Valeo Se · EURONEXT:FR
Valeo — Non-Deal Roadshow (June 2005)
30 slides from Valeo's roadshow presentation, June 2005
Slide 1: June 2005
June 2005 Property of Valeo – Duplication prohibited 1 June 2005
Slide 2: Speakers
Speakers Vincent Marcel Group Vice President, Financial Affairs and Strategic Operations John Thomason Group Treasurer Remy Dumoulin Head of Investor Relations Thierry Lacorre Assistant Treasurer Property of Valeo – Duplication prohibited 2 June 2005
Slide 3: Agenda
AGENDA Investments Highlights Financial Review Valeo’s Strategy Property of Valeo – Duplication prohibited 3 June 2005
Slide 4: Investment Highlights
Investment Highlights
Slide 5: The Group
The Group Valeo is an independent global 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 Property of Valeo – Duplication prohibited 5 June 2005
Slide 6: Key figures
Key figures € 9,439* million sales 67,300 people 129 plants** 70 nationalities 65 R&D centers 26 countries * At 31 Dec. 2004 Property of Valeo – Duplication prohibited 6 June 2005
Slide 7: Leading Market Positions
Leading Market Positions Motors & Actuators Lighting Systems Engine Cooling Climate Control 279 1,073 1,419 1,696 Switches & Wiper Systems Aftermarket Transmissions Detection Systems 882 1,158 1,043 * 756 Electronics & Branches created in 2005 Connective Systems Electrical Systems 672 1,012 Engine M
Slide 8: Balanced Customer Portfolio
Balanced Customer Portfolio As % of OE sales OE Sales by Customer (2004) 20% 20% 10% 10% And other major Asian customers Property of Valeo – Duplication prohibited 8 June 2005
Slide 9: Global Coverage (at December 31, 2004)
Global Coverage (at December 31, 2004) Eastern Europe 13 Production sites Western Europe 1 R&D center 61 Production sites 2Distribution centers North America 40 R&D centers 6,900 employees 16 Production sites 6 Distribution centers 14 R&D centers 34,000 employees Asia 7,700 employees 18 Production s
Slide 10: Strong presence in Asia
Strong presence in Asia India (2 Sites) China (8 Sites) Korea (4 Sites) Clutches Compressors • Alternators, Starters Friction Materials Clutches • Clutches Climate Control • Friction Materials Indonesia (1 site) Lighting • Compressors Compressors Wiper Systems Security Systems Japan (5 Sites) Altern
Slide 11: Total Quality Culture
Total Quality Culture Property of Valeo – Duplication prohibited 11 June 2005
Slide 12: Building Long Term Competitive Advantage
Building Long Term Competitive Advantage Single digit PPM Q4-2003 Q1-2005 26% 39% Number of Single Digit PPM sites increased from 26% to 39%... Property of Valeo – Duplication prohibited 12 June 2005
Slide 13: Major Investments in Innovation
Major Investments in Innovation R&D budget of €584 million in 2004 More than 5,000 engineers and technicians 65 R&D centers More than 550 new patents filed in 2004 Property of Valeo – Duplication prohibited 13 June 2005
Slide 14: Financial Review
il Financial Revie
Slide 15: Financial Highlights
Financial Highlights In Euro millions IFRS Income Statement 2001 2002 2003 2004 2004 Total Operating Revenues 10 234 9 803 9 234 9 439 9 293 Gross Margin 1 675 1 702 1 653 1 668 1 598 % sales 16.4% 17.4% 17.9% 17.7% 17.2% Operating Income 388 487 465 458 333 % total operating revenues 3.8% 5.0% 5.0%
Slide 16: RCF / Net Debt
RCF / Net Debt 2001 2002 2003 2004 Adjusted Retained Cash Flow 600 750 621 584 Adjusted Net Debt 1 613 1 503 1 764 1 687 RCF/Adjusted Net Debt 37.2% 49.9% 35.2% 34.6% En millions d’Euros Source : Valeo Property of Valeo – Duplication prohibited 16 June 2005
Slide 17: Gearing: Q1 (IFRS Accounting)
Gearing : Q1 (IFRS Accounting) 1 912* 1 973 All figures in IFRS and in € million Gearing: 26%* Gearing: 41% 500* 808** December 31, 2004 March 31, 2005 Shareholder's Equity incl. minority interests Net Debt *Proforma from IAS 32 & 39 **Including acquisition of JCEED Property of Valeo – Duplication p
Slide 18: Gearing: Debt Levels Recently Increased
Gearing: Debt Levels Recently Increased € 324M acquisition of JCEED (March 2005) € 103.5M acquisition of Bosch’s stakes in Asian Climate Control JVs (April 2005) € 92M dividends (May 2005) € 250M share buyback (June 2005) Î As a result, Moodys changed Valeo’s rating outlook from stable to ne
Slide 19: Q1 2005 key figures (IFRS Accounting)
Q1 2005 key figures (IFRS Accounting) In € million Q1-2005 Q1-2004 Change Total operating revenues 2,324 2,362 -1.6% Total operating revenues 2,344 2,379 -1.5% Gross margin 377 408 -7.6% as % of net sales 16.2% 17.3% -1.1pt Operating income 55 88 -37.5% as % of total op. revenues 2.3% 3.7% -1.
