Valeo Se · EURONEXT:FR
Valeo — Non-Deal Roadshow (May 2003)
33 slides from Valeo's roadshow presentation, May 2003
Slide 1: Bruno-Roland Bernard, Investor Relations Director
B r u n o- R o l a n d B E R N A R D Investor Relations Director
Slide 2: An independent industrial Group for cars and trucks
…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.
Slide 3: Sales development
Sales d e v e l o p m e n t
Slide 4: Change in sales
Change in sales (in million e u r o ) G r o s s c h a n g e - 4.0% 2,550 o/w c u r r e n c i e s- 5 . 5 % 2,440 Net change* +1.5 % Q1-2002 Q1-2003 * at c o n s t a n t c u r r e n c i e s 4 Q 1-2003 Results
Slide 5: Performance by region
Performance by region Europe North America % change*: + 2% Production: - 4 % % change*: - 8 % Production: + 2% % change*: + 27% Production: + 15% Asia % change*: + 26% Production: + 12% South America * at c o n s t a n t c u r r e n c i e s 5 Q 1-2003 Results
Slide 6: Growing profitability
Growing profitability
Slide 7: Gross margin
G r o s s m a r g i n* (in % of sales) 17.5 17.5 + + 1.0 1.0 pt pt 16.5 16.5 15.0 15.0 Q 1-01 Q 2-01 Q 3-01 Q 4-01 Q 1-02 Q 2-02 Q 3-02 Q 4-02 Q 1-03 *unaudited quarterly f i g u r e s 7 Q 1-2003 Results
Slide 8: Gross margin: ongoing actions (1)
Gross margin O n g o i n g actions (1) l R a t i o n a l i z a t i o n of industrial f o o t p r i n t l I n c r e a s e d supplier i n t e g r a t i o n 8 Q 1-2003 Results
Slide 9: Gross margin: ongoing actions (2)
Gross margin O n g o i n g actions (2) l R a t i o n a l i z a t i o n of industrial footprint – Geographical reorganization Europe United States B a r c e l o n a ( L i g h t i n g) 03/2001 (3) (3) J a b l o n e c ( W i r i n g) 170 sites (1) (1) F o r t W o r t h Bietigheim transfer ( W i p e r s
Slide 10: Gross margin: ongoing actions (3)
Gross margin O n g o i n g actions (3) l R a t i o n a l i z a t i o n of i n d u s t r i a l t o o l l I n c r e a s e d supplier i n t e g r a t i o n – Volume concentration - Q 1 - 2001: 4,500 s u p p l i e r s - Q 1 - 2002: 3,500 s u p p l i e r s - Q 1 - 2003: 2,900 s u p p l i e r s – Valeo In
Slide 11: Operating income
Operating income (in % of sales) 4.5 4.5 + + 0.7 0.7 pt pt 3.8 3.8 2.0 2.0 *Unaudited quarterly figures Q 1-01 Q 2-01 Q 3-01 Q 4-01 Q 1-02 Q 2-02 Q 3-02 Q 4-02 Q 1-03 11 Q 1-2003 Results
Slide 12: Operating income
Operating income (in million e u r o ) Q 1-2003 Q 1 - 2002 ∆ Gross margin 428 422 % sales 17.5% 16.5% + 1.0 pt R & D (152) (154) - 1% % sales 6.2% 6.0% SG & A (167) (170) - 2% % sales 6.8% 6.7% Operating income 109 98 % sales 4.5% 3.8% + 0.7 pt 12 Q 1-2003 Results
Slide 13: P&L
P&L (in million e u r o ) Q 1-2003 Q 1 - 2002 • Operating i n c o m e 109 98 • Financial expenses -net (17) (12) • O t h e r i n c o m e a n d e x p e n s e s - net (26) (14) • Taxes (21) (25) Effective rate 31.5% 35.0% • Net i n c o m e b e f o r e g o o d w i l l 45 46 • Net i n c o m e 22 20 13 Q
Slide 14: Cash generation
Cash generation
Slide 15: Cash flow 2002
C a s h f l o w 2002 • N e t operational c a s h ( before restructuring) +1 032 – o / w c h a n g e i n o p e r a t i n g w o r k i n g capital +203 • Net CAPEX - 583 • Balance before restructuring +449 • Restructuring -230 • N e t c a s h f r o m o p e r a t i n g a n d i n v e s t i n g a c t i v
Slide 16: Dividend per share
D i v i d e n d per s h a r e (in e u r o ) 1.50 1.05 0.50 l Total yield Tax credit 0.35 > 5.5 % 1.00 l P a y out ratio Net 0.70 61 % 2001 2002 proposal D i v i d e n d s (82 M e u r o s ) S h a r e c a n c e l l a t i o n (51 M e u r o s ) 16 Q 1-2003 Results
Slide 17: Shareholders' equity / net debt
