Being Faurecia A key cultural transformation initiative

Jean-Pierre Sounillac

Executive Vice President, HR

© Copyright 2015 ADP, LLC.

Faurecia: Key Figures (July 14)

© Copyright 2015 ADP, LLC.

*including €13.7 billion of product sales

18

34

320

100,000

countries

employees

sites

billion in sales* R&D engineers

R&D centers

programs in development

patents filed in 2013 500

5,800

30

485

16,000 M&Ps

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W O R L D ’ S S I X T H L AR G E S T AU T O M O T I V E S U P P L I E R

Faurecia: Key Figures (July 14) A D i v e r s i f i e d C u s t o m e r P o r t f o l i o

© Copyright 2015 ADP, LLC.

I N % O F P R O D U C T S AL E S

38% German

28% American

20.5% French

7% Asian

24.7% Volkswagen Group

7.1% BMW

6.1% Daimler

14.9% Ford

7.9% GM

5.0% Chrysler

1.3% Other Asian

1.6% Hyundai

4.2% Nissan

6.5% Renault

14% PSA-Peugeot-Citroën

1.9% Commercial vehicles

4.9% Other

10.7%

Faurecia: a Global Leader

© Copyright 2015 ADP, LLC.

*including €13.7 billion of product sales

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#1 worldwide seat mechanisms & frames (Global – Generic)

#3 worldwide complete seats (Regional - Specific –Unbundled)

#1 worldwide

Largest portfolio of products & technologies | Best-in-class global operations | Focus on

enhanced perceived quality

#1 worldwide

Widest geographical presence | Large portfolio of products and technologies | Global program

management expertise

#1 Europe

Strong technology expertise | Leading composite player

Automotive

Exterior

Emissions

Control

Technologies

Interior

Systems

Automotive

Seating

4 B U S I N E S S G R O U P S

Faurecia: a Global Leader

© Copyright 2015 ADP, LLC.

*including €13.7 billion of product sales

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A C O M P L E T E P R O D U C T P O R T F O L I O

Being Faurecia: an Initiative Driven by Business Needs

• Faurecia significantly growing and globalizing

• Execution issues showed that Human Resources dimension could be a road block to

sustainable growth

• 4 HR Workshops launched at Excom level in 2012, converging into “Being Faurecia”, a

key cultural transformation initiative aiming at building a sustainable Management Model

to drive the execution of our Business Model

• Very well received by Faurecia management, creating high level expectations

• Company Board associated at all stages of this key cultural transformation initiative

© Copyright 2015 ADP, LLC.

Cultural Shift Defined: From a Process-Based to a People-Based Organization

© Copyright 2015 ADP, LLC.

Faurecia today is…

Focused on customers in a reactive mode

Driven by systems and methodologies

Centralized decision making and strong

top-down control

Diverse environment: nationalities, cultures, more

“nice” than “fair” for performance assessment

Focused on costs and short term performance

Faurecia should be…

Focused on long-term value creation

Proactively focused on customers

Driven by innovation

Auto-control DNA, managers as role models,

place for entrepreneurship and autonomy

Performance-based environment, people

developed to their ultimate potential

Values to Drive Cultural Shift Behaviors

© Copyright 2015 ADP, LLC.

Managerial values Behavioral values

Entrepreneurship

Autonomy

Accountability

Energy

Respect

Exemplarity

Code of Management has been Written to Illustrate Management Behaviors in Line with Our Values

• 55 behaviors in four categories – Business Planning

– Business Execution

– People management and development

– Business Ethics

• 20 red line behaviors not tolerated

• Designed to enable managers to be role models

© Copyright 2015 ADP, LLC.

"Don't privilege the interests

of one part of the organization

over those of the Group as a whole.

Think and act Faurecia first"

Being Faurecia is Our Management Model

© Copyright 2015 ADP, LLC.

Being Faurecia, Transforming HR

• “Being Faurecia”: a common understanding on effective people development – Performance management

– People development

• 2 directions to reinforce our global approach – Upgrade key HR processes

– Strongly focus on Management of Potentials

© Copyright 2015 ADP, LLC.

Upgrade Key HR Processes

• Introduce STAR(*) as new Performance Management System (*) Setting Targets, Achieving Results

• Adapt Faurecia Variable Compensation Scheme

• Establish Leadership Competency Model as the foundation of our people development approach

• Reinforce Individual Development Planning

• Rebuild Leadership Development Offer

• Strengthen Talent Acquisition

© Copyright 2015 ADP, LLC.

Strongly Focus on Management of Potentials

• Continue to develop current generation of Senior Managers

• Prepare next generation of Senior Managers

– Deeper knowledge and assessment of Top 80 potentials

– Identification of Top 300 potentials

– Recruit people at early stage fitting our culture with potential for a career

– Ensure their success by a proper induction

– Offer diversified career path to build general management skills

– Develop leadership skills to develop managers with an entrepreneurial spirit

© Copyright 2015 ADP, LLC.

Conclusion

• With Being Faurecia, we are moving from a process- to a people-oriented

organization

• For HR function, it means further transformation, opportunity for

professionalization and more involvement from management

• Being Faurecia deployment is now focused on local initiatives and

celebration/reward of key contributors to keep the momentum

• This initiative has been a catalyst for change within Faurecia and new

initiatives are coming: Digital Enterprise, innovation management, plant of

the future

• Faurecia is on the move

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