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Valeo — Non-Deal Roadshow (July 2003)
34 slides from Valeo's roadshow presentation, July 2003
Slide 1: Thierry Morin, Chairman and CEO, London July 2003
Thierry MORIN Chairman and C E O L o n d o n - July 2003
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: Key figures
Key figures 2002 l Sales 9.8bn Euros – B a l a n c e d portfolio of customers ( e a c h < 18%) – Global presence – Global or E u r o p e a n l e a d position in e a c h s e g m e n t l O p e r a t i n g m a r g i n 5.0% u p 120bp l Net EPS 1.63 Euros vs (7.12) Euros in 2001 l Net financial debt/equi
Slide 4: Strategic success factors
Strategic s u c c e s s f a c t o r s
Slide 5: Strategic success factors
Strategic s u c c e s s f a c t o r s l Discriminating factors – Cost competitiveness – Quality – Global reach l Differentiating factor – Technology 5
Slide 6: Strategic success factors
Strategic s u c c e s s f a c t o r s l Discriminating factors – C o s t c o mpetitiveness – Quality – Global reach l Differentiating f a c t o r – Technology 6
Slide 7: Cost competitiveness: number of sites
Cost competitiveness l Number of sites 170 143 132 40% l o w- c o s t Q 1/01 Q 1/02 Q 1/03 7
Slide 8: Cost competitiveness: supply chain streamlining
Cost competitiveness l Supply chain streamlining 4,500 3,500 2,900 Q 1/01 Q 1/02 Q 1/03 8
Slide 9: 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 9
Slide 10: Strategic success factors
Strategic s u c c e s s f a c t o r s l Discriminating factors – C o s t c o mpetitiveness – Quality – Global reach –Differentiating f a c t o r – Technology 10
Slide 11: Quality
Quality l Multiple criteria – Zero default in production – P r o - activity – Service culture l Asian benchmark – L o n g - s t a n d i n g e x p o s u r e ( J a p a n -87- , Korea -89-, Nissan breakthrough) – G r o u p- w i d e e m p h a s i s l Client recognition 11
Slide 12: Quality: client recognition
Quality: client recognition l A.T. Kearney Award « Production Plant of the Year »: – « Best Series Production » for the new wiper systems facility at B i e t i g h e i m ( G e r m a n y ) . l « Achievement Award » from Toyota: – Project management for the supply of headlamps to the new Y a r i s. l
Slide 13: Strategic success factors
Strategic s u c c e s s f a c t o r s l Discriminating factors – C o s t c o mpetitiveness – Quality – Global reach l Differentiating f a c t o r – Technology 13
Slide 14: Global reach: Europe
Global reach Europe Europe Historical b a s e 2/3 of sales * at c o n s t a n t c u r r e n c i e s 14
Slide 15: Global reach: Americas
Global reach Americas Europe North A m e r i c a Historical b a s e Mexico 10 sites 2/3 of sales US 7 sites All p r o d u c t lines (excl excl.. harnesses harnesses)) 12 sites South America * at c o n s t a n t c u r r e n c i e s 15
Slide 16: Global reach: Asia
Global reach Asia Europe North A m e r i c a Historical b a s e 17 sites 2/3 of sales 11 sites 20 sites in m i n o r i t y - h e l d J V s All p r o d u c t lines 12 sites (e x c l . h a r n e s s e s a n d s e c u r i t y ) South America Asia * at c o n s t a n t c u r r e n c i e s 16
Slide 17: Strategic success factors
Strategic s u c c e s s f a c t o r s l Discriminating factors – C o s t c o mpetitiveness – Quality – Global reach l Differentiating f a c t o r – Technology 17
Slide 18: Technology
Technology l 6+% of sales in R&D l Increasing efficiency – Tech Development Plans • Pipeline management through project segmentation – Development Efficiency Plans • >10% productivity gains p.a. • Simultaneous engineering l Domain approach 18
Slide 19: Domain illustration: Seeing and being seen
D o m a i n illustration Seeing and Being seen l Key concept – Enhancing driver’s perception of car environment l C r o s s b r a n c h fertilisation – Historical segments: Lighting & Wipers – Enhanced functions through Sensors and Electronic controls l Enriching the product range – Enhanced vision:
Slide 20: Seeing and being seen: Halogen headlamps
Seeing and being seen Halogen headlamps 20
Slide 21: Seeing and being seen: Xenon headlamps
Seeing and being seen Xenon headlamps 21
Slide 22: Seeing and being seen: Bending Lights
Seeing and being seen Bending Lights 22
Slide 23: Seeing and being seen: InfraRed vision
Seeing and being seen InfraRed vision Infrared Vision Direct Vision 23
Slide 24: Seeing and being seen: Radar-based blind spot detection
Seeing and being seen R a d a r-based blind spot detection SIGNAL MIRROR RADAR SENSOR 24
Slide 25: Outlook
Outlook
Slide 26: Outlook
Outlook l Significant order intake in 2003 l Revenues to outperform car production m i d-2004 – Sales in line with declining markets in 2003 – Enlarged perimeter within reach in Asia l Continuing operating improvement 26
Slide 27: Outlook
Outlook l Significant order intake in 2003 l Revenues to outperform car production m i d-2004 – Sales in line with declining markets in 2003 – Enlarged perimeter within reach in Asia l Continuing operating improvement 27
Slide 28: Order intake
O r d e r intake Ratio to sales 1.3 1.2 1.0 2001 2002 2003 target 28
Slide 29: Business wins: key examples
Business Wins Key examples 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 - GMT 900) – Turnaround at Rochester plant – Technological edge: Flat Blades l Renault Megane 2 – H i g h e s t V a l e o content by car in the segment 29
Slide 30: Renault Megane 2
Renault Megane 2 Wiper Systems Climate Control Front Wiper System HVAC Motors & Actuators Rear Lighting Systems ABS Motors Rear lamps Centre high mounted stop lamps Frpnt Lighting Systems Xenon and halogen Security Systems head lamps, fog lamps Electrical steering column lock, hand free access syste
Slide 31: Outlook
Outlook l S i g n i f i c a n t o r d e r i n t a k e in 2003 l Revenues to outperform car production m i d-2004 – S a l e s i n line with declining markets in 2003 – E n l a r g e d perimeter within r e a c h in A s i a l Continuing operating improvement 31
Slide 32: Outlook
Outlook l S i g n i f i c a n t o r d e r i n t a k e in 2003 l Revenues to outperform car production m i d-2004 – S a l e s i n line with declining markets in 2003 – E n l a r g e d perimeter within r e a c h in A s i a l Continuing operating improvement 32
Slide 33: Virtuous circle
Virtuous circle Superior cash return Technological e d g e ( R & D ) Superior r e v e n u e g r o w t h High order intake Competitiveness restored Technological lead enriched 2001 2002 2003 2004 2005 33
Slide 34: valeo added
valeo added