Shareholders’ equity / net debt (in million euro) 2,101 2,070 G e a r i n g : 27% G e a r i n g : 27% 564 563 12/31/2002 03/31/2003 Shareholders' equity Net debt 17 Q 1-2003 Results
Slide 18: Provisions for reorganization expenses
P r o v i s i o n s f o r reorganization expenses (in million euro) - 326 740 -9 - 40 365 12/31/2001 Utilizations Written back Currencies 12/31/2002 a n d reclassifications 18 Q 1-2003 Results
Slide 19: Outlook
Outlook
Slide 20: Return on assets
Return on assets l Restored margins of maneuver l Goal: Increasing return on assets Profitability Assets 20 Q 1-2003 Results
Slide 21: Increasing profitability
Increasing profitability • S a l e s growth • C o s t base control Profitability Assets • Selective disposal program • Optimal use of assets • Investment control 21 Q 1-2003 Results
Slide 22: Order intake
Order intake Sales ratio 1.3 1.2 1.0 2001 2002 Q 1-2003 22 Q 1-2003 Results
Slide 23: Expected increase in sales
E x p e c t e d i n c r e a s e in sales l S u c c e s s achieved during range renewal – Discriminating factors • competitiveness • quality • global capacity l New products generated from R&D – Differentiating factor: technological offer • Starter- alternators • Ultrasonic park assist system with sl
Slide 24: Awards
Awards l A.T. K e a r n e y A w a r d « Production Plant of the Year »: – « Best Series Production » for the new wiper systems facility at Bietigheim ( G e r m a n y ). l « Achievement Award » from Toyota: – P r o j e c t m a n a g e m e n t f o r t h e s u p p l y of h e a d l a m p s t o t h e n e
Slide 25: Expected increase in sales
E x p e c t e d i n c r e a s e in sales l S u c c e s s achieved during range renewal – Discriminating factors • competitiveness • quality • global capacity l New products generated from R&D – Differentiating factor: technological offer • Starter- alternators • Ultrasonic park assist system with sl
Slide 26: Business Wins
Business Wins l W i p e r S y s t e m s - G M ( p i c k- u p s a n d S U V s - G M T 900) – Turnaround at V E S I – T e c h n o l o g i c a l e d g e : Flat B l a d e s l Renault Megane 2 – Highest Valeo content by car in the segment 26 Q 1-2003 Results
Slide 27: Renault Megane 2
Renault Megane 2 Wiper Systems Climate C o n t r o l F r o n t Wiper S y s t e m HVAC Motors & Actuators Rear Lighting Systems ABS Motors Rear lamps Centre high mounted stop lamps Frpnt Lighting Systems Xenon and halogen Security Systems h e a d l a m p s, f o g l a m p s Electrical steering column
Slide 28: Expected increase in sales
E x p e c t e d i n c r e a s e in sales l S u c c e s s achieved during range renewal – Discriminating factors • competitiveness • quality • global capacity l New products generated from R&D – Differentiating factor: technological offer • Starter- alternators • Ultrasonic park assist system with sl
Slide 29: Assets
Assets • S a l e s growth • C o s t base control Profitability Assets • Selective disposal program • Optimal use of assets • Investment control 29 Q 1-2003 Results
Slide 30: Optimal use of assets
Optimal use of a s s e t s l Industrial efficiency – Standardization – WC management l Asset turnover – 2001: 3.3 – 2002: 3.8 l CAPEX control – Stabilized at 6 % o f s a l e s 30 Q 1-2003 Results
Slide 31: 2003 market prospects
2003 market p r o s p e c t s l H i g h i n v e n t o r y l e v e l s in U n i t e d S t a t e s l W e a k d e m a n d in E u r o p e a n d N o r t h America Fall i n v o l u m e s 31 Q 1-2003 Results
Slide 32: Valeo in 2003
V a l e o in 2003 l Significant order intake l Sales in line w i t h m a r k e t l Continuing operating improvement 32 Q 1-2003 Results
Slide 33: valeo added
valeo added