2002 RESULTS 2003 OUTLOOK...+1 pt +1.2 pt 9,803 1,702 17.4% 487 5.0% 230 135 1.4% ... 2001 2002...
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2002 RESULTS & 2003 OUTLOOK Bruno-Roland Bernard, Director of Financial Relations
Transcript of 2002 RESULTS 2003 OUTLOOK...+1 pt +1.2 pt 9,803 1,702 17.4% 487 5.0% 230 135 1.4% ... 2001 2002...
2002 RESULTS&
2003 OUTL O O K
B r u n o- Roland Bernard,
Director of Financial Relat ions
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k2
Key figures
(in mill ion e u r o )
• Sa les
• Gross Margin% s a l e s
• Operat ing i n c o m e% s a l e s
• Net income before goodwi l l
• Net i ncome% s a l e s
First 9months 2002* Q 4-2002* 2002 2001 ∆
10,234
1,67516.4%
3883.8%
(471)
(591)(5.8%)
7,425
1,27517.2%
3454.6%
172
991.3%
2,378
42718.0%
1426.0%
58
361.5%
- 4%
+1 pt
+1.2 pt
9,803
1,70217.4%
4875 .0%
230
1351 .4%
*u n a u d i t e d q u a r t e r l y d a t a
Sales & Market
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k4
Change in sales
•• 2002 sales2002 sales
•• Gross var iat ionGross var iat ion
– Changes in perimeter– Currencies
•• Net variationNet variation
9.8 billion 9.8 billion eu roseuros
-- 4.2%4.2%
- 2.4 %- 1.4%
-- 0.4 %0.4 %
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k5
Sales by region
North America
% sales: 24%
% change*: +1%Production : +6%: +6%
South America
*at c o n s t a n t p e r i m e t e r a n d c u r r e n c i e s
Asia
% sales: 3% % sales: 6%+Zexel JV, Ichikoh and others (~ 1,900 M euros)
% change*: -2%Production: -5%
% change*: +17%Production: +10%
Europe
% sales: 66%
% change*: -2%Production: -2%
Results
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k7
Gross marginQuater ly improvement*
Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02
2002
2001
+1.0 pt
15.0
16.7
17.0 17.0
16.5
17.7
17.3
18.0
*u n a u d i t e d q u a r t e r l y f i g u r e s
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k8
Gross marginOngo ing actions (1)
l Rationalization of industrial footprint
l Rationalization of logist ics
l Increased supplier integration
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k9
l Rationalization of industrial footprint– Geographica l reorganizat ion
Gross marginOngo ing actions (2)
Europe
United States
Brazil
Morocco
(2)
(2)
(4)
+1
+1
+3
31/12/2001143 sites
31/12/2002140 sites
Q1/2001170 sites
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k10
Gross marginOngo ing actions (3)
l Rationalization of industrial footprint– Geographica l reorgan izat ion– Increased Standardizat ion
• Manufacturing process• Equipment• Components
– V E S I
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k11
Gross marginOngo ing actions (4)
l Rationalization of industrial tool– Geographica l reorgan izat ion– Increased standardizat ion– V E S I
• Out of Chapter 11: September 2002• Rochester headcount
- mid -1998: 4,500- D e c e m b e r 2001: 2,600- January 2003: 1,800
• Rochester Operating loss- 2001 : - 63 M$- 2002 : - 33 M$
• 2004 Goal: < 1000 employees. Wipers è Rochester. Motors è Juarez
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k12
Gross marginOngo ing actions (5)
l Rationalization of industrial footprint
l Rationalization of logist ics– Implementat ion of new logistics function – Reduced number of carriers
• Q 1-2001: 1,090• December 2001 : 875• December 2002 : 410
– Contribution to inventory l eve l decrease
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k13
Gross marginOngo ing actions (5)
l Rationalization of industrial tool
l Rationalization of logist ics
l Increased supplier integration– Vo lume concentrat ion
- Q 1 -2001: 4,500 suppliers- D e c e m b e r 2001: 3,600 suppliers- D e c e m b e r 2002: 3,000 suppliers
– Valeo Integrated Partners : 80– « G i v e An I dea Now » program– Purchas ing on line : 1 billion euros
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k14
Operating incomeQuater ly improvement*
Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02
2002
2001
+1.2 pt
2.0
4.54.2
4.6
3.8
5.4
4.7
6.0
*u n a u d i t e d q u a r t e r l y f i g u r e s
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k15
Operating income
Gross margin% s a l e s
R & D% s a l e s
S G & A% s a l e s
Operating income% s a l e s
2002 2001 ∆
1,67516.4%
(619)6.0%
(668)6.5%
3883.8%
+ 1 pt
+ 1.2 pt
1,7021 7 . 4 %
(577)5 . 9 %
(638)6 . 5 %
4875 . 0 %
(in mill ion e u r o )
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k16
Asbestos exposure
l Products containing asbestos never manufactured in North America
l Since 1989, asbestos eliminated from productsin Europe
l Financial exposure
– Total risk hedged: 40 M euros• 35 M euros in provisions• 5 M eu ros cove red by insurance
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k17
Pension benefitsand related items
l Obligations: 851 M euros
Hedge ratio: 89 %• provisions : 642 M euros
(incl. Nor th Amer ica 277 M e u r o s )
• invested assets : 118 M euros
l Equity risk limited to invested assetsèè no impact on 2002 results
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k18
P&L
• Operating income
• F inanc ia l expenses -net
• Other income and expenses - net• T a x e s
Ef fect ive ra te
• Net income before goodwill
• Net income
2002 2001
388
(62)
(738)(42)n.s.
