NEW
SCALE
NEW AMBITION
2021 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
MESSAGE FROM JACQUES ASCHENBROICH P. 2
MESSAGE FROM CHRISTOPHE PÉRILLAT P. 4
CORPORATE GOVERNANCE P. 6
TRAJECTORY P. 8
A DECADE OF INNOVATIONS P. 10 - 21
5 KEY INNOVATIONS P. 12
SHAPING THE FUTURE(S) P. 22 - 56
PREPARING FOR THE FUTURE P. 24
ELECTRIC MOBILITY P. 30
CONNECTED AND AUTONOMOUS MOBILITY P. 38
PERFORMANCE P. 50
TALENT P. 54
THE LOWDOWN P. 57 - 67
4 BUSINESS GROUPS WORKING IN SYNERGY P. 58
VALEO WORLDWIDE P. 60
2021 RESPONSIBLE PERFORMANCE INDICATORS P. 62
SUSTAINABLE AND SHARED GROWTH P. 67
Valeo - 202 1 | 1 |
11 billion euros - that's how much Valeo has invested in R&D over the last five years. This has enabled the Group to considerably strengthen its technological leadership in the fast-growing markets of electrification, driving assistance systems (ADAS), lighting and reinvention of the interior experience. Over the past decade, Valeo has successfully transformed into a tech company at the forefront of all the revolutions currently shaping mobility. Its unique capacity for innovation has made it the world's leading French patent applicant, all sectors combined. In 2021, Valeo once again demonstrated its operational excellence, with the distinctive achievement of honoring deliveries to all customers, despite the chip shortage that took such a heavy toll on global automotive production. Valeo is perfectly positioned to continue paving the way for tomorrow's mobility.
2
"VALEO HAS UNDERGONE HUGE CHANGES IN SIZE AND PACE."
JACQUES ASCHENBROICH*
CHAIRMAN OF THE BOARD OF DIRECTORS SINCE JANUARY 26, 2022
Valeo - 2021 | 3 |
ow would you describe 2021?
The biggest challenge in 2021 was the global shortage of electronic components. In this difficult environment, Valeo nevertheless managed to supply all of its customers without exception. Our teams did
an absolutely magnificent job, constantly adapting | ||
H | he year 2021 was also significant for Valeo due to the | |
and identifying alternative solutions, and this cer- | ||
tainly did not go unnoticed by our customers. This | announcement of its carbon neutrality plan... | |
is a great source of pride. At 17.3 billion euros, our | Fighting global warming is firmly embedded in Valeo's | |
2021 sales were slightly above the objective we set | DNA and has been an integral part of our strategy since | |
for ourselves (between 16.9 billion euros and 17.2 | 2009. We are a signatory to the "Business Ambition for | |
billion euros), and up 5% compared with 2020. In | 1.5°C" campaign and were also the first automotive supplier to issue | |
addition, our EBITDA margin came in at the top end | T | |
a sustainability-linked bond, for a total of 700 million euros. | ||
of our target range at 13.4%, thanks to our strong | So it seemed natural that Valeo commit to becoming carbon neutral | |
operating performance and strict cost control. This | by 2050, and reaching 45% of this objective by 2030. To put it in | |
exceptional performance in a challenging market | concrete terms, in less than ten years we will have nearly halved | |
environment wouldn't have been possible without | our carbon footprint across our entire value chain - that means | |
the outstanding commitment of all Valeo employ- | emissions from our plants, our manufacturing processes and our | |
ees, whom I would like to thank once again. | energy supply, emissions from our suppliers and emissions relating | |
to the end use of our technologies. Carbon neutrality is a major | ||
challenge that requires a vast transformation for an international | ||
group like ours, which has nearly 200 plants and thousands of sup- | ||
pliers across the globe, and which equips tens of millions of vehicles | ||
every year. As we already began this process a long time ago, we | ||
will succeed and will be well on the way to achieving our objective | ||
by 2030. This commitment is our contribution to a major societal | ||
issue - the fight against global warming. It's a natural extension of | ||
hat will you remember from your | what we have already achieved, and it's our responsibility as a | |
13 years at the head of the Group? | major player in mobility. | |
During the 13 years that I was lucky | ||
enough to lead this company, Valeo |
has undergone a radical transformation from a tradi- | ||||
tional | automotive supplier to a tech company at the heart of the mobil- | "WE HAVE NEVER STOPPED | ||
W | ||||
ity revolution. Since 2009, Valeo has undergone huge changes in size | ACCELERATING OR PURSUING | |||
and pace. Our sales have more than doubled, our workforce has grown | ||||
INNOVATION." | ||||
from 45,000 to more than 100,000 employees, and we have developed | ||||
an international presence, particularly in Asia. Above all else, we have | JACQUES ASCHENBROICH | |||
a truly unique positioning at the epicenter of the transformations shap- | ||||
ing mobility. We have estab- | ||||
lished ourselves as the world | ||||
leader in each of our major - | hat are the main challenges for 2022 and beyond? | |||
electrification, ADAS and light- | I believe that what will set companies apart in the | |||
ing. We have never stopped | future is, of course, technology and talent - and Valeo | |||
accelerating or pursuing | obviously holds all the cards in this respect - but also, | |||
innovation. | and most importantly, the pace and speed of execution. | |||
I am | confident that, under the leadership of Christophe Périllat, Valeo | |||
W |
will be able to maintain the pace necessary to remain an undisputed automotive industry leader. Christophe Périllat is the natural leader to guide Valeo towards new achievements and new horizons consistent with our strategy and values, while preparing it for the challenges of 21st century mobility.
