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Valeo — Q3 2017 Earnings Presentation
28 slides from Valeo's earnings presentation, Oct 24, 2017
Slide 1: Q3 2017 Sales
Q3 2017 SALES JACQUES ASCHENBROICH – CHAIRMAN & CEO October 24, 2017
Slide 2: Q3 Highlights: Up 6% Like-for-Like, 4-Point Outperformance
Q3 HIGHLIGHTS: UP 6% LIKE-FOR-LIKE, 4-POINT OUTPERFORMANCE, AFTER TAKING INTO ACCOUNT -1.2 PT IMPACT OF SOUTH KOREA +8% as reported Sales of €4.3bn +5% like-for-like(1) +8% as reported OEM sales of €3.8bn +6% like-for-like(1) Valeo OEM sales Growth(1) Outperformance(2) World +6% +4pts Sales growth E
Slide 3: YTD Highlights: Up 8% Like-for-Like, 5-Point Outperformance
YTD HIGHLIGHTS: UP 8% LIKE-FOR-LIKE, 5-POINT OUTPERFORMANCE, AFTER TAKING INTO ACCOUNT -1.2 PT IMPACT OF SOUTH KOREA +14% as reported Sales of €13.8bn +8% like-for-like(1) +13% as reported OEM sales of €12bn +8% like-for-like(1) Valeo OEM sales Growth(1) Outperformance(2) World +8% +5pts Sales growt
Slide 4: OEM Sales Growth
OEM SALES GROWTH IMPACT OF SOUTH KOREA OEM Sales growth H1 Q3 YTD (like-for-like) Valeo Group +9% +6% +8% Of which South Korea impact -1.3pts -1.2pts -1.2 pts 4 October 24, 2017
Slide 5: 2017 Outlook
2017 OUTLOOK Market assumption: Slight upward revision to 2% of the growth forecast for global automotive production Valeo confirms its objectives for 2017: Sales growth outperforming the market by more than 5 percentage points A slight increase in operating margin* (as a % of sales and before acqui
Slide 6: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE €5.4BN OF ORDER INTAKE Join forces to create a global champion of innovative and affordable high voltage components and systems for Hybrid and Electric Vehicles with a world-class portfolio, excellent customer reputation, engaged employees and solid shareholders’ return on
Slide 7: Q3 Sales Growth
Q3 SALES GROWTH WITH SALES OF €4.3BN, UP 8% AS REPORTED UP 5% LIKE-FOR-LIKE OEM SALES, UP 8% AS REPORTED UP 6% LIKE-FOR-LIKE, 4-POINT OUTPERFORMANCE, AFTER TAKING INTO ACCOUNT -1.2 PT IMPACT OF SOUTH KOREA AFTERMARKET SALES, UP 7% AS REPORTED UP 2% LIKE-FOR-LIKE October 24, 2017
Slide 8: YTD Sales Up 14% As Reported, Up 8% Like-for-Like
YTD SALES UP 14% AS REPORTED, UP 8% LIKE-FOR-LIKE Q3 SALES UP 8% AS REPORTED, UP 5% LIKE-FOR-LIKE Like-for-like +9% +5% +8% 4,301 13,765 €m 9,464 H1 17 Q3 17 YTD 17 Reported +16% +8% +14% H1 16 8,130 Q3 16 3,994 YTD 16 12,124 Exchange rates +1.3% Exchange rates -3.3% Exchange rates -0.2% Scope +6.4%
Slide 9: YTD OEM Sales Up 13% As Reported, Up 8% Like-for-Like
YTD OEM SALES UP 13% AS REPORTED, UP 8% LIKE-FOR-LIKE Q3 OEM SALES UP 8% AS REPORTED, UP 6% LIKE-FOR-LIKE AFTER TAKING INTO ACCOUNT IN BOTH Q3 AND YTD -1.2 PT IMPACT OF SOUTH KOREA Aftermarket OEM sales +5%* +2%* +4%* 446 *Like-for-like +9%* +6%* +8%* 1,409 963 3,751 H1 17 Q3 17 YTD 17 +14%** +7%**
Slide 10: 4-Point OEM Sales Outperformance
4-POINT OEM SALES OUTPERFORMANCE, AFTER TAKING INTO ACCOUNT -1.2 PT IMPACT OF SOUTH KOREA OEM sales** Q3 +6% Like-for-like OEM South Korean 46% of Valeo sales** sales** World Impact -1.2pt OEM +5% Production***2% 20% of Valeo sales** sales** Europe* Production*** +4% +1% Outperf. +4pts North NorthAm
Slide 11: 8-Point Outperformance in Asia
8-POINT OUTPERFORMANCE IN ASIA, AFTER TAKING INTO ACCOUNT – 4.2 PTS IMPACT OF SOUTH KOREA IMPACT OF - 19.2 PTS ON OEM SALES GROWTH IN SOUTH KOREA Q3 26% of Asian sales* OEM OEM sales as sales* reported Like-for-like +4% OEM sales** Japan +83% 32% of total sales* +12% Production** +3% South Korean im
Slide 12: 5-Point OEM Sales Outperformance (YTD)
5-POINT OEM SALES OUTPERFORMANCE, AFTER TAKING INTO ACCOUNT - 1.2 PT IMPACT OF SOUTH KOREA OEM sales** YTD +8% South Korean Like-for-like OEM 47% of Valeo sales** sales** World impact -1.2pts OEM +6% Production***+3% 21% of Valeo sales** sales** Europe* Production*** +2% +5% Outperf. +5pts North Nor
Slide 13: 9-Point Outperformance in Asia (YTD)
