Slide 1: H1 2021 Results
H1 2021 RESULTS JACQUES ASCHENBROICH CHAIRMAN & CEO VALEO RESERVED July 22, 2021 |
Slide 2: Table of Contents
H1 2021 RESULTS TABLE OF CONTENTS 01 H1 ESG & FINANCIAL HIGHLIGHTS 03 05 H1 FCF OF €145M 26 02 SUSTAINABLE GROWTH 10 06 ORDER INTAKE OF €10.6BN 33 03 OUTPERFORMANCE OF MORE THAN 10 PTS 13 07 2021 OUTLOOK CONFIRMED 37 04 H1 EBITDA MARGIN OF 13.4% 20 08 BACKUP SLIDES 39 VALEO RESERVED July 22, 2021 |
Slide 3: H1 2021 ESG & Financial Highlights
01 H1 2021 ESG & FINANCIAL HIGHLIGHTS ROBUST SET OF RESULTS IN A CHALLENGING ENVIRONMENT VALEO RESERVED July 22, 2021 | 3
Slide 4: H1 Extra-Financial Highlights
H1 EXTRA-FINANCIAL HIGHLIGHTS E Carbon neutrality by 2050 45% CO2 reduction by 2030 - intermediate targets Valeo joined the new “CAC 40 ESG” index in March 2021 S Valeo has managed to avoid any production disruption at OEM level G Appointment of Christophe Perillat as Deputy CEO Separation of the ro
Slide 5: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS Outperformance* of 24pts vs. 2020 up 73% lfl vs. 2020 despite Europe +9pts semiconductor shortage Asia +5pts Sales up 63% lfl vs. 2020 thanks to Valeo Service efficiency of which China 0pts €4,327m North America +32pts Aftermarket South America +56pts Sales Outperformance* in al
Slide 6: H1 Financial Highlights: Sales
H1 FINANCIAL HIGHLIGHTS Outperformance* in up 31% lfl vs. 2020 all regions vs. 2019 down 5% lfl vs. 2019 Europe +11pts despite semiconductor shortage Asia +10pts Sales up 30% lfl vs. 2020 thanks to Valeo Service efficiency of which China +21pts €8,994m North America +11pts Aftermarket South America +25p
Slide 7: H1 Financial Highlights: EBITDA, Margin, Net Income
H1 FINANCIAL HIGHLIGHTS 13.4% 4.6% as a % of sales as a % of sales Operating EBITDA margin €1,205m (excl. JV & Associates) €415m 1% as a % of sales Net income €90m VALEO RESERVED July 22, 2021 | 7
Slide 8: H1 Financial Highlights: Order Intake, Free Cash Flow
H1 FINANCIAL HIGHLIGHTS €1.1BN VALEO SIEMENS Order + intake Free cash flow €10.6BN €145m VALEO standalone Down Down €207m €228m* Vs 2019 Vs 2019 Gross R&D Recorded expenditure CAPEX €851m €545m *Excl. Impact of IFRS 16 VALEO RESERVED July 22, 2021 | 8
Slide 9: 2021 Guidance Confirmed
2021 GUIDANCE CONFIRMED Our base scenario for the top end of our 2021 guidance range is growth in global automotive production of around 9%. In this context, we confirm for 2021: ● continued outperformance ● financial objectives for margin and cash maintained despite the decline in our assumptions for
Slide 10: Sustainable Growth at the Heart of Our Strategy
02 SUSTAINABLE GROWTH AT THE HEART OF OUR STRATEGY A LONG-TERM VISION TOWARDS CARBON NEUTRALITY IN 2050 VALEO RESERVED July 22, 2021 | 10
Slide 11: Carbon Neutrality by 2050, CO2 Emissions Reduction
CARBON NEUTRALITY BY 2050 CO2 EMISSIONS REDUCTION SBTi Target Set 2030 TARGET OF 45% IN 2030 C02 Scope €400m investments over the 1&2 next 10 years Valeo -45% -75% 2030 target: 0.28 Mt CO2 eq. Scope 3 Driving our suppliers towards upstream CO2 emissions reduction -15% 2030 target: 8.1 Mt CO2 eq. 201
Slide 12: Leading ESG Performance Acknowledged by Rating Agencies
