Slide 1: Q1-2008 Results
Q1-2008 Results Thierry Morin - Chairman & CEO April 25, 2008
Slide 2: Quarterly highlights
Quarterly highlights
Slide 3: Q1-08 Highlights
Q1-08 Highlights Trading conditions Î Automotive production slows down significantly vs. H2-07 Î Commodity inflationary pressures Î Euro stronger against US$ Î Rising interest rates Valeo Î Operating margin up yoy for the third quarter in a row Î EPS from continuing activities up 36% Î Good trac
Slide 4: Quarterly key figures
Quarterly key figures In euro million Q1-2008 Q1-2007 Change Total operating revenues 2,473 2,499 - 1.0% Gross margin 392 377 + 4.0% as % of sales 16.1% 15.3% + 0.8 pt Operating margin 90 74 + 21.6% as % of total op. revenues 3.6% 3.0% + 0.6 pt Basic earnings per share from 0.57 0.42 + 35.7% continu
Slide 5: Sales and automotive market
Sales and automotive market
Slide 6: Total operating revenues
Total operating revenues In euro million +3.7% Volume 0% Forex/Perimeter -1% Perimeter +0.5% Currencies -1.5% Prices* -3.7% 2,499 2,473 Volume/mix +3.7% Q1-2007 Q1-2008 * At identical functions April 25,2008 I 6
Slide 7: Q1-2008 net sales
Q1-2008 net sales Geographical trends (yoy changes) Market +2% Market -8% -5%* Incl. D3: -14% Europe +1%* North America 68% of total Sales 12% of total Sales Market +4% +17%* Asia Market +21% +13% of total Sales +20%* South America 6% of total Sales Valeo sales *At same perimeter & exchange rate Apr
Slide 8: Original Equipment
Original Equipment Touring Cars * 6 % /+ Sales by customers 4 % + 2007 2008 * * Customer performance % 4 % /-2 /- = - 3% * 0 % 1 /+ 7 % * + 2 % + =/ % * * 1 0 % /+ * * 3 1 9 % 2% % /- + /- /- 3 0 % 2 % % -4 * * - -1 % % /- 2 1 0 2 % /+ - % -4 +2% +1% +5% -4% -9% +8% = +8% -17% +5% -1% *at same perim
Slide 9: Results
Results
Slide 10: Results (1)
Results (1) In euro million Q1-2008 Q1-2007 Change Total operating revenues 2,473 2,499 - 1.0% Gross margin 392 377 + 4.0% as % of sales 16.1% 15.3% + 0.8 pt April 25, 2008 I 10
Slide 11: Raw material impact
Raw material impact Ppt of sales - cumulative Gross impact 4.7 4.7 4.4 4.3 4.3 4.2 Net impact 3.8 3.5 2.7 2.1 2.1 2.2 2.2 1.9 1.9 0.7 1.6 1.6 1.8 1.6 1.1 0.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 2007 2008 April 25, 2008 I 11
Slide 12: Q1 gross margin walkdown
Q1 gross margin walkdown % of Sales +0.5 16.1% 15.3% +0.1 +0.2 3.0% Q1-07 Raw materials Selling price Productivity Q1-08 adjustments April 25, 2008 I 12
Slide 13: Results (cont.)
Results (cont.) In euro million Q1-2008 Q1-2007 Change R&D expenses (net)* (139) (141) -1.4% as % of total op. revenues 5.6% 5.6% = Selling expenses (50) (49) + 2.0% as % of total op. revenues 2.0% 2.0% = Administrative expenses (113) (113) = as % of total op. revenues 4.6% 4.5% + 0.1 pt Other incom
Slide 14: Margin yoy progression continues in spite of less supportive environment
Margin yoy progression continues in spite of less supportive environment Quarterly YOY change in operating margin (Q1-07 to Q1-08) 2 pt + 1.1 1 pt + 0.6 + 0.3 0 0 pt - 0.4 -1 pt Q1 Q2 Q3 Q4 Q1 2007 2008 April 25, 2008 I 14
Slide 15: Best quarter over the last 4 years
Best quarter over the last 4 years % of Total operating revenues 3.6% 3.4% 3.1% 3.0% Q1-05 Q1-06 Q1-07 Q1-08 April 25, 2008 I 15
Slide 16: Results (cont.)
Results (cont.) In euro million Q1-2008 Q1-2007 Change Operating income 86 77 + 11.7% Cost of net debt (12) (12) = Other financial inc./(expenses) (4) (10) nm Associates 1 0 nm Income before taxes 71 55 + 29.1% Taxes (26) (21) + 23.8% Effective tax rate 37.1% 38.2% Non strategic activities (1) 0 nm
Slide 17: Balance sheet
Balance sheet
Slide 18: Net financial debt walkdown
Net financial debt walkdown In euro million +15 +15 -43 799 786 Net debt @ Free Share Forex & Net debt @ Jan. 1, 2008 cash flow Buy back Others March 31, 2008 April 25, 2008 I 18
Slide 19: Gearing
Gearing In euro million 1,800 1,782 1,777 Shareholder’s Equity incl. minority interests Net Debt 966 799 786 Gearing Gearing Gearing 54% 1,263 45% 968 44% 31/03/2007 31/12/2007 31/03/2008 April 25, 2008 I 19
Slide 20: Business highlights
Business highlights
Slide 21: Strategy implementation
Strategy implementation Operational excellence Î Toyota Group « Excellent Quality Performance Award » Innovation Î Park4U™ 2008 PACE Award winner – Fourth PACE award in a row Î Park4U obtains the Allianz « Genius » Award Portfolio alignment Î Planed disposal on the truck engine cooling busines
Slide 22: Outlook
Outlook
Slide 23: 2008 objectives
2008 objectives Trading conditions Î Confirm scenario of global automotive production slowdown – NAFTA: significant downturn – Europe: stable; switch from Western to Eastern Europe continues – Emerging markets remain supportive Î Commodity inflationary pressure Valeo Î Short term operational lev
Slide 24: Contact Investor Relations
Contact Investor Relations Rémy Dumoulin 43, rue Bayen F-75848 Paris Cedex 17 France Tel.: +33 (0) 1.40.55.29.30 Fax: +33 (0) 1.40.55.20.40 E-mail: remy.dumoulin@valeo.com Web site: www.valeo.com April 25, 2008 I 24
Slide 25: Back up
Back up
Slide 26: Quarterly P&L
Quarterly P&L 2008 2007 2006 (in euro million) 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q NET SALES 2,438 2,397 2,214 2,472 2,472 2,341 2,125 2,483 2,487 Other operating revenues 35 41 31 35 27 35 28 28 23 TOTAL OPERATING REVENUES 2,473 2,438 2,245 2,507 2,499 2,376 2,153 2,511 2,510 GROSS MARGIN 392 386 340
Slide 27: Share Information
Share Information Share Data Bloomberg Ticker FR FP Reuters Ticker VLOF.PA ISIN Number FR 000130338 Shares outstanding as per 31.03.2008 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 28: Enabling a better automotive world
\S_ Enabling a better automotive world