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Welcome to the Valeo First Quarter 2019 Sales Conference Call. I now hand over to Mr. Jacques Aschenbroich, Chairman and CEO of Valeo. Sir, please go ahead.
Good afternoon, Jacques Aschenbroich, CEO of Valeo. I am here with Robert Charvier, our CFO; and Thierry Lacorre, our Investor Relation. In line with middle-term growth plan that we presented last year in London, you remember that we said very clearly that we'll have an accelerated growth in 2018 and 2019, which will be supported by our order intake, especially in the fields of electrification and intuitive driving. Given the very strong basis, comparison of 2017 and you remember that in Q1 last year, our organic growth reached 13% in the first quarter. We recorded a limited organic growth in this first quarter 2018. But at same external rate and including acquisition, our growth has been 8.5%. And I think that 8.5% is important because it's what we disclosed for our future growth when we disclosed our midterm planning 2017. You remember that we had included some acquisition, Ichikoh, that was already done; FTE and Kapec, that has been done at the very end of last year. By the way, those acquisition and the integration of those acquisition in Valeo are running according to the plan. In terms of pure organic growth and we'll come back to that in the presentation, our organic growth in Q1 2018 has been 1%, and our reported growth has been 3%.You know that there is a change in the IFRS rule, the famous IFRS 15. I hand over to Robert Charvier, he will explain to you in detail what it means for Valeo.
So Valeo has applied IFRS 15 since January 1, 2018, and we have repeated the comparative period. The overall impact on the sales is a small impact because it represent 0.7-point. And this is the result of 2 main impacts. The first one is related to the customer contribution to customer -- to result and development including prototypes. I remind you that until end of last year [ as though ] the customer contributions were complete for as a deduction from research and development expenditures. And they are now presented in sales under the caption miscellaneous. Concerning the soft quarter of 2018, the reclassification to sales has represented a positive amount of EUR 85 million, which has to be compared with a positive amount of EUR 83 million for the first quarter of 2017. The second impact is related to the external cost of components, which are imposed by our customers. This is the components for which Valeo operates as an agent within the meaning of IFRS 15. Those costs were previously accounted for in original equipment sales. And they are now presented as a deduction from raw materials consumption. This reclassification has represented a negative amount of EUR 121 million for the first quarter of 2018 and EUR 107 million for the first quarter of 2017. And this reclassification mainly concerns Thermal Business Group and especially, as a front-end module operation. Due to the small impact -- the overall small impact of IFRS 15 and for the sake of consistency, we had decided to present the figures under the same accounting principles as in 2017, which means before the application of IFRS 15. And you will have Page 14 to 20 of this presentation, the detailed impact of the application of IFRS 15.
So if you go now to Page 4 and the highlights of Q1 2018. First, what I said earlier, there's a very strong basis of comparison in Q1 2017 with a reported growth of 22% and a like-for-like growth of 13%. And if you look at what happened in Q1 2018, there's a reported growth of 3%. Including acquisition and at same exchange rate, we have a growth of 8.5%. And in like-for-like basis, a growth of 1%. And what is probably more important, we're expecting for Q2 2018 like-for-like growth between 5% and 6%. If you go to Page 5, you see the -- once again it's before IFRS 15. So in the same presentation that what we had last year, you see that OEM sales as in a like-for-like basis, a growth of 1%. And the impact of the scope is 7%. Therefore, the growth of that OEM business has been 8% for the first quarter. The aftermarket has grown 3% in a like-for-like basis and 7% in a reported basis. The miscellaneous has dropped 2%. And in a reported basis, a growth of 12%. And overall, turnover of Valeo has been EUR 4,917,000,000. If we go Page 6, you will see that there's something strange that has happened. We normally compare our growth with production, of course, but we take as a reference the LMC production description. For the first time in my career and I am in the business for quite a while, we have quite a big discrepancy between what LMC has disclosed as a growth for Q1 2018 and what IHS has disclosed for that same period. LMC has disclosed 1% growth and IHS has disclosed 1% drop