No Slide Title€¦ · Property of VALEO – Duplication prohibited 3 October 20, 2003 Key figures...
Transcript of No Slide Title€¦ · Property of VALEO – Duplication prohibited 3 October 20, 2003 Key figures...
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Q3-2003 RESULTSOctober 20, 2003
Thierry MorinThierry MorinChairman & CEOChairman & CEO
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Key figures
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Property of VALEO – Duplication prohibited 3 October 20, 2003
Key figuresYear-on-year evolution: Q3
Sales
Gross margin% of sales
Operating income% of sales
Net income% of sales
Q3Q3--20032003 Q3Q3--20022002 ∆∆
2,2412,241
38738717.3%17.3%
1051054.7%4.7%
31311.4%1.4%
In million euros
2,0862,086
36436417.4%17.4%
90904.3%4.3%
25251.2%1.2%
-- 7%7%
+ 0.1 pt+ 0.1 pt
-- 0.4 pt0.4 pt
-- 0.2 pt0.2 pt
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Property of VALEO – Duplication prohibited 4 October 20, 2003
Key figuresYear-to-date
Sales
Gross margin% of sales
Operating income% of sales
Net income% of sales
99--monthsmonths20032003
99--monthsmonths20022002 ∆∆
7,4257,425
1,2751,27517.2%17.2%
3453454.6%4.6%
99991.3%1.3%
In million euros
6,9326,932
1,2271,22717.7%17.7%
3303304.8%4.8%
1271271.8%1.8%
-- 7%7%
+ 0.5 pt+ 0.5 pt
+ 0.2 pt+ 0.2 pt
+ 0.5 pt+ 0.5 pt
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Sales
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Property of VALEO – Duplication prohibited 6 October 20, 2003
SalesVariation: Q3
in million euros
Q3-2002 Q3-2003
2,2412,086
Net changeAt constant currencies
(4%)
Gross change(7%)
Currency impact(3%)
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Property of VALEO – Duplication prohibited 7 October 20, 2003
SalesVariation by continent: Q3
Market Valeo*
- 5%
- 13%
Market Valeo**
+ 1%
+ 28%
SouthSouth AmericaAmerica
* at constant currencies** at constant currencies and inflation
NorthNorth AmericaAmericaMarket Valeo*
- 5%- 3%
Market Valeo*
0%
- 4%
AsiaAsia
EuropeEurope
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Profitability
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Property of VALEO – Duplication prohibited 9 October 20, 2003
Gross Margin9-month year-on-year evolution
% of sales
2001 2002 2003
16.2
17.2
17.7
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Property of VALEO – Duplication prohibited 10 October 20, 2003
Gross MarginQuarterly evolution
% of sales
2001
2002
2003
16.5%16.5%
17.7%17.7%17.5%17.5%
18.1%18.1%
15%15%
16.7%16.7%
17.4%17.4%
17%17%
17.3%17.3%
T1 T2 T3 T4
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Property of VALEO – Duplication prohibited 11 October 20, 2003
Gross Margin
Anticipation of a challenging environment in 2004
Renewed momentum in restructuring plan
Associated operational disruptions triggering« friction » costs
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Property of VALEO – Duplication prohibited 12 October 20, 2003
Gross MarginSustained restructuring pace: number of sites
MarMar--0101
SeptSept--0202
JuneJune--0303
SeptSept--0303
139139
130130
125125125
170170170
FranceSpain
(4)(1)
Disposal in progress announced: France (1)
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Property of VALEO – Duplication prohibited 13 October 20, 2003
Gross MarginSustained restructuring pace: number of employees
MarMar--0101
SeptSept--0202
JuneJune--0303
SeptSept--0303
71,00071,000
69,00069,000
67,00067,00067,000
75,00075,00075,000
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Property of VALEO – Duplication prohibited 14 October 20, 2003
Operating expensesIn million euro & % of sales
50
70
90
110
130
150
170
190
Q3-2002 Q3-2003
136136 131131
R&D
6.3%6.1%50
70
90
110
130
150
170
190
Q3-2002 Q3-2003
146146 143143
SG&A
6.5% 6.8%
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Property of VALEO – Duplication prohibited 15 October 20, 2003
Operating Margin9-month year-on-year evolutionIn % of sales
2001 2002 2003
3.5
4.6 4.8
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Property of VALEO – Duplication prohibited 16 October 20, 2003
Net income
● Operating incomein % of sales
● Net financial charge
● Other income and expenses net
● Taxes
● Goodwill amortization
● Minorities and associated companies
● Net incomein % of sales
90904.3%4.3%
(11)(11)
(9)(9)
(20)(20)
(23)(23)
(2)(2)
25251.2%1.2%
1051054.7%4.7%
(15)(15)
(7)(7)
(26)(26)
(23)(23)
(3)(3)
31311.4%1.4%
-- 0.4 pt0.4 pt
-- 0.2 pt0.2 pt
Q3-2002 ∆Q3-2003in million euros
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Cash and balance sheet
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Property of VALEO – Duplication prohibited 18 October 20, 2003
Cash generation
Free cash-flow before dividend and equalizationtax: 49 M€
✚✚ FurtherFurther reductionreduction in in inventoryinventory levellevel✚✚ CAPEX control:CAPEX control:
4.8% 4.8% ofof sales vs 5.7% in Q3sales vs 5.7% in Q3--20022002
-- RestructuringRestructuring costcost: 54 M€: 54 M€
Dividend of 81 M€ paid in July 2003Equalization tax related to dividend payment: 39 M€
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Property of VALEO – Duplication prohibited 19 October 20, 2003
Shareholder’s equity / Net debtin million euro
December 31, 2002 September 30, 2003
Shareholder's Equity Net Debt
2,0252,101
564 471
Gearing: 27% Gearing: 23%
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Prospects andstrategic developments
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Property of VALEO – Duplication prohibited 21 October 20, 2003
Order intake
Ratio to Sales
2001
1.0
2002
1.2
1.3
9 months 2003
Confirmation of expectations: sales outperformanceas from H2-2004
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Property of VALEO – Duplication prohibited 22 October 20, 2003
Contracts and awards
New contractsPower closure systems for VolkswagenFirst order for Lane Departing Warning system
Customer awardsVEC South Africa Supplier award by VolkswagenVCC Italy 1 year zero defect with
DaimlerChrysler
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Property of VALEO – Duplication prohibited 23 October 20, 2003
Strategic alliances
JapanNegotiations in progress with Zexel to reachconsolidation threshold
ChinaCurrent Valeo presence:
– 8 production sites + Asian purchasing office– 5 branches with industrial sites: VT, VCC, VLS, VES, VWS
Expected reinforcement of Valeo’s share in JVs’ capital in several branches (VES, VT, VWS)Forthcoming establishment of all industrial branches
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Property of VALEO – Duplication prohibited 24 October 20, 2003
Potential acquisitions
Selective acquisitions to reinforce thetechnological content of Valeo’s existingproduct lines
enrich integrated systems offer
Several targets currently under review
Opportunistic approach
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Property of VALEO – Duplication prohibited 25 October 20, 2003
Prospects
Q4: challenging environment
Organic sales growth from H2-2004
Positioned to leverage growth in late 2004
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