Valeo Se · EURONEXT:FR
Valeo — Investor Presentation (2014)
49 slides from Valeo's investor presentation, 2014
Slide 1: Valeo in China
Valeo in China Edouard de Pirey Valeo China President 1 Property of Valeo. Duplication prohibited
Slide 2: Valeo Strategy
Valeo Strategy CO2 emissions reduction and intuitive driving Development in Asia and emerging countries 2 Property of Valeo. Duplication prohibited
Slide 3: OEM sales produced in Asia & emerging countries at 54%
OEM sales produced in Asia & emerging countries at 54% 54%* Eastern 50%* 2013 Europe & Africa 14% Western 2011 Europe 37% 37%* Asia 27% 2007 US SA 9% 4% Mexico 9% *Share of Valeo total OEM production made In Asia & emerging countries 3 Property of Valeo. Duplication prohibited
Slide 4: Geographic repositioning
Geographic repositioning OEM sales by production region Sales including joint-ventures consolidated proportionally 2013 2014 Eastern Eastern Europe & Europe & Africa Africa 14% 14% Western Western Asia excl. Asia excl. Europe Europe China China 36% 37% 54% in Asia 54% in Asia 14% 14% & emerging & em
Slide 5: H1 2014: OEM sales outpaced the global market
H1 2014: OEM sales outpaced the global market by near 7 pts, in line with 2013 Outperf. +6.7pts* H1 World Outperf. OEM sales*** +10.3% Production****+3.6% +6.0pts* Outperf. Europe** +3.6pts* OEM sales*** +9.6% North America Production****+3.6% OEM sales*** +6.4% Production**** +2.8% 51% of Valeo sal
Slide 6: Q3 2014: OEM sales outpaced the global market
Q3 2014: OEM sales outpaced the global market by 7 points Outperformance in China of more than 20 points Outperf. Q3 +7.0pts Like-for-like proforma 2014 World Outperf. OEM sales** +7.7% Production***+0.7% +9.1pts Outperf. Europe* +0.4pts OEM sales** +8.9% North America Production***-0.2% OEM sales**
Slide 7: Balanced customer portfolio
Balanced customer portfolio % of OEM sales Sales including joint-ventures consolidated proportionally Other Other 6% 5% French* German French* German 18% 30% 17% 30% American American 20% 22% Asian** Asian** Asian** Asian** 26% 26% 29% 26% * Excluding Nissan H1 2013 H1 2014 ** Including Nissan 7 Pro
Slide 8: China and North America fueling future organic growth
China and North America fueling future organic growth % of 2013 OEM sales* % of 2013 order intake* SA SA NA 5%Asia excl. Asia 22% China NA 5%excl. 13% Asia 19% Asia China 37%** 13%China 26% 13% China Europe 24% 50% Europe 36% OEM sales: €10.3bn Order intake**: €14.8bn (of which Asia**: €5.5bn) * By
Slide 9: Asia fueling future organic growth, Acceleration in China
Asia fueling future organic growth, Acceleration in China % of H1 2014 order intake* % of H1 2014 OEM sales* SA 17% 2% Asia excl. NA China 20% SA Asia 3% Asia €1.6bn 14% NA excl. Asia 41% €1.1bn China 26% 13% China 13% China Europe Europe 27% €2.8bn €3.6bn 40% 51% OEM sales: €5.4bn *OEM sales and or
Slide 10: Property of Valeo. Duplication prohibited
10 Property of Valeo. Duplication prohibited
Slide 11: Property of Valeo. Duplication prohibited
11 Property of Valeo. Duplication prohibited
Slide 12: Property of Valeo. Duplication prohibited
12 Property of Valeo. Duplication prohibited
Slide 13: Growth in China as part of Valeo global strategy
Growth in China as part of Valeo global strategy Absolute numbers in China At Group level (H1 2014) RMB 12bn Sales* 27% of order 15,000 intake employees** 10 development 26 sites** centers** 13% of sales China is already Valeo’s No.1 country in number of employees *in 2013 ** as of today 13 Property
Slide 14: Valeo is a worldwide leader as well as a Chinese leader
Valeo is a worldwide leader as well as a Chinese leader in all its businesses Comfort & Thermal Driving Systems Assistance Systems Incl. Driving Assistance Systems Electrical Wipers Systems Transmission Lighting 14 Property of Valeo. Duplication prohibited
Slide 15: Valeo in China: 26 Plants, 10 Development Centers
Valeo in China 26 Plants 10 Development Centers 3 Research Centers 15,000 15,000 People 15 Property of Valeo. Duplication prohibited
Slide 16: Customer Offices
Customer Offices 2013 Changchun Guangzhou Chongqing Foton 2014 Beijing Wuhan Beijing Baoding 2015 Shanghai Changchun Shanghai Hangzhou Wuhu Baoding Wuhan Wuhu Hangzhou Chongqing Guangzhou GAC Chinese OEMs represent <20% of Valeo sales in China today, but ~30% of Valeo’s order intake in China 16 Prop
Slide 17: We are growing faster than the market
