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Delivering sustainable performance, towards 2013 objectives Jacques - - PowerPoint PPT Presentation
Delivering sustainable performance, towards 2013 objectives Jacques - - PowerPoint PPT Presentation
Delivering sustainable performance, towards 2013 objectives Jacques Aschenbroich CEO Paris Auto Show Investor Conference September 29, 2010 Agenda Back to organic growth 1 Best-in-class in terms of ROCE 2 Sustainability of operating
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Back to organic growth
Order intake at a record level
Outperforming the market in each region Outperforming the market in each Asian country Rebalancing geographical exposure Rebalancing client exposure
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Record order intake at €6.5 billion
At a margin level in line with long term Group objectives
Order intake
(Order Intake / OE Sales)
H1-10
Customers
(% of order intake)
German 31% French* 24% Asian** 18% American 23%
* Excluding Nissan ** Including Nissan
2007 2008 2009 H1-10
1.29x 1.45x 1.52x 1.64x
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* At same perimeter & exchange rates ** JD Power estimates
+31%*
Europe
+59%*
Asia
+19%*
South America
+86%*
North America
Production +72%**
World
H1-10
Valeo* +40% Production +39%
Production +23%** Production +43%** Production +17%** 61% of sales 19% of sales 8% of sales 12% of sales
Outperforming the market in each region
OE sales
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Outperforming the market in each country
Asian OE sales
+59%*
Asia
Production +43%** 19% of sales
+49%*
Japan
Production +47%** 32% of sales +55%*
Korea
Production +37%** 19% of sales +89%*
India
Production +36%** 4% of sales +72%*
China
Production +47%** 40% of sales
* At same perimeter & exchange rates ** JD Power estimates
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Rebalanced geographical exposure
In % of OE sales
Asia & Others
16%
North America
9%
South America
8%
Europe & Africa
67%
Asia & Others
19%
North America 12% South America
8%
Europe & Africa
61%
H1-09 H1-10
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September 29, 2010 I 8
Rebalanced client exposure
In % of OE sales
Asian**
19%
American
16%
German
29%
French*
26%
Asian**
21%
American
18%
German
27%
French*
24%
H1-09 H1-10
* Excluding Nissan ** Including Nissan
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September 29, 2010 I 9
Best-in-class in terms of ROCE
- Operating margin at highest level in 10 years
- Flexibility of the cost structure
- Strong free cash flow generation
- Back to investment grade
- Full transformation of operating margin into cash
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1000 2000 3000 4000 5000 6000
H1-08 H2-08 H1-09 H2-09 H1-10
0,11 0,12 0,13 0,14 0,15 0,16 0,17 0,18 0,19 0,2
Highest operating margin recorded in the last 10 years
With sales close to pre-crisis level
- 100
- 50
- 2
- 1
Operating margin
(in € million & as % of sales)
203 27 (51)
0.7% 4.6%
- 1.5%
4.2% 6.1%
3,829 3,472 4,027
Sales
(in € million)
4,848 4,787
184 292
Significant margin improvement further to break-even point reduction
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Worldwide headcount evolution
vs situation end of H1-2008
Jun 08 Dec 08 Jun 09 Dec 09 Jun 10
Flexibility of the cost structure
Better fit with current environnement
- 21000
- 18000
- 15000
- 12000
- 9000
- 6000
- 3000
3000 Permanents Temporaries Global headcount
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Strong free cash flow generation of €291 M
H1-10 figures
Operating performance
EBITDA at €564 M (11.8 % of sales)
Operating working capital
Further improvement by €41 M to - €341 M
Tangible investments
Limited to 60% of depreciation in H1 2010
Net financial debt
Reduced by €284 M to €438 M by June 30, 2010
Free cash flow
- f
€291 M
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841
Target : back to investment grade
Valeo rating upgraded to Ba1 stable outlook (July 29, 2010)
Shareholders’ equity (M€) excluding minority interests Net debt (M€)
December 31/2009 June 30/2010
Gearing
75%
Gearing
59%
Shareholders’ equity and net debt
June 30/2009 June 30/2010
Leverage 1.6x Leverage 1.1x
Net debt (M€) EBITDA 12 months rolling (M€)
518 1,005
1,468 438
Gearing
30%
Leverage 0.4x*
438
*Covenant net financial debt / EBITDA
- f 3.25
Net financial debt over EBITDA 722 670
December 31/2009
1,128 841 1,233 722
June 30/2009
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Full transformation of operating margin into cash
H1-10 key achievements
* Before interest payments ** Operating margin / capital employed excluding goodwill, 12 months rolling
17% 621 177 123 2.1% 10.4% 4.2% 16.4% 36.7 4,026 4,848
H1-08
na 241 (49) Net cash flow (M€)
- 48%
438 841 Net financial debt (M€) 25%
- 1%
ROCE** +5.2pts 11.8% 6.6% EBITDA (as % of sales) +39% 36.5 26.3 Worldwide automotive production – light vehicles (M units) +44% 3,957 2,743 OE Sales (M€)
H1-09 H1-10
▲H1-10/H1-09
Total sales (M€) 3,472 4,787 +38% Gross margin (as % of sales) 13.0% 17.9% +4.9pts Operating margin (as % of sales)
- 1.5%
6.1% +7.6pts Net result (as % of sales)
- 6.1%
3.5% +9.5pts Free cash flow* (M€) (4) 291 na
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82% of 2013 OE sales already in order book Growth
in Asia and emerging countries
- f CO2 emission reduction related products
New organization on track Visibility Systems Business Group turnaround Confidence in sustainability of current financial
performance in normal market conditions Sustainability of operating performance
Ahead of 2013 targets
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82% of 2013 OE sales already in the order book
€10 Bn sales target in 2013
Order intake at a record level of 1.64 or €6,478 M Asian, North and South American production ahead of
the Plan
In 2013, production in Europe and North America expected to stay below
pre-crisis level
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New organization
Implementation on track
Better fit with client requirements
Worldwide organization Global tender offers Contribution to organic growth
Fixed cost reduction
Centralization of support functions Positive impact on operating margin of at least 100bp (vs 2009)
CAPEX optimization
60% Asia and emerging countries oriented Limited to around 4.5 % of sales Strict management of capital employed Depreciation under control : positive impact on operating margin ~100bp (vs 2009)
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0% 2% 4% 6% 8% 10% 12% 14%
H1-08 H2-08 H1-09 H2-09 H1-10 Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems
Visibility Systems Business Group turnaround
Convergence of Visibility Systems BG with other Business Groups performance
11.8% TOTAL 11.4% Visibility
as % of sales
13.3% Thermal
as % of sales
9.7% Powertrain
as % of sales
11.8 % Comfort & Driving Assistance
as % of sales
H1-10
2013 Group Average from 12% to 13% 2013 Group Average from 12% to 13%
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Confidence in sustainability of current financial performance in normal market conditions
> +20pt ≥ 30% 25%* 7.1% ROCE** +1.1 5 4.7* 3.9 Capital turnover 1.8% €7.5 bn 2009 + 4-5pt 6-7% 6.1% Operating margin H1-10 2013 ∆
2013/2009
Total sales €4.8 bn €10 bn +33%
* Calculated on a 12 month rolling basis ** Ebit / capital employed excluding goodwill
In line with 2013 objectives
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Better than expected 2010 market forecasts
Q3 sales and full year 2010 guidance to be presented on October 21, 2010 +12% +12%
South America
+19% +16%
Worldwide
+30% +18% +6% previous +34% +22% +10% revised
Asia (& others) North America Europe (& Africa)
(change YoY)
Full year With Valeo outperforming its main markets
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