Post on 27-May-2020
Q3 2014 SalesJacques Aschenbroich – CEO
October 21, 2014 I 1
October 21, 2014
Jacques Aschenbroich – CEO
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
October 21, 2014 I 2
� Aftermarket sales up 1% on a reported basis � down 1% on a like-for-like basis(1)
(1) Constant Group structure and exchange rates.(2) Including Valeo Sylvania
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
World +7.3% +6.6pts*like-for-like **vs automotive production
2014 outlook
Based on the automotive production assumptions published in the H12014 results:
� World: growth of approximately 3%
� Europe: growth of approximately 2%
October 21, 2014 I 3
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
Sales of €3.1bn, up 10% as reported,
up 6%
October 21, 2014 I 4
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
+8%*+10%**Like-for-like growth
Total sales up 10% as reported, up 6% like-for-likeYTD sales up 8% like-for-like
+6%*
October 21, 2014 I 5
3,069
6,347
9,416
Q3 14 H1 14 YTD 14
As reported +8%
Exchange rates -2.1%
Perimeter +1.7%
As reported +7%
Exchange rates -3.1%
Perimeter +0.4%
€m
As reported +10%
Exchange rates 0.0%
Perimeter +4.3%
OEM sales
OEM sales up 13% on a reported basis, up 7% like-for-likeAftermarket up 1% on a reported basis, down 1% like-for-like
Aftermarket
+1%**
X,XXX2,516
366
7531,119
Q3 14 H1 14 YTD 14
+1%**
+9%*+10%**Like-for-likegrowth
+2%*+3%*
+7%*
+1%**
-1%*
October 21, 2014 I 6
2,644
5,432
8,076
Q3 14 H1 14 YTD 14
Miscellaneous
59
162221
Q3 14 H1 14 YTD 14
+9%**
Exchange rates -2.1%
Perimeter 2.2%
+8%**
Exchange rates -3.2%
Perimeter +0.7%
+5%*+16%*-14%*
**Change as reported
-8%**+3%**-29%**
+13%**
Exchange rates 0.0%
Perimeter 5.3%
€m
Europe*OEM sales** +8.9%
Production***-0.2%
Asia* excl. China
North AmericaOEM sales** +4.2%
Production*** +3.8% 49% of Valeo sales
22% of Valeo sales
Outperf.+0.4pts
Outperf.+9.1pts
Outperf.+5.3pts
WorldOEM sales** +7.7%
Production***+0.7%
Outperf.+7.0pts
Q3
OEM sales outpaced the global market by 7 pointsOutperformance in China of more than 20 points and in Europe of more than 9 points
Like-for-like proforma 2014
October 21, 2014 I 7
Asia* excl. ChinaOEM sales** +5.1%
Production***-0.2%
South AmericaOEM sales** -21.7%
Production***-19.5%
13% of Valeo sales
3% of Valeo sales
Underperf.-2.2pts
13% of Valeo sales
Outperf.+20.4pts
ChinaOEM sales** +25.4%
Production***+5.0%
* Europe including Africa; Asia including Middle East
** Valeo OEM sales by destination***LMC estimates – light vehicle production
Europe*OEM sales** +9.4%
Production***+3.2%
Asia* excl. China
North AmericaOEM sales** +7.7%
Production*** +3.4% 50% of Valeo sales
21% of Valeo sales
Outperf.+4.3pts
Outperf.+6.2pts
Outperf.+7.4pts
WorldOEM sales** +9.9%
Production***+2.7%
Outperf.+7.2pts
YTD
OEM sales outpaced the global market by more than 7 pointsOutperformance in all production regions
Like-for-like proforma 2014
October 21, 2014 I 8
Asia* excl. ChinaOEM sales** +8.4%
Production***+1.0%
South AmericaOEM sales** -16.0%
Production***-18.9%
13% of Valeo sales
4% of Valeo sales
Outperf.+2.9pts
12% of Valeo sales
Outperf.+23.5pts
ChinaOEM sales** +32.0%
Production***+8.5%
* Europe including Africa; Asia including Middle East
** Valeo OEM sales by destination***LMC estimates – light vehicle production
Asia excl.
Eastern Europe &
Africa14%
Asia excl.
Eastern Europe &
Africa 13%
WesternEurope
WesternEurope
OEM sales by production regionSales including joint-ventures consolidated proportionally
Geographic repositioning Asia and North America (US & Mexico) both up 1 pointWestern Europe down 2 points
October 21, 2014 I 9
Q3 2014
US11%
Mexico10%
SA 3%
China14%
Asia excl. China14%
US10%Mexico
10%
SA4%
China 13%
Asia excl. China14%
54% in Asia& emergingcountries
Q3 2013
Europe36%
Europe34%
55% in Asia& emergingcountries
Asia excl.
Eastern Europe &
Africa14%
Asia excl.
Eastern Europe &
Africa 14%
Western WesternEurope
OEM sales by production regionSales including joint-ventures consolidated proportionally
Geographic repositioning North America (US & Mexico) up 2 points, Asia up 1 point Western Europe down 1 point
October 21, 2014 I 10
2014
US10%Mexico
10%
SA 3%
China13%
Asia excl. China14%
US9%Mexico
9%
SA5%
China 12%
Asia excl. China14%54% in Asia
& emergingcountries
2013
Europe37%
Europe36%
54% in Asia& emergingcountries
YTD end-September
French* 16%
Other6%
Balanced customer portfolioGerman and Asian customers stable at 30% and 26% respectively, American customers up 1 point, French customers down 1 point
French*17%
Other 6%
German30%
German30%
% of OEM salesSales including joint-ventures consolidated proportionally
October 21, 2014 I 11
Asian**26%
American22%
2014
Asian** 29%
American 21%
2013
* Excluding Nissan** Including Nissan
Asian**26%
Asian**26%
YTD end-September
YTD total sales
change(on a reported
basis)
OEM sales growth (like-for-like)
Q3 H1 YTD
-1% +13% +16%
Above-market growth in all Business Groups
+15%CDA**
CDA 18%
PTS26%
THS29%
VIS27%
Group€3.1bn
% Q3 2014 sales
October 21, 2014 I 12
-1% +13% +16%
+6% +3% +8%
+7% +6% +10%
+20% +9%* +12%*Visibility
Thermal
+15%
+8%
CDA**
Powertrain +7%
+11%*
*2014 perimeter** Comfort & Driving Assistance
2014 outlook
October 21, 2014 I 13
2014 outlook
2014 outlook
Based on the automotive production assumptions published in the H12014 results:
� World: growth of approximately 3%
� Europe: growth of approximately 2%
October 21, 2014 I 14
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
Contact
Investor Relations
Thierry Lacorre43, rue BayenF-75848 Paris Cedex 17FranceTel.: +33 (0) 1.40.55.37.93
October 21, 2014 I 15
Tel.: +33 (0) 1.40.55.37.93Fax: +33 (0) 1.40.55.20.40E-mail: thierry.lacorre@valeo.comWeb site: www.valeo.com
Share Information
FR FPVLOF.PAFR 00013033879,462,540
Share Data
• Bloomberg Ticker• Reuters Ticker• ISIN Number• Shares outstanding as of September 30, 2014
October 21, 2014 I 16
ADR Data
• Ticker/trading symbol• CUSIP Number• Exchange• Ratio (ADR: ord)• Depositary Bank• Contact at J.P. Morgan – ADR
broker relationship desk
VLEEY919134304OTC1:2J.P. MorganJim Reeves+1 212-622-2710
Back-up
October 21, 2014 I 17
Quarterly informationIn €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
Comfort & DrivingAssistance Systems 623 569 515 531 552 572 573
PowertrainSystems 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
October 21, 2014 I 18
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
OE sales 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
Total sales 2,927 3,017 2,792 2,926 3,112 3,235 3,069
� OE & aftermarket sales
Total sales 2,927 3,017 2,792 2,926 3,112 3,235 3,069
Comfort & Driving Assistance Systems H1 2014 key figures:• Sales: €1.1bn (18% of Group sales)• Ebitda: 14.2% (22% of Group Ebitda)
2013 key figures:• 13,431 employees• 23 production units• 9 development centers• 7 research centers
Market share* and competitors:
- Driving Assistance: Valeo no.1Valeo+Bosch+Continental > 60%*
- Interior Controls: Valeo no.1Valeo+Kostal+Tokai Rika > 25%*
Sales performanceGrowth rate on a like-for-like basis
5731,124
1,697
Q3 14 H1 14 YTD 14
+13%
+11%
Total sales (€m)
Total sales -change asreported
OEM sales Like-for-likechange
+16%
-6%
+15%
-1%
October 21, 2014 I 19