Slide 20: Transition to IFRS (I) P&L 2004 - Overview
Transition to IFRS (I) P&L 2004- Overview In € million 2004- French GAAP 2004 - IFRS Total operating revenues 9,439 9,293 Operating income 458 333 % of total operating revenues 4.9% 3.6% Income before taxes 279 261 % of total operating revenues 3.0% 2.8% Net income 150 241 Diluted EPS (€)
Slide 21: Transition to IFRS (II) Balance sheet
Transition to IFRS (II) Balance sheet Change in net equity Change in 2004 net equity (in € million) Opening shareholder’s equity IFRS 1,850 Dividend paid (92) Equalization tax (101) Share issue 33 Other (56) Translation adjustment 5 Net income 249 Shareholder’s equity at 31/12/2004 1,887
Slide 22: Transition to IFRS (III) Balance sheet
Transition to IFRS (III) Balance sheet In € million Net debt Net debt French GAAP (31/12/04) 500 Leases 10 Consolidation method 10 Net debt IFRS (31/12/04) 520 OCEANE (52) Treasury shares 32 At January 1st, 2005 – IFRS 500 Property of Valeo – Duplication prohibited 22 June 2005
Slide 23: Valeo's Strategy
Valeo’s Strategy
Slide 24: The Domains of technology innovation
The Domains of technology innovation Driving Assistance Î Monitor vehicle perimeter, inform or alert driver and other road-users, initiate appropriate corrective actions Powertrain Efficiency Î Provide more performance and driving pleasure with less fuel consumption and emissions Comfort Enhan
Slide 25: Driving Assistance Innovation Examples
Driving Assistance Innovation Examples Lighting – Cleaning – Sensing Technologies Heated Wash Electronic Dual Reversible Wipers Rear Camera w. Park Assist Active Infra Red Rain-Light- Night Vision Tunnel Sensor Adaptive Front Adaptive Rear Lighting w. LED Lighting w. LED Radar Blind Spot Lane Depart
Slide 26: Powertrain Efficiency Innovation Examples
Powertrain Efficiency Innovation Examples Electric Energy – Torque – Thermal Management – Engine management Engine control units Belt Driven Starter Alternator Engine management systems Battery and Load Management Double Dry Ultimate Clutch Clutch Cooling THEMIS System By Wire Architecture Property
Slide 27: Comfort Enhancement Innovation Examples
Comfort Enhancement Innovation Examples Thermal Comfort – Access and Security – Interior Controls Multifunctional Clim – Seat Control Panels Hands Free Multifunctional System Module Top Column Power Closure Space Saving Systems HVAC Architecture CO2 HVAC Loop Stop Stay Cool Photo catalytic e-Latch C
Slide 28: Examples of Innovation
Examples of Innovation Start of Production for Innovative Products; New Contracts LaneVueTM: Nissan Infiniti, Citroën C4 StARS: Citroën C3 Dynamic Bending Light: Citroën C5 Fixed cushion: C4 First contract for a Blind Spot Detection System Two additional orders for StARS Property of Vale
Slide 29: Recognition
Recognition Automotive News Pace Award to LaneVue™ system Usine Nouvelle/Insead Industrial Excellence award for Nogent le Rotrou Climate Control plant Citroën wins environment awards for Start Stop (from MAAF insurance company) and AFIL (from Auto Europe press group at Geneva Auto show) PSA
Slide 30: Second quarter trading outlook
Second quarter trading outlook 2Q05 light vehicle production outlook Î Europe (West and Central) -2% Î North American Big 3*: -6% Target to outperform our production benchmark Raw material headwinds to continue Expect yoy margin impact to reduce from 1Q05 * General Motors, Ford et Chrysler Prope