Valeo Business report FY2007
Business Highlights
| Financial Overview | (in millions of euros) |
| - | FY2007 | FY2006 | Rate of change | Remarks |
| Net sales |
9,555 | 9,436 | 1.3% | -7,865 million euros from
the OE segment (82% of the total) -1,690 million euros from the aftermarket (18% of the total) |
| Operating Income | 319 | 271 | 17.7% | - |
Contracts
-Driving Assistance
Valeo Raytheon's Blind Spot Detection system will be available on select 2008 Cadillac and Buick vehicles.The system operates by calculating the position, distance and direction of travel for vehicles in the adjacent lane of travel. It then alerts the driver of a potential hazard with a visible warning symbol that appears in the side view mirror. (From a press release on Jul. 9, 2007)
The Company announces that its Blind Spot detection system will be launched on the 2008 model Jaguar XF. (From a press release on Sep. 19, 2007)
Acquisitions
The Company announced that it has completed the acquisition of Connaught Electronics Ltd. (CEL), an Irish producer of vehicle electronics. This acquisition strengthens its Driving Assistance Domain through the extension of its line of camera-based vision solutions for low-speed maneuvering. CEL develops and produces automotive electronic components, particularly camera applications for driving assistance functions and radio frequency applications for remote vehicle access and security. CEL employs nearly 300 people at two facilities in Tuam, Ireland and in Humpolec, Czech Republic.(From a press release on Jul. 27, 2007)
Divestitures
The Company announced that it has signed a contract with Leoni regarding the sale of its wiring harness activity, Valeo Connective Systems. The activity generated sales of 545 million euros in 2006. This sale will result in a capital loss of around 51 million euros for the Company. The closing of the sale should occur by the end of 2007 following clearance from the anti-trust authorities. (From a press release on Oct. 16)
Joint Ventures
In May 2007, The Company announced that its Security Systems Branch has created a 50/50 joint venture with A.K. Minda Group, a leading manufacturer of automotive security systems in India.
In Jul. 2007, The Company announced that it has created a joint venture for the production of alternators and starter motors with N.K. Minda Group, a leading manufacturer of automotive systems in India.
R&D
R&D
Structure
-At the end of 2007, the Group has 62 R&D centers thoroughout the world, employing nearly 6,100 people.
R&D Activities (FY2007)
-Driving Assistance
The Company has chosen DuPont邃｢ Zytelﾂｮ HTN PPA for use in its adaptive front lighting systems that are used on a number of vehicles such as the Volkswagen Passat or the Citroen C4. Such systems provide drivers with enhanced night visibility for improved safety. Adaptive headlamp systems can actively change the intensity and direction of illumination in response to changes in vehicle speed or steering angle. The Company's Xenon headlamps are designed for medium to high speed driving and can double the driver's visibility distance on road curves.(From a press release on Aug. 8, 2007)
-Powertrain Efficiency
In Mar. 2007, the French Industrial Innovation Agency agreed to provide 61 million euros in funding for Valeo's research program LOwCO2MOTION邃｢., which aims to improve vehicle engine efficiency and contribute to reducing CO2 emissions. The program focuses on two major innovations. The first is the camless system, in which the camshaft in engines is replaced by electromagnetic actuators that operate each valve independently. By controlling residual gases, minimizing pumping losses and deactivating cylinders and valves, this technology reduces fuel consumption and pollutant emissions by 20% for gasoline engines. The second major innovation is a next-generation mild hybrid based on Valeo's StARS+X technology. In addition to the Start-Stop function which cuts off the engine when the vehicle is at a standstill, this system features a regenerative braking function, where energy generated during braking is recovered. (From a press release on Mar. 5, 2007)
The RATP(Regie Autonome des Transports Parisiens) is using a Gruau Microbus fitted with a Valeo Stop-Start system on the Bievre-Montsouris local service in Paris. The system allows the engine to be switched to standby when the bus stops, saving on fuel consumption and reducing noise levels. This experiment, the result of a research partnership between the RATP, Valeo and the manufacturer Gruau, was selected and approved by ANR (French National Agency for Research) and PREDIT (French Program for Transport Research) in 2006, with the financial support of ADEME as part of the national clean and cost-cutting vehicles program. The StARS starter-alternator is based on the system's ability to stop and start the engine silently and instantly. In built-up areas, where stops are extremely frequent, the Stop-Start system could generate fuel savings of up to 20%. (From a press release on May 18, 2007)
-Comfort Enhancement
The Company announces the creation of a fragrance diffuser and a Vitamin C filter. The Valeo fragrance diffuser provides a wide range of fragrances. It is located in the air conditioning unit or as a stand alone module in the cabin. The Vitamin C filter offers cosmetic functions for the driver and the passengers, and acts as a skin moisturizer. Air quality inside the vehicle cabin can be 2 to 5 times poorer than outside due to additional pollutants. To address this issue it has developed new technologies to improve filter performance. Two concrete examples are the electrostatic filter that catches ultra-fine particles (not treated today by conventional filters) and the anti-allergen filter able to prevent allergies and asthma crisis. (From a press release on Oct. 24, 2007)
-At the end of 2007, the Group has 62 R&D centers thoroughout the world, employing nearly 6,100 people.
