1. automotive and vehicles

Q3 2014 Sales
Jacques Aschenbroich – CEO
October 21, 2014
October 21, 2014 I 1
Q3 2014 highlights
Consolidated sales of €3,069 million, up 10% on a reported basis
up 6% on a like-for-like basis(1)
OEM sales of €2,644 million, up 13% on a reported basis
up 7% on a like-for-like basis(1)
Near 7-pt above-market growth in OEM sales
OEM sales growth*
Performance**
China
+25.3%
+20.3pts
Europe
+9.0%
+9.2pts
Asia (excl. China) (2)
+5.1%
+5.3pts
North America (2)
+4.2%
+0.4pt
South America
-21.7%
-2.2pts
+7.3%
+6.6pts
World
*like-for-like
**vs automotive production
Aftermarket sales up 1% on a reported basis
down 1% on a like-for-like basis(1)
(1)
(2)
Constant Group structure and exchange rates.
Including Valeo Sylvania
October 21, 2014 I 2
2014 outlook
Based on the automotive production assumptions published in the H1
2014 results:
World: growth of approximately 3%
Europe: growth of approximately 2%
Valeo confirms its objectives for 2014:
Sales growth outperformance in the main production
regions
Operating margin* slightly higher than 7% of sales
* Incl. JV and associates in accordance with new IFRS standards
October 21, 2014 I 3
Sales of €3.1bn, up 10% as reported,
up 6% like-for-like
OEM sales, up 13% as reported,
up 7% like-for like, a near 7-point outperformance
Aftermarket sales, up 1% as reported,
down 1% like-for-like
October 21, 2014 I 4
Total sales up 10% as reported, up 6% like-for-like
YTD sales up 8% like-for-like
*Like-for-like growth
+6%*
+10%*
+8%*
9,416
6,347
€m
3,069
Q3 14
As reported
Exchange rates
Perimeter
+10%
0.0%
+4.3%
H1 14
YTD 14
As reported
+7%
As reported
+8%
Exchange rates
-3.1%
Exchange rates
-2.1%
Perimeter
+0.4%
Perimeter
+1.7%
October 21, 2014 I 5
OEM sales up 13% on a reported basis, up 7% like-for-like
Aftermarket up 1% on a reported basis, down 1% like-for-like
Aftermarket
OEM sales
*Like-for-like
growth
+7%*
-1%*
+10%*
+3%*
+2%*
X,XXX
+9%*
2,516
1,119
753
366
Q3 14
H1 14
YTD 14
+1%**
+1%**
+1%**
+16%*
+5%*
8,076
Miscellaneous
5,432
€m
**Change as
reported
-14%*
2,644
Q3 14
H1 14
YTD 14
+13%**
+8%**
+9%**
Exchange
rates
Perimeter
162
0.0%
Exchange
rates
-3.2%
Exchange
rates
-2.1%
5.3%
Perimeter
+0.7%
Perimeter
2.2%
221
59
Q3 14
H1 14
YTD 14
-29%**
+3%**
-8%**
October 21, 2014 I 6
OEM sales outpaced the global market by 7 points
Outperformance in China of more than 20 points and in Europe of more than 9 points
Q3
Outperf.
+7.0pts
Like-for-like proforma 2014
World
Outperf.
+9.1pts
OEM sales** +7.7%
Production***+0.7%
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.
+5.3pts
22% of Valeo sales
Asia* excl. China
OEM sales** +5.1%
Underperf.
-2.2pts
Production***-0.2%
13% of Valeo sales
South America
OEM sales** -21.7%
Production***-19.5%
3% of Valeo sales
China
OEM sales** +25.4%
Production***+5.0%
13% of Valeo sales
* Europe including Africa;
Asia including Middle East
** Valeo OEM sales by destination
***LMC estimates – light vehicle production
October 21, 2014 I 7
Outperf.
+20.4pts
OEM sales outpaced the global market by more than 7 points
Outperformance in all production regions
YTD
Outperf.
+7.2pts
Like-for-like proforma 2014
World
Outperf.
+6.2pts
OEM sales** +9.9%
Production***+2.7%
Europe*
Outperf.
+4.3pts
OEM sales** +9.4%
North America
Production***+3.2%
OEM sales** +7.7%
50% of Valeo sales
Production*** +3.4%
Outperf.
+7.4pts
21% of Valeo sales
Asia* excl. China
OEM sales** +8.4%
Outperf.
+2.9pts
Production***+1.0%
13% of Valeo sales
South America
OEM sales** -16.0%
Production***-18.9%
4% of Valeo sales
China
OEM sales** +32.0%
Production***+8.5%
12% of Valeo sales
* Europe including Africa;
Asia including Middle East
** Valeo OEM sales by destination
***LMC estimates – light vehicle production
October 21, 2014 I 8
Outperf.
+23.5pts
Geographic repositioning
Asia and North America (US & Mexico) both up 1 point
Western Europe down 2 points
OEM sales by production region
Sales including joint-ventures consolidated proportionally
Eastern
Europe &
Africa
13%
54% in Asia
& emerging
countries
Eastern
Europe &
Africa
14%
Western
Europe
36%
Asia excl.
