Slide 1: FY-2009 Results
FY-2009 Results Jacques Aschenbroich – CEO February 24, 2010
Slide 2: Agenda
Agenda 1 2009 highlights 2 Q4-09 Financials 3 Full year 2009 4 Outlook FY-2009 Results February 24, 2010 I 2 I
Slide 3: 2009 highlights
2009 highlights
Slide 4: 2009 highlights – Corporate developments
2009 highlights Q4-09 : Best quarterly results in 5 years and strong generation of cash Q1-09 Q2-09 Q3-09 Q4-09 Î Sales change (yoy) -33% -23% -8% +21% Î Gross margin (% of sales) +11.4% +14.5% +16.2% +17.7% Î Operating margin (% of sales) -4.1% +0.8% +3.6% +5.5% Î Free Cash Flow* (M€) (88) 84 6 153
Slide 5: Year to date key figures
Year to date key figures In euro million 2008 2009 ▲ Total sales 8 677 7 499 -14% Gross margin 1 327 1 138 -14% as % of sales 15.3% 15.2% -0.1pt Operating margin 230 133 -42% as % of sales 2.7% 1.8% -0.9pt Net income (207) (153) -26% Free cash flow* 118 155 +31% Net financial debt 821 722 -12% * Bef
Slide 6: Q4-2009 Financials
Q4-2009 Financials
Slide 7: Worldwide automotive production
Worldwide automotive production Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 +21 YOY change in % +4 +3 -2 -4 -21 -23 -34 Full impact of scrappage incentives in Europe Accelerated growth in Asia and Brazil Î China +103% & India +57% Î Brazil +52% FY-2009 Results February 24, 2010 I 7
Slide 8: Quarterly Sales
Quarterly Sales In euro million Customers (% of sales) 2009 End of December + 10 % German 28% French* 25% Asian** 20% 1 913 2 114 American 16% * Excluding Nissan ** Including Nissan Q3-2009 Q4-2009 Order Intake + 21 % (OI/OEM sales) 1 750 2 114 1,52x 1,45x 1,29x 1,04x 2007 2008 2009 Q4-2008 Q4-2009
Slide 9: Quarterly Results
Quarterly Results In euro million Q4-08 H1-09 Q3-09 Q4-09 ▲ Total sales 1 750 3 472 1 913 2 114 +21% Gross margin 212 453 310 375 +77% % of sales 12.1% 13.0% 16.2% 17.7% +5.6pts Net R&D (114) (234) (114) (125) +10% % of sales -6.5% -6.7% -6.0% -5.9% -0.6pt SG&A expenses (136) (270) (128) (134) -1.5%
Slide 10: Cost savings program
Cost savings program Break-even point lowered by €1.1 billion Q4-08 2009 €480 million of cost savings including Total cost savings 144 336 €340 million of fixed costs €480* million Permanent (2,400) (3,800) (6,200) Cash outlays (10) (165) Permanent and temporary headcount variation vs situation end
Slide 11: Gross margin walkdown
Gross margin walkdown As % of sales +1.4pt -1.3pt +0.7pt +4.8pts 17.7% 12.1% Volume Direct Raw material Other cost increase impact labor impact reductions Q4-08 (Direct labor Q4-09 excluded) FY-2009 Results February 24, 2010 I 11
Slide 12: Gross margin
Gross margin In euro million and % of sales 3000 Sales (in € million) 0,2 2437 0,19 2500 2411 2079 2114 0,18 2000 1848 1913 0,17 1750 1624 0,16 1500 0,15 1000 0,14 0,13 Gross margin (in € million and % of sales) 500 0,12 0 0,11 450 20 406 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 391 400 375 1
Slide 13: Sustained R&D efforts
Sustained R&D efforts In euro million Net R&D +10% 114 125 Q4-2008 Q4-2009 FY-2009 Results February 24, 2010 I 13
Slide 14: SG&A expenses
SG&A expenses In % of sales -0.4pt In euro million and % of sales 7.8% 6.7% In € million -16% 2.3% 6.3% 2.1% 1.8% 5.4% 4.6% 4.5% 160 Selling Expenses 136 134 Q4-2007 Q4-2008 Q4-2009 Selling Selling 51 Expenses Expenses 41 39 Admin. Admin. Admin. Expenses Expenses Expenses 109 95 95 Q4-2007 Q4-2008 Q
Slide 15: Operating margin walkdown
Operating margin walkdown As % of sales -0.4pt +2.5pts 5.5% +5.6pts -2.2% Gross Sales R&D Q4-08 margin impact increase Q4-09 FY-2009 Results February 24, 2010 I 15
Slide 16: Operating margin
Operating margin In euro million and % of sales Sales (in euro million) 3000 0,2 2 437 2 411 0,19 2500 0,18 2 079 2 114 2000 1 750 1 848 1 913 0,17 1 624 0,16 1500 0,15 1000 0,14 0,13 Operating margin 500 0,12 (in € million and % of sales) 5.5% 0 0,11 150 6 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09
Slide 17: Q4 Results (cont.)
