q3-2005 results - valeo · 2019-05-14 · 4 q3-2005 results- october 21, 2005 quarterly key figures...

Q3-2005 Results

Thierry MorinChairman & CEOThierry MorinChairman & CEOOctober 21, 2005

2Q3-2005 Results- October 21, 2005

Agenda

Quarterly performance

Outlook


Quarter highlights

Organic sales performance ahead of car production benchmark for the second quarter in a row

Operating margin remains robust in spite of raw material headwinds

Strong cash generation; €122m reduction in net financial debt in the quarter

Self-funded Rochester planed closure


Quarterly key figures

ChangeIFRS- In euro million

Total operating revenues

Gross marginas % of net sales

Operating incomeas % of total op. revenues

Net incomeas % of total op. revenues

Net financial debt

Q3-2004Q3-2005

2,139

35916.9%

74*3.5%

381.8%

376

2,381

37015.7%

77*3.2%

301.3%

1,141**

+11.3%

+3.1%-1.2 pt

+4.1%-0.3 pt

-21.1%-0.5 pt

nm

** including impact of IAS 32 & 39 as from January 1, 2005 * Including €7m and €2 m in ‘other expenses’ in 2004 and 2005


Year-To-Date key figures

ChangeIFRS- In euro million


Gross marginas a % of net sales

Operating incomeas a % of total op. revenues

Net incomeas a % of total op. revenues

9 months2004

9 months2005

6,987

1,20717.4%

296*4.2%

221**3.2%

7,476

1,19516.1%

230*3.1%

1031.4%

+7.0%

-1.0%-1.3 pt

-22.3%-1.1 pt

-53.4%-1.8pt

* Including €32m and €50m in ‘other expenses’ in 2004 and 2005 respectively

** Including a €83m tax rebate in Q1


Total operating revenuesIFRS- In euro million

2,139

Net changeat constant currencies

and perimeter

+0.5%

Gross change+11.3%

Currency impact: +2.1%Perimeter impact: +8.7%

2,381

Q3-2004 Q3-2005


North American focusGaining market share at Ford and DaimlerChrysler

Exposure to GM North America further reduced

0

500

1000

2000 2001 2002 2003 2004 2005E0

2

4

6

8

GM- NA GM excl. NA GM- NA as % of sales

OEM

sal

es (€

milli

on)

% of sales


Q3-2005 net salesGeographical trends

North America Europe

Market Valeo

Market ValeoMarket Valeo

+3%

+1%*

Market Valeo

+9%

+29%

South America

* at constant currencies and perimeterSource JD Power LMC, Valeo

- 4%- 1%*

+8%

Asia

+6%*

+5%

+43%

Big 3: -1%+5%

+6%*


Relative regional sales performanceChange in organic sales minus change in weighted LV production

Regional relative sales performance (comparable)

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 est

Europe NA Asia Total

Results


Results (1)

ChangeIn euro million

Net sales

Other operating revenues


Gross marginas % of sales

Q3-2004Q3-2005

2,356

25

2,381

37015.7%

2,126

13

2,139

35916.9%

+10.8%

+92.3%

+11.3%

+3.1%-1.2pt


Gross margin walkdownas % of net sales

Raw Materialprice increase

CustomerComp. Volumes Acquisitions VWS Productivity

16.9% 15.7%

-1.0%

+0.4% +0.0%

-0.3%-0.8%

+0.5%

Gross MarginQ3-2004

Gross MarginQ3-2005


Results (2)

ChangeIn euro million Q3-2004

Gross margin

R&D expensesAs % of total op. revenues

SG&AAs % of total op. revenues

Other income & expensesAs % of total op. revenues

Operating incomeAs % of op. revenues

Q3-2005

370

(158)6.6%

(158)6.6%

(2)0.1%

77*3.2%

359

(145)6.8%

(146)6.8%

(7)0.3%

74*3.5%

+3.1%

+9.0%-0.2pt

+8.2%-0.2pt

-71.4%-0.2pt

+4.1%-0.3pt

* Operating income includes other operating revenues shown below the net sales line in slide 12


Focus on R&D

5

5,5

6

6,5

7

Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05

R&D gross R&D net of other operating revenues

R&D as % of total operating revenues (IFRS)

R&D customer financingR&D customer financing


Results (3)

ChangeIn euro million

Operating income

Cost of net debt

Other financial inc/(expenses)

Income before taxes

TaxesEffective tax rate

Associates

Minority interests

Net income

Q3-2004Q3-2005

77

(16)

(13)

48

(16)33.0%

0

(2)

30

74

(8)

(11)

55

(16)29.1%

1

(2)

38

+4.1%

+100%

+18,2%

-12.7%

-+3.9 pt

-100%

-

-21.1%

Balance sheet


Shareholder’s equity and net debtin euro million

Jan. 1, 2005 June 30, 2005 Sept. 30, 2005

Shareholder's Equity incl. minority interests Net Debt

1,912

500

Gearing: 26% Gearing: 67%

1,141

1,693*

Gearing: 73%

1,725*

1,263

Debt at 01/01/05- Net operating cash**- Distributions- JCEED and

Zexel acquisitions- Others

Debt at 09/30/05

500(222)

341

43191

1,141

Net Debt walkdown (€m)