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
Valeo+Kostal+Tokai Rika > 25%*
* 2013 Valeo estimate
reported
Powertrain SystemsH1 2014 key figures:
• Sales: €1.7bn (26% of Group sales)• Ebitda: 12.4% (28% of Group Ebitda)
2013 key figures:• 18,769 employees• 32 production units• 16 development centers• 5 research centers
Market share* and competitors:
- Transmission Systems: Valeo no.2Luk+Valeo+ZF Sachs = 45%*
- Electrical Systems: Valeo no.1Valeo+Denso+Bosch = 70%*
Sales performanceGrowth rate on a like-for-like basis
7981,696
2,494
Q3 14 H1 14 YTD 14
+3%
+6%
Total sales (€m)
OEM sales Like-for- likechange
+8%
+7%
+7%
+6%Total sales -change asreported
October 21, 2014 I 20
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
Valeo+Denso+Bosch = 70%*
*2013 Valeo estimate
reported
Thermal SystemsH1 2014 key figures:
• Sales: €1.8bn (28% of Group sales)• Ebitda: 11.0% (27% of Group Ebitda)
2013 key figures:• 18,128 employees• 45 production units• 7 development centers• 2 research centers
Market share* and competitors:
- Thermal Systems: Valeo no.2Denso+Valeo+Halla (Visteon) = 50%*
Sales performanceGrowth rate on a like-for-like basis
8891,814
2,703
Q3 14 H1 14 YTD 14
+6%
+7%
Total sales (€m)
OEM sales Like-for-likechange
+10%
+7%
+8%
+7%Total sales -change asreported
October 21, 2014 I 21
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
reported
Visibility SystemsH1 2014 key figures:
• Sales: €1.8bn (28% of Group sales)• Ebitda: 9.3% (23% of Group Ebitda)
2013 key figures:• 23,012 employees• 33 production units• 13 development centers• 4 research centers
Market share** and competitors:
- Lighting Systems: Valeo no.2Koito+Valeo+Magnetti Marelli > 50%*
- Wiper Systems: Valeo no.1Valeo+Bosch+Denso = 75%*
Sales performanceGrowth rate on a like-for-like basis
8561,801
2,657
Q3 14 H1 14 YTD 14
+9%*
+20%
Total sales (€m)
OEM sales Like-for- likechange
+12%*
+20%
+11%*
+20%Total sales -change asreported
October 21, 2014 I 22
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
Valeo+Bosch+Denso = 75%*
*2014 perimeter**2013 Valeo estimate
reported
Safe Harbor Statement
Statements contained in this report, which are not historical fact, constitute “Forward-LookingStatements”. Even though Valeo’s management feels that the Forward-Looking Statements arereasonable, investors are put on notice that actual results may differ materially due to numerous importantfactors, risks and uncertainties to which Valeo is exposed. Such factors include, among others, thecompany’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually orcompetitively required price reductions. The risks and uncertainties to which Valeo is exposed are mainlythe risks resulting from the investigations currently being carried out by the antitrust authorities as theyhave been identified in the Registration Document and any legal actions which could arise as a result ofthese investigations, operational risks which relate to being a supplier in the automotive industry and to the
October 21, 2014 I 23
development of new products and risks due to certain global and regional economic conditions. Alsoincluded are environmental and industrial risks as well as risks and uncertainties described or identified inthe public documents submitted by Valeo to the French “Autorité des marchés financiers” (AMF), includingthose set out in the “Risk Factors” section of Valeo’s Registration Document registered at the AMF onMarch 28, 2014 (ref. no. D.14-0234).
The company assumes no responsibility for any estimates made by analysts and any other informationprepared by third parties which may be used in this report. Valeo does not intend to, or assume anyobligation to, review or to confirm the estimates of analysts or to update any Forward-Looking Statementsto reflect events or circumstances which occur after the date of this report.
October 21, 2014 I 24