in the production. Once again, it's the first time I see such a discrepancy. Therefore, we have given you the 2 measurements compared with LMC and compared with the IHS in our outperformance. For the first quarter in a worldwide basis, the growth has been in a like-for-like basis 1%, which is in line with the LMC growth and that would be a 2 points outperformance compared with IHS. For Europe, it would be a 2 points drop compared to LMC and 1 point outperformance compared to the IHS. For North America, in both case, it would be 1% outperformance. In China, it will be a 9% with IHS and underperformance of 2 points compared to LMC. And Asia, excluding China, would be outperformance of 1 point compared with LMC and 3 points compared with IHS. In South America, our growth was 29% with a very strong outperformance, both compared with LMC and IHS. You'll probably remember that after Q2 last year, we have quite a strong impact because of the Hyundai drop of production and sales in China. The overall impact for Valeo has been 0.3 points, you see that in the purple circle on the right of the Slide #6. If we look in Asia, the impact of cost of Hyundai Kia and the Chinese drop of their production has been 1 point and 5.6 points for the pure Korean operation. And you see the outperformance we have had, a growth of 30% in India. So we carry on growing extremely fast in India. China already disclosed the figures. Despite the Hyundai Kia drop in China, we're online with IHS and 1 point lower than LMC. And Japan, we outperformed the market, both for LMC and IHS. We have a small chart on the lower right part of the Slide #7. And you see that maybe we are arriving at the time where we have the green part of the chart, the evolution of the production of Hyundai in China. And we might see in the months to come higher production of Hyundai in China than what we have experienced in 2017. So it would be a positive contribution to Valeo's growth. But nevertheless, would remain under what we have experienced in 2016. If you go to Page 8, you see that the contribution of Asian, American countries is growing, which is online with what we have disclosed to you last year from 56% to 57%. Western Europe is growing. Thanks to acquisition of FTE. And U.S. is dropping because we have had no major acquisition in the U.S. and North America. And Page 9, you see that there's a slight change in our customer contribution. The German dropped -- remained -- sorry, remained stable at 28%. The Asian grow significantly from 32% to 33%. The American dropped slightly under French despite the growth of TSR and [indiscernible] stay relatively stable in our sales.Page 10, you see that the old businesses are along -- around 1% growth in Q1 2018 in a like-for-like basis. And the contribution of Hyundai Kia for the production in 19% [Audio Gap] the Powertrain. And in total sales, you see the significant growth of Powertrain, which has been impacted by the acquisition of FTE and Kapec. The outlook, the following page. We are confirming our guidance. If we go more in detail, we still forecast global automotive production of growth of 1.5% for the year in '18, exactly what we said at the early stage of the year. And we take as a consideration our basis, the material prices -- the material, raw material prices and action rate that we had in February 2018. We see nominal growth of Valeo of around 8%. The like-for-like growth between 5% and 6% in the second quarter, like I said earlier, and 5% for the whole year. Accelerating, of course, in the second half. And we're expecting a double-digit growth in 2019. Concerning our operating margin. Excluding the share of net earnings of equity-accounted companies as a percentage, we'll be in line with what we have experienced in 2017. So we confirm our operating margin guidance with, of course, because of the growth, H2 will be higher than H1 in terms of the operating margin. And concerning Valeo Siemens eAutomotive, you remember that we had EUR 6.1 billion already take in 2017 and a cumulative of around EUR 10 billion at end of February 2018. And to accommodate the fast phase expansion going forward, Valeo Siemens eAutomotive and we already spoke about that in our call in February with their -- the cost required to push ahead with ongoing projects and structure in organization. And therefore, the contribution of the -- divvied into our sharing net earnings of equity accounted companies will be 0.2 points negative. That is exactly in line with what we said in February. In midterms, of course, we confirm what we said in February as the sales of Valeo Siemens will be more than EUR 2 billion in 2022, and EBITDA margin will be at the same -- similar to what Valeo had forecasted for that period. Thank you for your attention. And of course, I can answer any question you want to ask.
