H1 2026 RESULTS: MARGIN EXPANSION AND STRONG NET CASH FLOW, DELIVERING ON THE IGNITE STRATEGIC ROADMAP, FULL-YEAR GUIDANCE CONFIRMED

PRESS RELEASE

Nanterre, France Friday, July 31^st, 2026

H1 2026 Results

MARGIN EXPANSION AND STRONG NET CASH FLOW

DELIVERING ON THE IGNITE STRATEGIC ROADMAP

FULL-YEAR GUIDANCE CONFIRMED

• STRONG EXECUTION DRIVES FURTHER IMPROVEMENT IN H1
  • Sales outperformance in all regions except China
  • Operating margin expanded by 30bps to 6.0%, supported by successful self-help initiatives and disciplined cost management
  • Stronger, high-quality net cash flow supports continued deleveraging, with financial leverage at 1.6x

In €m	H1 2025	H1 2026	Change
Sales	10,986	10,509	-4.3%
Organic growth (constant exchange rates)			-1.9%
Operating income	623	632	+1.6%
As % of sales	5.7%	6.0%	+30bps
Net cash flow As % of sales	367 3.3%	432 4.1%	+18.8% +80bps
Net debt/Adj. EBITDA ratio	1.8x	1.6x	-20bps

   All figures presented under IFRS 5, except for financial leverage ratio

• IGNITE PRIORITIES IN MOTION
  • Focus and Strengthen: Interiors divestiture on track for closing in Q4; building momentum on cultural transformation
  • Lead and Grow: Order intake up 15%, with a strong book-to-bill ratio of 1.5x in the Growth cluster; advancing our innovation agenda
• FY 2026 GUIDANCE CONFIRMED

Martin FISCHER, Chief Executive Officer of FORVIA, declared:

“The first half of 2026 marks our third consecutive semester of improved performance. We continued to strengthen both our operations and financial structure through disciplined execution and portfolio transformation, supported by the planned divestiture of Interiors by year-end. Solid order intake growth also reflects the competitiveness of our technology offering.

We are also making solid progress on two critical pillars of our roadmap: cultural transformation and innovation. We continue to strengthen accountability and empowerment across the organization, enabling faster decision-making and greater agility. This results in better execution and stronger results. In parallel, we are bringing more technology-driven solutions to market to meet the industry's evolving needs.

With this momentum, we remain firmly on track to deliver our IGNITE roadmap and our full-year objectives.

I would like to thank all FORVIA teams for these achievements in a soft market environment.”

• The Board of Directors, under the chairmanship of Pierre-André de Chalendar, met on July 30 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 are presented post IFRS 5, except net debt and leverage, presented at current perimeter until the Interiors cash proceeds are received by year end 2026.
• All figures related to worldwide or regional automotive production refer to the S&P Global Mobility forecast dated July 16, 2026.

H1 2026 FINANCIAL RESULTS (detailed analysis in Appendices)

• Profitability improved by 30bps in a soft sales environment
  

GROUP (in €m)	H1 2025	Currency effect	Organic change	H1 2026	Reported change
Sales	10,986	- 268	-209	10,509	-477
		- 2.4%	- 1.9%		-4.3%
Operating income	623			632	+1.6%
% of sales	5.7%			6.0%	+ 30bps

Currency effects reduced sales by €268 million in H1, with the impact limited to €33 million in the second quarter.

Organic sales at -1.9%, slightly below market production

In H1 2026, worldwide automotive production declined by 1.0% to 44.8 million light vehicles, with lower production in all major regions: China (-5.3%), Europe (-1.5%) and North America (-0.7%). With outperformance in all regions except China, Group organic sales decreased by 1.9%:

• In Europe, organic sales increased by 0.4%, outperforming automotive production by 200 bps. In the Americas, organic sales rose by 4.4%, representing an outperformance of
  500 bps versus market production.
• In China, sales declined by 19.3%, underperforming market production by 1,400 bps due to an unfavorable customer mix. This was partially mitigated by double-digit growth in the Rest of Asia, where sales outperformed regional production by 600 bps.

Electronics (Growth Cluster) and Clarion (Value Cluster) were key contributors to sales performance in H1 while Seating was affected by an unfavorable customer mix in China.

