Valeo in China Edouard de Pirey Valeo China President 1 Property of Valeo. Duplication prohibited
Valeo Strategy CO 2 emissions reduction and intuitive driving Development in Asia and emerging countries 2 Property of Valeo. Duplication prohibited
OEM sales produced in Asia & emerging countries at 54% 54%* Eastern 2013 Europe & 50%* Africa 14% Western 2011 Europe 37% 37% 37%* Asia 27% 2007 US SA 9% Mexico 4% 9% *Share of Valeo total OEM production made In Asia & emerging countries 3 Property of Valeo. Duplication prohibited
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 Western Western Europe Asia excl. Asia excl. Europe 36% China China 37% 54% in Asia 54% in Asia 14% 14% & emerging & emerging countries countries China China 13% 12% SA US US SA 3% 10% Mexico 9% Mexico 5% 10% 9% YTD end-September 4 Property of Valeo. Duplication prohibited
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* Europe** Outperf. +3.6pts* OEM sales*** +9.6% North America Production****+3.6% OEM sales*** +6.4% 51% of Valeo sales (1) Production**** +2.8% Outperf. 20% of Valeo sales (1) +7.8pts* Asia** excl. China Asia** excl. China OEM sales*** +9.7% Production****+1.9% Outperf. +4.1pts* 13% of Valeo sales (1) South America Outperf. OEM sales*** -13.3% +24.7pts* China Production****-17.4% OEM sales*** +35.5% 3% of Valeo sales (1) Production****+10.8% 13% of Valeo sales (1) * Like-for-like ** Europe including Africa; Asia including Middle East *** Valeo OEM sales by destination ****LMC estimates – light vehicle production (1) Sales including joint-ventures consolidated proportionally 5 Property of Valeo. Duplication prohibited
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 Europe* Outperf. +0.4pts OEM sales** +8.9% North America Production***-0.2% OEM sales** +4.2% 49% of Valeo sales Production*** +3.8% Outperf. 22% of Valeo sales +5.3pts Asia* excl. China Asia* excl. China OEM sales** +5.1% Production***-0.2% Underperf. -2.2pts 13% of Valeo sales South America Outperf. OEM sales** -21.7% +20.4pts China Production***-19.5% OEM sales** +25.4% 3% of Valeo sales Production***+5.0% 13% of Valeo sales * Europe including Africa; Asia including Middle East ** Valeo OEM sales by destination ***LMC estimates – light vehicle production 6 Property of Valeo. Duplication prohibited
Balanced customer portfolio % of OEM sales Sales including joint-ventures consolidated proportionally Other Other 6% 5% French* French* German German 18% 17% 30% 30% American American 20% 22% Asian** Asian** A sian** Asian** 26% 26% 29% 26% H1 2013 H1 2014 * Excluding Nissan ** Including Nissan 7 Property of Valeo. Duplication prohibited
China and North America fueling future organic growth % of 2013 OEM sales* % of 2013 order intake* SA 5%Asia excl. NA SA Asia China 22% 5% NA Asia excl. 13% Asia 19% 37%** China 26% 26% 13%China 13%China 13% China Europe 24% 50% Europe 36% OEM sales: €10.3bn Order intake**: €14.8bn (of which Asia**: €5.5bn) * By destination ** Excluding Access Mechanisms business 8 Property of Valeo. Duplication prohibited
Asia fueling future organic growth, Acceleration in China % of H1 2014 order intake* SA % of H1 2014 OEM sales* 2% 17% Asia excl. China NA SA Asia 20% 14% 3% Asia €1.6bn 41% excl. NA Asia China €1.1bn 26% 13% China China 13% China Europe Europe 27% €2.8bn €3.6bn 40% 51% OEM sales: €5.4bn Order intake: €9.1bn *OEM sales and order intake by destination including joint-ventures consolidated proportionally 9 Property of Valeo. Duplication prohibited
10 Property of Valeo. Duplication prohibited
11 Property of Valeo. Duplication prohibited
12 Property of Valeo. Duplication prohibited
