Grow further the new focused Valeo Investor Day, March 2011
International and focused top management in place Edouard Michel Boulain Géric Lebedoff Martin Haub Hans-Peter Jacques Robert Charvier Christophe Perillat de Pirey HR General Counsel R&D and Kunze CFO COO Aschenbroich Prod. Marketing Corp. Strategy Sales & Business CEO & Planning Dvpt Michael Schwenzer Claude Leichlé Alain Marmugi Marc Vrecko Robert de la Serve Antoine Thermal Systems Comfort & Driving Valeo Service Doutriaux Powertrain Systems Powertrain Systems Assistance Systems Visibility Systems March 9 th 2011 Investor day I 2 I
My diagnosis in March 2010 Strengths Brand Quality Operational excellence & reactivity Committed people Global presence & diversified customer base Global leadership on most product lines Innovation Healthy financial situation March 9 th 2011 Investor day I 3 I
My diagnosis in March 2010 Strengths “0 km quality” “0 km quality” 27 ppm Brand 22 ppm Quality 17 ppm Operational excellence & reactivity 9.3 ppm 8.6 ppm Committed people Global presence & diversified customer base 2006 2007 2008 2009 2010 Global leadership on most product lines Innovation Healthy financial situation March 9 th 2011 Investor day I 4 I
My diagnosis in March 2010 Strengths Customer portfolio Brand Customer portfolio 28% 2010 2010 Quality German Operational excellence 23% & reactivity French* Committed people 9% Global presence & diversified Others customer base Global leadership on most 18% 22% product lines Asian** American Innovation Healthy financial situation * Excluding Nissan ** Including Nissan March 9 th 2011 Investor day I 5 I
My diagnosis in March 2010 Strengths Brand Powertrain Systems Thermal Systems Quality Electrical Transmission Global Thermal Systems Systems Systems Operational excellence & reactivity #1 #2 #2 Committed people Comfort and Driving Visibility Systems Assistance Systems Global presence & diversified Driving Interior Wipers Lighting customer base Assistance Controls Systems Systems Global leadership on most #1 #1 #1 #2 product lines Innovation Healthy financial situation March 9 th 2011 Investor day I 6 I
My diagnosis in March 2010 Strengths Weaknesses Brand Unfocused strategy Quality Lack of growth Operational excellence & reactivity Poor profitability Committed people Obsolete organization Global presence & diversified customer base Global leadership on most product lines Innovation Healthy financial situation March 9 th 2011 Investor day I 7 I
My diagnosis in March 2010 Our commitments Weaknesses for the new Valeo Unfocused strategy Focus on CO 2 emissions reduction in all market segments Lack of growth Deliver above market organic Poor profitability growth in each region Obsolete organization Actively participate in industry consolidation Best-in-class profitability March 9 th 2011 Investor day I 8 I
I Investor day I 9 new focused Valeo Grow further the Our commitment in March 2011 March 9 th 2011
Ahead of March 2010 strategic plan 1 2 Outperforming the market by 3pt Innovation and new products New customers and geographies 3 Acquisitions on top of organic growth Niles 4 A new profitable model Best in class profitability March 9 th 2011 Investor day I 10 I
CO 2 emissions reduction Energy consumption reduction Grow further the new focused Valeo Asia Emerging countries March 9 th 2011 Investor day I 11 I
CO 2 emissions reduction Energy consumption reduction A crucial need “It’s really important that we have an improvement “It’s really important that we have an improvement Environmental considerations curve on fuel mileage and CO2 reduction.” curve on fuel mileage and CO2 reduction.” Energy independence Alan Mullaly, Jan. 2010 Alan Mullaly, Jan. 2010 Geopolitics “The new energy vehicle is very, very important “The new energy vehicle is very, very important New technologies to be developed because we don’t have enough petroleum resource.” because we don’t have enough petroleum resource.” Electrification of the powertrain Wang Chuanfu, BYD, 2011 Wang Chuanfu, BYD, 2011 Downsizing of the engine Lower energy consumption “Volkswagen is the automaker, which will put “Volkswagen is the automaker, which will put the hybrid forward from a niche car” the hybrid forward from a niche car” Eco-driving assistance Pr. Winterkorn, Geneva 2010 Pr. Winterkorn, Geneva 2010 March 9 th 2011 Investor day I 12 I