Operating margin up to 6.0%, driven by strong execution and cost discipline

Operating margin increased to 6.0%, supported by strong execution and disciplined cost management. The improvement was primarily driven by the Value Cluster (+0.6 pt), despite the expected decline of Lighting, and supplemented by the Growth Cluster (+0.2 pt).

Key drivers of margin improvement included:

• Benefits from EU-FORWARD and the rollout of the SIMPLIFY program,
• Disciplined production cost management, particularly in China, sustaining robust profitability,
• Improved industrial performance.
  

Inflation had no material impact, reflecting limited structural exposure thanks to contractual indexation mechanisms and proactive pass-through measures.

• Consolidated net income, Group share, at breakeven
  

in €m	H1 2025	H1 2026	Change
Sales	10,986	10,509
Operating income before PPA	623	632	9
Purchase Price Allocation	-92	-88	4
Restructuring charges	-202	-156	46
Other non-recurring operating income and expense	-8	-9	-1
Net interest expenses	-221	-213	8
Other financial result	-60	-51	9
Income before tax of fully consolidated companies	40	115	75
Income taxes	-113	-126	-13
Share of net income of associates	-155	2	157
Net profit from discontinued operations	10	65	55
Consolidated net income before minority interests	-219	56	275
Minority interest	-50	-53	-3
Consolidated net income, Group share	-269	3	272

Net income, group share, improved by €272 million improvement year-on-year:

• Reduced restructuring and financing costs
  

Restructuring expenses amounted to €156 million in H1 2026, down €46 million year on year, reflecting the peak level reached in 2025 following the accelerated rollout of EU-FORWARD and the launch of SIMPLIFY.

Net interest expense improved by €8 million year on year, supported by a €24 million reduction in gross interest expense resulting from lower debt levels, despite a slightly higher average cost of debt.

• One-off items
  

H1 2025 included a €136 million exceptional non-cash impairment on FORVIA's stake in SYMBIO following Stellantis' decision to discontinue its hydrogen activities.

H1 2026 included the contribution of Interiors, reported as discontinued operations under IFRS 5. The expected closing of the divestiture in H2 2026 will result in tax charges at closing and the recycling of currency translation reserves, estimated at approximately €150 million. The cash component of this impact is already reflected in the transaction metrics previously communicated.

• Stronger net cash flow with high quality
  

in €m	H1 2025	H1 2026	Change
Operating income	623	632	9
Depreciation and amortization	841	806	-35
Adjusted EBITDA	1,464	1,438	-26
% of sales	13.3%	13.7%	+40bps
Capex	-227	-198	29
Capitalized R&D	-361	-311	50
Change in WCR including factoring	45	47	2
Restructuring	-78	-140	-62
Other (operational)	-24	-18	6
Operating cash flow	820	819	-1
Financial expenses	-254	-238	16
Taxes	-199	-150	49
Net cash flow	367	432	65
% of sales	3.3%	4.1%	+80bps

Net cash flow increased by 18% to €432 million, with improved quality primarily reflecting:

• A 40bps year-on-year increase in EBITDA margin, to 13.7% of sales
• The low H1 investment ratio of 4.8% of sales is expected to catch up in H2, leading to a full-year ratio of 6.0% to 6.5% of sales, including the one-off impact related to the exercise of a lease option for a major plant, in line with the level of FY 2025
• A €62 million increase in restructuring expenses, which are expected to peak in 2026
• The €49 million year-on-year decrease in income tax mainly stems from phasing effects, which are expected to reverse in H2

Change in working capital and factoring generated a limited €47 million inflow, including a €49 million reduction in factoring. Excluding changes in working capital, factoring and other operating items, recurring net cash flow reached €403 million, or 3.8% of sales, up 70bps.

Continued reduction of financial leverage to 1.6x

As IFRS 5 mechanically increases the reported leverage ratio with Interiors expected proceeds not yet reflected in net debt, leverage metrics are presented before IFRS5.

Before IFRS5, net debt was reduced by €0.5 billion to €5.5 billion.

Net debt-to-Adjusted EBITDA ratio improved to 1.6x at June 30, 2026, compared with 1.8x at June 30, 2025 and 1.7x at December 31, 2025.

INTERIORS TRANSACTION EXPECTED TO CLOSE IN Q4 2026

FORVIA continues to make good progress toward closing the sale of its Interiors business to Apollo, following the signing of the agreement on April 26, 2026.

Key milestones have been achieved, including U.S. and European antitrust clearances as well as the European Works Council Company consultation. Subject to the remaining customary regulatory approvals and closing conditions, the transaction is expected to be completed in Q4 2026.

