Forvia (FRVIA) investor relations material

Transaction overview

• Agreement signed to sell the Interiors business to Apollo-managed funds for an enterprise value of EUR 1.82 billion, representing 3.1x 2025 adjusted EBITDA.

• The transaction targets a net debt reduction of at least EUR 1 billion and gross debt reduction exceeding EUR 1.4 billion, with all proceeds allocated to debt reimbursement and near-term maturities.

• Closing is expected by year-end, subject to regulatory approvals and works council consultations.

• The Interiors business includes EUR 4.8 billion in sales, 59 plants, and approximately 31,000 employees, all of whom will transfer to Apollo.

• The deal is definitive, with the business continuing to generate cash flow for the group until closing.

Financial impact and guidance

• Gross debt reduction will lower annual financial expenses by EUR 50–70 million.

• Net debt/adjusted EBITDA is expected to improve to 1.5x in 2026 and 1.2x by 2028.

• 2026 sales guidance is set at EUR 20–21 billion, with operating margin between 6.0%–6.5%.

• 2028 ambitions target sales of EUR 21–22 billion, operating margin of at least 7%, and net debt/EBITDA at 1.2x.

• Minority P&L leakage will be reduced by about EUR 30 million annually post-transaction.

Strategic rationale and future outlook

• The sale sharpens focus on high-value, technology-driven activities and is a key milestone in the IGNITE Strategic Roadmap.

• Portfolio now centers on growth and technology-driven clusters: Electronics, Seating, Clean Mobility, Clarion, Lifecycle Solutions, and Lighting.

• All 2026 guidance and 2028 ambitions are reiterated and confirmed.

• No significant dis-synergies expected for remaining business units; seating and interiors have historically been sourced separately.

• Sustainable materials business (MATERI'ACT) remains with the group and will continue supplying the divested business.