OUR LEADING ESG PERFORMANCE ACKNOWLEDGED BY ESG RATING AGENCIES * * #1 #1 #1 CAC 40 ESG INDEX #1 * excl. Tyre companies #1 * excl. tire companies VALEO RESERVED July 22, 2021 | 12
Slide 13: Outperformance of More Than 10 Pts in All Regions vs H1 2019
03 OUTPERFORMANCE OF MORE THAN 10 PTS IN ALL REGIONS VS H1 2019 VALEO RESERVED July 22, 2021 | 13
Slide 14: Outperformance of More Than 10pts in All Regions
OUTPERFORMANCE OF MORE THAN 10PTS IN ALL REGIONS H1 vs 2019 +11pts +21pts China Europe Outperf. Outperf. 14% of Valeo sales (including Africa) North +11pts 48% of Valeo sales America Outperf. -10% OEM Sales +19% OEM Sales 18% of Valeo sales -21% Production* -2% Production* -9% OEM Sales -20% Product
Slide 15: Outperformance in Asia
OUTPERFORMANCE IN ASIA H1 vs 2019 +6pts China Outperf. Japan 43% of Asian sales 23% of Asian sales Asia +10pts Outperf. +19% OEM Sales -10% OEM Sales 32% of Valeo sales -2% Production* -16% Production* +3% OEM Sales -7% Production* +21pts Outperf. South Korea +4pts 25% of Asian sales Outperf. India
Slide 16: Outperformance in All Business Groups: Powertrain
OUTPERFORMANCE IN ALL BUSINESS GROUPS H1 vs 2019 Powertrain Hyundai-Kia Tucson, Sportage 48V Citroën AMI eDrive 48V +12pts Mercedes EQS e-Axle Outperformance Strong growth opportunities in electrification New mobility High voltage 48V (48V) (60V+) 48V #1 position e-Motor e-Drive e-Motor inverter Grow
Slide 17: Outperformance in All Business Groups: Thermal
OUTPERFORMANCE IN ALL BUSINESS GROUPS H1 vs 2019 Thermal +4pts Stellantis 208, 2008, Corsa Battery coolers, heat pump VW ID3/4 Battery coolers Outperformance Sustainable growth opportunities in electrification Battery thermal management HVAC Full set of thermal solutions for electric vehicles Battery
Slide 18: Outperformance in All Business Groups: Comfort & Driving Assistance
OUTPERFORMANCE IN ALL BUSINESS GROUPS H1 vs 2019 Comfort & Driving Assistance +16pts Ford F-150 Ultrasonic sensors Honda Legend 360 View Camera System L2 function w/ only FCAM (Fit) Outperformance L3 function w/ Lidar, FCAM and ECUs (Legend) Driving safer with ADAS technologies as a structural growt
Slide 19: Outperformance in All Business Groups: Visibility
OUTPERFORMANCE IN ALL BUSINESS GROUPS H1 vs 2019 Visibility Audi A3 Headlamp with matrix beam +4pts Pixelated daytime running lights Cadillac Escalade matrix beam headlight Outperformance Pedestrians and driver protection shows growth opportunities #1 worldwide Lighting as a pillar for style and com
Slide 20: H1 EBITDA Margin of 13.4%
04 H1 EBITDA MARGIN OF 13.4% THANKS TO OPERATIONAL EFFICIENCY DESPITE A DIFFICULT ENVIRONMENT VALEO RESERVED July 22, 2021 | 20
Slide 21: Resilient Gross Margin
RESILIENT GROSS MARGIN H1 2021 DESPITE SALES DROP OF €782M As a % of sales 17.9% -0.7pts +0.1pts +0.1pts 17.6% -0.7pts +0.9pts Impact of lower revenues and increase in fixed costs / depreciation, as a % of sales Mitigated by industrial efficiency VALEO RESERVED July 22, 2021 | 21
Slide 22: €207M Reduction in Gross R&D Expenditure
€207M REDUCTION IN GROSS R&D EXPENDITURE H1 2021 A STRUCTURAL CHANGE THANKS TO TECHNOLOGICAL PLATFORMS AND COST REDUCTION EFFORT... Gross R&D expenditure In €m & as a % of sales Capitalized development expenditure In €m and as a % of sales Down 90bps -20% 4.1% 3.2% IFRS impact -180bps Amortization a