China
14%
China
13%
55% in Asia
& emerging
countries
Western
Europe
34%
Asia excl.
China
14%
China
14%
SA
4% Mexico
10%
US
10%
Q3 2013
SA
3% Mexico
10%
US
11%
Q3 2014
October 21, 2014 I 9
Geographic repositioning
North America (US & Mexico) up 2 points, Asia up 1 point
Western Europe down 1 point
OEM sales by production region
Sales including joint-ventures consolidated proportionally
Eastern
Europe &
Africa
14%
54% in Asia
& emerging
countries
Eastern
Europe &
Africa
14%
Western
Europe
37%
Asia excl.
China
14%
China
12%
SA
5%
Mexico
9%
2013
54% in Asia
& emerging
countries
Western
Europe
36%
Asia excl.
China
14%
China
13%
SA
3% Mexico
10%
US
9%
YTD end-September
US
10%
2014
October 21, 2014 I 10
Balanced customer portfolio
German and Asian customers stable at 30% and 26% respectively,
American customers up 1 point, French customers down 1 point
% of OEM sales
Sales including joint-ventures consolidated proportionally
Other
6%
Other
6%
French*
17%
French*
16%
German
30%
German
30%
American
22%
American
21%
Asian**
Asian**
26%
Asian**
Asian**
26%
29%
2013
26%
YTD end-September
2014
* Excluding Nissan
** Including Nissan
October 21, 2014 I 11
Above-market growth in all Business Groups
CDA
18%
VIS
27%
Group
€3.1bn
PTS
26%
THS
29%
YTD total
sales
change
OEM sales growth
(like-for-like)
% Q3 2014 sales
(on a reported
basis)
Q3
H1
YTD
CDA**
-1%
+13%
+16%
+15%
Powertrain
+6%
+3%
+8%
+7%
Thermal
+7%
+6%
+10%
+8%
Visibility
+20%
+9%*
+12%*
+11%*
*2014 perimeter
** Comfort & Driving Assistance
October 21, 2014 I 12
2014 outlook
October 21, 2014 I 13
2014 outlook
Based on the automotive production assumptions published in the H1
2014 results:
World: growth of approximately 3%
Europe: growth of approximately 2%
Valeo confirms its objectives for 2014:
Sales growth outperformance in the main production
regions
Operating margin* slightly higher than 7% of sales
* Incl. JV and associates in accordance with new IFRS standards
October 21, 2014 I 14
Contact
Investor Relations
Thierry Lacorre
43, rue Bayen
F-75848 Paris Cedex 17
France
Tel.: +33 (0) 1.40.55.37.93
Fax: +33 (0) 1.40.55.20.40
E-mail: thierry.lacorre@valeo.com
Web site: www.valeo.com
October 21, 2014 I 15
Share Information
Share Data
•
•
•
•
Bloomberg Ticker
Reuters Ticker
ISIN Number
Shares outstanding as of September 30, 2014
FR FP
VLOF.PA
FR 000130338
79,462,540
ADR Data
•
•
•
•
•
•
Ticker/trading symbol
CUSIP Number
Exchange
Ratio (ADR: ord)
Depositary Bank
Contact at J.P. Morgan – ADR
broker relationship desk
VLEEY
919134304
OTC
1:2
J.P. Morgan
Jim Reeves
+1 212-622-2710
October 21, 2014 I 16
Back-up
October 21, 2014 I 17
Quarterly information
In €m (2014 as reported and 2013 restated in accordance with IFRS 11)
Sales by segment
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
623
569
515
531
552
572
573
774
817
752
818
848
848
798
Thermal Systems
818
885
832
837
880
934
889
Visibility Systems
733
762
711
764
876
925
856
2,927
3,017
2,792
2,926
3,112
3,235
3,069
Comfort & Driving
Assistance Systems
Powertrain
Systems
Total sales
OE & aftermarket sales
Q1-13
Q2-13
Q3-13
Q4-13
Q1-14
Q2-14
Q3-14
2,470
2,567
2,348
2,449
2,677
2,755
2,644
Aftermarket
375
374
361
377
376
377
366
Miscellaneous
82
76
83
100
59
103
59
2,927
3,017
2,792
2,926
3,112
3,235
3,069
OE sales
Total sales
October 21, 2014 I 18
Comfort & Driving Assistance Systems
Sales performance
Growth rate on a like-for-like basis
OEM sales
Like-for-like
change
+13%
+16%
+15%
1,697
Total sales (€m)
2013 key figures:
• 13,431 employees
• 23 production units
• 9 development centers
• 7 research centers
Market share* and competitors:
1,124
- Driving Assistance: Valeo no.1
573
Total sales change as
reported
H1 2014 key figures:
• Sales: €1.1bn (18% of Group sales)
• Ebitda: 14.2% (22% of Group Ebitda)
Q3 14
H1 14
YTD 14
+11%
-6%
-1%
Valeo+Bosch+Continental > 60%*
- Interior Controls: Valeo no.1
Valeo+Kostal+Tokai Rika > 25%*
Key growth drivers:
Development of solutions for connected and autonomous vehicles (Valeo first automotive
supplier to present a product like the Valet Park4U® driving assistance system)
Change in regulations: mandatory rear camera in the US as from May 2016 (100% applicable in
2018)
Latest innovations:
Park4U® with comfort braking launched in 2013
2014 Pace Award for the Back-Over Protection System for reversing maneuvers
First order intake received for laser scanner technology
* 2013 Valeo estimate
October 21, 2014 I 19
Powertrain Systems
H1 2014 key figures:
• Sales: €1.7bn (26% of Group sales)
• Ebitda: 12.4% (28% of Group Ebitda)
Sales performance
Growth rate on a like-for-like basis
OEM sales
