Slide 1: Q1-2009 Results
Q1-2009 RESULTS Jacques Aschenbroich - CEO April 24, 2009
Slide 2: Agenda
Agenda 1 Quarter highlights 2 Q1-09 Valeo financial review 3 Outlook April 24, 2009 – Q1-2009 Results I 2 I
Slide 3: Quarter highlights
Quarter highlights
Slide 4: Automotive production
Automotive production YoY changes in % +3.8 +2.9 -1.6 -21.1 -38.0 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 April 24, 2009 – Q1-2009 Results I 4 I
Slide 5: Quarter highlights
Quarter highlights Valeo sales slightly outperformed production in all markets Negative operating margin of 66 M€ Î Cost reduction plan generated savings of 183 M€ in Q1 Î Raw material prices tailwinds Headcount adjustment plan implementation on track Î 3,230 out of 5,000 April 24, 2009 – Q1-2009 Re
Slide 6: Quarter highlights
Quarter highlights Strict cash flow management: continued inventory reduction Customer risk contained Î SAAB receivables fully recovered Î Action plans on GM, Chrysler Strong liquidity maintained Î Cash on hand in excess of 500 M€ at the end of March Î Untapped revolver lines: 1.2 Bn€ April 24, 2009
Slide 7: Q1-09 financial review
Q1-09 financial review added |
Slide 8: Quarterly key figures
Quarterly key figures In euro million Q1-2009 Q1-2008 Change Q4-2008 Sales 1,624 2,437 -33.4% 1750 Gross margin 185 391 -52.7% 212 as % of sales 11.4% 16.0% -4.6 pts 12.1% Operating margin (66) 90 na -38 as % of sales -4.1% 3.7% na -2.2% (83) 86 na -284 Operating income -5.1% 3.5% na -16.2% Net fina
Slide 9: Sales
Sales In euro million Q1-2008 Q1-2009 -33.4% -34.1%* 2,437 Perimeter -1.3% Currencies +0.9% 1,624 Prices +1.1% Volume*: -34.1% *at same perimeter, exchange rate and price April 24, 2009 – Q1-2009 Results I 9 I
Slide 10: Q1-2009 OE light vehicle sales
Q1-2009 OE light vehicle sales Geographical trends (yoy changes) Worldwide Estimated automotive production Valeo: -37% Market: -38% Market -38% Market -53% -38%* -50%* Europe North America Market -33% -34%* Asia Market -26% -14%* South America Valeo sales slightly higher than the market *At same per
Slide 11: Sales by customers – OE light vehicles
Sales by customers – OE light vehicles % -43 At same perimeter & exchange rates Q1-2008 Q1-2009 0% -1 8% -4 Estimated automotive production 28% 0% - -5 0% -3 37% 7% - -2 0% 7% 0% -5 - 2 -4 -46% -21% -39% -41% -34% -50% -25% -42% -26% -44% -55% April 24, 2009 – Q1-2009 Results I 11 I
Slide 12: Results (cont.)
Results (cont.) In euro million Q1-2009 Q1-2008 Change Q4 2008 Sales 1,624 2,437 -33.4% 1,750 Gross margin 185 391 -52.7% 212 as % of sales 11.4% 16.0% -4.6 pts 12.1% April 24, 2009 – Q1-2009 Results I 12 I
Slide 13: Gross margin walkdown
Gross margin walkdown As % of sales +7.4pts 16.0% +0.9pt 11.4% -12.9pts Raw material prices Volume Pass through / Cost drop Contract renewal reductions Q1-08 Q1-09 April 24, 2009 – Q1-2009 Results I 13 I
Slide 14: Headcount adjustment plan
Headcount adjustment plan Crisis action plan -12,100 Temporary Permanent -3,230 permanents -4,900 -1,670 temporaries 61,200 59,700 58,400 54,000 51,200 49,100 Dec-2007 June-08 Sept-08 Nov-08 Dec-08 Mar-09 April 24, 2009 – Q1-2009 Results I 14 I
Slide 15: Raw material impact
Raw material impact As % of sales Gross impact 5.1 5.1 4.6 Net impact 4.7 4.5 4.5 4.2 3.6 3.5 2.2 2.1 2.2 1.8 2.0 1.8 1.8 1.7 1.6 1.1 0.7 0.7 0.5 2004 2005 2006 2007 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 April 24, 2009 – Q1-2009 Results I 15 I
Slide 16: Results (cont.)