[Operator Instructions] The first question comes from Raghav Gupta-Chaudhary from Citigroup.
The first one's on the Q2 guide. I know you don't generally guide on a quarterly basis, thanks for that. But the 5% to 6% like-for-like growth rate, when I look at IHS production forecast, and I appreciate there might be some difference here between what LMC are saying, what I've got IHS here in front of me, they're expecting 5% global production in Q2, which implies your guide -- your outperformance in Q2 is going to be between 0 and 100 basis points. So I think you just delivered 200 basis points on an IHS basis, but -- and so I'm just trying to understand the fact that you're going to be annualizing the Hyundai issue, are you just being cautious? Are you expecting -- or are you expecting a slowdown of first? And then I'll ask my second as well then. You've reiterated your 5% only like-for-like guidance. You said that you expected to accelerate in the second half and will be double digit in 2019. I just was wondering if you could talk through some of your business developments, which gives you the confidence in this acceleration? We've obviously seen and heard about your order book. Is there anything that you can talk about, about your conversations over the last 6 months or so with your customers that gives you even greater confidence that you'll be able to deliver that?
I'm sorry because the connection was not very good. So I think I understood your question. If I misunderstood, please correct me. For the first question, I think we have to come back to what I said. We anticipate a growth in 2018 of 1.5 points. Therefore, I don't really understand and don't really trust at that stage as the forecast of LMC and IHS. And as you know, I think we have been more accurate for the year than what they have been. Therefore, I won't comment on that. What we see from our orders and what we see for the delivery we are asked by our customers is we're very confident of a growth of 5% to 6%. That would mean the 3% growth in the first half for the year that what we said during our call and our meetings in February. And at that time, we said that we'll have a growth of 5% for the whole year. Around 3% in the first half of the year, around 7% in second half of the year. And we feel that those figures are very credible, and we trust those figures.
I guess. So if I could just intervene on that. And I just want to get some understanding of whether or not -- how cautious -- how much of a buffer potentially there is within that? I appreciate you looking to give us the number explicitly but just trying to understand if there is a degree of how much, kind of, caution is baked into that number essentially? And that's the crux of the question.
We are very confident about the figures we give you for the second quarter. Concerning the second half of the year, we -- of course, it's more difficult to forecast, but we are very, very confident with the 7% and the 10% of the double digit next year. At that stage, we are very confident. Of course, the longer we look forward, we have to pay attention to what will be the growth of 2019. At that stage, we take an assumption that the growth in 2019 will be around 2.5%.
Okay. Can I just ask one point of clarification on your like-for-like and guidance? On an IFRS-15-adjusted basis, you've done 0% organic growth in the first quarter, whereas on the previous basis, it's 1%? And again, it's probably a small point. I think I've calculated the difference to be 30 basis points. Just wanting to clarify if my math is correct there and is your guidance on the pre-IFRS 15 basis or post?
The -- for sake of clarification as to be online with all the work we have done previously, we thought it's better that state to give you our guidance in -- before IFRS. And the difference between before IFRS and IFRS will be margin also. I think that at that stage, we want you to be in a clearer way. Robert, you want to add something?
No. I just want to add the fact that with a round of the 5% to 6%, we are confident that this guidance is dated with IFRS 15 and without IFRS 15.
The next question comes from Kai Mueller from Bank of America Merrill Lynch.