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 15,000 intake intake employees** 10 development 26 sites** centers** 13% of sales China is already Valeo’s No.1 country in number of employees China is already Valeo’s No.1 country in number of employees *in 2013 ** as of today 13 Property of Valeo. Duplication prohibited
Valeo is a worldwide leader as well as a Chinese leader in all its businesses Comfort & Driving Thermal Assistance Systems Systems Incl. Driving Assistance Systems Systems Wipers Electrical Systems Transmission Lighting 14 Property of Valeo. Duplication prohibited
Valeo in China 26 26 Plants 26 26 Plants Plants Plants 10 Development Centers 10 10 10 Development Centers Development Centers Development Centers 3 3 Research Centers 3 3 Research Centers Research Centers Research Centers 15,000 15,000 People 15,000 15,000 People People People 15,000 15 Property of Valeo. Duplication prohibited
Customer Offices 2013 Changchun Guangzhou Chongqing Foton 2014 Beijing Wuhan Beijing Baoding 2015 Shanghai Changchun Changchun Shanghai Hangzhou Wuhu Wuhan Baoding Wuhu Hangzhou Chongqing Guangzhou GAC Chinese OEMs represent <20% of Valeo sales in China Chinese OEMs represent <20% of Valeo sales in China today, but ~30% of Valeo’s order intake in China today, but ~30% of Valeo’s order intake in China 16 Property of Valeo. Duplication prohibited
We are growing faster than the market 60% Valeo OEM sales growth* 55% Automotive production** 50% 38% 40% 36% 35% 30% 30% 30% 25% 24% 24% 21% 20% 20% 20% 13% 12% 12% 9% 8% 8% 5% 10% 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 destination like-for-like ** LMC estimates – light vehicle production 17 Property of Valeo. Duplication prohibited
Strong growth ahead Double our sales Double our sales every four years every four years Out Out performance performance 17pts 17pts Under 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 by destination like-for-like ** LMC estimates – light vehicle production 18 Property of Valeo. Duplication prohibited
Continuous increase in the order intake ina in Group Order Intake 3.0 2.7 2.1 3.3 2.8 2.6 Order intake ratio 5 30% 25% 4 20% 3 Weighting of China 15% 2 3.5 10% 2.9 2.7 1 Order intake 5% H1 H1 H1 1.3 In €bn 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 prohibited
Aftermarket: the next wave of growth Car park shifting from fleet market to private owners Millions Years Chinese car park > USA car park by 160 9 8.0 2020 8 140 Vast majority of first time buyers 7 120 6.0 6 No habit of regular maintenance 100 20% CAGR 5 5 Trust in OES workshop expertise Trust in OES workshop expertise 80 142 4 3.4 60 50% of current car park will exit 3 96 warranty period in the next 3 years 1.8 40 2 1.2 Maintenance parts consumption to rise 46 20 1 4 14 Valeo Aftermarket sales growth Valeo Aftermarket sales growth 0 0 2000 2005 2010 2015 2020 higher than the car park growth higher than the car park growth Chinese car park Average age of the car park Source: POLK 20 Property of Valeo. Duplication prohibited
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 Assembly plants close to customers 4 new sites 4 new sites Changchun Shashi Shashi Tianjin Huadu Tianjin 2015 & onwards Nanjing Yantai Yantai 4+ additional projects Changchun Nanjing Chengdu Shashi Loudi Foshan/Huadu 21 Property of Valeo. Duplication prohibited
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
Innovation for China CO2 emission reduction Stop-start PHEV solutions Water Charge Air Cooler Etc Etc Intuitive driving Advanced HMI Automatic driving Valeo innovation strategy fitted to the Chinese market Valeo innovation strategy fitted to the Chinese market 23 Property of Valeo. Duplication prohibited
Footprint of Valeo’s China Technical Centers ~ 2,000 development staff Changchun Thermal Wuhan Lighting Nanjing Transmission 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. Duplication prohibited
Recommend
More recommend