The automotive world is 2007 2010 changing 70m vehicles 74m vehicles North America to re-emerge from a very low basis RoW RoW But a strong shift to Asia Especially China: +8m Asia +10m veh Asia vehicles in 2010 vs. 2007 SA SA NA -3m veh NA Europe -3m veh Europe Asia Emerging countries March 9 th 2011 Investor day I 13 I
This trend will continue Production by region 2010 27% 50% 6% 2020e 17% 2000 22% 32% 34% 60% 5% Europe & Africa Asia & Others 13% 30% North America 4% South America March 9 th 2011 Investor day I 14 I
China is the first automotive market today and India will follow Auto Production Index Year 1@ 100 2500 2000 1500 India in 2010 1000 500 China in 1999 0 0 0 0 5 10 15 20 25 No. of years after liberalization* *Year 1 – 1978 for China and 1992 for India March 9 th 2011 Investor day I 15 I
CO 2 emissions reduction Energy consumption reduction First results in 2010 Asia Emerging countries March 9 th 2011 Investor day I 16 I
Outperforming our main regions Full Year OE Sales outperforming the market by 2pts YOY World Production +39%** Production +15%** Valeo OE Sales* +27% +60%* +20%* Production** +25% North America Europe Production +28%** +36%* Production +12%** Asia +8%* South America * OE light vehicle sales at same perimeter & exchange rates ** JD Power estimates March 9 th 2011 Investor day I 17 I
Outperforming Asian market by 8% Production +28%** +36%* Asia Production +22%** Production +22%** 19% of sales +19%* +38%* Japan Korea Production +31%** 30% of sales 19% of sales +48%* China Production +34%** 40% of sales +81%* India 4% of sales * OE Light vehicle sales at same perimeter & exchange rates ** JD Power estimates March 9 th 2011 Investor day I 18 I
Ahead of the 2013 plan presented in March 2010 2013 2007 2009 2010 as announced in March 2010 9,567 7,499 Sales (in million euros) 9,632 10,000 Operating Margin 3.6% 1.8% 6.4% 6-7 % (as % of sales) Capital turnover 4 4 5 5 ROCE* 14% 7.1% 32% >30% *Operating margin / capital employed excluding goodwill March 9 th 2011 Investor day I 19 I
A new horizon for 2015 €14bn Sales at 2010 perimeter, ie. Organic growth only 2009 2010 2015 8.1% 7,499 Sales (in million euros) 9,632 ~14,000 CAGR** Operating Margin 1.8% 6.4% >7% (as % of sales) Capital turnover 4 5 5 ROCE* 7.1% 32% >30% *Operating margin / capital employed excluding goodwill ** OEM Sales March 9 th 2011 Investor day I 20 I
Ahead of March 2010 strategic plan 1 2 Outperforming the market by 3pt Innovation and new products New customers and geographies 3 Acquisitions on top of organic growth Niles 4 A new profitable model Best in class profitability March 9 th 2011 Investor day I 21 I
Grow further the new focused Valeo Find the right balance between growth and profit March 9 th 2011 Investor day I 22 I
€14 bn Sales by 2015 Outperforming the market by 3pt In a 5% CAGR worldwide production hypothesis March 9 th 2011 Investor day I 23 I
Innovation New customers & new products & geographies Outperforming the market by 3pt March 9 th 2011 Investor day I 24 I
Innovation R&D expenses 6% of Sales & new products A key driver for growth in each of the Business Groups March 9 th 2011 Investor day I 25 I
Innovation A strong pipeline of innovations & new products Already in production Stop and start to become a standard to become a standard LEDs Battery cooling 360 View March 9 th 2011 Investor day I 26 I
Innovation A strong pipeline of innovations & new products Already in production Ordered Double clutch Aquablade & Direct drive Touchscreen Center Console Combined Charge air cooler and Air intake March 9 th 2011 Investor day I 27 I
Innovation A strong pipeline of innovations & new products Ordered Development contracts Range extender Laser scanner Sensor fusion Full electric drivetrain March 9 th 2011 Investor day I 28 I
Innovation A strong pipeline of innovations & new products Development contracts New innovations Electrical driven compressor Energy recovery Electrical motors eSkin Eco-driving assistance… March 9 th 2011 Investor day I 29 I
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