Upon closing, FORVIA expects to reduce its net debt by at least €1.0 billion and its gross debt by at least €1.4 billion, further supporting the Group's deleveraging trajectory.

FURTHER STRENGTHENING FINANCIAL FLEXIBILITY AND LIQUIDITY PROFILE

FORVIA further strengthened its financial flexibility during the first half of 2026 by repaying €421 million of 2026 debt maturities, leaving these maturities almost fully cleared.

In addition, FORVIA repaid in July an additional €428 million Schuldschein, mostly due in 2028, thus reducing the Group's gross debt by €850m at the end of July on a proforma basis.

The expected proceeds from the Interiors transaction will significantly reduce the Group's refinancing needs, with limited debt maturities in 2027 and 2028.

The Group also enhanced its liquidity profile through the renewal of its €1.5 billion revolving credit facility, extending its maturity from 2028 to 2031, with further extension options to 2032 and 2033.

FORVIA’s credit profile further improved following the rating outlook revisions by both S&P and Fitch. S&P revised its outlook from BB- / Stable to BB- / Positive, while Fitch changed its outlook from BB+ / Negative to BB+ / Stable.

IGNITE PRIORITIES IN MOTION

Order Intake up 15% vs H1 2025

In H1 2026, FORVIA recorded order intake of €13.4 billion (excluding Interiors). The Growth cluster accounted for 60% of the total and delivered a book-to-bill ratio of 1.5x, supporting future sales growth acceleration. Diversification also continued to progress, with contracts awarded by Chinese, Korean and Japanese OEMs, in commercial vehicles and in India representing around 30% of total order intake.

Advancing innovation agenda

FORVIA continued to innovate across the key trends shaping the automotive industry. H1 2026 highlights included new electrification solutions, AI-native in-cabin platform (Appning), AI-powered seating systems and advanced digital lighting solutions in China.

Dedicated technology sessions were organized across businesses and regions to accelerate innovation and foster cross-functional collaboration.

Building momentum on cultural transformation

During the first half of 2026, FORVIA continued to strengthen engagement and ownership across the organization, reaching more than 6,000 managers worldwide through dedicated leadership initiatives. The Group also continued the deployment of its Guide, Empower and Recognize management principles, with more than 4,600 managers trained to date. In parallel, FORVIA further embedded its culture through concrete actions to support our communities. The latest edition of FORVIA Solidarity Day mobilized more than 16,000 employees across over 560 local initiatives worldwide. These actions support the Group's ambition to foster a culture of accountability, empowerment and engagement across all levels of the organization.

NEW GROWTH OPPORTUNITIES IN SELECTED DEFENSE ACTIVITIES

Building on HELLA’s longstanding experience in defense and security applications, FORVIA is scaling up selected defense-related activities by leveraging its industrial know-how, advanced technologies and global manufacturing footprint. The Group’s expertise in actuators, sensing systems, lighting, and battery and energy management solutions positions it to address a broad range of defense applications, including conventional military vehicles and drones. As a first step in this strategy, FORVIA recently entered into a strategic relationship with a pioneering European defense technology company specializing in AI-powered air defense and counter-drone systems, with an initial order of approximately 500 interceptor drones and plans to rapidly scale production. The recent transfer of FORVIA’s Augsburg plant in Germany to GDELS further illustrates the potential for defense-related activities to provide attractive industrial conversion while contributing to European industrial sovereignty and defense resilience.

2026 FULL-YEAR GUIDANCE CONFIRMED

Automotive production is expected to decline by 3.2% in H2 2026 compared with H2 2025, according to S&P Mobility's July forecast.

In the context of continued geopolitical tensions and related cost inflation, the Group will continue to actively manage cost increases through strict cost control and customer pass-through mechanisms. Supported by its solid first half performance and disciplined execution of cost reduction measures, FORVIA is fully confident in achieving its full-year 2026 guidance*:

• Sales between €20bn and €21bn, at constant exchange ratesⁱ¹
• Operating margin between 6.0% and 6.5% of sales
• Net Cash flow ≥3.0% of sales
• Net debt/Adjusted EBITDA ratio at 1.5x at December 31, 2026

*Based on:

• S&P Mobility’s latest forecast of 91.1 million light vehicle production in 2026; and

• the assumption that no material changes will occur in tariffs or trade restrictions in effect as of July 31^st, and that there is no material deterioration in the macroeconomic environment or significant supply chain disruptions

FINANCIAL CALENDAR

• November 2, 2026        Q3 2026 sales announcement (before market hours)
  

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A webcasted conference call will be held today at 09:00am (CET).

