Valeo, the French global automotive supplier, has announced that its revenues for CY22 stood at €20,037 million, which is 16% higher than the €17,262 million it earned in CY21. The company’s order intake also rose by 48% YoY to €32.6 billion in 2022, it said in a release.
Christophe Périllat, Chief Executive Officer, Valeo, said growth in the company’s original equipment sales outperformed automotive production in all regions, while its EBIT and EBITDA margins were at 3.2% and 12% of sales, respectively. These are in line with the guidance published in February 2022, and the free cash flow generation of €388 million is above expectations, Valeo stated.
The sales momentum was particularly strong in ADAS, where the order intake represented 3X ADAS OE sales, and included “several particularly strategic” orders.
The average size of its ADAS orders increased on the back of its new vehicle architecture, software-defined vehicles (SDV). The supplier signed a major partnership with BMW to supply the ADAS domain controller, sensors (ultrasonic sensors, surround view cameras and a multifunctional interior camera) and software for parking and low-speed manoeuvring on the next-gen BMW “Neue Klasse” platform, due to launch in 2025.
Stellantis, on the other hand, adopted the third-generation LiDAR Valeo (LiDAR Valeo Scala 3), whose technical features in terms of resolution and field of view enable vehicles to reach a high level of autonomy (Level 3). Additionally, a large volume of orders was also placed by Chinese automakers in the second half of the year in the camera and parking assistance segments Valeo said.
Strong Demand For Valeo Solutions
On the powertrain systems front, the group witnessed orders placed by both existing and new customers, including end-to-end powertrain assemblies or their components (electric motors, inverters, reducers, onboard chargers and DC/DC converters). This also included the new 800V silicon carbide (SiC) technologies.
With these new orders, Valeo is looking at supporting its customers in Europe, China and, most recently, North America.
The acceleration in electrification also benefited the thermal systems business group, which reported new orders in the area of thermal management of high-voltage electrified vehicles (battery cooling systems, dedicated air conditioning systems for electric vehicles, new Smart Heat Pumps, etc).
These included a record order with Stellantis for its next electric platform and an order with another leading European automaker for which Valeo will supply the air conditioning unit and front-end cooling module for one of the automaker’s major electric platforms, it has announced.
Leveraging Acceleration
Périllat said by leveraging the acceleration in the two sustainable mobility megatrends of electrification and ADAS, the company is targeting strong YoY sales growth in 2023. “We will also aim to curb the impact of inflation through the combined effect of our productivity and cost reduction measures and the price increases passed on to our customers,” he added.
Against this backdrop, Valeo is targeting sales of between €22-23 billion, an improved operating margin of between 3.2-4% and a free cash flow generation of over €320 million, with a significant improvement in its financial performance in the second half of the year, Périllat noted.
Also Watch
Yoga Ram | Region Compensation & Benefits Dir, Valeo | Mobility Outlook | Women In Mobility