* Jacques Aschenbroich was Chairman and Chief Executive Officer until January 26, 2022 and has been Chairman of the Board of Directors since that date.
4
Valeo - 202 1 | 5 |
CHRISTOPHE PÉRILLAT
CHIEF EXECUTIVE OFFICER
I n January 2022, you officially took over as head of Valeo, more than 20 years after joining the Group. It's a huge responsibility. I am very proud and excited to have been appointed Chief Executive Officer and I would like to thank Jacques Aschenbroich and the Board of Directors for the trust they have placed in me. Jacques did an out-
standing job over his 13 years at the helm, profoundly transforming Valeo and preparing it to meet the changes taking place in mobility. It's now time for us to enter a new race in a different environment, but always with the same ambition of taking Valeo to the next level, further along the road to sustainable mobility. The automotive industry is currently experiencing a profound and rapid transfor- mation. And it's changing for the better, leading us into a world of safer, carbon -free mobility. It's a great opportunity both for humankind and for Valeo, which is ready to rise to the challenge after its massive investment in electrification and ADAS, the two areas that will pave the way for the mobility of the future.
You unveiled your new strategic plan only a month after your arrival at the head of Valeo. Can you sum it up for us in a few words?
I was keen to lay out my roadmap and my ambitions for the Group very early on, because the automotive industry is changing at an unprecedented, accelerating pace. Thanks to our Move Up strategic plan, Valeo will accelerate to capitalize on the mobility of tomorrow: we are building a Valeo that is stronger technologically, more efficient
operationally and even more solid financially.
With Move Up, we will be even better positioned to leverage the hyper-growth forecast for the electrification and ADAS markets over the next 15 to 20 years. We are aiming for sales of 40 billion euros by 2030. That's more than double today's figure. More specifically, we are moving up a gear and strengthening our positioning in four key areas - electrification, ADAS, reinvention of the interior experience and lighting.
What opportunities and prospects do these four mobility megatrends represent for Valeo?
Electrification will continue to grow substantially, with the market set to triple in size to nearly 90 billion euros by 2025. That's huge. And that
growth will power sharp growth in our Powertrain and Thermal Systems businesses. Acquiring all the shares in our joint venture with Siemens and integrating the entity within Valeo was a way of preparing for this transformation and ensuring that we are in a position to act as quickly as possible. The market for ADAS is also poised for significant growth in line with the pursuit of safer mobility. Our teams are making a big contribution to this acceleration by developing sensors, software and artificial intelligence that are key to safer driving. In the last 30 years, Valeo has delivered 1.5 billion sensors to the automotive industry. And we will deliver precisely 1.5 billion more in the coming five years. Electrification is also transforming car design by allowing more room for lighting. Electric vehicles aren't encumbered
with a radiator grille at the front, giving designers incredible freedom to invent a new lighting signature that reflects brand identity. Lighting is also being used differently, for example, to enhance safety for other vehicles, cyclists and pedestrians by tracing out each curve in the road, and guiding and alerting road users.
The last megatrend is the reinvention of the interior experience, which is set to be an increasing source of competitive differentiation. Passengers increasingly want to feel as if their car were a personal cocoon where they feel both at home and safe, where they can relax and stay connected with their loved ones and their surroundings. In this area too, we have the technologies needed to keep up with the acceleration of this market by ensuring car connectivity and providing extra safety, greater comfort, and new interior experiences.
"MY AMBITION IS CLEAR:
TO TAKE VALEO TO THE NEXT LEVEL, FURTHER ALONG THE ROAD
TO SUSTAINABLE MOBILITY."