We are growing faster than the market 60% Valeo OEM sales growth* 55% Automotive production** 50% 40% 38% 35% 36% 30% 30% 24% 24% 25% 20% 21% 20% 20% 13% 12% 12% 8% 8% 9% 10% 5% 13% 5% 0% 4% 0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 *OEM sales by dest
Slide 18: Strong growth ahead
Strong growth ahead Double our sales every four years Out performance Under 17pts performance 15pts Valeo OEM Sales* +34% CAGR Valeo OEM Sales* Production** +9% CAGR +17% CAGR Production** +24% CAGR 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *OEM sales
Slide 19: Weighting of China in Group Order Intake
Continuous increase in the order intake Weighting of China in Group Order Intake Order intake ratio 2.7 2.1 3.3 2.8 2.6 3.0 5 30% 25% 4 20% 3 15% 2 3.5 10% 2.7 2.9 1 Order intake H1 H1 H1 5% In €bn 1.3 1.5€bn 2.1€bn 2.4€bn 0.8 0 0% 2009 2010 2011 2012 2013 H1 2014 19 Property of Valeo. Duplication p
Slide 20: Aftermarket: the next wave of growth
Aftermarket: the next wave of growth Car park shifting from fleet market to private owners Millions Years 160 9 Chinese car park > USA car park by 8.0 2020 140 8 120 7 Vast majority of first time buyers 6.0 6 No habit of regular maintenance 100 20% CAGR 5 80 Trust in OES workshop expertise 3.4 142 4
Slide 21: Managing growth, optimizing Capex
Managing growth, optimizing Capex Example: Thermal industrial strategy 2013 Concentrating component plants 4 new sites Jingzhou for heat exchangers for HVAC 3 extensions Changchun for variable piston compressors Loudi for fixed piston compressors Foshan for radiators 2014 4 new sites Assembly plants
Slide 22: Valeo China's Commitment
Valeo China’s Commitment Four Steps Approach 1994 Serve its traditional international customers Develop business with Chinese car makers - Develop products for the Chinese market in China 2014 Develop technologies from China Be Chinese in China 22 Property of Valeo. Duplication prohibited
Slide 23: Innovation for China
Innovation for China CO2 emission reduction Stop-start PHEV solutions Water Charge Air Cooler Etc Intuitive driving Advanced HMI Automatic driving Valeo innovation strategy fitted to the Chinese market 23 Property of Valeo. Duplication prohibited
Slide 24: Footprint of Valeo's China Technical Centers
Footprint of Valeo’s China Technical Centers ~2,000 development staff Changchun Thermal Wuhan Lighting Nanjing Transmission Shanghai Wiper Shashi Thermal Shanghai Electrical Shanghai Wiper/THS Wuxi CDA 3 Research Centers Foshan 10 Development Centers Shenzhen PTS Shenzhen CDA 24 Property of Valeo. D
Slide 25: Managing growth with the best teams
Managing growth with the best teams Retain <9% turnover, Train 4-5 pts better than the market Incl. Expert development Hire 25 Property of Valeo. Duplication prohibited
Slide 26: Efficiency program delivering results
Efficiency program delivering results A comprehensive toolbox Benchmark Kaizen activities Benchmark Automation Etc Simple automation Increase productivity to offset labor cost increase in the years to come Longer term programs 26 Property of Valeo. Duplication prohibited
Slide 27: Valeo committed to China
Valeo committed to China Strong commitment of Valeo to China All technologies available, all Valeo tools implemented incl. 5 Axes, Mother-Daughter, etc. Full localization and continuous support of global organization R&D and projects localized: “Invented with China” Support all OEMs, international O
Slide 28: Property of Valeo. Duplication prohibited
28 Property of Valeo. Duplication prohibited
Slide 29: Property of Valeo. Duplication prohibited
29 Property of Valeo. Duplication prohibited
Slide 30: Shanghai Valeo overview
Shanghai Valeo overview YI Pinghua Senior Site General Manager 30 Property of Valeo. Duplication prohibited
Slide 31: Powertrain Systems Business Group
Powertrain Systems Business Group Four Product Groups Electrical Systems Transmission Systems Combustion Engine Electronics PES PTR PCE PEL Alternators Manual Transmissions Mechanical Actuators Medium Power Electronics Starters Hydraulic Clutch Powertrain Sensors Actuation High Power Electronics Re-
Slide 32: Valeo Alternators
Valeo Alternators Stator 2 x 3 phases 12 diodes rectifier bridge Rotor w or w/o magnets 32 Property of Valeo. Duplication prohibited
Slide 33: Valeo Re-Starters
Valeo Re-Starters Field system Solenoid switch Rear Magnets part Reduction Armature Wound gear field 33 Property of Valeo. Duplication prohibited
