Valeo's Annual General Meeting
26 May 2000
Valeo's Annual General Meeting
PARIS--May 26, 2000--Andre Navarri appointed Chairman & CEO
-- The Ordinary and Extraordinary General Shareholders' Meetings,
held in Paris on May 25, 2000, approved Valeo's accounts for
1999.
-- Valeo's Board of Directors, which met after the Annual General
Meeting, elected Andre Navarri as the Group's new Chairman &
CEO, replacing Noel Goutard.
1999:
Consolidated sales rose by 28% to 7,717 million euros. Net income was up by 117%, to 563 million euros. This includes the capital gain of 897 million euros achieved with the disposal of the stake in LuK and provisions amounting to 430 million euros.
At December 31, 1999, shareholders' equity totaled 2.65 billion euros. Provisions amounted to 1.4 billion euros, an increase of 70%. The Group's net cash stood at 464 million euros.
1999 was a year of strong development for the Group, during which the commercial, technological and international bases of its profitable growth strategy were considerably reinforced.
The year was marked by intensive activity worldwide: integration of the Electrical Systems activities; expansion in Asia with the acquisition of Mando in South Korea and the signing of two memoranda of understanding with the Japanese automotive suppliers Unisia Jecs and Zexel; redeployment in South America; reinforced presence in Central Europe and North America with new investments; launch of the "connected enterprise" to exploit the opportunities offered by new technologies; strengthening of the financial structure with the disposal of LuK.
Dividend:
The dividend for 1999 was set at 1.5 euros, excluding tax credit, and 2.25 euros tax credit included. This is a 50% increase over 1998.
The dividend is payable from July 12, 2000.
2000:
1st quarter 2000
The Group published its first quarter 2000 results on April 12. Sales increased by 17% to 2,221 million euros. Operating income was up by 37%, to 144 million euros, accounting for 6.5% of sales versus 5.5% in the first quarter 1999.
Net income totaled 82 million euros, up by 21%.
Asia
The Group pursued its development strategy in Asia, particularly in Japan.
The joint venture formed with Unisia Jecs in the field of transmissions, in which Valeo holds a 66% stake, was consolidated into the Group's accounts on April 1, 2000.
On April 17, Valeo announced a technical and commercial alliance with Ichikoh Industries in the field of lighting systems, with Valeo acquiring a 20% stake in the company. Valeo's and Ichikoh's combined lighting system sales amount to 2 billion euros.
Reinforcement in electrical/electronics systems
On May 2, Valeo signed an agreement with SNECMA with a view to acquiring Sylea and certain other automotive activities of the Labinal Group. These activities achieved sales of 1.4 billion euros in 1999. With this acquisition, Valeo would reinforce its position in electrical/electronics systems.
New technologies
The 100 million euro Valeo Innovative Entrepreneur Fund announced its first investment on April 25. The selected company, Parrot, specializes in voice recognition electronics for passenger vehicle mobile telephone applications.
E-business
Other e-business initiatives are under way, notably in the areas of Purchasing and R&D, as well as the establishment of the S6 group with five U.S. automotive suppliers.
Appointment of the new Chairman:
Andre Navarri was named as a new Board Member at the Annual General Meeting. The Board of Directors, meeting after the AGM, appointed Andre Navarri as Chairman & CEO. He replaces Noel Goutard, who remains a member of the Valeo Board of Directors and Chairman of the Strategy Committee.
Noel Goutard presented an assessment of the 1986-2000 period during which he served as Chairman & CEO. He noted, among other things, that Valeo's automotive sales had increased more than fivefold and shareholders' equity and market capitalization eightfold during that time.
Summing up his 14 years as Chairman of Valeo, Noel Goutard stated: "My objective was to create one of the leading global automotive suppliers and achieve profitable sales of 10 billion euros. With our recent acquisitions, this objective has been surpassed. For the satisfaction of our customers and shareholders, we implemented a strategy of globalization and high technology, backed up by rigorous management methods, including the 5 Axes. I have always been fascinated by the constant transformation of the automotive industry, its tremendous challenges and the stakes involved. Valeo has succeeded by avoiding pitfalls and optimizing opportunities. I know that with Andre Navarri as Chairman, the Group will continue to forge ahead. We share the same values and the same confidence in the future of the Group."
Outlook 2000-2001
The environment is favorable for the major automotive suppliers, who are benefiting from a buoyant automotive market, the consolidation and globalization of the automotive industry and the dissemination of the digital economy. Commenting on his appointment, Andre Navarri said: "I am particularly proud to succeed Noel Goutard. I thank the Annual General Meeting and the Board of Directors for their confidence. Valeo has considerable assets at its disposal to take advantage of this buoyant environment: a highly diversified customer base, a well-advanced globalization process, operational excellence, digital economy initiatives and a sound financial structure. I intend to pursue and intensify my predecessor's actions for the satisfaction of our customers and in the interest of our shareholders."
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group achieved sales of 7.7 billion euros in 1999. It has 118 plants, 39 R&D centers, 10 distribution centers and employs 51,700 people in 20 countries worldwide.
For more information on the Group and its businesses, please consult our Web site: www.valeo.com