Slide 1: Q3 2022 Sales
Q3 2022 Sales CHRISTOPHE PÉRILLAT CEO
Slide 2: Table of contents
Q3 SALES Table of contents 01 Q3 highlights 02 Q3 sales 03 Backup slides VALEO RESERVED | OCT-22 2
Slide 3: Q3 highlights
01 Q3 highlights VALEO RESERVED | OCT-22 3
Slide 4: Q3 Highlights
01 Q3 Highlights JULY 4 JULY 12 OCTOBER 12 New Powertrain Systems: integration Powertrain Systems: new mobilities Record order intake with 2 contracts in of 100% of VSeA’s share capital electrification for Thermal Systems The transaction results in a net cash Presentation at Eurobike of Contract with
Slide 5: Taking our High Voltage business to the next stage
01 Taking our High Voltage business to the next stage New PTS 2030 2025 2016 2021 2022 ~€4bn in sales Expected in High ~€2bn in sales Voltage Creation of a 50/50 JV 8 sites around the world ~€1bn in sales Expected in High dedicated to High Expected in High Voltage Voltage powertrains >1,600 R&D engi
Slide 6: 2022 guidance confirmed
01 2022 guidance confirmed 2022 Based on the latest automotive production estimates released by S&P Global on October 14, 2022, current Sales (in billions of euros) 19.2-20.0 levels of raw material and estimated energy prices, constructive pricing discussions with our customers EBITDA (as a % of sale
Slide 7: Q3 sales
02 Q3 sales VALEO RESERVED | OCT-22 7
Slide 8: Reported Q3 OEM sales up 41%
02 Reported Q3 OEM sales up 41% Main change in scope: Integration of the High Voltage business* Group Sales OEM Aftermarket Miscellaneous €5,259m €4,474m €573m €212m incl. HV business incl. HV business incl. HV business incl. HV business €321m €305m €3m €13m +33% reported growth +41% reported growth
Slide 9: Valeo's growth benefiting from integration of High Voltage business
02 Valeo’s growth benefiting from integration of High Voltage business* Group Sales OEM Sales €5,259m €4,474m Up 19% lfl vs. Q3 2021 Up 24% lfl vs. Q3 2021 Reported Reported HV business OEM HV business +€125m Up 61% vs. Q3 2021 Up 69% vs. Q3 2021 Up 21% lfl vs. Q3 2021 Up 26% lfl vs. Q3 2021 Pro forma Pr
Slide 10: Dynamic aftermarket business
Aftermarket 02 business Dynamic aftermarket business Aftermarket like-for-like OES IAM +9% sales growth vs. Q3 2021 Independent Original Equipment Aftermarket Service Manufacturer Dynamic growth despite unfavorable base effect Drivers: (+18% lfl growth in Q3 2021 vs Q3 2020) Ageing & growing car fleet
Slide 11: World Q3 sales performance
02 Q3 sales performance China -8pts perf. 19% of OEM sales World North America 21% of OEM sales South America 2% of OEM sales Europe (incl. Africa) 42% of OEM sales Asia (incl. China) 35% of OEM sales -3pts performance +26% OEM sales lfl +42% OEM sales lfl +26% OEM sales lfl +21% OEM sales lfl +24% Prod
Slide 12: World Q3 sales performance pro forma
02 Q3 sales performance pro forma China -3pts perf. 19% of OEM sales World North America 21% of OEM sales South America 2% of OEM sales Europe (incl. Africa) 42% of OEM sales Asia (incl. China) 35% of OEM sales -1pt performance +26% OEM sales lfl +42% OEM sales lfl +29% OEM sales lfl +23% OEM sales lfl
Slide 13: Comfort & Driving Assistance Systems
Comfort 02 & Driving ADAS growth, up 53% lfl Assistance Systems pts 9 CDA OEM sales Benefiting from ADAS Acceleration (CDA) outperformance & Interior Experience Reinvention Up 36% lfl vs. Q3 2021 Major contract win in ADAS with BMW including sensors, domain controller & integrated SW ADAS OEM Sales Rei
Slide 14: Powertrain Systems
Powertrain 02 Systems High Voltage business* OEM sales (PTS) growth, up 69% pt -1 Pro forma OEM sales Benefiting from performance Electrification Acceleration Up 26% lfl vs. Q3 2021 Creating a champion in electrification by taking control of VSeA on July 4, 2022 Including 8 points in additional performa
Slide 15: Thermal Systems
Thermal 02 Systems Thermal systems growth (THS) prospects fueled by electrification pt -1 THS OEM sales Benefiting from performance Electrification Acceleration Up 26% lfl vs. Q3 2021 Strong momentum in electrification with >€4bn in order intake recorded for e-thermal systems in 2022, including Smart Hea
