Valeo benefits from “major” partnership with BMW in driving assistance – 06/28/2022 at 16:43

Valeo benefits from “major” partnership with BMW in driving assistance – 06/28/2022 at 16:43


(AOF) – Within the automotive sector, Valeo shares gained 5.13% to 20.29 euros, the largest increase in the SBF 120 index, backed by a “big” partnership with BMW. The French automotive service provider will provide the Operational Assistance Systems (ADAS) controller, sensors and software for parking and low speed driving on the next generation BMW “Neue Class”.

This is a typical Bavarian manufacturer of electric cars, which is scheduled to launch in 2025.

Valeo will design and produce an ADAS domain controller capable of controlling the entire flow of data from all German-based driving support indicators based on the “Neue Klasse” platform.

The system developed by Valeo, BMW Group and chip manufacturer Qualcomm will be able to provide real-time maps and understand the car’s environment and interior. New features and updates will be added throughout the life of the car.

“This partnership between BMW and Valeo Group builds on the history of technological breakthroughs that we have achieved together over the past several decades,” said Drs. Nicolai Martin, Vice President of Operating Group of BMW Group.

AOF – LEARN MORE

Key points

– “Tier 1” car dealer, world leader in electronics and driving;

– Activities of € 17.4 billion, divided into 4 areas – appearance, propulsion, oil and comfort & driving assistance, activity 1

when

explosions that bring up 84% of sales;

– Large exposure to Asia (34% of sales 1

when

growing, including China, the leading market by 16%), behind Europe and Africa (45%) but ahead of America (21%);

– Business model to take advantage of the direction of the automotive market: electrification, acceleration of ADAS and redesign of life on board (comfort and driving support) and lighting;

– Open capital with strong shareholders (5.13% for BPI and 5.16% for Harris fund), Jacques Aschenbroich chairman of the 14-member board of directors, Christophe Périllat as executive director;

– Refined balance – € 3.1 billion in real debt, ie 84% equity and profit of 1.34 – and financial appearance – € 4.1 billion in cash.

Challenges

– Strategic 2022-25 “Move on”: annual average performance of natural resource sales over 5 points / operating margin of 14.5% / removal of non-strategic assets of € 500 million over the program period;

– Innovation Strategy in Ax 2, a manufacturing organization and version of ecological and safe solutions, innovations that bring 55% of planned intake: a flexible R&D policy for 3

th

French patent agency and 1

er

French global (9.9% sales), with a portfolio of around 35,000 patents and 5,000 software engineers, including 200 in artificial intelligence / open international innovations and incubations starting, equitable investment and industrial integration, such as Safran , and pure research, by Valeo.ai;

– “CAP 50” environmental strategy aimed at carbon offsets by 2050: “CAP 50” carbon offset support plan by 2050, and, by 2030: – 75% for production associated with operational activities, – 15% for those linked to supply and – 15%, for those related to end product use / 2/3 of sales 1

when

a collection that includes products that reduce their impact / cycle economy included in the production / launch of green loans;

– Strong expectations for the Valeo Siemens eAutomotive, specializing in high voltage power supply (8% then 12% operating operation in 2022 and 2024 and € 4 billion respectively);

– Deficits from a joint venture with Kapec of Korea, expected to be the main torque converter (gearbox) and 21% of the market

– Consumption order of € 15.9 billion.

Challenges

– Challenges 3: weak market growth, raw material inflation and shortage of electronic equipment (-10% automotive production by 2020);

– Low commercial profit of Heating Systems;

– Targets 2022: revenue of € 19.2 to € 20 billion, operating margin of 3.2 to 3.7% and free cash flow of € 320 million.

Reduced goals

Because of the scarcity, the assembly lines of the developers must be sometimes, affecting the activities of the hardware manufacturers, which gives them a timely flow. Added to this is a jump in the price of raw materials and energy, rates of deterioration. Several hardware manufacturers, including Plastic Omnium and Forvia (formerly Faurecia), had reduced their focus by 2021.