightweight solutions. Its researchis currently focused on low-density materials such as plasticsand composites, which offer good durability and excellentcorrosion resistance. Embossed steel sheets used on mufflershells in the ALES procedure, thin-wall substrates canning and the fabricated manifold are examples of technologiesdeveloped by Faurecia to reduce the weight of the exhaustsystem.

Leading emissions-control solutions

Faurecia continues to innovate in partnership with automakersand Tier Two and Three suppliers, in order to meet and anticipatefuture emissions-control standards. With the development of the diesel particulate filter and the NOx Trap with heatexchanger, Faurecia has demonstrated its qualities as thepartner of choice in environmental protection. Other pioneeringsolutions include catalytic systems located just behind themanifold, new systems incorporating ultra-thin-wall ceramicsand metal pre-catalysts.

Effective partnerships in engineering

Faurecia works successfully with its suppliers and today shares its know-how with coaters, producers of flexible tubes,heatshields and engine management systems. With itsexpertise in a number of fields—acoustics, heat management,canning, NOx treatment, particulate filtration andregeneration—Faurecia can work to all the constraints of automakers’ specifications and integrate different exhaustsubmodules.

Optimal costs and timeframes

Precious metals constitute a large part of the exhaust system’scost, so Faurecia works closely with automakers to optimize the precious metal content of its catalysts. This unique serviceenables Faurecia to adapt today’s products using the besttechnologies such as high-tech thin wall substrate canning and the latest washcoat techniques.

Automakers thus benefit from a reduction of up to 30% in precious metal content. Lean manufacturing techniques, innovative and reliable supply-chain solutions and sourcing from low-cost countries are examples of methods used to achieve cost-efficient solutions.Faurecia specializes in lean development, a new approachcombining predictive calculations, simplified tests and virtualprototyping, and is therefore capable of producing performancedata under real conditions. This approach minimizes costs and reduces development time.

Global support, local structure

With one R&D center and three D&D centers worldwide, a manifold center of excellence and a global purchasing policy,Faurecia can meet all automakers’ development requirementsfor global vehicle platforms. Its highly skilled and motivatedpeople strive to satisfy and surpass customers’ expectations.


Number one in Europe and second worldwide in the exhaustsystem market, Faurecia consolidated its positions in 2002.The year was impacted by the negative effects of exchangerates and prices of precious metals. Despite this, Faurecia’sproduct activity, excluding sales of catalytic converters,remained stable and the breakdown by automaker wasidentical to the previous year. In response to pressure fromcompetitors, Faurecia pursued the reorganization of itsmanufacturing facilities initiated in 2001. Internationalexpansion was particularly vigorous in Asia. Already present in China with three joint ventures, Faurecia is reinforcing its industrial facilities and expanding its customer portfolio in South Korea through a shareholding in Daeki Industrial. In the United States, Faurecia received new orders for complete systems from Ford and GM, thus bolstering its activities relating to the hot part of the exhaust. Finally,Faurecia continues to develop certain strategic sites such as the one in South Africa, which has doubled its productionof catalytic converters.

Each year, Faurecia’s 27 sites located in 14 countries (Europe, South Africa, North America and South America, South Korea and China) produce: 14 million rear mufflers 7 million catalytic converters 2 million fabricated manifolds 6 million complete exhaust systems

Faurecia’s production sitesenable it to meet the global needs of automakers.

Faurecia is a multicultural, internationalGroup, with operations in 27 countries.It has developed a management style to reflect the variety of cultures in whichit operates. It is united by sharedmethods and approaches that encouragepersonal involvement, a commitment to quality and customer satisfaction.This corporate culture has now beenimplemented through the FaureciaExcellence System, which places greatimportance on individual developmentand involvement. This is achieved by encouraging initiative and a diversityof projects and technologies, and by emphasizing the resulting choice of professional mobility opportunities.Individualized training plans are definedto support the development of eachperson. This motivation is also expressedthrough a passion for automobiles and the search for technical perfection.

People unitedby a passion for automobiles

Several activities, one Group

Faurecia built its technological and commercial leadership on the development of its original activities and on a dynamicgrowth policy. Today, Faurecia is an international Group, halfof whose management staff are non-French. Uniting skillsaround common objectives has been one of the Group’spriorities right from the start. To encourage this, Induction Days are held regularly to welcomenew managers into the Group. These sessions provide anopportunity for senior management—including the Chairman—to present the various activities of the Group as well as its values, objectives and methods. In 2002, two sessionsbrought together more than 160 managers representing 15 nationalities at the Group headquarters in Nanterre, and then in their respective Business Groups.