Slide 23: H1 Operating Margin at 4.6% of Sales
H1 OPERATING MARGIN* AT 4.6% OF SALES H1 2021 STRICT CONTROL OVER SG&A As a % of sales 5.3% -0.3% -0.4% 0% 4.6% *Excl. JV & Associates VALEO RESERVED July 22, 2021 | 23
Slide 24: Increase in EBITDA Margin of 90bps Despite Sales Drop
INCREASE IN EBITDA MARGIN OF 90BPS H1 2021 DESPITE SALES DROP OF €782M H1 2019 H1 2021 ▲ Total Sales (€m) 9,776 8,994 -8% Gross margin Operational efficiency leading Gross margin 1,754 1,586 -10% to gross margin at 17.6%, in line As a % of sales 17.9% 17.6% -30bps with 2019 despite drop of R&D expend
Slide 25: H1 Net Income of €90M or 1.0% of Sales
H1 NET INCOME OF €90M OR 1.0% OF SALES H1 2021 H1 2019 H1 2021 ▲ Total Sales (€m) 9,776 8,994 -8% Operating margin incl. JV & associates 407 296 -27% As a % of sales 4.2% 3.3% -90bps Other income & expenses (30) (29) -3% As a % of sales (0.3)% (0.3)% 0bps Operating income 377 267 -29% As a % of sale
Slide 26: H1 FCF of €145M
05 H1 FCF OF €145M VALEO RESERVED July 22, 2021 | 26
Slide 27: EBITDA Margin by Business Group
INCREASE IN EBITDA MARGIN OF 90BPS H1 2021 DESPITE SALES DROP OF €782M In €m and as a % of sales Business Groups H1 19 H1 21 Comfort & Driving Assistance 15.6% 16.8% Powertrain 12.4% 11.9% Thermal 11.2% 12.0% Visibility 10.7% 13.1% Group 12.5% 13.4% 12.5% 13.4% VALEO RESERVED July 22, 2021 | 27
Slide 28: Negative Working Capital Impact Due to Inventory Increase
NEGATIVE WORKING CAPITAL IMPACT DUE TO H1 2021 INVENTORY INCREASE TO SECURE DELIVERIES TO CUSTOMER AROUND €200M OF INVENTORY INCREASE IN ORDER TO SECURE DELIVERIES TO OUR CUSTOMERS IN A DIFFICULT ENVIRONMENT (SHORTAGE OF ELECTRONIC COMPONENTS) THIS TEMPORARY INCREASE WILL REVERSE ONCE THE SITUATION
Slide 29: Recorded Capex Down €228M
RECORDED CAPEX* DOWN €228M H1 2021 In €m and as a % of sales -38% IFRS 16** IFRS 16** IFRS 16** €22m -200bps 6.1% 4.1% IFRS 16** -€228m* €176m 597 369 * Excl. Capitalized R&D & IFRS 16 **Leases for the future Group headquarter and for the lab building of CDA activities VALEO RESERVED July 22, 2021 |
Slide 30: H1 Free Cash Flow at €145M
H1 FREE CASH FLOW AT €145M H1 2019 H1 2021 EBITDA EBITDA (€m) 1,218 1,205 Improvement in efficiency Large decrease of cash R&D Change in operating working capital 230 (218) due to technological Restructuring & social costs (10) (54) platforms Other operating items (incl. taxes) (235) (218) of which:
Slide 31: Leverage Ratio of 1.25x EBITDA
LEVERAGE RATIO OF 1.25x EBITDA CLOSE TO PRE CRISIS LEVEL Shareholders’ equity and net debt Net debt to EBITDA Gearing Gearing Gearing Gearing 61% 123% 91% 94% Shareholders’ equity (€m) Net debt (€m) excluding non-controlling interests Leverage Leverage Leverage Leverage 1.13x 2.73x 1.96x 1.25x LT Ou
Slide 32: Sound Liquidity and Debt Profile
SOUND LIQUIDITY AND DEBT PROFILE Duration Outstanding Maturity Coupon (Y) amount EMTN 5 Sept. 2022 €600m 0.375% EMTN 6 Jan. 2023 €500m 0.625% Schuldschein loan 4 Apr. 2023 €115m 0.95% Schuldschein loan 4 Apr. 2023 €221m 6M Euribor (floor) + 0.95% EMTN 10 Jan. 2024 €700m 3.25% Schuldschein loan 6 Apr.
