Q Results. October 18, Thierry Morin Chairman & CEO

Transcription

1 Q Results October 18, 2007 Thierry Morin Chairman & CEO

2 Agenda Quarterly financial performance Corporate & Business highlights Conclusion 2

3 Quarterly financial performance

4 Quarterly key figures In euro million Q Q3-2006* Change Total operating revenues 2,245 2, % Gross margin as a % of net sales % % +5.6% +0.2pt Operating income as a % of total op. revenues % % +28.0% +0.6pt Net income as a % of total op. revenues (40) (1.8)% 7 0.3% nm nm Basic earnings per share from core activities ( ) % * Restated to account for non strategic activities 4

5 Year-To-Date key figures In euro million 9 months months 2006* Change Total operating revenues 7,251 7, % Gross margin as a % of net sales 1, % 1, % -0.1% -0.2pt Operating income as a % of total op. revenues % % +5.0% +0.1pt Net income as a % of total op. revenues % % -69.3% -1.0pt Basic earnings per share from core activities ( ) % * Restated to account for non strategic activities 5

6 YTD adjusted net income million Sept 07 Sept 06 GAAP net income Impact from disposals Wiring Motors & Actuators 0 5 Parrot 0 (27) Logitec 0 (13) Others 1 0 Adjusted net income

7 Total operating revenues In euro million 2,153 Gross change +4.3% 2,245 Currency impact: -0.9% Perimeter impact: +0.3% Prices*: -3.4% *at identical function Volumes/mix +8.3% Q3-2006* Q * Restated to account for non strategic activities 7

8 Q net sales Geographical trends (yoy changes) Light vehicle output North America +7%/+14%* D3: +1% Europe +2%/+1%* +8% +4% +3% +24%/+20%* +9%/ +13%* +17% South America Asia *Adjusted for currencies and perimeter 8

9 OE touring car sales* vs. OEMs LV production +11% 9 months months 2007 Customer performance +3% -1% +10% -5% +14% -9% = = +4% +2% +1% +4% +6% -2% -4% +13% +1% +5% +16% +6% +14% *Adjusted for currencies 9

10 Results In euro million Q Q3-2006* Change Total operating revenues 2,245 2, % Gross margin as % of sales % % +5.6% +0.2 pt * Restated to account for non strategic activities 10

11 Raw material impact (as % of sales) Gross impact Net impact Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q

12 Copper price In Dollar / Ton (monthly average) Spot price 7,602 16/10/2007 $8,285 7, ,

13 Aluminum price In Dollar / Ton (monthly average) 16/10/2007 $2, Spot price ,473 2, ,

14 Zinc price In Dollar / Ton (monthly average) 16/10/2007 $3, Spot price , ,

15 Oil ($/ barrel)* 87 Monthly average Month high

16 Results (cont.) In euro million Q Q3-2006* Change R&D expenses (net) As % of total op. revenues (125) 5.6% (118) 5.4% +0.2 pt SG&A As % of total op. revenues (142) 6.3% (139) 6.5% (0.2) pt Total overhead As % of total op. revenues (267) 11.9% (257) 11.9% = Other income & expenses As % of total op. revenues (9) -0.4% (15) -0.7% (0.3 pt) Operating income As % of total op. revenues % % +0.6 pt * Restated to account for non strategic activities 16

17 Operating margin As % of total operating revenues (0.9%) +0.4% +0.8% 3.0% 3.3% Q3-06 Raw material Selling price Q3-07 adjustments Activity/ Productivity 17

18 Results (cont.) In euro million Operating income Q Q3-2006* 50 Change +28.0% Cost of net debt Other financial inc./(expenses) Associates (14) (15) 1 (12) (6) % % % Income before taxes % Taxes Effective tax rate Non strategic activities (23) 65.7% (52) (22) 68.8% (2) +4.5% nm Minorities (1) (1) = Net income (40) 7 nm * Restated to account for non strategic activities 18

19 Balance sheet

20 Inventories ( m & % of total operating revenues) 664-4% % 6.6% 9 mths mths

21 Shareholders equity and net debt in euro million 1,752 1,766 Gearing: 55% Gearing: 53% * December 31, 2006 Sept 30, 2007 Shareholders' Equity incl. minority interests Net Debt * Excluding VCS financial debt ( 60m) 21