Like-for- like
change
+3%
+8%
+7%
2,494
Total sales (€m)
Market share* and competitors:
1,696
798
Total sales change as
reported
2013 key figures:
• 18,769 employees
• 32 production units
• 16 development centers
• 5 research centers
- Transmission Systems: Valeo no.2
Q3 14
H1 14
YTD 14
+6%
+7%
+6%
Luk+Valeo+ZF Sachs = 45%*
- Electrical Systems: Valeo no.1
Valeo+Denso+Bosch = 70%*
Key growth drivers:
Dual objective of reducing CO2 emissions and fossil fuel consumption, based on 3 priorities for engines:
Downsizing
Downspeeding
Electrification
Latest innovations:
High efficiency alternators awarded by the European Commission’s eco innovation label
Production of the dual dry-clutch launched in 2014
First order intake received for the electric supercharger
*2013 Valeo estimate
October 21, 2014 I 20
Thermal Systems
H1 2014 key figures:
• Sales: €1.8bn (28% of Group sales)
• Ebitda: 11.0% (27% of Group Ebitda)
Sales performance
Growth rate on a like-for-like basis
OEM sales
Like-for-like
change
+6%
+10%
+8%
2,703
Total sales (€m)
1,814
Market share* and competitors:
889
Total sales change as
reported
2013 key figures:
• 18,128 employees
• 45 production units
• 7 development centers
• 2 research centers
Q3 14
H1 14
YTD 14
+7%
+7%
+7%
- Thermal Systems: Valeo no.2
Denso+Valeo+Halla (Visteon) = 50%*
Key growth drivers:
New technological solutions to respond to air conditioning systems becoming more
complex
Innovative solutions to comply with new regulations on gas pollutants and fuel
consumption
Latest business developments:
Air intake module: awarded a PACE Award by Automotive News
Battery thermal management system
*2013 Valeo estimate
October 21, 2014 I 21
Visibility Systems
H1 2014 key figures:
• Sales: €1.8bn (28% of Group sales)
• Ebitda: 9.3% (23% of Group Ebitda)
Sales performance
Growth rate on a like-for-like basis
OEM sales
Like-for- like
change
+9%*
+12%*
+11%*
2,657
Total sales (€m)
Market share** and competitors:
1,801
- Lighting Systems: Valeo no.2
856
Total sales change as
reported
2013 key figures:
• 23,012 employees
• 33 production units
• 13 development centers
• 4 research centers
Q3 14
H1 14
YTD 14
+20%
+20%
+20%
Koito+Valeo+Magnetti Marelli > 50%*
- Wiper Systems: Valeo no.1
Valeo+Bosch+Denso = 75%*
Key growth drivers:
Automakers’ widespread implementation of lighting systems with LED low beam, high beam
or daytime running lights
Growing interest in electronic wiper systems and Aquablade® wiper technology
Latest business developments:
Valeo BiLED® (100% LED) selected for emblematic models such as the BMWi3 and the new
Mini
Omniblade technology chosen for the front of the new Cadillac Escalade in the US
Start of production of the electronic wiper systems using direct drive blades for the Ford Kuga
*2014 perimeter
**2013 Valeo estimate
October 21, 2014 I 22
Safe Harbor Statement
Statements contained in this report, which are not historical fact, constitute “Forward-Looking
Statements”. Even though Valeo’s management feels that the Forward-Looking Statements are
reasonable, investors are put on notice that actual results may differ materially due to numerous important
factors, risks and uncertainties to which Valeo is exposed. Such factors include, among others, the
company’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or
competitively required price reductions. The risks and uncertainties to which Valeo is exposed are mainly
the risks resulting from the investigations currently being carried out by the antitrust authorities as they
have been identified in the Registration Document and any legal actions which could arise as a result of
these investigations, operational risks which relate to being a supplier in the automotive industry and to the
development of new products and risks due to certain global and regional economic conditions. Also
included are environmental and industrial risks as well as risks and uncertainties described or identified in
the public documents submitted by Valeo to the French “Autorité des marchés financiers” (AMF), including
those set out in the “Risk Factors” section of Valeo’s Registration Document registered at the AMF on
March 28, 2014 (ref. no. D.14-0234).
The company assumes no responsibility for any estimates made by analysts and any other information
prepared by third parties which may be used in this report. Valeo does not intend to, or assume any
obligation to, review or to confirm the estimates of analysts or to update any Forward-Looking Statements
to reflect events or circumstances which occur after the date of this report.
October 21, 2014 I 23
October 21, 2014 I 24