PSA - 2019 Universal Registration Document

GROUPE PSA Activities and strategy

FAURECIA

1.3.2.2.

The Faurecia Group’s fourBusinessgroups are:

Clean Mobility The world leader in emissions control technologies, Faurecia engineers,manufacturesandmarketsa rangeof completepollution control systems correspondingto every market requirement.To abide by tightening internationalstandards, Faurecia has a solid portfolioof technologiesand innovationsfor passengervehiclesas well as for commercial vehicles and trucks. In 2019, the Clean Mobility business represented 26%of Faurecia’s sales. Seating As one of the three largest players in this business worldwide, Faurecia designs and assembles seats and makes their main components,includingframes,adjustmentmechanisms,foams and upholstery,and comfort and safety accessories.Besides this core seat-architecture business line, adapting to the different car manufacturerplatforms,Faureciais developinginnovativesolutions for safety and comfort,on the strengthof joint arrangementswith key player in safety, such as ZF, or in heat and temperature management, such as Mahle. In 2019, the Seating business represented 39% of Faurecia’s sales. Interiors Faurecia, one of the three leaders in the world in this business, designsand producesinstrumentpanels,centralconsolesand door panels that meet the expectations of car buyers and the requirements of car manufacturers. The shift towards an increasingly connected and autonomous vehicle is motivating Faureciato offer more and more creative solutions,which will be developed more vigorously through its new Faurecia Clarion Electronicsbusiness.In 2019,the Interiorsbusinessrepresented30% of Faurecia’s sales. New Faurecia Clarion Electronics business, formed in 2019 In 2019, Faureciafinalisedthe acquisitionof the Japanesecompany Clarion, which was announced in late October 2018, and consolidated it on 1 Aprilas part of a newBusinessgroupthat also includes the complementarybusinesses Parrot Automotive and CoagentElectronics.Clarion is a major player in connectivityand on-board infotainment systems, digital sound solutions, Human Machine Interface (HMI) solutions, displays and advanced driver assistancesystems.This acquisitionbolstersFaurecia’spositionas a major player in the integrationof cockpit systems, enabling it to offer unrivalleduser experiences.The FaureciaClarion Electronics business(12 monthsof ParrotAutomotiveand CoagentElectronics, plus 9 monthsof Clarion) accountedfor 5% of Faurecia’ssales in 2019. In 2019,Faureciacontinuedto roll out its transformation strategy through new acquisitions and joint arrangements, primarily: in terms of sustainablemobility,Faureciacontinuedto invest in n fuel cell electric vehicles by teaming up with Michelin in a 50-50 jointventure aiming to create a future global leader in hydrogen mobility. This joint venture will advance Faurecia’s “Zero Emission”strategyand enable it to take advantageof the rapidelectrificationof powertrainswitha comprehensivemobility offering for hydrogen vehicles, from the hydrogen fuel cell to vehicle maintenance services;

The Faurecia Group (1) is a world leader in automotiveequipment that develops, manufactures and markets original equipment throughfour Businessgroups: three “historical”businesses,in each of which Faureciais one of n the threelargestplayersin theworld:Seating,InteriorsandClean Mobility; a fourth business, Faurecia Clarion Electronics, which was n established in 2019and combinesthe JapanesecompanyClarion, whichwas also acquiredin 2019and consolidatedon 1 April,with Parrot Automotiveand Coagent Electronics.This new business specialises in cockpit electronics and software, and advanced driver assistance systems. Faurecia is a company listed in compartment Aof the Euronext Parismarket(FR0000121147 EO). At 31 December 2019,Groupe PSA held46.34%of Faurecia’ssharecapitaland62.99%of its theoretical voting rights. The recent proposedmerger between Groupe PSA and the FCA Group stipulatesthat Groupe PSAwill pay out to its shareholdersits stake in Faurecia before the completion of the merger,whichis scheduledto occurbetween12 and15 monthsafter the signature of the agreement between the two groups on 18 December 2019. At 31 December2019, the FaureciaGroupemployed115,000 people in 37 countries worldwide, and operated more than 300 sites, including 35 research anddevelopmentcentres. In 2019, the Faurecia Group generatedrevenue of €17.8 billion,a 1.4% increase from 2018 in reported data and a 3.0% drop at constant exchange rates, and without taking into account the consolidationof Clarionon 1 April (contributionof €586 millionfor the ninemonths).This declinewas still appreciablysmallerthan the decline in global automotive manufacturingin 2019, which was estimatedat 6%. Revenuewasdistributedas follows:49%in Europe, 25% in North America,21% in Asia (of which 15% in China), 4% in SouthAmericaand 1% intherestof the world. For more information on Faurecia’s earnings, please refer to Section 4.1.6 and Note 4 to the 2019 Consolidated Financial Statements(seeSection 5.6below). Faurecia’s business 1.3.2.2.1. Faurecia’srevenue is generatedby four Businessgroups, and the Group’sstrategicprioritiesare consistentwiththe underlyingtrends of the global automotive market, which centre around future mobilitythat is connected, autonomous,shared andelectric. Accordingly,the Faurecia Group is stepping up its profitable growth by focusing its developmentand innovationefforts on two mainstrategicareas: Sustainable Mobility , primarily through its Clean Mobility n business,which dovetailswith the trend of makingever-greener vehicles, particularly with innovations for hybrid vehicles, commercial vehicles andzero-emission trucks andvehicles; the Cockpit of the Future , through its three other activities, n Seating,Interiors,andFaureciaClarionElectronics,whichdevelop inventive solutions and breakthroughtechnologiesin order to create the cockpit of the future in response to the trend of creating more connectedvehicles and expandingautonomous driving.

For more information on Faurecia, please refer to the Company website, www.faurecia.com, or Faurecia’s 2019 URD (Universal Registration (1) Document), which is also available on the website.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT