FY-2011 Results Jacques Aschenbroich CEO. February 22, 2012

Transcription

1 FY-2011 Results Jacques Aschenbroich CEO February 22, 2012

2 Highlights February 22, 2012 I 2

3 Highlights FY-11 OE Sales growth higher than production in the main regions and in each of our businesses Sales 10.9 bn up 13% New geographic and customer positioning towards Asia Successful integration of Niles Order intake at record level 14.9 bn up 27% CAGR since 2009 Net income up 17% and operating margin at 6.5% of sales Operating margin(1) of 704 m, or 6.5% of sales Net income of 427 m, or 3.9% of sales Earnings per share of 5.67 up 17% February 22, 2012 I 3

4 Highlights FY-11 Free cash flow generation of 232 m Despite higher capex requirements in H2 to sustain strong order intake Second successive year of ROCE(2) > 30% Strong balance-sheet with net debt(7) at 523 m as of Dec. 31, 2011 Dividend of 1.40 per share up 17% to be proposed at the next AGM February 22, 2012 I 4

5 Record order intake at 14.9 billion +27% CAGR since 2009 H2 CAGR +27% H1 bn February 22, 2012 I 5

6 Break even point under strict control lowered by 12pts since 2007 % sales 88% 91% 95% 79% 76% 75% In line with strategic plan February 22, 2012 I 6

7 Sustainability of margins at a higher level Operating margin(1) M and % of sales Net income M and % of sales % 7,0% 6.5% ,0% ,0% % % 3.6% % % 133 4,0% 3,0% 2,0% 1,0% 0,4 0, % 1.7% % % ,0% 3.9% 2,0% 0,0% ,0% ,2-2,0% -2.4% -2.0% -0,4-4,0% -0,6-6,0% February 22, 2012 I 7

8 Guidance 2012 outlook Based on: - 3% and 4% growth in global automotive production - Despite a 5% decline in European production - RM prices at current levels OE sales growing faster than production in the main regions 2012 operating margin level (in million euros) in the same magnitude of the prior year 2015 growth targets on track 78% OE sales target already booked February 22, 2012 I 8

9 OE sales growth higher than production in the main regions and in each of our businesses February 22, 2012 I 9

10 Total sales 10.9 bn, up 13% H %, Q % Total sales M 5, % Total sales M +13% 10, ,845 5,271 Perimeter +5.2% Currencies -0.8% Like-for-like +10% H2-10 H2-11 9,632 10,605 Successful integration of Niles Contribution 227 m Perimeter -+2.4% Currencies -0.7% Like-for-like +11% FY-10 FY-11 Change of perimeter February 22, 2012 I 10

11 Strong performance of sales +13% Strong performance of OE sales and contribution of Niles In M and YoY variation H2-10 H2-11 like-for-like FY-10 FY-11 like-for-like 3,995 82% 4,697 85% +18% +12% Original Equipment 7,952 83% % of sales 9,207 85% +16% +13% % % -4% -2% Aftermarket % of sales 1,445 15% 1,412 13% -2% +1% 127 3% 144 3% +13% +12% Miscellaneous % of sales 235 2% 249 2% +6% +6% 4,845 5, %* +10% Sales 9,632 10, %* +11% *Perimeter : +6.2%, currencies + 0.2% *Perimeter : +4.5%, currencies -0.8% February 22, 2012 I 11

12 OE sales up 16%, higher than production Improvement of product mix, market share gains in Asia OE sales M 7, % 9, OE sales M 3,995 9, % Perimeter +6.3% Currencies -0.7% Like-for-like +12% 4,697 10, ,453 H2-10 H2-11 8,938 Perimeter +3.2% Currencies -0.7% Like-for-like +13% FY-10 FY-11 Change of perimeter February 22, 2012 I 12

13 OE sales growth higher than production for 9 quarters in a row OE Sales on a like-for-like basis vs automotive production (million of vehicles) Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Production* +22% +51% +31% +15% +9% +7% -1% +6% +3% Valeo** +29% +51% +32% +17% +14% +17% +12% +14% +10% * Light vehicle production JD Power estimates **At same perimeter and exchange rates Valeo performance vs light vehicle production (in pts) 7 Japan impact Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 February 22, 2012 I 13

14 OE sales growth higher than production in the main regions and in each of our businesses North America Production +10% 15% of Valeo sales Outperform +21pts* Europe Production +7% 56% of Valeo sales Outperform +5pts* World Production +4% Outperform +9pts* South America Production +4% Underperform -3pts* Asia Production +0% 22% of Valeo sales Outperform +10pts* 7% of Valeo sales H2 Asia Europe North America South America Total Production +3% +5% +11% -1% +5% * At same perimeter and exchange rates Outperformance* +13 pts +4 pts +14 pts -1 pt +7 pts February 22, 2012 I 14

15 Asian OE sales growth higher than production Market share gains Asia Production +0% Outperform +10pts* Outperform +2pts* 22% of Valeo sales Japan Outperform +14pts* India Production +10% Outperform +12pts* 4% of Valeo sales China Production +3% Outperform +14pts* 37% of Valeo sales Korea Production +9% 22% of Valeo sales Production -12% 29% of Valeo sales H2 China India Japan Korea Total Production +2% 0% +6% +9% +3% * At same perimeter and exchange rates Outperformance* +21 pts +7 pts -2 pts +13 pts +13 pts February 22, 2012 I 15

16 New geographical positioning: Asia 25% of OE sales H2 representative of Valeo new profile after Niles & Japan recovery % of OE sales 6% 14% 13% 15% 7% 22% 67% 56% FY 2007 FY % 15% 25% 53% Asia North America Europe & Africa South America H February 22, 2012 I 16

17 Reinforcement of our future positioning on the most promising markets as Asia & emerging countries Asia at 30% of 2011 order intake Emerging countries are pulling growth 2011 OE sales 2011 order intake Nafta 15% Asia South 22% America 7% 9.2bn Europe 56% Nafta 12% South America 7% 14.9bn Europe 52% Asia 29% 1.4 Order intake in bn (BRIC + Turkey + Asean) % of total orders R&D recruitment by region More than 1,000 R&D engineers hired in 2011 Nafta 9% South America 4% Europe 48% Asia 39% February 22, 2012 I 17

18 OE sales growth higher than production in each of our businesses and in the main production regions Powertrain OE Sales +19% Stop-Start contributing up to 4pts to BG outperformance Sales: 3,126 m (+16%)* 29% of Valeo sales Visibility OE Sales +12% Innovative lightings : : contributing up to 8pts to BG outperformance Outperform +15pts Outperform +8pts Worldwide production (YoY) +4% Comfort & Driving Assistance OE Sales +29% (Like-for-like + 14%) Low speed manoeuvring contributing up to 6 pts to BG outperformance Sales: 2,157 m (+13%)* 20% of Valeo sales Thermal OE Sales +9% Charge Air Cooler contributing up to 1pt to BG outperformance Outperform +10pts Outperform +5pts Sales: 2,549 m (+9%)* 23% of Valeo sales Sales: 3,140 m (+7%)* 28% of Valeo sales * At same perimeter and exchange rate ** JD Power light vehicle production estimates February 22, 2012 I 18

19 Powertrain Systems Strong growth potential Double dry clutch Reduced fuel consumption vs manual clutch Powertrain outperformance +15pts Order intake - Transmission Product value X10 times Major OEMs in Europe, Asia & Nafta 2011 sales 2010 OI 2011 OI OE Sales DCT order intake Other order intake Positioning of Valeo Transmission N 1: LuK N 2: Valeo (15% market share) N 3: Sachs February 22, 2012 I 19

20 Comfort & Driving Assistance Systems Strong growth potential Low speed maneuvering 18% CAGR For more comfort at low speed Volume of park-assist systems ultrasonic sensors (in million units): Comfort & Driving Assistance outperformance +10pts Increasing take-rate of parkassist systems Valeo innovation with Park4U systems, 360Vue and leading technologies based on cameras, radars and laser scanners Positioning of Driving assistance N 1: Valeo (28% market share) N 2: Bosch N 3: Panasonic February 22, 2012 I 20

21 Visibility Systems Strong growth potential LED -70% electricity cons. vs standard lighting Visibility outperformance +8pts Order intake - Visibility Increased value vs standard lighting Higher expected take-rate vs Xenon premium lighting 2011 sales 2010 OI 2011 OI Positioning of Valeo Lighting Total order intake LED order intake N 1: Koito N 2: Valeo (19% market share) N 3: Automotive Lighting OE Sales February 22, 2012 I 21

22 Thermal Systems Strong growth potential Air management cooling Reducing CO 2 emissions Thermal outperformance +5pts Order intake - Powertrain Thermal Order intake > 2x OE sales two years in a row Air management cooling growth driven by turbo take rate 2011 sales 2010 OI 2011 OI OE Sales Other order intake Air management Positioning of Valeo Thermal Systems N 1: Denso N 2: Valeo (11% market share) N 3: Visteon/Halla February 22, 2012 I 22

23 New customer positioning with Asian customers on a par with German customers at 29% of OE sales % of OE sales 17% 14% 24% 17% 9% 29% 25% 20% 20% 25% FY 2007 FY % 17% 29% 18% German Asian (incl. Nissan) 29% French (excl. Nissan) American Others H February 22, 2012 I 23

24 Net income up 17% and operating margin(1) at 6.5% of sales February 22, 2012 I 24

25 Increase of operating margin(1) at 6.5% of sales thanks to fixed costs reduction -1.3pt +0.6pt +0.5pt 6.7% 6.5% Walkdown H2-10 Gross margin R&D SG&A H pt +0.5pt +0.4pt +0.6pt +0.7pt 6.4% 6.5% despite raw materials, temporary capacity shortages, Japan & Thailand FY-10 Gross margin R&D SG&A FY-11 February 22, 2012 I 25

26 Gross margin mainly impacted by increase in RM prices, temporary capacity shortages, Japanese earthquake and flood in Thailand +0.9pt -1.3pt -0.9pt 18.1% 16.8% Walkdown H2-10 Volume Net raw material Others H2-11 H2-10 Volume increasenet raw material impact Others H2-11 increase impact +1.1pt -1.6pt -0.5pt 18.0% 17.0% FY-10 Volume increase Net raw material impact Others FY-11 February 22, 2012 I 26

27 Operating margin(1) increase to 6.5% of sales despite 1.6pt impact from RM headwind Aluminum /T Copper /T FY-11 % of consumption H1-10 / H1-11 Gross impact - % H2-10 / H2-11 FY-10 / FY-11 40% LME* +22% +8% +15% 34% Steel +20% +9% +14% 22% Plastic +8% +14% +11% 4% Rare earth +170% +525% +350% 100% Total +19% +14% +17% Net impact FY-10/FY pt *of which copper 50%, aluminum 44% and zinc 6% February 22, 2012 I 27

28 Net R&D at 561 m to sustain strong order intake % of sales -0.4pt 5.6% 5.2% M +4% FY-10 FY-11 FY-10 FY-11 February 22, 2012 I 28

29 Lean organization is delivering SG&A stable while sales increasing by 13% M -1% Selling Selling Expenses Expenses Admin. Expenses Admin. Expenses % of sales FY-10 FY % 1.8% -0.7pt 5.3% 1.7% 4.2% 3.6% FY-10 FY-11 February 22, 2012 I 29

30 Net income of 427 m, up 17% EPS of 5.67 H2-10 H2-11 FY-10 FY-11 4,845 5, % Total sales (M ) 9,632 10, % % 4 0.1% % % 1 0.0% % +11% -0.2pt -75% -0.1pt +9% -0.3pt Operating margin (1) (M ) % of sales Other income & expenses (M ) % of sales Operating income (M ) % of sales % (27) -0.3% % % 0 0.0% % +14% +0.1pt na +0.3pt +19% +0.4pt (35) (42) -20% Cost of net debt (M ) (67) (71) +6% (18) (18) = Other financial expenses (M ) (32) (35) +9% (12) (2) -83% Associates (M ) (1) 2 na % Income before taxes (M ) % (57) 21% 0 (10) % (71) 24% (1) (17) % +25% +3pts na -70% +6% -0.3pt Taxes (M ) Effective tax rate Non strategic activities(m ) Minority interest and others(m ) Net income (M ) % of sales (104) 21% (2) (19) % (148) 25% (1) (24) % +42% +4pts -50% +26% +17% +0.1pt % Earning per share ( ) % February 22, 2012 I 30

31 EBITDA(4) of 1,212 m at 11.2% of sales Powertrain impacted by rare earth & temporary capacity shortages FY-11 M & % of sales 11.9% 11.2% Comfort & Driving Assistance % of sales 12.2 % Powertrain % of sales 8.6% Thermal % of sales 11.4% 9.1% 8.9% Visibility % of sales 10.9% ,150 1,212 14% 12% 10% % 6% 4% February 22, 2012 I 31

32 Free cash flow(2) generation of 232 m February 22, 2012 I 32

33 Capex of 717 m to sustain order intake Asia & emerging countries, 59% of 2011 investments Capex excl. capitalized R&D (% of sales) 3.3% 5.0% M +53% Capex excl. capitalized R&D Capitalized R&D Capitalized R&D (% of sales) 1.5% 1.6% FY-10 FY February 22, 2012 I 33

34 Net financial debt at 523 m post Niles acquisition, capex, dividend and share buy-back H2-10 H2-11 FY-10 FY EBITDA (4) (M ) 1,150 1,212 (1) (18) Operating working capital (M ) 31 (29) (18) (25) Restructuring & social costs (M ) (72) (52) (86) (110) Other operational items (inc. taxes) (M ) (118) (233) (245) (359) Capex (inc. capitalized R&D) (M ) (464) (666) Taxes: (169) m Pensions: (52) m Free cash flow (5) (M ) (before interest payments) (9) (15) Interest (M ) (52) (57) (28) (127) Other financial items (M ) (35) (402) 199 (44) Net cash flow (6) (M ) 440 (227) Net financial debt (7) (M ) February 22, 2012 I 34

35 Strong balance-sheet February 22, 2012 I 35

36 Strong financial structure Keeping our investment grade status as a high priority Net financial debt (7) over EBITDA (4) Net debt (M ) EBITDA (4) 12 months rolling (M ) 1,150 Shareholders equity and net debt Net debt (M ) Shareholders equity (M ) excluding minority interests 1,212 1,936 1,708 1, Gearing 59% Gearing 16% Gearing 27% Dec Dec Dec Leverage 1.1x Dec Leverage 0.2x Dec Leverage 0.4x Dec Covenant net financial debt / EBITDA of 3.25 February 22, 2012 I 36

37 Active debt management and new debt profile As of January 31, 2012 Liquidity secured by Undrawn credit lines: 1,1 bn Weighted Average Maturity: 3,30years Long term debt management New bond issue 500 M - May 2018 Repurchase Total 289 M New bond issue 500 M - January 2017 Syndicated loan 250 M - June in M M June M /year 2013 / M 2015 / M 2017 / M June 2016 Swap in JPY 500M Jan M May cash and cash equivalents (31/ 12/ 2011) Undrawn credit lines (31/ 01/ 2012) sho rt term debt (31/ 12/ 2011) EMTN BEI financing Syndicated loan February 22, 2012 I 37

38 Proposed dividend payment of 1.40/share, up 17% Reflecting strong fundamentals 2011 dividend of 1.40/share proposed at the next Shareholders Meeting EPS Dividend Payout ratio 25% 25% February 22, 2012 I 38

39 Second successive year of ROCE(2) > 30% February 22, 2012 I 39

40 Second successive year of ROCE > 30% ROCE(2) & ROA(3) at 31% and 19% respectively FY-10 FY-11 Total sales 9.6 bn 10.9 bn Operating margin(1) Capital turnover* ROCE(2) ROA(3) 6.4% % 19% 6.5% 4.9* 31% 19% * Proforma full year in closing perimeter February 22, 2012 I 40

41 Outlook February 22, 2012 I 41

42 Outlook Based on: 3% to 4% growth in global automotive production despite a 5% decline in European production RM prices at current levels 2012 guidance: OE sales growth higher than production in the main regions 2012 operating margin level (in million euros) in the same magnitude of the prior year February 22, 2012 I 42

43 Contact Investor Relations Thierry Lacorre 43, rue Bayen F Paris Cedex 17 France Tel.: +33 (0) Fax: +33 (0) Web site: February 22, 2012 I 43

44 Share Information Share Data Bloomberg Ticker Reuters Ticker ISIN Number Shares outstanding as per FR FP VLOF.PA FR ,628,798 ADR Data Ticker/trading symbol CUSIP Number Exchange Ratio (ADR: ord) Depositary Bank Contact at J.P. Morgan ADR broker relationship desk VLEEY OTC 1:2 J.P. Morgan Jim Reeves February 22, 2012 I 44

45 Glossary (1) Operating margin corresponds to operating income less other income and expenses (2) ROCE corresponds to operating margin/capital employed less goodwill calculated over the last 12 months (3) ROA corresponds to operating income/committed capital plus goodwill (4) EBITDA corresponds to operating income before amortization of tangible and intangible assets and depreciation. (5) Free cash flow corresponds to net operating cash flow less net disbursements on tangible/intangible assets. (6) Net cash flow corresponds to free cash flow less financial expenses and after taking into account the payment of dividends and financial flows relating to mergers and acquisitions. (7) Net financial debt includes all long-term financial debts, short-term credits and bank overdrafts, less loans and other long-term financial assets, cash and cash equivalents February 22, 2012 I 45