Q4 Results (cont.) in euro million Q4-08 H1-09 Q3-09 Q4-09 ▲ Sales 1 750 3 472 1 913 2 114 +21% Operating margin (38) (51) 68 116 na as % of sales -2.2% -1.5% 3.6% 5.5% +7.7pts Other income & expenses (246) (37) (9) (3) na as % of sales -14.1% -1.1% -0.5% -0.1% +14pts Operating income (284) (88) 59
Slide 18: Free cash flow generation of €153 million
Free cash flow generation of €153 million Net financial debt reduction of €95 million In euro million Q1-09 Q2-09 Q3-09 Q4-09 EBITDA 73 156 192 249 Restructuring and social costs (23) (46) (54) (42) Operating working capital 6 171 12 25 Capex (133) (123) (115) (73) Others (11) (74) (29) (6) Free cas
Slide 19: Full year 2009
Full year 2009
Slide 20: 2009 profitability highlights
2009 profitability highlights Break-even point lowered to equivalent sales of €7 billion 2008 2009 ▲ Î Sales (M€) 8 677 7 499 -14% Î Gross margin (% of sales) 15.3% 15.2% -0.1pt Î Operating margin (% of sales) 2.7% 1.8% -0.9pt Î Operating Income (% of sales) -0.6% 1.1% +1.7pt Î Net income (M€) -207
Slide 21: Geographic mix
Geographic mix OEM light vehicle (yoy change) In 2009 Valeo over-performed production in Europe Market -21% -13%* Market -33% Europe -31%* North America 64% of sales Market +2% 10% of sales =* Asia 18% of sales Market -2% +5%* Europe Q1-09 Q2-09 Q3-09 Q4-09 South America Valeo* -38% -22% -6% +34% 8%
Slide 22: Cash generation drivers
Cash generation drivers Free cash flow generation of €155 million Î Positive contribution of working capital of €214 million Î Capex limited to 80% of depreciation Î Strict control over restructuring expenses Reduction in net financial debt of €99 million FY-2009 Results February 24, 2010 I 22
Slide 23: Operating working capital
Operating working capital In euro million Inventories -11% Operating working capital 543 482 -€210M Dec-09 Dec-08 Dec-08 Dec-09 Trade receivables +7% (90) 1 168 1 251 (300) Dec-08 Dec-09 FY-2009 Results February 24, 2010 I 23
Slide 24: Capex
Capex Capitalized R&D In euro million = Capex -25% 147 147 2008 2009 Industrial investments -32% 638 479 491 332 2008 2009 2008 2009 FY-2009 Results February 24, 2010 I 24
Slide 25: Free Cash Flow
Free Cash Flow In euro million FY-08 Q1-09 Q2-09 Q3-09 Q4-09 FY-09 EBITDA 792 73 156 192 249 670 Restructuring and social costs (79) (23) (46) (54) (42) (165) Operating Working capital 179 6 171 12 25 214 Capex (613) (133) (123) (115) (73) (444) Others (161) (11) (74) (29) (6) (120) Free cash flow 1
Slide 26: Debt ratios
Debt ratios Shareholders equity and net debt In euro million Net Debt Shareholders Equity excl. minority interests 1 311 Net Debt EBITDA (12 rolling months) 1 233 1 128 841 821 821 841 792 722 Gearing 722 Gearing 75% Gearing 670 63% 59% 31/12/2008 30/06/2009 31/12/2009 518 Leverage 1.6x * Covenant n
