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Valeo — Non-Deal Roadshow (October 2002)
32 slides from Valeo's roadshow presentation, October 2002
Slide 1: Bruno-Roland Bernard, Investor Relations Director, Geneva - Zurich
Bruno-Roland Bernard Investor Relations Director Geneva - Zurich October 2002
Slide 2: Mission statement
Mission statement …is an independent industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, in both the OEM and aftermarket segments. 21-22 october 2002 - Property of Valeo - Duplication prohibited 2
Slide 3: Global presence
Global presence (%Q3 2002 sales) North America Europe % of total sales: 23% % of total sales: 66% 18 production sites 84 production sites (+ 10 North Africa) % of total sales: 7% % of total sales: 3% + associates = 25% of enlarged perimeter 13 production sites 14 production sites South America Asia
Slide 4: Our vision for Leadership
Our vision for Leadership • Cost competitiveness • Quality • Technology 21-22 october 2002 - Property of Valeo - Duplication prohibited 4
Slide 5: Our vision for Leadership
Our vision for Leadership • Cost competitiveness • Quality • Technology 21-22 october 2002 - Property of Valeo - Duplication prohibited 5
Slide 6: Purchasing
Cost competitiveness Purchasing • Reduction in number of suppliers 3,800 3,600 3,200 Goal: 3 000 09/30/01 12/31/01 09/30/02 end 2002 • VIPs « Valeo Integrated Partners » Goal: 90 65 50 35 09/30/01 12/31/01 09/30/02 end 2002 21-22 october 2002 - Property of Valeo - Duplication prohibited 6
Slide 7: Purchasing
Cost competitiveness Purchasing • Reduction in number of suppliers 3,800 3,600 3,200 Goal: 3 000 09/30/01 12/31/01 09/30/02 end 2002 • VIPs « Valeo Integrated Partners » Goal: 90 65 50 35 09/30/01 12/31/01 09/30/02 end 2002 21-22 october 2002 - Property of Valeo - Duplication prohibited 7
Slide 8: Industrial restructuring
Industrial restructuring Q1 2001 170 sites 77,000 employees December 2001 143 sites September 2002 139 sites 2003 target 130 sites 65,000 employees 21-22 october 2002 - Property of Valeo - Duplication prohibited 8
Slide 9: VESI: restructuring in progress
VESI: restructuring in progress • Timetable – Dec. 01: filing for Chapter 11 – April-June: agreements with union and creditors – 25th Sept. 02: out of Chapter 11 • Industrial restructuring – Rochester Headcount reduction program • Goal < 800 employees (before beg. 2004) – Focus : Wiper Systems – Tra
Slide 10: Proven industrial methods
Cost competitiveness Proven industrial methods • 5 core strategies • Accountability & entrepreneurship Total Quality Constant Supplier • Standardisation Innovation Integration Production System Involvement of Personnel 21-22 october 2002 - Property of Valeo - Duplication prohibited 10
Slide 11: Proven industrial methods
Cost competitiveness Proven industrial methods • 5 core strategies • Accountability & 4 Activities entrepreneurship • Standardisation 11 Branches 100 Divisions 21-22 october 2002 - Property of Valeo - Duplication prohibited 11
Slide 12: Proven industrial methods
Cost competitiveness Proven industrial methods • 5 core strategies • Accountability & entrepreneurship • Standardisation – Machines and tooling – Products and processes 21-22 october 2002 - Property of Valeo - Duplication prohibited 12
Slide 13: Our vision for Leadership
Our vision for Leadership • Cost competitiveness • Quality • Technology 21-22 october 2002 - Property of Valeo - Duplication prohibited 13
Slide 14: Quality
Quality • Experience curve – Asian exposure – Solving manufacturing issues for new Lighting technology • Widespread state of mind – Appointment of a Group Quality Director • Recognition by customers – US: Valeo Sylvania, « Supplier Award » (Mitsubishi) – Asia: Zexel Valeo CC, «Hi-Quality Award» (Nis
Slide 15: Our vision for Leadership
Our vision for Leadership • Cost competitiveness • Quality • Technology 21-22 october 2002 - Property of Valeo - Duplication prohibited 15