(471)
(591)
487
(62)
(74)(106)
3 0 . 2 %
230
135
(in mill ion e u r o )
Balance sheet & cashf low
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k20
Cashf low
Net debt down by 84 M euros to 564 M euros
• Net operational cash (before restructuring)– o/w change in operat ing work ing capital
• Ne t CAPEX
• Balance before restructur ing
• Restructuring
• Net cash f rom operat ing and invest ing act iv i t ies
+1 032+203
- 583
+449
-230
+ 219
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k21
Industrial efficiency and working capital
( in % o f sa les)*
7.6
6.4
* e x c l u d i n g t r a n s f e r r e d b u s i n e s s
3.8
2.1
-17%
-45%
2001 2002
Inventories WC
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k22
Shareholders’ equity / net debt
12/31/2001 12/31/2002
Shareholders' equity Net debt
2,262
648 564
2,101
Gear ingGear ing : 29%: 29%
(in million euro)
Gear ingGear ing : 27%: 27%
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k23
Provisions for reorganization expenses
12/31/2001 12/31/2002Utilizationsand reclassif ications
Written back Currenc ies
740
- 326
-9- 40
365
(in million euro)
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k24
Dividend per share
l Total yield (F e b. 2003):5.5 %
l P a y out ratio:61 %
2001 2002 proposal
Tax credit
Net 0.70
0.35
1.00
0.501.05
1.50
Div idends (82 M euros)Share cancel lat ion (51 M euros)
( in e u r o )
Outlook
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k26
Return on assets
l Restored margins of maneuver
l Goal: Increasing return on assets
Profitability
Assets
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k27
Increasing profitability
Profitability
Assets
• Sales growth
• Cost base control
• Selective disposal program
• Optimal use of assets
• Investment control
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k28
Order intake
2001 2002
1.0
1.2Sales rat io
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k29
Expected increase in sales
l S u c c e s s achieved during range renewal– Discriminating factors
• compet i t i veness• quality• global capacity
– example : Climate Control contract
l New products generated from R&D – Differentiating factor: technological offer
• Starter- alternators• Ultrasonic park assist system with slot measurement• Bending l ight system and bi- x enon l amps• Combined the rma l sys tems…
– Technology importer (Raytheon)
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k30
Assets
Profitability
Assets
• Sales growth
• Cost base control
• Selective disposal program
• Optimal use of assets
• Investment control
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k31
Optimal use of assets
l Industrial efficiency– Standardizat ion– W C m a n a g e m e n t
l Asset turnover– 2001: 3.3– 2002: 3.8
l CAPEX contro l
– Stabilized at 6% of sales
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k32
Human resources
2000 2001 2002
13.9
10.3
7.8
( in %)Turnover o f Eng ineers and M a n a g e r s
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k33
2003 market prospects
l High inventory levels in United States
l Weak demand in Europe and North America
Fall in vo lumes
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k34
Valeo in 2003
l Change in the management s tructure
l Higher order intake
l Sales in line with market
l Cont inu ing operating improvement
2 0 0 2 R e s u l t s & 2 0 0 3 O u t l o o k35
Valeo in 2003
l Change in the management s tructure
l Higher order intake
l Sales in line with market
l Cont inu ing operating improvement