Two, if I may. The first one is -- I mean, we've obviously spoken about the outperformance in terms of relative to the overall market. Just in terms of the regions, I understand it's been sort of a product slowdown and you see the ramp-ups coming into the back end of the year. What is just surprising, some regions such as China where you used to outperform by double digits have also come to close to 0. Actually, underperformance now when you look at -- versus IHS. It feels it's across the regions and it's across all product categories. What have really been the drivers? Because it's not sort of one product category that sort of is picking up and rolling on, but it's -- it goes across all regions and all product groups. Is it certain customers that have rolling off and rolling back on? And on that point, actually, what Raghav asked earlier on the organic growth, so the way you look at this 5% to 6%, do you think you are increasing your outperformance into the back end of the year into Q2? Or do you see still a slowdown? And the other question is really on your margin. I know it's a sales call, but you reiterated, obviously, your guidance and including that it's to do with -- as relative to the rumors of an effect as of February. Have you seen any movements since then that could be adversely affecting you on your margin guidance for the year?
The first question that was one of my first statements about the very high level of growth in the first quarter last year. You mentioned China, organic growth in China was 25%. So the comparison basis is extremely high. And you probably remember some other figures where we had an extremely high comparison basis in North America, in Europe and so on. So the fact that the average is 13%, the fact that we are or it was more difficult in Q1 to outperform what we had already achieved last year, I think is quite understandable. The -- you're right, there's no one, single explanation of that. We are not -- we think we have the right product mix. We think we have the right customer mix in most of the regions. I won't go to the details of what we see for Q2. But probably, the growth will come back in all region in Q2 compared to what we have experienced in Q1.
Oh, so that's also quite balanced, not a specific region?
Yes, exactly. And so -- and we see that -- or at least what we see today from the product and the deliveries our customers are asking for. First, we see very comfortable for the 5% to 6%. And it would be happening in all regions. Concerning the raw material, I would answer by a joke at taking only one raw material which is aluminum. If you were to ask me, what is the increase of aluminum last week? I would ask you at what time? When Mr. Trump said something about resell and the ban on resell products, immediately the aluminum price grew 25%. And when you relieve that a little bit, it went down 10%. So we are at a time when there's an enormous volatility of some raw material. What we see from today that the -- what we had in February 2018 could be a basis of what will impact our P&L. But at that stage, we're not very sure because we don't know some decisions that could be taken between the U.S. and China. So let's be cautious at that time. Let's look at what was the raw material prices in February. Let's leverage our growth to what the other suppliers. You remember that we buy around 55%, 58% of all turnover is material that we buy outside. So we have leverage -- to leverage our other suppliers. And let's take the best of what is happening on the raw material, but it will be very unreasonable at that stage to give any guidance on the impact. In terms of a[Audio Gap] I think, but depending on the enormous volatility we are seeing here, seeing to date, I don't think it will be reasonable. I don't think you would believe me if I were saying that.
Okay. So just to understand, basically, if we were to take spots, they're probably also taking that quite bit higher and also the FX is more adverse than where it was in February?
Robert?
Concerning the FX, when I take into account the currency exchange rate, there is no significant impact or comparative table.
Yes, in -- probably there's no impact. In raw material, we have to pay attention to what is happening because of the fluctuation. I hope that the average for the whole semester, the impact will be marginal, but we don't know.
The next question comes from Thomas Besson from Kepler Cheuvreux.
I have 2 questions as well, please. First, again, on the Q2 guidance. When I look at the organic growth you achieved in Q2 '17, down from 12.6, it was 5.1, which was still remarkable. But the comp is much easier as a step. So I'm a bit surprised you're effectively guiding for something which is broadly in line with what everybody assumes to be the growth in a global line production given the additional day you recover from Q1 into Q2 this year. So I'd like you to give us a bit more meat from that point, if possible? Second question is on IFRS 15. You nicely gave us the comparable figure for each quarter by segment, everything, which is great. So thank you for that. Is there any chance to get the IFRS 15 full account for H1 '17 and for 2017 before each of these events, please? Or do you plan to communicate solely on pre-IFRS 15 account every quarter until the end of the year?
So for the second question, Robert?