46 Back-up February 22, 2012 I 46

47 H2 and Q sales In M and YoY variation Q4-10 Q4-11 like-for-like H2-10 H2-11 like-for-like 2,066 82% 2,435 85% +18% +10% Original Equipment % of sales 3,995 82% 4,697 85% +18% +12% % % -2% -2% Aftermarket % of sales % % -4% -2% 74 3% 80 3% +8% +6% Miscellaneous % of sales 127 3% 144 3% +13% +12% 2,503 2, %* +8% Sales 4,845 5, %** +10% *Perimeter : +6.2%, currencies + 0.2% **Perimeter : +4.5%, currencies -0.8% February 22, 2012 I 47

48 Quarterly information in million Sales by segments Comfort and Driving Assistance Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q Powertrain Systems Thermal Systems Visibility Systems Total sales 2,309 2,478 2,342 2,503 2,669 2,665 2,662 2,872 OE & aftermarket sales Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 OE Sales 1,898 2,059 1,929 2,066 2,263 2,247 2,262 2,435 Aftermarket Miscellaneous Total sales 2,309 2,478 2,342 2,503 2,669 2,665 2,662 2,872 February 22, 2012 I 48

49 Half year P&L (in million) H1 H2 H1 H2 H1 H2 Total sales 3,472 4,027 4,787 4,845 5,334 5,534 Gross margin as % of sales 13.0% 17.0% 17.9% 18.1% 17.2% 16.8% R&D expenditures (234) (239) (267) (270) (285) (276) Selling & administrative expenses (270) (262) (297) (284) (286) (292) Other income & expenses (37) (12) (31) 4 (1) 1 Operating income (88) as % of sales -2.5% 4.3% 5.5% 6.8% 6.4% 6.5% Cost of net debt (21) (39) (32) (35) (29) (42) Other financial income and expenses (37) (20) (14) (18) (17) (18) Equity in net earnings of associates (40) 6 11 (12) 4 (2) Income before income taxes (186) Income taxes (26) (53) (47) (57) (77) (71) Income from continuing operations (212) Non-strategic activities 1 (1) (2) 0 0 (1) Net income for the period (211) Minority interest (2) (5) (9) (10) (7) (17) Net income (213) February 22, 2012 I 49

50 Half year segment information H1-10 and H1-11 (in m) First-half 2011 Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (60) - EBITDA Research & Development expenditure, net (72) (71) (79) (65) 2 (285) Investments in property, plant and equipment and intangible assets Segment assets First-half 2010 (in m) Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (49) - EBITDA Research & Development expenditure, net (69) (74) (67) (63) 6 (267) Investments in property, plant and equipment and intangible assets Segment assets February 22, 2012 I 50

51 Half year segment information H2-10 and H2-11 (in m) Second-half 2011 Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (68) - EBITDA Research & Development expenditure, net (81) (59) (75) (59) 2 (276) Investments in property, plant and equipment and intangible assets Segment assets Second-half 2010 (in m) Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (54) - EBITDA Research & Development expenditure, net (71) (72) (66) (58) (3) (270) Investments in property, plant and equipment and intangible assets Segment assets February 22, 2012 I 51

52 Highlights by segment FY-10 and FY-11 (in m) FY-2011 Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (128) - EBITDA Research & Development expenditure, net (153) (130) (154) (124) - (561) Investments in property, plant and equipment and intangible assets Segment assets (in m) FY-2010 Comfort and Driving Assistance Systems Powertrain Systems Thermal Systems Visibility Systems Others TOTAL Net sales segment (excluding Group) intersegment (Group) (103) - EBITDA Research & Development expenditure, net (140) (146) (133) (121) 3 (537) Investments in property, plant and equipment and intangible assets Segment assets February 22, 2012 I 52

53 Safe Harbor Statement Statements contained in this press release, which are not historical fact, constitute Forward- Looking Statements. Actual results may differ materially due to numerous important factors and risks 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. Risks to which Valeo is exposed include, in particular, risks relating to the antitrust investigations described above, conditions in the automotive industry and certain global and regional economic conditions, as well as risks and uncertainties set out or developed in published documents that Valeo files with the French financial markets authority (Autorité des marchés financiers AMF), including those listed in the "Risk Factors" section of the Registration Document filed with the AMF on March 29, 2011 (under number D ). The Company assumes no responsibility for any estimates issued by analysts or any other information prepared by third parties to which we may refer in this press release. Valeo does not intend or assume any obligation to review or to confirm the estimates issued by analysts or to update any forward-looking statement to reflect events or circumstances after the date of this press release. February 22, 2012 I 53

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