Slide 16: Visibility Systems
Visibility 02 Systems Temporary impact of unfavorable (VIS) product & customer mix pts -8 VIS OEM sales Benefiting from performance lighting everywhere Up 19% lfl vs. Q3 2021 First orders wins in central area illuminated grille & logo Strategic alliance with SRG Global to jointly develop LED illuminat
Slide 17: Backup slides
03 Backup slides VALEO RESERVED | OCT-22 17
Slide 18: Q3 sales - Pro forma: Q3 2021 restated to include High Voltage business
03 Q3 sales - Pro forma: Q3 2021 restated to include High Voltage business* 212 5,259 573 4,474 €M * formerly VSeA Reported: +33% +10% –21% +27% Like for like: +26% +9% -25% +21% Exchange rates: +7% +1% - +6% Scope: - - - - VALEO RESERVED | OCT-22 18
Slide 19: Asia Q3 sales performance
03 Q3 sales performance China India Japan South Korea 55% of Asia sales 3% of Asia sales 18% of Asia sales 16% of Asia sales Asia -9pts +23% OEM sales lfl +31% Production* -18% OEM sales lfl +33% Production* +24% OEM sales lfl +23% Production* +7% OEM sales lfl +20% Production* performance Production +2
Slide 20: Asia Q3 sales performance pro forma
03 Q3 sales performance pro forma China India Japan South Korea 55% of Asia sales 3% of Asia sales 18% of Asia sales 16% of Asia sales Asia -7pts +28% OEM sales lfl +31% Production* -14% OEM sales lfl +33% Production* +24% OEM sales lfl +23% Production* +7% OEM sales lfl +20% Production* performance Pro
Slide 21: 9M sales - Main change in scope: Integration of High Voltage business
03 9M sales - Main change in scope: Integration of High Voltage business* 678*** 14,678 1,713** HV business* 321 12,287 HV business* 305 * formerly VSeA €M ** including €3m for former VSeA *** including €13m for former VSeA Reported: +15% +11% -5% +13% Like for like: +8% +11% -10% +7% Exchange rates
Slide 22: 9M geographic & customer positioning
03 9M geographic & customer positioning OEM sales by production region (% of OEM sales) 9M 2021 9M 2022 ▲ Western Europe 31% 29% -2pp % North America Asia & emerging countries 8% 61% 8% 63% Stable +2pp 63 Of which Asia excluding China 17% 15% -2pp of OEM sales Of which China 15% 18% +3pp Exposure to
Slide 23: An ESG leader recognized by rating agencies
03 An ESG leader recognized by rating agencies #1 #2 #1 71/100 10.6 low-risk B- Prime #1 #1 #1 A- 62.2% Climate Change AAA Most represented auto parts company in ESG indices including Global ESG CAC40 ESG ESG Leaders Leaders VALEO RESERVED | OCT-22 23
Slide 24: Committed to our 2025 Targets
03 Sales EBITDA FCF €27.5bn ~14.5% €0.8bn - €1.0bn Committed to our 2025 >5pts EBIT Leverage Targets* OUTPERF. OVER 2021/25 VS. IHS ~6.5% <0.7x CAGR** 2021-2025 HV BUSINESS DIVESTMENT OF INTEGRATION NON-STRATEGIC SYNERGY EFFICIENCY PLAN ASSETS PTS THS CDA VIS €120m €100m €500m 15% 11% 16% 10% per ye
Slide 25: Contacts
Contacts VALEO 100, rue de Courcelles 75017 Paris FRANCE François Marion, Group Corporate Communications & Investor Relations SVP Thierry Lacorre, Group Investor Relations VP E-mail: valeo.corporateaccess.mailbox@valeo.com Website: www.valeo.com VALEO RESERVED | OCT-22 25
Slide 26: Share information
Share information Share Data ADR Data Ticker/trading symbol VLEEY Bloomberg Ticker FR FP CUSIP Number 919134304 Reuters Ticker VLOF.PA Exchange OTC ISIN Number FR0013176526 Ratio (ADR: ord) 1:2 Shares outstanding as of September 30, 242,574,781 Depositary Bank J.P. Morgan 2022 Contact at J.P. Morgan
Slide 27: Glossary
Glossary EBITDA corresponds to (i) operating margin before depreciation, amortization and impairment losses (included in the operating margin) and the impact of government subsidies and grants on non-current assets, and (ii) net dividends from equity‑accounted companies. Free cash flow corresponds to
Slide 28: Safe harbour statement
Safe harbour statement Statements contained in this document, which are not historical fact, constitute “forward-looking statements”. These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intentions and expectations with respe
Slide 29: Smart technology for smarter mobility
SMART TECHNOLOGY FOR SMARTER MOBILITY