In accordance with the succession plan announced on October 27, 2020, Valeo decided to appoint Christophe Périllat as Chief Executive Officer of the company. At its meeting held on Wednesday, the Board of Directors announced the decision, a press release from the company said.
According to the statement, Jacques Aschenbroich will continue to act as Chairman of the Board of Directors until the end of his current term of office as a Director.
The Board appreciated Aschenbroich for his exceptional record during his 13 years as the head of Valeo Group, during which the company doubled in size and its market capitalisation increased more than sevenfold. Under his direction, the company has positioned itself amongst the world leaders in the most promising automotive industry segments such as driving assistance systems and electrification, establishing it at the heart of the two great revolutions in mobility now underway.
Aschenbroich said, “This governance evolution is the culmination of a gradual succession plan announced in October 2020, which has been moving forward under excellent conditions. I am delighted with the decision to appoint Christophe Périllat as Chief Executive Officer. I am convinced that with the quality of his career with the Group for over 20 years and his in-depth knowledge of the automotive sector, he will be able to guide Valeo through the ongoing automotive revolution and define the strategic orientations that are necessary to strengthen its leadership and seize all opportunities in the years to come.
Périllat said, “I am extremely enthusiastic about taking up this role and I know I can count on all our employees, who are ready to face any challenge. I am fully aware of my responsibility to all our stakeholders, customers, employees, business partners and shareholders, and I want to assure them of my strong will to continue developing the Group and strengthening even more its position at the forefront of the most dynamic segments of the automotive industry, everywhere in the world.”
2021 Sales Up By 5%
In full-year 2021, sales amounted to € 17.3 billion, up 5% compared with 2020. Fueled by the robust operational efficiency of its plants and the tight control over its R&D expenditures, the company’s EBITDA margin reached 13.4% of sales.
Free cash flow amounted to € 290 million in 2021, favourably impacting its tight control over capital expenditures and R&D. It was unfavourably impacted by the € 430 million increase in inventories excluding tooling. However, these negative factors are temporary and will be fully reversed, resulting in a positive contribution to free cash flow generation in 2022, the company said.
In 2021, the negative contribution of Valeo Siemens to “share in net earnings of equity-accounted companies” amounted to € 255 million.
Perillat said, “In the difficult context of a severe worldwide shortage of electronic components, which drastically limited 2021 automotive production, Valeo demonstrated strong resilience, supplying its customers without disruption, maintaining tight control over its costs and delivering a solid financial performance. The inventory increase implemented to protect our customers will be gradually reversed in 2022, as supply conditions improve.”