If you wish to follow the presentation using the webcast, please access the following link: https://www.sideup.fr/webcast-forvia-2026-hy-results/signin/en

A replay will be available as soon as possible.

You may also follow the presentation via conference call:

• France                        +33 1 70 91 87 06
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Press	Analysts
Christophe MALBRANQUE Director Influence Groupe +33 (0) 6 21 96 23 53 christophe.malbranque@forvia.com	Adeline MICKELER Group Vice President Investor Relations +33 (0) 6 61 30 90 90 adeline.mickeler@forvia.com
Audrey ÉPÈCHE Head of Media Relations +33 (0) 6 15 98 23 53 audrey.epeche@forvia.com	Sébastien LEROY Group Deputy Investor Relations Director +33 (0) 6 26 89 33 69 sebastien.leroy@forvia.com

FORVIA, a global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With over 137 500 people, including more than 12,000 R&D engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow. Composed of 6 business groups and a strong IP portfolio of over 12,400 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. In 2025, the Group achieved a consolidated revenue of 26.2 billion euros prior to IFRS 5. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the SBF 120 index. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. www.forvia.com

APPENDICES

As part of its IGNITE strategic roadmap, FORVIA has designed a new portfolio structure around two business clusters, which have distinct strategic roles:

• The Growth cluster is comprised of Seating and Electronics*, with clear technology leadership and strong growth prospects,
• The Value cluster which gathers Clean Mobility, Lifecycle Solutions, Lighting and Clarion*, is managed for performance and cash.

*The Hella Electronics Business Group has been allocated to the Growth cluster (“Electronics”), while the Clarion Business Group has been assigned to the Value cluster (“Clarion”). Consequently, each of these two activities is now reported in a specific segment, whereas they were previously included within the single segment “Electronics”.

SALES AND OPERATING MARGIN BY BUSINESS GROUPS

Consolidated sales

In €m	H1 2025	H1 2026	Change	Organic Change
GROWTH CLUSTER	5,909	5,526	-6.5%	-4.8%
SEATING	4,305	3,844	-10.7%	-9.3%
ELECTRONICS	1,603	1,682	+4.9%	+7.3%
VALUE CLUSTER	5,077	4,982	-1.9%	+1.5%
CLEAN MOBILITY	2,043	1,950	-4.6%	-1.0%
LIFECYCLE SOLUTIONS	497	514	+3.5%	+4.6%
LIGHTING	1,849	1,736	-6.1%	-4.7%
CLARION	683	776	+13.7%	+22.8%
OTHERS	5	6	+28.2%	+36.0%
GROUP	10,986	10,509	-4.3%	-1.9%

Growth cluster: Organic sales were down 4.8%, penalized by unfavorable customer mix in the Seating business in China

• Momentum in Electronics remained solid with sales up 7.3% on an organic basis, supported by ongoing success in radar and energy management technologies, in Europe and North America.
• Organic sales were down 9.3% at Seating. While performance was broadly in line with local production in Europe and North America, activity in China suffered from an unfavorable customer mix, with a significant drop in BYD production, especially in Q1.

Value cluster: Organic sales were up 1.5%, driven by Clarion and Lifecycle Solutions:

• Clean Mobility organic sales declined by 1.0%. Sales were driven by strong ICE momentum in North America and a favorable H2 2025 program ramp-up with a large European OEM, offset by rapid electrification in China.
• Lifecycle Solutions was up 4.6% on an organic basis, primarily supported by aftermarket and Special Original Equipment.
• Lighting organic sales were down 4.7%, mainly due to program phase-outs in Europe that were not offset by new launches.
• Clarion posted strong organic growth (22.8%), driven by Japanese OEMs in Europe and North America.

