Patrick KOLLER, Chief Executive Officer of FORVIA, declared:

"In the third quarter, we continued to post a robust organic sales outperformance of 420 basis points vs. a worldwide automotive production that was down 4.6% year-on-year. This outperformance demonstrates our capacity to resist to a challenging environment, as flagged in our recent press release on September 27.

Uncertainty remains high in the European market, impacted by a slowdown of electrification and concerns related to the CAFE regulation, while the North American market is suffering from high level of car inventories. In both regions, we outperformed the local automotive production.

In China, conversely and as expected, we underperformed the local automotive production in the past quarter, due to customer mix evolution and SOPs delayed from 2024 to 2025. In a Chinese market that is expected to grow in 2025, we confirm that we should resume outperforming the automotive production in the country by at least 300 basis points.

The order intake signed in the past quarter brings to more than €20 billion the cumulated amount since the start of the year, with a well-balanced mix of customers and geographies, and Asia representing around 36% of this amount. While pursuing our selective approach to order intake, we are targeting €30 billion in the full year 2024.

We remain focused on maintaining our efforts and accelerating measures, such as EU-FORWARD competitiveness program in Europe and cost synergies with FORVIA HELLA, that will ensure the resilience of our performance in the rest of the year, as well as significantly improve our performance in 2025, even if the environment remains challenging. Deleveraging the company and strengthening its balance-sheet remains our top priority.”

• The Board of Directors, under the chairmanship of Michel de ROSEN, met on October 18 and reviewed the present press release.
• All financial terms used in this press release are explained at the end of this document, under the section "Definitions of terms used in this document”.
• All figures related to worldwide or regional automotive production refer to the S&P Global Mobility forecast dated October 2024.

CUMULATED ORDER INTAKE ABOVE €20bn SINCE THE START OF THE YEAR

Since the start of the year, the Group has kept reinforcing its momentum in fast-growing segments, which will contribute to secure medium-term profitable growth:

• Asia represents 36% of the order intake, of which 30% in China.
• Chinese awards include key conquests with fast-growing Chinese OEMs such as Chery and Li Auto, as well as a first project with a fast-growing EV manufacturer (Seating).
• Order intake with Premium models was close to €9 billion or 43% of total order intake.
• More than €4 billion in innovative products and solutions, including hydrogen for c. €700 million.

In addition, BYD and FORVIA have agreed to further develop their partnership in Europe. After having awarded FORVIA/BYD Joint Venture for the launch of its first European location in Hungary, the car manufacturer has chosen FORVIA/BYD JV as supplier for its next-to-open plant in Turkey.

EU-FORWARD UPDATE

Early this year, FORVIA launched the five-year initiative EU-FORWARD, aimed at reinforcing the competitiveness and agility of the Group's operations in Europe, adapting its European manufacturing and R&D set-up to the fast-changing regional environment.

In its press release dated September 27, FORVIA announced accelerating the implementation of this initiative with the following targets:

• By the end of 2024, more than 2,800 headcount reduction should be announced, representing P&L savings of c. €120m on an annualized basis.
• By the end of 2025, more than 5,800 cumulated headcount reduction should be announced, representing P&L cumulated savings of c. €270m on an annualized basis. At this time, around 5,500 people should have left the Group, including around 1,000 people due to attrition. The positive impact on 2025 P&L should represent more than €180m, with restructuring costs kept at the initial level announced in February 2024.
• By the end of 2027, over 90% of the total five-year 2024-2028 headcount reduction could have already been reached.

Worldwide automotive production in Q3 was down by 4.6% at 21.6 million Light Vehicles (source: S&P dated October 2024).

In FORVIA's main regions, trends were as follows:

• Europe ex. Russia (43% of Group sales in Q3): production was down 6.9% at 3.4 million LVs,
• North America (24% of Group sales in Q3): production was down 4.7% at 3.8 million LVs,

• China (22% of Group sales in Q3): production was down 2.6% at 7.3 million LVs.

• Sales change included a negative currency effect of €(105) million or -1.6% of last year's sales, that was essentially driven by the depreciation of the Turkish lira, the Brazilian real, the US dollar and the Argentinean peso.
• Negative net impact of the scope of consolidation was €(39) million. It included:
  • A negative impact of €(105) million related to the disposal of CVI's activities in North America and Europe that was closed on October 2, 2023,
  • A positive impact of €66 million related to the consolidation as of January 1^st, 2024, of HBBL, a joint venture in Lighting held by FORVIA HELLA in China (previously consolidated by the equity method).
• Organic growth was slightly negative at €(28) million or -0.4% of last year's sales, nevertheless representing an outperformance of 420bps compared to worldwide automotive production that was down 4.6% during the period.

• • c. +480bps came from volumes (incl. strong tooling sales), mix and pricing,
  • c.-60bps came from negative regional mix.
• From a customer standpoint, organic growth was lifted by activity with VW, Ford, Renault, Mercedes and Chery but was penalized by reduced sales at Stellantis, especially in North America, and a large US EV car maker.

• SEATING (33% of Group consolidated sales in the period)

In Q3 2023, sales included c. €30 million of sales from the loss-making program in Highland Park (Michigan, USA), that FORVIA voluntarily ended on September 30, 2023.

