Slide 1: Q3 2019 Sales
Q3 2019 SALES JACQUES ASCHENBROICH – CHAIRMAN & CEO October 24, 2019
Slide 2: Q3 Highlights
Q3 HIGHLIGHTS In line with our projections Increasing outperformance in all Business Groups and all production regions including China; Cost (> €100m) and capex (increased to ~ €200m) reduction plans; Share in net earnings of equity-accounted companies expected to have a similar impact (in €m)
Slide 3: Impact of the General Motors Strike
IMPACT OF THE GENERAL MOTORS STRIKE One-off impact of the GM strike One-off effect estimated at around -€160 in sales and around -€50m in operating margin; Guidance confirmed for operating margin excluding the impact of the GM strike. 3 October 24, 2019
Slide 4: Outperformance Acceleration Thanks to Start of Production on New Contracts
OUTPERFORMANCE ACCELERATION THANKS TO START OF PRODUCTION ON NEW CONTRACTS OEM sales outperformance (like for like) In percentage points +8pts** +4pts** +3pts** +2pts** 0pts* H1 18 H2 18 Q1 19 Q2 19 Q3 19 *IHS estimates ** IHS estimates - China Passenger Car Association (CPCA) estimates for China 4
Slide 5: 8 Points OEM Sales Outperformance in a Challenging Environment
8 POINTS OEM SALES OUTPERFORMANCE IN A CHALLENGING ENVIRONMENT Q3 19 8 pts 249 outperformance 477 €m 4,772 4,046 OEM Aftermarket Miscellaneous Sales Reported +7% -1% +46% +8% Like for like +5% -3% +42% +6% Exchange rates +2.1% Exchange rates +1.9% Exchange rates +1.7% Exchange rates +2.1% Scope -0.1
Slide 6: 8 Points OEM Sales Outperformance (Like for Like)
8 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q3 19 OEM OEM sales(2) Like for like +5% 44% of Valeo sales(2) sales(2) +5% 21% of Valeo sales(2) OEM sales(2) Europe (1) World +14% North NorthAmerica America OEM sales** +6% Outperformance Outperformance Production*** +4% +5pts vs IHS +8pts vs IHS/
Slide 7: In China, Back to Positive OEM Sales Outperformance (+11 Points)
IN CHINA, BACK TO POSITIVE OEM SALES OUTPERFORMANCE (+ 11 POINTS) Q3 19 OEM Like for like 25% of Asian sales(2) sales(2) -9% OEM 32% of Valeo sales(2) sales(2) Japan -1% OEM Asia (1) 25% of Asian sales(2) sales(2) +4% Outperformance -16pts vs IHS South Korea Outperformance +5pts vs IHS/CPCA OEM 41%
Slide 8: 5 Points OEM Sales Outperformance (Like for Like)
5 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 19 OEM OEM sales(2) Like for like -1% 48% of Valeo sales(2) sales(2) 0% 20% of Valeo sales(2) OEM sales(2) Europe (1) World +9% North NorthAmerica America OEM sales** +6% Outperformance Outperformance Production*** +4% +4pts vs IHS +5pts vs IHS/C
Slide 9: Balanced Geographic Positioning
BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 16% Western Western Europe Europe 32% Asia excl. 32% Asia excl. China 60% in Asia China 58% in Asia 18% & emerging 20% & emerging countries countries US US 8% China China
Slide 10: Diverse Customer Portfolio
DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 5% French French 13% 14% German German 30% 31% American American 19% 18% Asian Asian 32% 32% 2018 YTD September 2019 10 October 24, 2019
Slide 11: Every Business Group Outperformed the Market in Q3
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET IN Q3 Outperformance +8pts +9pts +4pts +11pts CDA VIS 20% 30% Group €4.8bn PTS 26% THS 24% 1,458 1,249 1,130 Q3 total sales 967 In €m % of Q3 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance Reported +7% +5% +5% +13% OEM sales Like for
Slide 12: Every Business Group Outperformed the Market YTD
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET YTD Outperformance +7pts +5pts +3pts +6pts CDA VIS 20% 30% Group €14.5bn PTS 26% THS 24% 4,472 3,814 3,460 YTD total sales 2,905 In €m % of YTD 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance Reported +4% -1% +1% +3% OEM sales Like for
Slide 13: 2019 Outlook
2019 OUTLOOK 13 October 24, 2019
Slide 14: 2019 Outlook