So for the second question, in fact, the restatement of the full account with IFRS 15 doesn't change the -- has no impact in terms of margin, of operating margin.
You mean the absolute number follows the same or the percentage margin is the same?
In percentage of sales, the operating margin of H1 2017 restated with IFRS 15 is very, very, very similar.
Okay. Understand. But there is a big impact on R&D. So for people like me...
Yes. Though you're -- you are right. There is a big impact in R&D in percentage of sales, but we have communicated the impact of R&D is a restatement of the -- in sales of the R&D. So normally you should have all the information available to make the honorary statement. But, of course, we are available to provide you with any details. But once again in terms of operating margin, there is no impact.
Okay. So to answer my question, there is no plan to communicate, to give us a restated account...
No. At this stage, there is no plan to communicate ahead of July 25.
Only because, in fact, it's very marginal. And you're right, the only impact in terms of percentage will be underlying R&D, but you have all the data to recalculate what could have been the percentage of R&D. The definition of the net R&D will be different from the one we had before because the reimbursement by our customers in terms of R&D and [ tooling ] will not be in deduction of our R&D expenses, but will be in sales. So...
Yes. And just one additional information, which is mentioned in the press release, the impact for the whole year 2017 in terms of R&D is an increase of the R&D in percentage of sales of 200 basis points.
It doesn't change anything for that certain margin.
I know. I know.
But that line, we'd have to reset the percentage figure.
Yes.
Concerning Q2 and the comparison with Q2 2017, you are right. But I don't -- I cannot add anything to what I said until now. What we see in growth in 2018 is between 5% and 6% in organic growth.
The next question comes from José Asumendi from JPMorgan.
Jose, JP Morgan. Couple of items, please. Just to clarify and just to make it simple, I mean, you are -- end of April we are now in, right, and you [ cover ] well into May and June. So you know where you are for the second quarter, extremely well to put in simple terms. Is that performance [indiscernible] production in Q2 in line with Q1 or slightly better? I mean, that will be the first question, please.
I don't understand. The production?
The outperformance of the growth. Just the growth versus the market, is it a bit better, I mean, what you had in Q1? Or is it in line versus the first quarter as well? What -- I think what we're trying to figure out.
No, it's our sales. Our sales is between -- the sales growth is between 5% and 6%. I have no clue at that stage what will be the production, so I cannot compare any way with the production. What I said earlier is we still think that the overall production growth in this year will be 1.5%. And at that stage, what we see from the whole year, not speaking about Q2, Q3 and Q4 from IHS and LMC which are both 2%, we think they are a little bit optimistic.
All right. Fine. And if the -- this business is developing a bit more dynamic in the second quarter versus what you saw in the first quarter? Or let's forget the whole discussion on production and see IHS, is the business development slightly better in Q2 versus Q1?
If you speak about the way our plants are running, they are running at better, better capacity tradition there for sure. Yes, we see that.
Okay. Second item. I'm looking at the figures, I'm trying to understand a little bit better what will get the momentum on CDA and Thermal to improve a bit more across Europe and U.S. Is there any color you can give on those [ traditions ]? And the final one would be on order book. If the development on order book is as dynamic as last year or not?
The order book remains very dynamic. But you remember that when we spoke in February, what I told you is that in order intake last year and this year, we have what is impacted directly Valeo and Valeo Siemens. And Valeo Siemens is taking a lot of resources of Valeo in the product development and the 10-million order we're having. So we have to be extremely cautious and more selective. And I use that formula, more selective in H1 and maybe for the whole year in order to give all the necessary sources to Valeo Siemens to develop their products. So we're still taking a very highly level of intake, but I wouldn't be surprised if we were in the first half of the year in line with what we have first half of the year last year or maybe a little bit lower, but it remains extremely high. We have to be cautious and not to be overtaking orders at a time where we need to give assistance to Valeo Siemens. And don't forget that Valeo Siemens will be part of Valeo in 2022 when we take over the 50% of Siemens.