Despite significantly lower volumes with Stellantis in Europe and North America, Seating strongly outperformed local automotive production in both regions:

• In Europe, organic growth stood at c. 16%, largely driven by German OEMs and Renault,
• In North America, organic growth stood slightly above 5%, largely driven by Ford and GM, but also VW to a lesser extent.

• INTERIORS (18% of Group consolidated sales in the period)

• In Europe, the business grew on an organic basis by c. 3% (in a market that dropped by c. 7%), notably driven by VW, Renault and Ford,
• In North America, sales grew by more than 20% (in a market that dropped by c. 5%), notably driven by Ford, GM and VW.

• CLEAN MOBILITY (15% of Group consolidated sales in the period)

Close to three quarters of the organic sales drop in Q3 2024 were due to Stellantis, in Europe and in North America.

In both regions, excluding this impact, FORVIA's organic sales outperformed the local automotive production evolution during the period.

In China, where electrification further advanced, sales dropped in the double-digits, primarily due to lower activity with VW, GM, FAW and SAIC.

• ELECTRONICS (16% of Group consolidated sales in the period)

• In Europe, sales were down by c. 3% organically in a market that dropped by c. 7%, supported by growing activity with VW.
• In North America, organic sales grew by close to 2% in a market down by c.5%, primarily driven by GM.
• In China, sales recorded double digit decline and were impacted by a negative customer mix.
• LIGHTING (15% of Group consolidated sales in the period)

• In Europe, sales grew at around 8% in a market down by c. 7%, driven by strong activity VW and Nissan-Mitsubishi.
• In North America, sales were down by c. 9% in a market down by c. 5%, penalized by impact of ends of production and delayed SOPs.
• In China, end of production of a large series with an international OEM was not compensated by growing activity with Geely and business ramp-up with new Chinese customers.

• LIFECYCLE SOLUTIONS (3% of Group consolidated sales in the period)

The Special Original Equipment was impacted by lower investment activities in almost all customers segments, especially in the agricultural, construction machinery and trailer segment.

Q3 2024 SALES BY REGION

• EMEA (45% of Group consolidated sales in the period)

Outperformance of 1,140bps was attributable to Seating, Interiors, Lighting and to Electronics, to a lesser extent.

• AMERICAS (27% of Group consolidated sales in the period)

In North America (representing close to 90% of the region), sales were broadly stable on an organic basis (+0.1%), while automotive production was down 4.7% in the period, i.e., an outperformance of 480bps.

Organic growth was essentially driven by Interiors, Seating and Electronics.

In South America, strong organic growth of 21.6% was mostly driven by inflation in Argentina.

• ASIA (28% of Group consolidated sales in the period)

In China (representing close to 80% of the region), sales dropped on an organic basis by 13.5%, while automotive production in the country dropped by 2.6% in the period.

This underperformance reflected a still high base of comparison of Q3 2023 (organic growth stood at 11.8%) and delayed SOPs. Both sales with Chinese OEMs and International OEMs posted double-digit organic drops (higher for International OEMs).

• Regarding Chinese OEMs, as already seen in the previous quarters and as expected in the quarter, sales drop with BYD and a few other OEMs was not fully offset by the ramp-up with other Chinese OEMs (such as Li Auto, Chery and Leap Motor, that grew sharply but on a lower initial sales volume),
• Regarding international OEMs, sales drop with a large US EV carmaker and GM, as well as a few other OEMs, was not offset by sales expansion with other carmakers, notably a German premium OEM.

FORVIA should resume outperforming automotive production in China by at least 300bps in 2025.

In the Rest of Asia (representing more than 20% of the region), sales were up 4.5% on an organic basis, while automotive production was down 5.3%. This strong outperformance was primarily driven by Japan, which recorded strong double-digit organic growth, and by India to a lesser extent.

2024 GUIDANCE & LOOKING FORWARD INTO 2025

On September 27 (see Press Release on FORVIA's website: www.forvia.com), FORVIA announced updating its FY 2024 guidance to reflect lower production outlook and uncertain environment.

FORVIA expects for 2024:

• Sales of between €26.8bn and €27.2bn,
• Operating margin of between 5.0% and 5.3% of sales,
• Net Cash Flow (NCF) ≥ €550m,
• Net debt/Adjusted EBITDA ratio ≤ 2.0x at year-end.

• The latest October S&P forecast for worldwide automotive production of 88.5m LVs, down 2.2% year-on-year,
• Estimated 2024 average currency rates of 1.09 for €/USD, 7.84 for €/CNY, 1,171 for €/ARS and 41.6 for €/TRY,

In this Press Release, FORVIA also announced accelerating the roll out of initiatives that will contribute to improve performance in 2025, in an environment that could remain challenging (at this stage, FORVIA assumes no growth in worldwide automotive production in 2025 vs. 2024).

As already indicated since July, the detailed 2025 guidance will be given on February 28, 2025, along with the release of FORVIA's FY 2024 results, in accordance with the Group's usual practices.

Nevertheless, FORVIA already gave the following indications for next year:

• FORVIA has the ambition to continue to outperform worldwide automotive production in 2025, notably including outperformance in China that should reach at least 300bps.
• FORVIA has the ambition to significantly improve both operating margin and NCF in 2025 vs. 2024.
• FORVIA confirms its POWER25 key target of reaching Net debt/Adjusted EBITDA ratio