CHRISTOPHE PÉRILLAT
Tomorrow's world looks set to be even more complex, as signaled by record inflation and the war in Ukraine. How do you see things for Valeo?
The day I was appointed Chief Executive Officer of Valeo, I explained that the transformation of our world and our industry would not be without its difficulties, as things move very fast and the world is increasingly complex, extremely globalized and therefore highly interdependent.
Valeo's three core values - courage, agility and solidarity - are precisely the assets that will give us the resilience to remain strong in 2022 and beyond, just as we did in 2020 in the face of the Covid-19 pandemic and in 2021 with the semiconductor crisis. And we are lucky enough to be driven by a mission that goes beyond ourselves as individuals, that of making mobility cleaner and safer for a better world. I believe that everyone at Valeo understands the meaning and importance of what we do. That's the real driving force behind our commitment.
CORPORATE GOVERNANCE
BOARD OF DIRECTORS
AT DECEMBER 31, 2021
The Board of Directors has 14 members (6 women and 8 men), including two Directors representing employees. As the succession of Valeo's top management came at a particularly complex time, the Board adopted the following transition plan: Christophe Périllat was appointed Deputy Chief Executive Officer and director of Valeo on May 26, 2021; he then became Chief Executive Officer, in accordance with the succession plan, by decision of the Board of Directors on January 26, 2022; Jacques Aschenbroich will remain Chairman of the Board of Directors for the remainder of his term of office, i.e., until the Shareholders' Meeting to be held in May 2023.
OPERATIONS COMMITTEE
AND EXECUTIVE COMMITTEE
AT DECEMBER 31, 2021
The Executive Committee and the Operations Committee are responsible for overseeing Valeo's activities. The Executive Committee coordinates and provides guidance on the various functions
of the Group's General Management. The Operations Committee reviews operational management, coordinates projects and implements the Group's strategy. On January 26, 2022, Christophe Périllat was appointed Chief Executive Officer of Valeo.
JACQUES | CHRISTOPHE |
ASCHENBROICH | PÉRILLAT |
Chairman and Chief | Deputy Chief |
Executive Officer | Executive Officer |
STÉPHANIE | MARI-NOËLLE | CAROLINE MAURY |
FRACHET | JÉGO-LAVEISSIÈRE | DEVINE |
Director, Bpifrance | Deputy Chief Executive | Director |
Investissement; member | Officer, Orange Europe | (various companies) |
of the Management | (excl. France) | |
Committee, Bpifrance | ||
Capital Développement |
ÉRIC POTON | PATRICK SAYER | ULRIKE |
Director representing | Chairman of Augusta | STEINHORST |
employee | Founder of Nuria | |
Consultancy, | ||
and director | ||
(various companies) |
JULIE AVRANE | BRUNO BÉZARD |
Chair of Clear Direction | Managing Partner |
of investment fund | |
Cathay Capital | |
Private Equity |
GILLES MICHEL | THIERRY |
Director | MOULONGUET |
(various companies) | Director |
(various companies) |
GRZEGORZ SZELAG | VÉRONIQUE WEILL |
Director representing | Chair of the Board |
employees | of Directors, |
CNP Assurances |
JACQUES | CHRISTOPHE | GEOFFREY | FABIENNE |
ASCHENBROICH* | PÉRILLAT* | BOUQUOT* | DE BRÉBISSON* |
Chairman and Chief | Deputy Chief | President, Corporate | Senior Vice-President, |
Executive Officer(1) | Executive Officer(2) | Strategy and Research | Communications |
& Development |
ROBERT | CATHERINE | XAVIER DUPONT | ÉRIC ANTOINE | BRUNO |
CHARVIER* | DELHAYE* | President, | FREDETTE* | GUILLEMET* |
Chief Financial Officer | Chief Ethics and | Powertrain Systems | General Counsel and | Senior Vice-President, |
Compliance Officer | Business Group | General Secretary | Human Resources | |
- Data Protection Officer |
DETLEF JUERSS* | MAURIZIO | FRANCISCO | ÉRIC SCHULER | MARC VRECKO |
Senior Vice-President, | MARTINELLI | MORENO | President, | President, Comfort |
Sales & Business | President, Visibility | President, Thermal | Valeo Service | & Driving Assistance |
Development | Systems Business Group | Systems Business Group | Systems Business Group |
* Members of the Executive Committee.
- Jacques Aschenbroich has remained Chairman of Valeo's Board of Directors since January 26, 2022.
- Christophe Périllat has been Chief Executive Officer of Valeo since January 26, 2022.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Valeo SA published this content on 07 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2022 13:32:03 UTC.