Thierry Morin Chairman & CEO

Transcription

1 Q RESULTS October 20, 2003 Thierry Morin Chairman & CEO

2 Key figures

3 Key figures Year-on-year evolution: Q3 In million euros Q Q Sales 2,086 2,241-7% Gross margin % of sales % % pt Operating income % of sales % % pt Net income % of sales % % pt Property of VALEO Duplication prohibited 3 October 20, 2003

4 Key figures Year-to-date In million euros 9-months months 2002 Sales 6,932 7,425-7% Gross margin % of sales 1, % 1, % pt Operating income % of sales % % pt Net income % of sales % % pt Property of VALEO Duplication prohibited 4 October 20, 2003

5 Sales

6 Sales Variation: Q3 in million euros 2,241 Gross change (7%) Currency impact (3%) 2,086 Net change At constant currencies (4%) Q Q Property of VALEO Duplication prohibited 6 October 20, 2003

7 Sales Variation by continent: Q3 Market North America Valeo* Market Europe Valeo* -5% -5% -3% - 13% South America Market Valeo** Market Asia Valeo* + 28% 0% -4% + 1% * at constant currencies ** at constant currencies and inflation Property of VALEO Duplication prohibited 7 October 20, 2003

8 Profitability

9 Gross Margin 9-month year-on-year evolution % of sales Property of VALEO Duplication prohibited 9 October 20, 2003

10 Gross Margin Quarterly evolution % of sales 18.1% % 17.7% 17.4% 17.3% % 16.7% 17% % T1 T2 T3 T4 Property of VALEO Duplication prohibited 10 October 20, 2003

11 Gross Margin Anticipation of a challenging environment in 2004 Renewed momentum in restructuring plan Associated operational disruptions triggering «friction» costs Property of VALEO Duplication prohibited 11 October 20, 2003

12 Gross Margin Sustained restructuring pace: number of sites 170 Mar-01 Sept June Sept-03 France Spain (4) (1) Disposal in progress announced: France (1) Property of VALEO Duplication prohibited 12 October 20, 2003

13 Gross Margin Sustained restructuring pace: number of employees 75,000 Mar-01 Sept-02 71,000 June-03 69,000 Sept-03 67,000 Property of VALEO Duplication prohibited 13 October 20, 2003

14 Operating expenses In million euro & % of sales R&D SG&A % 6.3% % 6.8% Q Q Q Q Property of VALEO Duplication prohibited 14 October 20, 2003

15 Operating Margin 9-month year-on-year evolution In % of sales Property of VALEO Duplication prohibited 15 October 20, 2003

16 Net income in million euros Q Q Operating income in % of sales % % pt Net financial charge (11) (15) Other income and expenses net (9) (7) Taxes (20) (26) Goodwill amortization (23) (23) Minorities and associated companies (2) (3) Net income in % of sales % % pt Property of VALEO Duplication prohibited 16 October 20, 2003

17 Cash and balance sheet

18 Cash generation Free cash-flow before dividend and equalization tax: 49 M Further reduction in inventory level CAPEX control: 4.8% of sales vs 5.7% in Q Restructuring cost: : 54 M Dividend of 81 M paid in July 2003 Equalization tax related to dividend payment: 39 M Property of VALEO Duplication prohibited 18 October 20, 2003

19 Shareholder s equity / Net debt in million euro 2,101 2,025 Gearing: 27% Gearing: 23% December 31, 2002 September 30, 2003 Shareholder's Equity Net Debt Property of VALEO Duplication prohibited 19 October 20, 2003

20 Prospects and strategic developments

21 Order intake Ratio to Sales months 2003 Confirmation of expectations: sales outperformance as from H Property of VALEO Duplication prohibited 21 October 20, 2003

22 Contracts and awards New contracts Power closure systems for Volkswagen First order for Lane Departing Warning system Customer awards VEC South Africa VCC Italy Supplier award by Volkswagen 1 year zero defect with DaimlerChrysler Property of VALEO Duplication prohibited 22 October 20, 2003

23 Strategic alliances Japan Negotiations in progress with Zexel to reach consolidation threshold China Current 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 Property of VALEO Duplication prohibited 23 October 20, 2003

24 Potential acquisitions Selective acquisitions to reinforce the technological content of Valeo s existing product lines enrich integrated systems offer Several targets currently under review Opportunistic approach Property of VALEO Duplication prohibited 24 October 20, 2003

25 Prospects Q4: challenging environment Organic sales growth from H Positioned to leverage growth in late 2004 Property of VALEO Duplication prohibited 25 October 20, 2003

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