Slide 33: Valeo Order Intake of €10.6bn
06 VALEO ORDER INTAKE OF €10.6BN VALEO SIEMENS eAUTOMOTIVE ORDER INTAKE OF €1.1BN VALEO RESERVED July 22, 2021 | 33
Slide 34: Valeo's Order Intake of €10.6bn
VALEO’S ORDER INTAKE OF €10.6BN Order intake (Valeo standalone basis) & book to bill In €bn 11.1 10.6 Book to bill Book to bill 1.3x 1.4x VALEO RESERVED July 22, 2021 | 34
Slide 35: Focus on High Voltage Electrification
FOCUS ON HIGH VOLTAGE ELECTRIFICATION Valeo Siemens eAutomotive Good momentum with growing opportunities €1.1BN YTD 2021 ORDER INTAKE €4BN ORDER INTAKE OVER THE PERIOD 2021/2022 eThermal around 45% of thermal orders €1BN YTD 2021 ORDER INTAKE Valeo Siemens eAutomotive €5.2BN+ CUMULATED Valeo eTherma
Slide 36: Focus on ADAS
FOCUS ON ADAS OI cumulated* We confirm our leadership in ADAS technologies in ADAS €14BN Additional orders in H1 €2BN *From 2018 to end of June 2021 VALEO RESERVED July 22, 2021 | 36
Slide 37: 2021 Outlook Confirmed
06 2021 OUTLOOK CONFIRMED VALEO RESERVED July 22, 2021 | 37
Slide 38: 2021 Guidance Confirmed
2021 GUIDANCE CONFIRMED Our base scenario for the top end of our 2021 guidance range is growth in global automotive production of around 9%. In this context, we confirm for 2021: ● continued outperformance ● financial objectives for margin and cash maintained despite the decline in our assumptions for
Slide 39: Backup Slides
08 BACKUP SLIDES VALEO RESERVED July 22, 2021 | 39
Slide 40: Total Sales of €4,327M Q2 vs 2019
TOTAL SALES OF €4,327M Q2 vs 2019 €m Reported -13% +4% -31% -12% -10% +9% -28% -9% Like for like ' Exchange rates -3% Exchange rates -6% Exchange rates +1% Exchange rates -3% Scope 0% Scope 0% Scope 0% Scope 0% VALEO RESERVED July 22, 2021 | 40
Slide 41: Total Sales of €4,327M Q2 vs 2020
TOTAL SALES OF €4,327M Q2 vs 2020 €m Reported +73% +57% +35% +68% +78% +63% +37% +73% Like for like ' Exchange rates -5% Exchange rates -6% Exchange rates -2% Exchange rates -5% Scope 0% Scope 0% Scope -1% Scope 0% VALEO RESERVED July 22, 2021 | 41
Slide 42: OEM Sales by Region Q2 vs 2019
OEM SALES BY REGION Q2 vs 2019 +11pts +15pts China Europe Outperf. Outperf. 14% of Valeo sales (including Africa) North +10pts 48% of Valeo sales America Outperf. -14% OEM Sales +17% OEM Sales 18% of Valeo sales -25% Production* +2% Production* -15% OEM Sales -25% Production* +8pts Outperf. South +2
Slide 43: OEM Sales by Region Q2 vs 2020
OEM SALES BY REGION Q2 vs 2020 +9pts 0pts China Europe Outperf. Perf. 14% of Valeo sales (including Africa) North +32pts 48% of Valeo sales America Outperf. +99% OEM Sales -3% OEM Sales 18% of Valeo sales +90% Production* -3% Production* +164% OEM Sales +132% Production* +5pts Outperf. South +56pts
Slide 44: Total Sales of €8,994M H1 vs 2019
TOTAL SALES OF €8,994M H1 vs 2019 €m Reported -9% +3% -18% -8% -6% +8% -15% -5% Like for like ' Exchange rates -3% Exchange rates -5% Exchange rates +4% Exchange rates -3% Scope 0% Scope 0% Scope 0% Scope 0% VALEO RESERVED July 22, 2021 | 44
Slide 45: Total Sales of €8,994M H1 vs 2020
