02.16.2017 - Strategy & Results

PARIS, France, February 16, 2017 – At its meeting of February 15, 2017, Valeo's Board of Directors approved the consolidated and parent company financial statements for the year ended December 31, 2016:

Sales up 14% to 16.5 billion euros
Operating margin(1) up 20% to 1.3 billion euros, or 8.1% of sales
Net income up 27% to 925 million euros, or 5.6% of sales
Order intake(2) up 17% to 23.6 billion euros

Jacques Aschenbroich, Valeo's Chairman and Chief Executive Officer, commented:
"Valeo's 2016 results reflect the work accomplished by our teams over the past few years to build a new, more innovative, technologically focused, dynamic and profitable Valeo:

  • our sales grew by 14%;

  • accompanied by increases of 17% in our gross margin, 20% in our operating margin, 27% in our net income and 17% in our free cash flow generation, to 661 million euros;

  • another record order intake – at 23.6 billion euros – reflecting the ongoing commercial success of our technologies for CO2 emissions reduction and intuitive driving.

Also in 2016 we were delighted to welcome into the Valeo family teams from peiker, Spheros, and the Valeo Siemens eAutomotive joint venture and in January this year, Ichikoh. Thanks to these acquisitions and in line with our strategy, we are stepping up the development of our four Business Groups, with the primary aims of diversifying our client portfolio and strengthening our products' technological positioning and the geographical alignment of our sales.
On the back of this strong momentum, Valeo will hold an Investor Day in London on February 28 to present its new medium-term financial objectives."

Full-year 2016

  • Order intake(2) of 23.6 billion euros, up 17% on the back of technological innovation

  • Consolidated sales of 16,519 million euros, up 14% (up 11% on a like-for-like basis).

  • Original equipment sales of 14,403 million euros, up 14% (up 12% on a like-for-like basis), outpacing global automotive production by 8 percentage points.

  • Operating margin(1) up 20% to 1,334 million euros, or 8.1% of sales.

  • Recognition of a 99 million euro expense to cover the main risks arising from antitrust investigations.

  • Net attributable income up 27% to 925 million euros, or 5.6% of sales.

  • Free cash flow(2) of 661 million euros, up 17%.

Second-half 2016

  • Consolidated sales of 8,389 million euros, up 16% (up 12% on a like-for-like basis).

  • Operating margin(3) up 19% to 687 million euros, or 8.2% of sales.

  • Net attributable income up 31% to 503 million euros, or 6.0% of sales.

  • Free cash flow(4)bof 322 million euros, up 24%.

Fourth-quarter 2016

  • Consolidated sales of 4,395 million euros, up 16% (up 12% on a like-for-like basis).

2016 dividend
Proposed dividend payment up 25% to 1.25 euros per share, representing a payout ratio of 32%.

2017 outlook

Based on the following assumptions:

  • an increase in global automotive production of between 1.5% and 2%;

  • raw material prices and exchange rates in line with current levels.

Valeo has set the following objectives for 2017:

  • sales growth outperforming the market by more than 5 percentage points;

  • a slight increase in operating margin (1) (as a % of sales and before acquisitions).



1Including share in net earnings of equity-accounted companies, see Financial Glossary, page 14.
2See Financial Glossary, page 14.
3Including share in net earnings of equity-accounted companies, see Financial Glossary, page 14.
4See Financial Glossary, page 14.

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