A common management culture

To develop a united approach in all countries and to communicatethe specific methods and know-how of the Group, Faureciahas set up its own international training center, FaureciaUniversity, where Faurecia runs the Group’s training programs.For example, 850 managers were taught how to conduct yearlystaff appraisals, a key aspect of skill development.

26

Faurecia University also provided stage one of a programmanagement course, based on three modules: teammanagement, steering the financial performance of the program,and customer relations management. Three other stages are planned for 2003. In addition, 900 employees from allcountries and Business Groups attended training sessions on the Program Management System and on the launch and steering of program profitability.In total, Faurecia University provided training for more than1,500 managers and professionals in 2002, representingnearly 25% of management. Faurecia University alsocommissions internationally renowned organizations to helptrain its management. In 2002, it held its first InternationalManagement Seminar for middle management, a trainingprogram devised in partnership with Essec. Due to the successof this initiative, three other sessions are planned for 2003.They will complement schemes already undertaken with Insead.

Employment and competitiveness

Faurecia operates in a sector whose requirements in terms of competitiveness and productivity are particularly intense. Its role as a Tier One supplier also requires constant efforts to adapt and optimize its workforce in line with demand. For example, in 2002, this dynamic human resources policyled to the recruitment of more than 5,500 additional staff to reflect the Group’s growth in new markets (in particular

in Poland, Turkey, South Korea and China). In addition, the closure of plants at Rennes (France), Telford (UK) andToledo (United States) were accompanied by major programs to help the workforce find new jobs, within the Group whereverpossible. In every country and for each of its companies,Faurecia works constantly to preserve its competitive edgethrough signing agreements with employees, i.e. the introductionof week-end shifts in France, Spain, Germany and the UnitedStates, the calculation of working hours on a yearly basis in Spain and initiatives to encourage part-time work in France.

International mobility

The creation of new production sites and the need to produceincreasingly complex modules have led Faurecia to introduce a policy of national and international mobility within the Group.Details of vacant positions are posted on Faurecia’s Intranet,where they can be consulted by employees from every area and background. Employees also have the opportunity to submit unsolicited applications. These international career-development opportunities provide additional motivation for all employees of the Group.

27

In a highly competitive environment,lasting success requires a rigorous,measured and respected policy on safetyand quality. The Faurecia ExcellenceSystem is a global, consistent andsystematic methodology designed to ensure that the Group advances on every front, with regard to customers,employees, shareholders and the public. Faurecia aims to be a responsible Groupthat respects local communitieswherever it operates. It takesenvironmental concerns into accountfrom the start of the design stage andthroughout every stage in the productionprocess at each of its sites.

A responsible Group

Consistently high standards in terms of health, safety and environment

The three main aims of Faurecia’s HSE policy are to ensureemployees’ safety at work, prevent the risk of fire andminimize the impact on the environment. With this in mind,Faurecia has introduced a dedicated organization based on the accountability of each of its operating structures. In every region, country and activity, coordinators ensure thataction plans are implemented at all sites. To reduce the number of accidents, for example, Faurecia has initiated a process to assess the comfort and ergonomicsof workstations so that improvements can be made wherepossible. The provisional management agreements for employeesof Faurecia Sièges d’Automobile (Automotive Seating) andFaurecia Intérieur Industrie (Interior Systems), signed in 2002,require the analysis of the ergonomic risks of workstations and the application of corrective measures in the establishmentsconcerned. The coordination of the HSE network, via the Group Intranet,links all contributors to ensure that the same policy is appliedat all sites, in all countries.

28

The same commitment

At Faurecia, everything is being done to raise awareness of the new Faurecia Excellence System among employees,using specialist teams, training sessions and communicationstools. The system is based on employee empowerment. Thereorganization of the workforce into autonomous productionunits, each with its own performance indicators, has alreadyachieved remarkable results. The most successful plants in the Group are those that apply the Faurecia ExcellenceSystem most thoroughly. The other essential aspect of the system is Faurecia’spartnership with its suppliers. Faurecia’s purchasing representsthe equivalent of more than half of its sales. From productdevelopment through to even-flow delivery, Faurecia’s suppliersmust now adhere to the same principles as the Group’semployees. The combination of the savings in purchasing,productivity gains and “zero defect” quality is the surestsource of value for Faurecia and for its commercial andfinancial partners.