TOTAL SALES OF €8,994M H1 vs 2020 €m Reported +28% +25% +22% +27% +32% +30% +25% +31% Like for like ' Exchange rates -4% Exchange rates -5% Exchange rates +1% Exchange rates -4% Scope 0% Scope 0% Scope 0% Scope 0% VALEO RESERVED July 22, 2021 | 45
Slide 46: OEM Sales by Region H1 vs 2020
OEM SALES BY REGION H1 vs 2020 +2pts -2pts China Europe Outperf. Outperf. 14% of Valeo sales (including Africa) North +8pts 48% of Valeo sales America Outperf. +32% OEM Sales +26% OEM Sales 18% of Valeo sales +30% Production* +28% Production* +40% OEM Sales +32% Production* -2pts Outperf. South -5pt
Slide 47: Geographic Positioning
GEOGRAPHIC POSITIONING H1 2021 OEM sales by production region % of OEM sales Western Western Europe Europe 33% 32% 59% in Asia 59% in Asia & emerging & emerging countries countries H1 19 H1 21 VALEO RESERVED July 22, 2021 | 47
Slide 48: Customer Portfolio
CUSTOMER PORTFOLIO H1 2021 % of OEM sales German German 31% 32% Asian Asian 31% 32% H1 19 H1 21 VALEO RESERVED July 22, 2021 | 48
Slide 49: Reduction in Gross R&D Expenditure Mitigating Decrease in IFRS Impact
REDUCTION IN GROSS R&D EXPENDITURE MITIGATING DECREASE IN IFRS IMPACT In million of euros and as a % of sales H1 2019 H1 2021 ▲ Gross Research and Development expenditure (1,058) (851) -20% As a % of sales (10.8)% (9.5)% -130bps IFRS impact 214 39 -82% Subsidies and grants, and other income 59 56 -5
Slide 50: H1 Book to Bill at 1.4 Times OEM Sales
H1 BOOK TO BILL AT 1.4 TIMES OEM SALES H1 2021 Excluding Top Column Modules OEM sales of €7.5bn Order intake of €10.6bn 16% 18% North Asia America Order intake/ €1.7bn Asia excl. 31% North China €3.2bn Asia excl. Asia America 33% OEM sales ratio €1.4bn China €2.5bn Asia 1.3x of which China 1.4x Chin
Slide 51: Reconciliation of Valeo and Top Column Module Data
RECONCILIATION OF VALEO AND TOP COLUMN MODULE (TCM) DATA The Group decided to withdraw from the TCM Segment. The table below reconciles reported consolidated data excluding the TCM business. VALEO RESERVED July 22, 2021 | 51
Slide 52: Segment Information
SEGMENT INFORMATION H1 2021 Comfort & Driving Assistance Powertrain Thermal Visibility (€m) Systems* Systems Systems Systems Others Total Sales: ● segment (excluding Group) 1,767 2,403 1,980 2,632 212 8,994 ● intersegment (Group) 12 65 29 30 (136) 0 EBITDA 298 294 241 350 22 1,205 Research & Develop
Slide 53: Glossary
GLOSSARY ● Order intake corresponds to business awarded by automakers during the period to Valeo, and to joint ventures and associates based on Valeo’s share in net equity, (except Valeo Siemens eAutomotive, for which 100% of orders are taken into account), less any cancellations, based on Valeo’s b
Slide 54: Contacts
INVESTOR RELATIONS VALEO 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: valeo.corporateaccess.mailbox@valeo.com Website: www.valeo.com CONTACTS VALEO RESERVED July 22, 2021 | 54
Slide 55: Share Information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of June 30, 2021 241,717,403 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • Contac
Slide 56: Safe Harbour Statement
SAFE HARBOUR 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 respe
Slide 57: VALEO RESERVED July 22, 2021 |
VALEO RESERVED July 22, 2021 |