| Region | No. of facilities |
| Western Europe | 36 |
| Eastern Europe | 1 |
| North America | 12 |
| South America | 0 |
| Asia | 12 |
| Africa | 1 |
Total |
62 |
| R&D Expenditure | (in millions of euros) |
| - | FY2007 | FY2006 | FY2005 |
| Amount | 668 | 640 | 610 |
| % of operating revenues | 5.5% | 5.5% | 5.5% |
| R&D Expenditure | (in millions of euros) |
- |
FY2007 | FY2006 | FY2005 |
| Driving Assistance | 193 | 188 | 175 |
| Propulsion Efficiency | 230 | 214 | 204 |
| Comfort Enhancement | 242 | 232 | 231 |
| Other | 3 | 6 | - |
| Total | 668 | 640 | 610 |
R&D Activities (FY2007)
-Driving Assistance
The Company has chosen DuPont邃｢ Zytelﾂｮ HTN PPA for use in its adaptive front lighting systems that are used on a number of vehicles such as the Volkswagen Passat or the Citroen C4. Such systems provide drivers with enhanced night visibility for improved safety. Adaptive headlamp systems can actively change the intensity and direction of illumination in response to changes in vehicle speed or steering angle. The Company's Xenon headlamps are designed for medium to high speed driving and can double the driver's visibility distance on road curves.(From a press release on Aug. 8, 2007)
-Powertrain Efficiency
In Mar. 2007, the French Industrial Innovation Agency agreed to provide 61 million euros in funding for Valeo's research program LOwCO2MOTION邃｢., which aims to improve vehicle engine efficiency and contribute to reducing CO2 emissions. The program focuses on two major innovations. The first is the camless system, in which the camshaft in engines is replaced by electromagnetic actuators that operate each valve independently. By controlling residual gases, minimizing pumping losses and deactivating cylinders and valves, this technology reduces fuel consumption and pollutant emissions by 20% for gasoline engines. The second major innovation is a next-generation mild hybrid based on Valeo's StARS+X technology. In addition to the Start-Stop function which cuts off the engine when the vehicle is at a standstill, this system features a regenerative braking function, where energy generated during braking is recovered. (From a press release on Mar. 5, 2007)
The RATP(Regie Autonome des Transports Parisiens) is using a Gruau Microbus fitted with a Valeo Stop-Start system on the Bievre-Montsouris local service in Paris. The system allows the engine to be switched to standby when the bus stops, saving on fuel consumption and reducing noise levels. This experiment, the result of a research partnership between the RATP, Valeo and the manufacturer Gruau, was selected and approved by ANR (French National Agency for Research) and PREDIT (French Program for Transport Research) in 2006, with the financial support of ADEME as part of the national clean and cost-cutting vehicles program. The StARS starter-alternator is based on the system's ability to stop and start the engine silently and instantly. In built-up areas, where stops are extremely frequent, the Stop-Start system could generate fuel savings of up to 20%. (From a press release on May 18, 2007)
-Comfort Enhancement
The Company announces the creation of a fragrance diffuser and a Vitamin C filter. The Valeo fragrance diffuser provides a wide range of fragrances. It is located in the air conditioning unit or as a stand alone module in the cabin. The Vitamin C filter offers cosmetic functions for the driver and the passengers, and acts as a skin moisturizer. Air quality inside the vehicle cabin can be 2 to 5 times poorer than outside due to additional pollutants. To address this issue it has developed new technologies to improve filter performance. Two concrete examples are the electrostatic filter that catches ultra-fine particles (not treated today by conventional filters) and the anti-allergen filter able to prevent allergies and asthma crisis. (From a press release on Oct. 24, 2007)
Investment Activities
| Capital Expenditure | (in millions of euros) |
| - | FY2007 | FY2006 | FY2005 |
| Europe | 365 | 437 | 436 |
| North America | 64 | 86 | 67 |
| South America | 32 | 39 | 35 |
| Asia | 92 | 87 | 59 |
| Eliminations | - | (2) | (5) |
Total |
553 | 647 | 592 |
Overseas Investments
-India
The Company announced that its Security Systems Branch has created a 50/50 joint venture with A.K. Minda Group, a leading manufacturer of automotive security systems in India. Located in Pune near Mumbai, the new company, Valeo Minda Security Systems, will develop, produce and sell Valeo Security Systems products including locksets, steering column locks, latches, strikers, handles, engine immobilizers and remote keyless entry systems. The joint venture will integrate the existing four-wheel drive security systems division of Minda and is expected to reach around 50 million euros in annual sales in 2010. (From a press release on May 31, 2007)
The Company announced that it has created a joint venture for the production of alternators and starter motors with N.K. Minda Group, a leading manufacturer of automotive systems in India. The new company, called Valeo Minda Electrical Systems India Private Limited, will be 66.7% owned by the Company and 33.3% by Minda. Located in Pune near Mumbai, the joint venture will develop, produce and sell Valeo Electrical Systems products, including alternators and starter motors for passenger cars.(From a press release on Jul. 24, 2007)