Good. And then on CDA and Thermal in Europe and U.S., is there anything that's going to come in the second half that's going to change a little bit the momentum of both businesses from what you can see?
The growth of CDV or CDA in the second half of the year would be on line or better than the one of Valeo. And for Thermal, a little bit lower.
The next question comes from Chris McNally from Evercore ISI.
If we could maybe just move away from the content for vehicle and production discussions in specific quarters and maybe just move on the visibility that you have from customer programs and large program launches in the second half. I think you had mentioned previously some business had moved from late '17 into the second half of '17, both from an [indiscernible] perspective and lighting. Could you just give a little bit of qualitative color on how the program launches in the back half of the year where the acceleration comes from? Does the visibility there remain on track even though it's a couple of months away?
The -- I don't know how to answer that question. The overall impact is what I gave you with -- the flavor, the growth we see for Q2 this year and as to this year. So it's, of course, we take in consideration the information we have from our customers, both of the launch of products, the acceleration or the munition of the ongoing programs. And of course, some hypothesis and the tax rate of some of our products, mainly LED for lighting and the Driving Assistance where we might have some tax rate increase. So what we give you is the best of what we know today of all the information we're having from our customers. And when we compute all the information, we arrived to the conclusion I was giving to you that the growth -- Q2 and the growth H2. So I cannot answer specific. We are probably, this year, something like 1,000 launches of products. So we have to compute all that and that what we see and all information we are getting from our customers, and we are quite now -- quite precise of the date of launch or the tax rate of all those products in different region of the world.
That's great. And then just another one on the acceleration into 2019 for double digits. Can you talk -- we've heard some of the moving around in the quarters based on geography and the divisions, is it fair to say that we should think about 2019 as a broad-based double digit sort of getting back to the kind of typical China growing double digits, mid-single-digit outperformance in some of the other developed regions, maybe just -- again, is it a broad-based reacceleration into 2019?
I would like to come back to one thing. In February 2017 when we gave our growth prospects going forward to EUR 27 billion in 2021, the acquisition of Ichikoh and FTE and Kapec were completed in. So therefore, that is done now. And therefore, the target for 2021 remains unchanged. Both of those accelerate the exchange rate with impact quite significantly in '19, a little bit less 2021. So we stayed very much in line with those growth. In those growth forecast, we had a CAGR for China that was -- remember was 2.8%. Is it correct, Robert? Is it 2.5% and 2.8%? For China, it was 2.8%?
Perfect. Yes.
This year, China will be in line with that. We can consider that in the years to come, the 2.8% CAGR is something which seems to be reasonable. Having a growth -- a double-digit growth, an outperformance about what you said seems to be reasonable.
The next question comes from Lello Della Ragione from Intermonte.
I have 2 left. Just a clarification on the IFRS restatement. I understand definition that you gave us and the figure by quarter. I was wondering on a yearly basis, do we have to assume that the same effect on organic growth applies to the full year? Or is that a wrong assumption? And furthermore, on the guidance that you gave both on second quarter and for the remainder of the year, what kind -- I don't understand if you are assuming no real contribution or a stabilization of the issuing with Hyundai? Can you clarify that, please?
The -- for Hyundai, what we said is that we should come back to a normal situation in the second half of this year. The graphs we are showing you earlier shows that, that is a credible assumption.
And that is included in your indication in terms of organic growth or not? That was the question actually.
Yes, yes, yes, of course, of course, of course. Concerning the IFRS, I'd hand over to Robert.
Concerning the IFRS, I think that during the next 3 quarters, the impact in terms of cost should be very similar to what we have observed in Q1.
The next question comes from Jean-Francois Granjon from ODDO Securities.