Slide 27: Financial resources
Financial resources In Euro million as of December 31, 2009 Liquidity secured by 2000 Undrawned credit lines €1 billion outstanding with 2.4 years maturuty 1800 Cash 1600 LT financial debt 1400 Outstanding : € 1.6 billion Portion at fixed rate : 72% 1200 Average maturity : 2.8 years 1000 Net average
Slide 28: Outlook
Outlook
Slide 29: 2010 Outlook
2010 Outlook Continued turnaround of worldwide light vehicule production Î Slight decrease in Europe – Environment still uncertain Î Further improvement in Asia Î Recovery in North America Operating margin level around double that of 2009 FY-2009 Results February 24, 2010 I 29
Slide 30: Investor Day, March 10, 2010
Agenda INVESTOR DAY March 10, 2010 In Paris FY-2009 Results February 24, 2010 I 30
Slide 31: Contact Investor Relations
Contact Investor Relations Thierry Lacorre 43, rue Bayen F-75848 Paris Cedex 17 France Tel.: +33 (0) 1.40.55.37.93 Fax: +33 (0) 1.40.55.20.40 E-mail: thierry.lacorre@valeo.com Web site: www.valeo.com FY-2009 Results February 24, 2010 I 31
Slide 32: Back-up
Back-up
Slide 33: Quarterly P&L
Quarterly P&L new format 2008 2009 2007 new format new format (in euro million) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 2 472 2 472 2 214 2 397 Other operating revenues 27 35 31 41 Total operating revenues / Sales 2 499 2 507 2 245 2 438 2 437 2 411 2 079 1 750 1 624 1 848 1 913 2 114 Gr
Slide 34: Highlights by segment
Highlights by segment Comfort and Driving assistance Powertrain Thermal Visibility (In millions of euros) Systems Systems Systems Systems Other TOTAL 2009 Net sales · segment (excluding Group) 1 315 1 999 2 243 1 922 20 7 499 · intersegment (Group) 29 12 15 16 (72) - (1) EBITDA 106 207 180 146 31 67
Slide 35: Highlights by segment
Highlights by segment Comfort and Detection Powertrain Thermal Visibility Others TOTAL (In millions of euros) Systems Systems Systems Systems First-half 2009 Net sales · for the segment (excluding Group) 613 942 1 011 896 10 3 472 · intersegment sales (Group) 14 9 1 8 (32) - (1) EBITDA 38 86 62 41 2
Slide 36: Highlights by segment
Highlights by segment Comfort and Detection Powertrain Thermal Visibility Others TOTAL (In millions of euros) Systems Systems Systems Systems Second -half 2009 Net sales · for the segment (excluding Group) 702 1 057 1 232 1 026 10 4 027 · intersegment sales (Group) 15 3 14 8 (40) - (1) EBITDA 68 121
Slide 37: Share Information
Share Information Share Data Bloomberg Ticker FR FP Reuters Ticker VLOF.PA ISIN Number FR 000130338 Shares outstanding as per 31.12.2009 78,209,617 ADR Data Ticker/trading symbol VLEEY CUSIP Number 919134304 Exchange OTC Ratio (ADR: ord) 1:2 Depositary Bank J.P. Morgan FY-2009 Resu
Slide 38: Enabling a better automotive world
an Enabling a better automotive world