Forvia (FRVIA) Guidance summary

Opening remarks and agenda

• Revised FY 2024 guidance announced, reflecting a lower production outlook, increased market uncertainty, and accelerated measures to improve 2025 performance, presented by the CEO and CFO on September 27, 2024.

• Webcast and conference call scheduled for stakeholders, with Q3 and FY 2024 results dates provided.

Guidance on key objectives

• 2024 sales guidance revised to €26.8bn–€27.2bn, with operating margin at 5.0%–5.3%, net cash flow ≥€550m, and net debt/EBITDA ≤2.0x by year-end.

• Deleveraging target of net debt/EBITDA <1.5x by end-2025 remains, supported by asset disposals.

• Outperformance in 2025 targeted at 300 basis points, with stable global production and growth in Asia offsetting European decline.

Market trends and strategic opportunities

• Electrification slowdown in Europe and North America, high inventories, delayed launches, and unfavorable customer mix impacting volumes.

• Chinese OEMs and Asia seen as growth opportunities, with strong sales growth and market share gains; China expected to drive growth in 2025 as delayed projects resume.

• Hella and Forvia to leverage synergies and growth in China.