22 Corporate & Business highlights

23 Expansion in India Valeo Electrical Systems Production (JV with AK Minda) Valeo Friction Materials Production (JV with Anand Group) 1 new JV with Minda Valeo Security Systems Production (JV with NK Minda) Pune Chennai Valeo Clutches Production (JV with Amalgamations) Design Center (full ownership) 23

24 Successful innovations- Park4U Ultrasonic technologybased driving assistance system World premiere on the VW Touran. Now on VW Tiguan and Touran Cross 12 contracts New generation introduced at the Frankfurt auto show 24

25 Successful innovations- Blind spot detection system 2007 PACE Award winner Offered on 2008 GM Buick & Cadillac, Jaguar XF 28 cars equipped in 2010 Blind spot detection Significant new orders booked in Q

26 Successful innovations- StARS- integrated starter alternator StARS: micro-hybrid starter-alternator Fuel savings : up to 28% in congested urban traffic StARS Now standard on SMART fortwomhd Offered on Smart mhd, A class Development contracts with 5 other customers 26

27 Portfolio management Focus on technology through the Domain approach Active portfolio management Disposals: Motors & Actuators, Wiring ( 798m sales) Acquisitions: JCEED, Connaught Electronics ( 473msales) 27

28 Disposal of the wiring harness business Signing completed on October 16; closing expected by year-end Achieved 255m in enterprise value (0.47X 2006 sales) ~ 220m Group net financial debt reduction 213m Group goodwill reduction Rationale of the disposal Low value added Lack of customer diversification No value added to our Domain approach 28

29 Acquisition of Connaught Electronics Ltd. Expert in camera based vision solutions for low- speed maneuvering 300 employees in 2 sites in Ireland and the Czech Republic 2007 sales: 37 million Strengthens the Driving Assistance Domain 29

30 Conclusion

31

32 Contact Investor Relations Rémy Dumoulin 43, rue Bayen F Paris Cedex 17 France Tel.: +33 (0) Fax: +33 (0) Web site: 32

33 Back up

34 Quarterly P&L (in euro million) NET SALES Other operating revenues TOTAL OPERATING REVENUES GROSS MARGIN as % of net sales Research & Development expenditure Selling expenses Administrative expenses Other income & expenses OPERATING INCOME as % of operating revenues Cost of net debt Other financial income and expense Equity in net earnings of associates INCOME BEFORE INCOME TAXES Income taxes INCOME FROM CONTINUING OPERATIONS Non-strategic activities NET INCOME FOR THE PERIOD Minority interests NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY 3Q , , % (156) (45) (97) (9) % (14) (15) 1 36 (23) 13 (52) (39) (1) (40) 2Q , , % (173) (48) (105) (13) % (13) (10) 5 72 (26) 46 (4) 42 (4) 38 1Q Q , , % (168) (49) (113) % (12) (10) 0 55 (21) 34 (0) 34 (1) 33 2, , % (146) (45) (94) (15) % (12) (6) 0 32 (22) 10 (2) 8 (1) 7 2Q , , % (161) (49) (110) % (14) (31) 80 (7) 73 (1) 72 1Q , , % (170) (49) (113) (20) % (14) (8) 2 45 (10) 35 (11) 24 (2) 22 34

35 P&L restated for non strategic activities (in euro million) NET SALES Other operating revenues TOTAL OPERATING REVENUES GROSS MARGIN as % of net sales Research & Development expenditure Selling expenses Administrative expenses Other income & expenses OPERATING INCOME as % of operating revenues Cost of net debt Other financial income and expense Equity in net earnings of associates INCOME BEFORE INCOME TAXES Income taxes INCOME FROM CONTINUING OPERATIONS Non-strategic activities NET INCOME FOR THE PERIOD Minority interests NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY , ,550 1, % (640) (190) (427) (49) % (51) (8) (1) 211 (68) (5)

36 Share price evolution 45 VALEO CAC 40 31/12/ /10/ % +4.2% DJ Stoxx Auto % /12/06 31/1/07 28/2/07 31/3/07 30/4/07 31/5/07 30/6/07 31/7/07 31/8/07 30/9/07 36

37 Share Information Share Data / ADR Data Share Data Bloomberg Ticker Reuters Ticker ISIN Number Shares outstanding as per ADR Data Ratio (ordinary share: ADR) Bloomberg Ticker Reuters Ticker ISIN Number Type Exchange Sponsor FR FP VLOF.PA FR ,149,729 1:2 VLEEY US VLEEY PK US Level 1 OTC JP Morgan Chase 37