Down €122m from June 30, 2005

** including €113m in cash restructuring

* Including the impact of the €250m buy back completed in June


Quarterly business and corporate highlights

BusinessFrankfurt Auto Show featured innovative products/projects including V360 and Camless

CorporateJoint venture with Hangsheng Electronics, a Chinese automotive tier 1 supplier, for the production of ultrasonic products and switchesClosing of the Thailand Climate Control JVs acquisitions (28/09)

– approx. €50m in additional annual sales Stake in Ichikoh raised to 27.6%

RestructuringRochester facility closure by July 2008


Q4-2005 trading outlook

Q4-05 light vehicle production outlookEurope (West and Central): +1% North American Big 3: -2%

Target to outperform our production benchmark

Raw material headwinds to continue

Expect 60-70 bps yoy margin impact


Contact

InvestorInvestor RelationsRelations

Rémy DumoulinRémy Dumoulin43, rue 43, rue BayenBayenFF--75848 Paris Cedex 1775848 Paris Cedex 17FranceFranceTel.: +33 (0) 1.40.55.29.30Tel.: +33 (0) 1.40.55.29.30Fax: +33 (0) 1.40.55.20.40Fax: +33 (0) 1.40.55.20.40EE--mailmail: : [email protected]@valeo.comWeb site: Web site: www.valeo.comwww.valeo.com

mailto:[email protected]

http://www.valeo.com/

Back up


Valeo share price performance YTD

29303132333435363738394041

31/12

/0415

/1/05

30/1/

0514

/2/05

1/3/05

16/3/

0531

/3/05

15/4/

0530

/4/05

15/5/

0530

/5/05

14/6/

0529

/6/05

14/7/

0529

/7/05

13/8/

0528

/8/05

12/9/

0527

/9/05

12/10

/0527

/10/05

∆VALEOCAC 40CAC 40

31/12/0430,80

3821,1631,60

4375,09+2,6%

+14,5%

19/10/05

DJ Stoxx Auto 192,62 227,53 +18,1%

∆


Share InformationShare Data / ADR Data

Share DataBloomberg TickerReuters TickerISIN NumberShares outstanding as per 30.06.2005

FR FPVLOF.PAFR 00013033877,492,849

ADR DataRatio (ordinary share: ADR)Bloomberg TickerReuters TickerISIN NumberTypeExchangeSponsor

1:2VLEEY USVLEEY PKUS 9191343048Level 1OTCJP Morgan Chase


9 months 2004- IFRS P&L adjustments 9 months-2004 (in euro million)

Restat. Reclassif.FrenchGAAP

7,107-

7,107(5,848)1,25917.7%(446)(140)(332)

-341

4.8%(21)

--

(84)236(18)2185

(67)156(22)134

1.9%

IFRS

6,94344

6,987(5,736)1,20717.4%(449)(138)(336)(32)296

4.2%-

(25)(29)

-242(17)2254-

229(8)221

3.2%

(151)8

(143)117(34)

292-16

-(1)1-617

(1)67731487

(13)3623(5)(18)

(32)-

(4)(33)(51)

21(24)(30)84--------

TotalAdjust.

(164)44

(120)112(52)

(3)2

(4)(32)(45)

21(25)(29)84617

(1)67731487

NET SALESOther operating revenuesTOTAL OPERATING REVENUESCost of salesGROSS MARGIN

as % of net salesResearch & Development expenditureSelling expensesAdministrative expensesOther income and expensesOPERATING INCOME

as % of total operating revenuesNet financial expenseCost of net debtOther financial income and expenses Other income/expense-net INCOME BEFORE INCOME TAXESIncome taxesNET INCOME FROM CONSOLIDATED COMPANIESEquity in net earnings of associated companiesAmortization of goodwill NET INCOME BEFORE MINORITY INTERESTSMinority interestsNET INCOME

as % of total operating revenues


Quarterly P&L (IFRS)

NET SALESOther operating revenuesTOTAL OPERATING REVENUESGROSS MARGIN

as % of net salesResearch & Development expenditureSelling expensesAdministrative expensesOther income & expensesOPERATING INCOME

as % of operating revenuesCost of net debtOther financial income and expenseINCOME BEFORE INCOME TAXES

Income taxesNET INCOME FROM CONSOLIDATEDCOMPANIESEquity in net earnings of associated companiesNET INCOME BEFORE MINORITY INTERESTSMinority interestsNET INCOME

2,72229

2,751448

16.5%(173)(51)(124)(31)98

3.6%(13)(15)70

(25)45

651(3)48

2,32420

2,344377

16.2%(161)(47)(117)(17)55

2.3%(11)(8)36

(10)26

(1)250

25

2,36217

2,379408

17.3%(152)(49)(116)20)88

3.7%(9)(9)7036106

1107(2)105

2,45514

2,469440

17.9%(152)(47)(116)(5)134

5.4%(8)(9)117(37)80

282(4)78

2,35625

2,381370

15.7%(158)(46)(112)(2)77

3.2%(16)(13)48

(16)32

032(2)30

2,12613

2,139359

16.9%(145)(42)(104)(7)74

3.5%(8)

(11)55

(16)39

140(2)38

(in euro million) 1Q-20041Q-2005 2Q-20042Q-2005 3Q-20043Q-2005

q3-2005 results - valeo · 2019-05-14 · 4 q3-2005 results- october 21, 2005 quarterly key figures...

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