2019 OUTLOOK Valeo is confirming its 2019 guidance (excluding the one-off impact of the General Motors strike), despite the 6% decline in automotive production (versus a previously projected decrease of 4%): accelerating outperformance over the course of the year, driven by the start of production
Slide 15: Back-up: YTD Sales, Business Group Information
BACK-UP YTD sales 16 Business Group information 20 15 October 24, 2019
Slide 16: 5 Points OEM Sales Outperformance in a Challenging Environment
5 POINTS OEM SALES OUTPERFORMANCE IN A CHALLENGING ENVIRONMENT YTD 19 5 pts 16 000 outperformance 800 14 000 1,482 12 000 10 000 €m 8 000 14,548 6 000 12,266 4 000 2 000 0 OEM Aftermarket Miscellaneous Sales Reported +1% -3% +29% +2% Like for like -1% -3% +27% 0% Exchange rates +2.0% Exchange rates
Slide 17: 5 Points OEM Sales Outperformance (Like for Like)
5 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 19 OEM OEM sales(2) Like for like -1% 48% of Valeo sales(2) sales(2) 0% 20% of Valeo sales(2) OEM sales(2) Europe (1) World +9% North NorthAmerica America OEM sales** +6% Outperformance Outperformance Production*** +4% +4pts vs IHS +5pts vs IHS/C
Slide 18: In China, Back to Positive OEM Sales Outperformance (+2 Points)
IN CHINA, BACK TO POSITIVE OEM SALES OUTPERFORMANCE (+ 2 POINTS) YTD 19 OEM Like for like 26% of Asian sales(2) sales(2) -8% OEM 30% of Valeo sales(2) sales(2) Japan OEM -7% Asia (1) 26% of Asian sales(2) sales(2) +1% Outperformance -12pts vs IHS South Korea Outperformance +2pts vs IHS/CPCA OEM 38%
Slide 19: Every Business Group Outperformed the Market YTD
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET YTD Outperformance +7pts +5pts +3pts +6pts CDA VIS 20% 30% Group €14.5bn PTS 26% THS 24% 4,472 3,814 3,460 YTD total sales 2,905 In €m % of YTD 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance Reported +4% -1% +1% +3% OEM sales Like for
Slide 20: Business Group Information
BUSINESS GROUP INFORMATION 20 October 24, 2019
Slide 21: Comfort & Driving Assistance
COMFORT & DRIVING ASSISTANCE Outperformance +6pts +8pts +7pts OEM sales growth Market share* and competitors: 2018 key figures: Like for like -1% +5% +1% • Sales: €3.6bn (19% of Group sales) - Comfort & Driving Assistance: • EBITDA: 14.0% (22% of Group EBITDA) Valeo no. 2 967 • 24,600 employees Cont
Slide 22: Powertrain Systems
POWERTRAIN SYSTEMS Outperformance +3pts +9pts +5pts 2018 key figures: OEM sales growth Market share* and competitors: Like for like -4% +6% -1% • Sales: €5.0bn (26% of Group sales) - Electrical Systems: Valeo no. 1 • EBITDA: 13.1% (28% of Group EBITDA) 1,249 Valeo + Denso + Bosch/ZMJ ~ 70%* • 24,400
Slide 23: Thermal Systems
THERMAL SYSTEMS Outperformance +3pts +4pts +3pts 2018 key figures: OEM sales growth -4% +1% -3% • Sales: €5.0bn (26% of Group sales) Like for like Market share* and competitors: • EBITDA: 10.6% (20% of Group EBITDA) Thermal Systems: Valeo no. 2 • 24,700 employees 1,130 Denso + Valeo + Hanon + Mahle
Slide 24: Visibility Systems
VISIBILITY SYSTEMS Outperformance +4pts +11pts +6pts Market share* and competitors: 2018 key figures: OEM sales growth Like for like -4% +8% 0% • Sales: €5.7bn (29% of Group sales) - Lighting Systems: Valeo no. 1 • EBITDA: 11.1% (27% of Group EBITDA) Valeo + Koito + Magnetti Marelli ~ 58%* 1,458 • 3
Slide 25: Contacts: Investor Relations
CONTACTS Investor Relations Valeo 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: thierry.lacorre@valeo.com Website: www.valeo.com 25 October 24, 2019
Slide 26: Share Information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of September 30, 2019 241,036,743 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • C
Slide 27: Safe Harbor Statement
SAFE HARBOR 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 respec
Slide 28: SUV) JALYVWS AO4
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