Aiming for environmental management

As part of its Excellence policy, Faurecia has set the objectiveof introducing an environmental management system at all sitesapproved by certification such as ISO 14001. This approach is being pioneered in Germany, where in 1997 the Stadhagenand Unna sites were the Group’s first sites to obtain EuropeanEMAS approval. Today, more than 30 of Faurecia’s sites haveobtained ISO 14001, EMAS or EMAS II certification. All itsregions are represented, from Northern Europe to Mercosur.This voluntary policy also generates savings. At some plants,for example, savings on fuel and maintenance in boiler roomshave been achieved just seventeen months after replacing oilwith natural gas. Around the world, Faurecia is exploring waysin which to improve its environmental performance, such as developing lighter materials and facilitating the removal and separation of components. One recent success is the EDIT(Eco-Design Interactive Tool), developed in partnership withother equipment suppliers, automakers and plastics specialists,which was chosen as a European LIFE Environment project.

29

Stock market informationthe Faurecia share price

30

Share-price datasheet

Fiscal year from January 1 to December 31Sicovam code: 12114Nominal value: €7Traded on the Premier Marché of Euronext ParisStock eligible for deferred settlement (SRD)

Financial information

Share price at December 31, 2002: €39.20 Highest price for the year: €61.40 on January 10, 2002Lowest price for the year: €33.00 on September 24, 2002

Evolution % change since % change since

At December 31, 2002 December 31, 2000 December 28, 2001

Faurecia – 6.7% – 33.6%

SBF 120 – 46.6% – 32.4%

DS Autoparts Europe – 18.3% – 8.9%

Faurecia share price 2001/2002 (average monthly figures)Share price in € and weighted index

The average monthly trading volume between January and December 2002 came to €12 million,representing 1.0% of Faurecia’s market capitalization.

December 31, 2000 December 28, 2001 December 31, 2002

Market capitalization (€M) 603.20 1,425.30 947.60

Share price (€) 42.00 59.00 39.20

Shareholders’ equity per share 66.97 85.40 78.74

Data per share (€)

2000* 2001* 2002

Earnings per share after dilution

– Before goodwill amortization 2.04 2.50 2.29

– After goodwill amortization (2.60) (2.18) (2.49)

Operating cashflow per share 16.73 14.86 15.69

Number of shares at period end (thousands) 14,362 24,164 24,174

(*) Pro forma including Sommer Allibert, effective from January 1.

31

Shareholderinformation

Ownership structure

At December 31, 2002, Faurecia’s capital comprised 24,174,251 shares with a nominal value of €7,compared to 24,164,251 at December 31, 2001.PSA Peugeot Citroën holds 71.50% of the capital and 78.64% of the voting rights. The remaining sharesare publicy held.

Dividend (€)

2000 2001 2002

Share price at year end 42.00 59.00 39.20

Dividend per share

– Collection amount 0.91 0.91 0.91*

Accruing to the fiscal year

– Tax credit 0.455 0.455 0.455

– Total 1.365 1.365 1.365

* Dividend proposed at the AGM of May 27, 2003.

2003 financial calendarFebruary 7

Press release on 2002 annual results

April 9

Press release on first quarter 2003 results

May 27

AGM 2003

July 23

Press release on 2003 half-year results

October 9

Press release on third quarter 2003 results

ContactsFaurecia Communications Department

+33 (0)1 72 36 70 05

Financial information available online

www.faurecia.com (“finance and shareholders”)

Faurecia Head Office

2, rue Hennape – 92000 Nanterre – France

Contact informationFaureciaCorporate Communications2, rue Hennape92000 Nanterre – France

www.faurecia.comDes

ign

and

prod

ucti

on:

Pho

tos:

S

.M

urat

et, C

.P

eus,

A.G

onin

, E

.M

ühle

der,

Mas

terf

ile/R

omm

el, D

ingo

, P.

Mes

sina

/Mét

is I

mag

es, J.

-L. B

ellu

rget

/J.-

M. Fo

ujol

s/S

tock

imag

e, B

. B

aile

y/G

. G

eorg

e/P

hoto

disc

/Get

tyIm

ages

, D

.R.

The Faurecia route

Documents

Transcript of The Faurecia route