Valeo has set itself a target of near 60% growth of annual sales revenue to EUR20bn by 2020.
The company says its future growth will be driven by its “market leading position and sustained R&D efforts focused on CO2 emissions reduction and improved vehicle performance as well as intuitive driving” as well as a strengthening presence in high-growth emerging markets.
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Valeo says its “geographical repositioning” will mean that it will aim to generate more than one-third of its original equipment sales in Asia and around 40% in Europe by 2020, compared to 28% and 49%, respectively, in 2014.
Assuming that global automotive production increases by an annual average of 3% over the next five years, Valeo says its sales will rise to around EUR17bn in 2017 and will exceed EUR20bn by 2020 (which compares with EUR12.7bn in 2014.
Valeo has set a target for operating margin (as a percentage of sales) of between 8% and 9% for 2020 (versus 7.2% in 2014). Operating margin for 2017 is forecast “to be in the region of 8%”.
Valeo is also aiming to increase its free cash flow ratio from 21% in 2014 to around 28% in 2017, and then to more than 30% by 2020.
