2007 Reference document (PDF) - Valeo

Consolidated fi nancial statements at December 31, 2007
Notes to consolidated financial statements
■ Credit risk
Commercial credit risk
Financial credit risk
The Group is exposed to financial counterparty risk in the context of
Valeo is exposed to credit risk arising on its commercial operations,
particularly the risk of default by its customers.
financial market transactions carried out for the purposes of risk and Valeo operates exclusively in the automotive sector and is thus
treasury management. Limits have been set by counterparty, taking dependent on the sector’s performance. Valeo works with all
into account the ratings of the counterparties provided by rating automakers in the sector. At December 31, 2007, Valeo’s largest
agencies. This also has the effect of avoiding excessive concentration customer accounts for 18% of the Group’s accounts and notes
of market transactions with a limited number of banks.
receivable. Approximately 10% of receivables relate to the three
largest US automakers.
The table below presents an aged analysis of accounts and notes receivable:
At December 31
(In millions of euros)
Carrying amount
2007
Carrying amount
2006
Carrying amount
2005
Not yet due 1,617 1,754 1,814
Less than 1 month past due 67 60 72
More than 1 month but less than 12 months past due 34 34 40
More than 1 year past due 10 16 12
TOTAL 1,728 1,864 1,938
5.4. Commitments given
To the best of Valeo’s knowledge, no other significant commitments exist or exceptional events have occurred other than those disclosed
in the notes to the financial statements, that are likely to have a material impact on the business, financial position, results or assets and
liabilities of the Group.
5.4.1. Lease commitments
Future minimum lease commitments existing at December 31, 2007 (excluding capital leases) are as follows:
At December 31
(In millions of euros) 2007 2006 2005
Less than 1 year 32 34 38
1 to 5 years 29 33 31
More than 5 years 10 9 10
TOTAL 71 76 79
Lease rentals recognized in expenses in the year were as follows:
< Contents >
(In millions of euros) 2007 2006 2005
Rent 56 53 56
2007 Reference document - VALEO
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