Operating income

In €m	H1 2025	H1 2026	Change
GROWTH CLUSTER	350	334
% of sales	5.9%	6.1%	+20bps
SEATING	229	211
% of sales	5.3%	5.5%	+20bps
ELECTRONICS	121	123
% of sales	7.5%	7.3%	-20bps
VALUE CLUSTER	273	298
% of sales	5.4%	6.0%	+60bps
CLEAN MOBILITY	161	188
% of sales	7.9%	9.7%	+180bps
LIFECYCLE SOLUTIONS	45	66
% of sales	9.1%	12.9%	+280bps
LIGHTING	81	5
% of sales	4.4%	0.3%	-410bps
CLARION	15	41
% of sales	2.2%	5.3%	+310bps
OTHERS	-30	-2
% of sales
GROUP	623	632
% of sales	5.7%	6.0%	+30bps

Growth Cluster: 20bps improvement

• Seating increased its profitability through fixed-cost reductions and strong cost flexibilization in China.
• Electronics almost maintained a stable margin, supported by disciplined R&D spending.

Value Cluster: 60bps improvement

• Clean Mobility significantly improved its profitability through successful cost reduction programs and continued operational efficiencies.
• Lifecycle Solutions increased its profitability, supported by favorable volumes and product mix.
• Lighting profitability reached its expected trough, with the transformation program now underway targeting a return to 2025 levels in 2028.
• Clarion Electronics improved its profitability, benefiting from strong flow-through and disciplined management of memory inflation.

H1 SALES AND OPERATING MARGIN BY REGIONS

Consolidated sales

In €m	H1 2025	H1 2026	Change	Organic Change	Perf vs. auto prod
EMEA	5,302	5,317	+0.3%	+0.3%	+3 pts
o/w Europe	5,196	5,218	+0.4%	+0.5%	+2 pts
AMERICAS	2,634	2,603	-1.2%	+4.4%	+4 pts
o/w North America	2,387	2,334	-2.2%	+4.3%	+ 5 pts
ASIA	3,050	2,588	-15.1%	-11.3%	-11 pts
o/w China	2,257	1,804	-20.1%	-19.3%	-14pts
o/w Rest of Asia	793	785	-1.0%	+11.3%	+6 pts
GROUP	10,986	10,509	-4.3%	-1.9%	-1 pt

EUROPE and AMERICAS: in both regions, organic growth and outperformance were primarily driven by Electronics, Clarion and Clean Mobility, largely offsetting the decline of Lighting.

ASIA: in China, Seating was significantly penalized by an unfavorable customer mix and, to a lesser extent, Clean Mobility by the acceleration of electrification. In the Rest of Asia, rapid growth was mainly driven by Clarion.

Operating income

In €m	H1 2025	H1 2026	Change
EMEA	187	196	+4.9%
% of sales	3.5%	3.7%	+20bps
AMERICAS	143	184	+28.3%
% of sales	5.4%	7.1%	+170bps
ASIA	292	252	-13.6%
% of sales	9.6%	9.8%	+20bps
GROUP	623	632	+1.6%
% of sales	5.7%	6.0%	+30bps

Profitability in EMEA continued to progress, although the improvement was partially offset by weaker performance in the Lighting business.

In AMERICAS, the significant improvement of 170bps was mainly driven by operational performance and Clean Mobility business.

In ASIA, a solid margin was maintained in China despite lower sales, reflecting efficient cost flexibilization. Rest of Asia drove further improvements.

Q2 SALES BY BUSINESS GROUPS AND REGIONS

By Business Groups

In €m	Q2 2025	Q2 2026	Change	Organic Change
GROWTH CLUSTER	2,949	2,837	-3.8%	-3.7%
SEATING	2,152	1,995	-7.3%	-7.5%
ELECTRONICS	797	842	+5.8%	+6.4%
VALUE CLUSTER	2,549	2,537	-0.5%	+0.8%
CLEAN MOBILITY	1,041	988	-5.1%	-4.1%
LIFECYCLE SOLUTIONS	246	256	+4.1%	+4.0%
LIGHTING	914	897	-1.8%	-1.9%
CLARION	346	392	+13.4%	+20.0%
OTHERS	2	3	+31.5%	+34.8%
GROUP	5,498	5,374	-2.3%	-1.7%

By Regions

In €m	Q2 2025	Q2 2026	Change	Organic Change	Perf vs. auto prod
EMEA	2,670	2,647	-0.9%	-0.9%	+2 pts
o/w Europe	2,614	2,595	-0.7%	-0.7%	+2 pts
AMERICAS	1,332	1,376	+3.3%	+4.9%	+4 pts
o/w North America	1,197	1,229	+2.7%	+5.4%	+6 pts
ASIA	1,496	1,351	-9.7%	-8.8%	-9 pts
o/w China	1,100	968	-12.0%	-14.8%	-12 pts
o/w Rest of Asia	396	383	-3.1%	+7.7%	+2 pts
GROUP	5,498	5,374	-2.3%	-1.7%	-1 pt