Results (cont.) In euro million Q1-2009 Q1-2008 Change Q4-2008 Sales 1,624 2,437 -33.4% 1,750 Gross margin 185 391 -52.7% 212 as a % of sales 11.4% 16.0% -4.6pts 12.1% Net R&D* (114) (142) -20% (113) as % of sales 7.0% 5.8% 6.5% SG&A expenses (137) (159) -14.0% (136) as % of sales 8.4% 6.5% 7.8% Ope
Slide 17: Operating margin walkdown
Operating margin walkdown As % of sales and in euro million 3.7% 90 +183 -0,7pts (4.1)% +11.3pts -12 (66) Q1-2008 Q1-2009 +0.7pt +0.2pt -19.3pts -341 +11 +3 Pass through/ Volume Raw material Costs Contract Others drop prices reductions renewal April 24, 2009 – Q1-2009 Results I 17 I
Slide 18: Focus on R&D costs
Focus on R&D costs In euro million and in % of sales 184 / (7.6%) -12% 162 / (10%) 42 External financing +14% Net R&D 48 -20% Net R&D 142 5,8% 114 7.0% Q1-2008 Q1-2009 April 24, 2009 – Q1-2009 Results I 18 I
Slide 19: Results (cont.)
Results (cont.) In euro million Q1-2009 Q1-2008 Change Operating income (83) 86 na Cost of net debt (12) (12) - Other financial inc./(expenses) (25) (4) na Associates (35) 1 na Income before taxes (155) 71 na Taxes (4) (26) -85% Effective tax rate 3.3% 37.1% Non strategic activities 0 (1) na Minorit
Slide 20: Cash flow Balance sheet
Cash flow Balance sheet added |
Slide 21: Capex
Capex In Euro million and in % of sales 143 5.9% -16% 34 120 7.4% Capitalized R&D 41 -37% 109 Industrial 79 investments Q1-2008 Q1-2009 April 24, 2009 – Q1-2009 Results I 21 I
Slide 22: Inventories
Inventories In Euro million and in % of annualized revenues 637 (169) M€ 468 -26% 7.1% 7.8% Q1-08 Q1-09 April 24, 2009 – Q1-2009 Results I 22 I
Slide 23: Shareholders equity and net debt
Shareholders equity and net debt In euro million 1,733 Shareholders Equity excl. minority interests 1,311 1,171 Net Debt 933 786 821 Gearing Gearing Gearing 45%1,263 63% 968 80% 31/03/2008 31/12/2008 31/03/2009 April 24, 2009 – Q1-2009 Results I 23 I
Slide 24: Liquidity enhancement
Liquidity enhancement No drawdown on program of €1.2bn of committed lines as of March 31, 2009 March 31, 2009 gearing at 80%, well below 120% covenant 541 M€ of committed lines migrated to a 3.5 net financial debt / EBITDA multiple Î more flexibility Î no repricing April 24, 2009 – Q1-2009 Results I
Slide 25: Outlook
Outlook added |
Slide 26: Management priorities
Management priorities Implementation of restructuring / Headcount reduction plans Î European Workers council opinion obtained Î Implementation – on budget – ahead of plan except for France Working the basics Î Freeze of management compensation Î Continued use of short working week of schemes Î Raisi
Slide 27: Outlook
Outlook Providing accurate forecast remains difficult in the current environment Global automotive production outlook : Î S1 : -30% Î Full year : -20% S2 sales should outperform worldwide production Cost reduction program to generate annual savings of 600 M€ / 500 M€ to be booked in 2009 Strict cash
Slide 28: Investor Relations
Contact Investor Relations Acting Vincent Marcel 43, rue Bayen F-75848 Paris Cedex 17 France Tel.: +33 (0) 1.40.55.37.71 Fax: +33 (0) 1.40.55.20.40 E-mail: vincent.marcel@valeo.com Web site: www.valeo.com April 24, 2009 – Q1-2009 Results I 28 I
Slide 29: Back up
Back up
Slide 30: Share Information
Share Information Share Data Bloomberg Ticker FR FP Reuters Ticker VLOF.PA ISIN Number FR 000130338 Shares outstanding as per 31.03.2009 78,209,617 ADR Data Ratio (ordinary share: ADR) 1:2 Bloomberg Ticker VLEEY US Reuters Ticker VLEEY PK ISIN Number US 9191343048 Type Level 1 Ex
Slide 31: Enabling a better automotive world
a Enabling a better automotive world