15.07
London, 16 March 2015 – Valeo (Euronext: FR) unveils new medium-term objectives:
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A turnover of over 20 billion euros ([1]:
#_ ftn1) 2020, thanks to the commercial success of its innovations and decision-record level of orders in recent years. This would represent an average annual growth over the period 2015/2020 than 5 points in global automotive production. -
Improved profitability and the generation of Cash Flow free (2) to 2020:
During the investor day, Jacques Aschenbroich, CEO, Christophe Perillat, Director of Operations Robert Charvier, CFO and executive teams of four Business Groups will present the new strategic plan based on the continued growth of the Group in the areas of reduced CO 2 and improving vehicle performance and the intuitive operation and the Group’s expansion in Asia and emerging countries.
The new medium-term financial targets will be presented during the day. Participants will also have the opportunity to discover the latest innovations Valeo and attend demonstrations and product testing.
Valeo’s growth strategy is based on:
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a leader and an effort to support research and development in the areas of reduced CO 2 , and improving the performance of vehicles, and the intuitive operation; and
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strengthening its presence in Asia and in emerging countries .
A world leader in the fields of reduction of CO 2 and intuitive driving (especially autonomous vehicle), Valeo intends to continue its effort in research and development to meet the needs of its customers.
Valeo has solid foundations through customers and diversified geographic positioning, with an increased presence in high growth potential regions, namely Asia and emerging countries. The strengthening of this trend over the next 5 years, should contribute to continued geographic repositioning Valeo with more than one third of its turnover OEM in Asia (28% in 2014) and the order of 40% in Europe (49% in 2014) in 2020.
Focus on accelerating organic growth , improved profitability and the generation of Cash Flow free (2)
With the increase in order intake (2) resulting from the success of its innovations (more than a third of Order intake (2) recent years corresponds to innovative technologies (2) ), the Group plans to accelerate its organic growth, increased profitability and its generation of Cash Flow free (2)
Faster organic growth and operational excellence.
Based on the level of order intake (2) in recent years, Valeo reaffirmed its objective to reach, thanks to a product mix supported by the innovation, a higher average annual organic growth of 5 points to that of global automotive production. In the event of a global production average annual growth of 3% over the next 5 years this would result in a turnover of around 17 billion euros (1) in 2017 to exceed 20 billion euros (1) 2020 (compared to revenues of 12.7 billion EUR realized in 2014).
Improvement in operating margin (2)
The Group intends to capitalize on the growth of its revenue to improve its operating margin (2) and profitability. To this end, Valeo’s objective is to achieve by 2020, an operating margin rate (2) between 8 and 9%, compared to the rate of 7.2% achieved in 2014. In 2017, operating margin (2) should be of the order of 8%.
Improved generation of Cash Flow free (2) :
After 4 years marked by the strong increase in its production capacity especially in Asia and emerging countries, Valeo expects an increase in EBITDA conversion rate (2) in Cash Flow free (2) , which should increase from 21% in 2014 to about 28% in 2017 and exceed 30% by 2020.
The strong balance sheet will allow Valeo to seize opportunities growth in the areas of reducing emissions of CO 2 and improved vehicle performance as well as the intuitive operation while maintaining rigorous financial policy.
The Investor Day presentations are broadcast by webcast and available on the Internet website of Valeo www.valeo .com.
Valeo is an automotive supplier, partner of all manufacturers in the world. Technology company, Valeo offers innovative systems and equipment to the reduction of CO 2 and development of intuitive driving.
The Group achieved in 2014 a turnover of 12.7 billion euro while spending more than 10% of its total business first up to research and development. Valeo employs 78,500 people in 29 countries in 133 production sites, 16 research centers, 34 development centers and 15 distribution platforms.
Valeo is a member of the CAC40 index.
For further information, please contact :
Press Office Tel. +33 1.40.55.21.75 / +33 1.40.55.37.18
Thierry Lacorre
Tel. +33 1.40.55.37.93
For more information about the Group and its activities, please visit our web site www.valeo.com: http
: //www.valeo.com
Financial Glossary
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Order intake match materializing orders awarding contracts Valeo (including joint ventures controlled at least 50%) by manufacturers over the period and valued based on the best estimates Valeo reasonable in terms of volume, sales price and durability. Any order cancellations are taken into account.
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Innovative technologies are the technologies sold by Valeo for less than 3 years.
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The operating margin including the share in the results of associates corresponds to operating income before other income and expenses.
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EBITDA is (i) operating income (excluding the share of profit of associates) before amortization, impairment losses (included in operating income) and other income and expenses, and (ii) Net dividends received from associates.
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The cash flow free is the net cash flow from operating activities, after controlling for variation in sale of non-recurring trade receivables, and after taking into including acquisitions and disposals of intangible and tangible assets.
Statement “Safe Harbor”
The statements in this release that are not historical facts, are “forward-looking statements” (“Forward Looking Statements”). Although management considers these Valeo Forward-looking statements are reasonable, investors are cautioned that actual results may differ materially due to numerous important factors and risks and uncertainties which Valeo is exposed. Such factors include, among others, the company’s ability to generate cost savings or manufacturing efficiencies to offset negotiated or imposed price reductions. The risks and uncertainties which Valeo is exposed include risks related to investigations of competition authorities as identified in the reference document and those relating to legal proceedings may be consecutive in such investigations, risks related to the business of automotive OEM and new product development, risks related to the economic environment prevailing at the regional or global level, industrial and environmental risks as well as risks and uncertainties developed or identified in the public filings with Valeo of Financial Markets Authority (AMF), including those listed under the section “Risk Factors” of the reference document Valeo registered with the AMF on 28 March 2014 (under D.14-0234 number).
The company accepts no responsibility for the analyzes made by analysts or other information prepared by third parties possibly mentioned in this release. Valeo does not intend to study, and will not confirm, analyst estimates and makes no commitment to update the “forward-looking statements” (“Forward Looking Statements”) to integrate all events or circumstances that would occur after the publication of this release.
[ 1]
_ftnref1 # Based on an exchange rate euro / dollar 1.15
[2]:
_ftnref2 # See financial glossary, page 3
15.07 Valeo Investor Day
http://hugin.info/150658/R/1903535/676941.pdf
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf facility of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants That They Are Solely responsible for the content, accuracy and originality of the information Contained Therein .
Source: Valeo via GlobeNewswire
HUG # 1903535
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