DISCLAIMER

This presentation contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding FORVIA’s future results or any other performance indicator. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective", "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "would,", “will”, "could,", "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, financial projections and estimates and their underlying assumptions including, without limitation, assumptions regarding present and future business strategies (including the successful integration of HELLA within the FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown, and uncertainties and other factors, all of which may be beyond the control of FORVIA and could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties and other factors, please refer to public filings made with the Autorité des Marchés Financiers (“AMF”), press releases, presentations and, in particular, to those described in the chapter 2."Risk factors & Risk management” of FORVIA's 2024 Universal Registration Document filed by FORVIA with the AMF on March 7, 2025 under number D. 24-0080 (a version of which is available on www.forvia.com). Subject to regulatory requirements, FORVIA does not undertake to publicly update or revise any of these forward-looking statements whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice. The historical figures related to HELLA included in this presentation have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. FORVIA HELLA remains a listed company. For more information on FORVIA HELLA, more information is available on www.hella.com. This presentation does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities.

PRELIMINARY STATEMENT ON INTERIORS DIVESTMENT (IFRS5)

On February 24, 2026, FORVIA announced its intention to divest its Interiors business. Subsequently, on April 26, 2026, the Group signed a definitive agreement with Apollo, subject to customary regulatory approvals and closing conditions.

In accordance with IFRS5 requirements, the Interiors business has been classified as a discontinued operation since December 31, 2025. Consequently, the assets and liabilities related to the business were reported as held for sale as of June 30, 2026.

As a result, the financial performance of the Interiors business is presented separately from continuing operations in the Group’s consolidated financial statements for the first half of 2026 and comparative periods.

To facilitate the assessment of the Group’s underlying financial performance and balance sheet trajectory, FORVIA also provides selected indicators, notably net debt and leverage, on a pre-IFRS5 basis, as the expected proceeds from the transaction are not reflected in IFRS5 net debt figures prior to closing.

DEFINITIONS OF TERMS USED IN THIS DOCUMENT

Sales growth

FORVIA’s year-on-year sales evolution is made of three components:

• A “Currency effect”, calculated by applying average currency rates for the period to the sales of the prior year,
• A “Scope effect” (acquisition/divestment),
• And “Growth at constant currencies”.
  

As “Scope effect”, FORVIA presents all acquisitions/divestments, whose sales on an annual basis amount to more than €250 million.

Other acquisitions below this threshold are considered as “bolt-on acquisitions” and are included in “Growth at constant currencies”.

Operating income

Operating income is the FORVIA group’s principal performance indicator. It corresponds to net income of fully consolidated companies before:

• Amortization of intangible assets acquired in business combinations.
• Other non-recurring operating income and expense, corresponding to material, unusual and non-recurring items including reorganization expenses and early retirement costs, the impact of exceptional events such as the discontinuation of a business, the closure or sale of an industrial site, disposals of non-operating buildings, impairment losses recoded for property, plant and equipment or intangible assets, as well as other material and unusual losses.
• Income on loans, cash investments and marketable securities; Finance costs.
• Other financial income and expense, which include the impact of discounting the pension benefit obligation and the return on related plan assets, the ineffective portion of interest rate and currency hedges, changes in value of interest rate and currency instruments for which the hedging relationship does not satisfy the criteria set forth in relationship cannot be demonstrated under IFRS 9, and gains and losses on sales of shares in subsidiaries.
• Taxes.
• Net result from discontinued operations

Adjusted EBITDA

In compliance with the ESMA (European Securities and Markets Authority) regulation, the term “Adjusted EBITDA” has been used since January 1, 2022.

Net cash flow

Net cash flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets, and new or extended leases. Repayment of IFRS 16 debt is not included.

Net financial debt

Net financial debt is defined as follow: Gross financial debt less cash and cash equivalents and derivatives classified under non-current and current assets. It includes the lease liabilities (IFRS 16 debt).

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1 2025 average exchange rates: EUR/USD = 1.13, EUR/CNY = 8.11

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Attachment

• 2026 07 31 H1 RESULTS DEF