Slide 16: Managing R&D
Technology Managing R&D • R&D spendings: approx. 6% of sales • Increasing return on spendings through industrialisation of R&D – Generic projects leading to customer applications – Standard products to be customized – Growing number of projects / Reduced time to market 21-22 october 2002 - Property
Slide 17: Key growth domains
Technology Key growth domains l l l l l Driveline Seeing and Electrical Energy Access and Thermal systems Being Seen Management Security systems 21-22 october 2002 - Property of Valeo - Duplication prohibited 17
Slide 18: Partnerships
Technology Partnerships IR Power modules Iteris Advanced vision systems Jabil Electronic circuit boards Ricardo Hybrid 42V prototype Raytheon Radars Parrot Bluetooth technology Saft 42V Batteries 21-22 october 2002 - Property of Valeo - Duplication prohibited 18
Slide 19: Seeing and Being Seen
Domains and partnerships illustrated: Seeing and Being Seen Blind spot detection IR Night Vision Cut In & System Pre Crash Stop & Go Rear camera & Park Assist Lane departure Warning System ACC Adaptative Front Lighting Systems Multi Sensor Rain Light Tunnel (Mist) 21-22 october 2002 - Property of Va
Slide 20: Electric Energy Management
Domains and partnerships illustrated: Electric Energy Management Starter-Alternator StARS ® l Fuel savings l Emission reduction l External Starter/Alternator l Start - Stop l Noiseless Start 21-22 october 2002 - Property of Valeo - Duplication prohibited 20
Slide 21: New signature-label
New signature-label: 21-22 october 2002 - Property of Valeo - Duplication prohibited 21
Slide 22: 2001 and 2002 achievements
2001 and 2002 achievements • Restoring profitability • Generating cash • Capturing growth 21-22 october 2002 - Property of Valeo - Duplication prohibited 22
Slide 23: 2001 and 2002 achievements
2001 and 2002 achievements • Restoring profitability • Generating cash • Capturing growth 21-22 october 2002 - Property of Valeo - Duplication prohibited 23
Slide 24: Quarterly improvement
Quarterly improvement Cumulative Gross Margin (%) 17.1 17.2 16.5 16.2 15.8 15.0 Q1 H1 9 months 2001 2002 21-22 october 2002 - Property of Valeo - Duplication prohibited 24
Slide 25: Quarterly improvement
Quarterly improvement Cumulative Operating Margin (%) 4.6 4.6 3.8 3.5 3.3 2.0 Q1 H1 9 months 2001 2002 21-22 october 2002 - Property of Valeo - Duplication prohibited 25
Slide 26: 2001 and 2002 achievements
2001 and 2002 achievements • Restoring profitability • Generating cash • Capturing growth 21-22 october 2002 - Property of Valeo - Duplication prohibited 26
Slide 27: Significant cash generation
Significant cash generation • Cash flow (net result + depreciations) – Q3 2002: 177 million of euros (7.9% of sales) – vs. Q3 2001: 6.7% of sales • Working capital – Reduced by approx. 50 million of euros in Q3 • CAPEX – Q3 2002: 127 million of euros (5.7% of sales) – vs. Q3 2001: 7.5% of sales 21-2
Slide 28: Strong balance sheet
Strong balance sheet 2,262 2,125 Gearing: 29% Gearing: 25% 648 536 12/31/01 09/30/02 Shareholders' Equity Net Debt 21-22 october 2002 - Property of Valeo - Duplication prohibited 28
Slide 29: 2001 and 2002 achievements
2001 and 2002 achievements • Restoring profitability • Generating cash • Capturing growth 21-22 october 2002 - Property of Valeo - Duplication prohibited 29
Slide 30: Capturing growth
Capturing growth • Order taking: 1.25 x sales • New products • Starter-alternators • Double Xenon and bending lighting systems • Advanced thermal systems (motors and cabin) • Ultrasonic park assist • Slot measurement • Record-breaking order for HVACs • 1.1 bn Euro in sales 21-22 october 2002 - Prope
Slide 31: Technology leader, superior organic growth prospects, increasing profitability
• Technology leader • Superior organic growth prospects • Increasing profitability
Slide 32: valeo added
valeo added