Jean-Francois from ODDO BHF. Just 1 question regarding the Forex. The impact is quite impressive for the first quarter by negative 5.4%. What do you expect for the second quarter? Do you see the same magnitude for the second quarter and for your less impact there during the second half? And in Valeo, so I take it that this is more than EUR 250 million for the negative impact into -- during the first quarter. So do you see the same level as in the second quarter? And what do we expect for the full year in value of recession?
I will answer the question you didn't ask, the impact on our margins. You remember that over the last years and probably, it will be the same this year, we have a natural edge. That means, in the variation of the currency, the way we are experiencing them over the last few years and including this year, there should be no major, no significant or any marginal impact on our margin. So what you are asking as a question will have an impact on our turnover? Of course, but no impact on our margin, which I think is the most important. So concerning the top line, I hand over to Robert.
So to tell you, your first question, I think that if we continue to observe the same level roughly of exchange rate that we can see today when we speak of the U.S. dollar, the renminbi and the Japanese yen and the won, normally we will -- we should have the same order of magnitude of impact in Q2. And as you said, it will decrease during the second half of the year because you will remember that those currencies started to depreciate against the Euro during the second half of 2017.
The next question comes from Michael Foundoukidis from Natixis.
Michael Foundoukidis, Natixis. First question, sorry, I probably missed something, but just wanted to get clear on Korea and situation. I mean, last year, you told us and we saw it in your figure, that it was impacted -- impacting your Korean sales. And this year, it seems much more focused on China revenue. So could you explain what changed? That would be the first question. Second one is, marginally speaking, I'm surprised to see the slowdown so evenly spread between all divisions and regions. So as there is no single regions or products line that would explain it, so could you explain how is that possible? And what do you expect in terms of reacceleration? Do you expect your reacceleration to be in all -- in the same magnitude for all region in the same -- and the divisions in the coming in H2 and maybe next year?
For the first question, it's quite easy. We deliver in Korea to Hyundai Kia product that goes into the engines. And the engines are exported from Hyundai Kia into China where cars are assembled. The major impact of the drop of production of Hyundai has been in China. Therefore, if you want to look at the impact on our sales of what has happened to Hyundai Kia, we have to refer to the overall Chinese production and sales of cars. That is the best way and the best approximation of us to look at what is happening in Hyundai Kia. So our sales are done in Korea, but it's impacted by a drop of production and sales of Hyundai Kia in China. For the...
So just a follow-up on that.
Pardon?
So just a follow-up on that. What would explain then the underperformance you have in China in Q1?
It has nothing to do with Hyundai Kia, nothing. That will be really very specific. It impacts our sales in Korea, our production in Korea and sales that we are having in Korea to Hyundai Kia. The overall evolution of the sales in China has absolutely nothing to do with that. Concerning the second question, and I think I already answered to that question. The comp is extremely challenging in all region and all business. Only for you to have a few figures, our organic growth last year in the different businesses has been for Comfort & Driving Assistance, 10%; for Powertrain, 11%; for Thermal, 15%; for Visibility, 14%. And I already gave some indication of some growth we had in North America, Europe and China. So we are extremely high in all region and all business. And the comp is extremely high for all business and all region. So I think we have, at the end, what we had in the beginning. It's nothing surprising.
Okay. And do you expect reacceleration to be in the same magnitude for all business in H2?
In first approximation, yes.
Mr. Aschenbroich, back to you for the conclusion.
So I would like to come back to the growth. I think -- of course, we are focusing on organic growth. And the organic growth in the first quarter has been 1%, once again compared to very high comp in Q1 2017. But overall growth, including our acquisitions, Ichikoh, Kapec and FTE at same exchange rate is 8.5%. So our growth in Q1 is much better than the 1% of like-for-like. Of course, in the future, we remain extremely focused on organic growth, which has been our strategy over the last years. And we are very confident of the figures, which are only organic growth that we are seeing in our forecast for Q2 and H2.Thank you very much for attending the call, and see you soon.
Ladies and gentlemen, this concludes the conference call. Thank you all for your participation. You may now disconnect.