9-POINT OUTPERFORMANCE IN ASIA, AFTER TAKING INTO ACCOUNT – 4.7 PT IMPACT OF SOUTH KOREA IMPACT OF - 20.6 PTS ON OEM SALES GROWTH IN SOUTH KOREA YTD OEM OEM 26% of Asian sales* sales* sales as Like-for-like reported OEM sales** Japan +7% +90% 30% of total sales* +13% Production** +6% South Korean im
Slide 14: Balanced Geographic Positioning
BALANCED GEOGRAPHIC POSITIONING INCREASING PRESENCE IN ASIA AND EMERGING COUNTRIES (+3 PTS) POST-ICHIKOH ACQUISITION OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 16% Western Western Asia excl. Europe Europe 35% Asia excl. 32% China China 53% in As
Slide 15: A Balanced Customer Portfolio
A BALANCED CUSTOMER PORTFOLIO INCREASING WEIGHTING OF ASIAN CUSTOMERS (+6 PTS) POST-ICHIKOH ACQUISITION % of OEM sales Other Other 6% 6% French* French* 15% German 15% German 31% 28% American American 22% 19% Asian** Asian** Asian** 26% Asian** 32% 26% 26% 2016 YTD September 2017 * Excluding Nissan
Slide 16: OEM Sales Outperformance in the Business Groups
OEM SALES OUTPERFORMANCE IN THE 4 BUSINESS GROUPS POWERTRAIN IMPACTED BY SOUTH KOREA IN Q3 AND YTD - 5.2 PTS & - 5.5 PTS, RESPECTIVELY YTD total OEM sales growth sales (like-for-like) CDA growth 19% (year-on-year) H1 Q3 YTD VIS 31% Group €13.8bn CDA* +9%** +7% +7% +7% PTS 23% THS +4% +5% 27% Powertr
Slide 17: 2017 Outlook
2017 OUTLOOK October 24, 2017
Slide 18: 2017 Outlook
2017 OUTLOOK Market assumption: The slight upward revision to 2% of the growth forecast for global automotive production Valeo confirms its objectives for 2017: Sales growth outperforming the market by more than 5 percentage points A slight increase in operating margin* (as a % of sales and before a
Slide 19: Contacts – Investor Relations
CONTACTS Investor Relations Valeo 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: thierry.lacorre@valeo.com Website: www.valeo.com 19 October 24, 2017
Slide 20: Share Information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of September 30, 2017 239,653,121 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • C
Slide 21: Back-up
BACK-UP October 24, 2017
Slide 22: Comfort & Driving Assistance
COMFORT & DRIVING ASSISTANCE OEM sales Like-for-like +7% +7% +7% change Market share* and competitors: 2016 key figures: • Sales: €3.4bn (20% of Group sales) 859 • EBITDA: 14.7% (23% of Group EBITDA) - Driving Assistance: Valeo no.1 2,696 Valeo + Bosch + Continental ~ 57%* • 17,400 employees Total s
Slide 23: Powertrain Systems
POWERTRAIN SYSTEMS OEM sales Like-for- like +6% +4% +5% Market share* and competitors: 2016 key figures: change • Sales: €4bn (24% of Group sales) - Transmission Systems: Valeo no.2 • EBITDA: 13.3% (25% of Group EBITDA) 963 Luk + Valeo + ZF Sachs ~ 47%* • 20,700 employees 3,126 - Electrical Systems
Slide 24: Thermal Systems
THERMAL SYSTEMS OEM sales Like-for-like +11% +7% +10% change 2016 key figures: • Sales: €4.6bn (28% of Group sales) Market share* and competitors: • EBITDA: 10.0% (22% of Group EBITDA) 1,157 Thermal Systems: Valeo no.2 • 22,800 employees Total sales (€m) 3,751 • 57 production units Denso + Valeo + H
Slide 25: Visibility Systems
VISIBILITY SYSTEMS OEM sales Like-for- like +11% +6% +9% change Market share* and competitors: 2016 key figures: • Sales: €4.6bn (28% of Group sales) 1,355 • EBITDA: 13.9% (30% of Group EBITDA) - Lighting Systems: Valeo-Ichikoh no.2 Total sales (€m) 4,308 Koito + Valeo-Ichikoh + Magnetti Marelli ~ 6
Slide 26: Quarterly Information (in €m)
QUARTERLY INFORMATION (IN €M) Sales by segment Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Comfort & Driving Assistance Systems 623 569 515 531 552 572 573 614 657 679 663 721 794 866 825 877 938 899 859 Powertrain Systems 774 817
Slide 27: Safe Harbor Statement
SAFE HARBOR STATEMENT Statements contained in this document, which are not historical fact, constitute "forward-looking statements". These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intentions and expectations with respec
Slide 28: Valeo – Smart Technology for Smarter Cars
Valeo SMART TECHNOLOGY FOR SMARTER CARS