Slide 34: i-Stars: Starter Alternator Reversible System
i-Stars: Starter Alternator Reversible System Power module Control module Heat Brush Interconnector Rear cover Stator Rotor sink holder 34 Property of Valeo. Duplication prohibited
Slide 35: Shanghai PES key facts
Shanghai PES key facts #1 in China, >25% market share Sharehoding: 50% Valeo/50% Huayu (SAIC Group) 2,000 employees >10m machines manufactured in 2013 Valeo’s biggest plant worldwide 35 Property of Valeo. Duplication prohibited
Slide 36: Shanghai PES history
Shanghai PES history 2014 Decision to localize Mild Hybrid Belt Starter Generator i-BSG 48V New Plant in Pudong Jinqiao 2013 Localization RSM14, NRG11 2012 Localization ESW22, ESW24 2011 Localization FGt, Mechatronics, ESM14, FS18, FG20+, FG23 2009 Localization VALEO Products FG 2007 Localization VA
Slide 37: A broad and comprehensive customer base
A broad and comprehensive customer base FAW Xiali Brilliance / SGM Beisheng Dong’An / Hafei BHMC / Daimler / Beijing Power / Beiqi Foton Harbin FAW-Daihatsu DPCA / Dongfeng Nissan Changchun Greatwall Jilin FVW / FAW Beijing Shenyang SGM Dongyue Baoding Yantai Tianjin Weifang Diesel Weifang Xian Yanc
Slide 38: Strong growth of Valeo Shanghai
Strong growth of Valeo Shanghai Sales x5 since 2005 2005 2006 2007 2008 2009 2010 2011 2012 2013 38 Property of Valeo. Duplication prohibited
Slide 39: New Valeo Shanghai facilities
New Valeo Shanghai facilities Old plant New plant In sqm Increase (Zhangjiang) (Jinqiao) Site ground area 28,914 77,813 269% Constructive area 17,685 53,023 300% Industrial surface 12,724 37,005 291% Offices & other 4,151 12,917 311% R&D laboratory 810 3,101 383% 39 Property of Valeo. Duplication pr
Slide 40: Why is hybridization a must? (1/2)
Why is hybridization a must ? (1/2) 270 United States 250 Market context – Grams CO2 per kilometer normalized to New European Driving Cycle (NEDC) 230 Regulatory impact analysis China 210 190 Europe 170 150 Japan 130 China 2020: 117 US 2025: 109 110 Japan 2020: 105 90 EU 2021: 95 2000 2005 2010 2015
Slide 41: Why is hybridization a must? (2/2)
Why is hybridization a must ? (2/2) Today: We are wasting “free Energy” We need a lot of Energy Thanks to electrification, Hybrid cars will: • recover energy when it is “free” • restitute it when necessary (start, boost, drive, sailing, etc.) Which improves efficiency and reduces CO2 consumption 41
Slide 42: Electrification forecast: China
Electrification forecast: China Source: 2013 Valeo Powertrain Forecast Internal Combustion Engine Stop-Start massive application Diversity of technologies– higher FULL / PHEV growth Emergence of Stop-Start Stop-Start MILD FULL PHEV PHEV 42 Property of Valeo. Duplication prohibited
Slide 43: Valeo Innovation Roadmap
Valeo Innovation Roadmap Mild/Full Hybrids Conventional Systems Belt-driven starter- Belt Starter Generator up to Starters and generators i-StARS 15kW for mild hybrids alternators High efficiency alternator Reinforced starters: ReStart with or without Reflex Start Crankshaft motor generator up to 70
Slide 44: Valeo Concept on Democar
Valeo Concept on Democar Produced by Valeo Supervisor E-Machine 8-12 kW@ 48V EDLC 24 x 5000F 208 kJ DC/DC Converter 2 kW 60V / 12V unidirectional Stand Alone Inverter 15 kW 48V Up to 13% fuel consumption savings 44 Property of Valeo. Duplication prohibited
Slide 45: Valeo Range Extender for a German premium car
Valeo Range Extender for a German premium car Petrol electrical generating set Series hybrid: petrol engine used to generate electricity To extend range up to 240-340km (vs 130-160km) Able to provide energy for driving even with empty battery SOP Sept 2013 in Valeo Poland 28Kw Machine direct couplin
Slide 46: Total Quality Approach
Total Quality Approach High Tech 5 Axes 10 Tools QRQC Validation Labs Method QRQC (All) 5S Work Instructions/Operator Certification Detection Zero Rework Stop Scrap Verification Communication Change Control (CI 3.9) (4M Matrix) SPPC - Manufacturing / Project Analysis Launch Control (FDPR) Standardiz
Slide 47: Recognized by our customers
Recognized by our customers 47 Property of Valeo. Duplication prohibited
Slide 48: Plant layout
Plant layout Unloading Raw materials S/T lines ALT lines Finished Goods Loading 48 Property of Valeo. Duplication prohibited
Slide 49: Property of Valeo. Duplication prohibited
49 Property of Valeo. Duplication prohibited