Slide 1: FY 2018 Results
FY 2018 RESULTS JACQUES ASCHENBROICH – CHAIRMAN & CEO February 21, 2019
Slide 2: 2018 results in line with October guidance thanks to cost-saving plan
2018 RESULTS IN LINE WITH OCTOBER GUIDANCE THANKS TO COST COST-SAVING SAVING PLAN October 2018 guidance 2018 results S l growth Sales th att constant t t exchange h rates t +6% 6% +6% 6% H2 OEM outperformance +2pts +3pts Operating margin (excl. JV & associates) 6.2% - 6.5% 6.3% JV & associates -0.4%
Slide 3: Successful & accretive integrations
SUCCESSFUL & ACCRETIVE INTEGRATIONS 3 February 21, 2019
Slide 4: 2018 dividend of €1.25/share to be proposed at the next AGM
2018 DIVIDEND OF €1.25/SHARE TO BE PROPOSED AT THE NEXT AGM 1.25 1.25 1.25 Dividend (€/share) 1.0 0.73 0.57 0.47 05 0.5 0.4 2010 2011 2012 2013 2014 2015 2016 2017 2018 EPS (€/share) 1.62 1.89 1.68 1.90 2.41 3.11 3.91 3.69 2.30 EPS excl. non-recurring items (€/share) 1 62 1.62 1 89 1.89 1 85 1.85 2
Slide 5: Geopolitical & macro economic headwinds
GEOPOLITICAL & MACRO ECONOMIC HEADWINDS RAW FOREIGN GEOPOLITICS MATERIALS EXCHANGE TRADE & EXPORT VOLATILITY VOLATILITY WAR CONTROLS Iran-related activities Dedicated mitigation plans shutdown 5 February 21, 2019
Slide 6: Automotive sector in (R)evolution
AUTOMOTIVE SECTOR IN (R)EVOLUTION DECLINE IMPLEMENTATION IN CHINESE SOFTWARE OF WLTP PRODUCTION AND AI NEWCOMERS ~25% 25% of our Valeo engineers are now New customers & Launch of a cost reduction plan in H2 2018 new business software engineers models Creation of 6 February 21, 2019
Slide 7: An integrated model fully centered on the automotive revolutions
AN INTEGRATED MODEL FULLY CENTERED ON THE 3 AUTOMOTIVE REVOLUTIONS EXAMPLE OF INTERIOR COCOON EXAMPLE EXAMP E OF SENSOR CLEANING SYSTEMS 7 February 21, 2019
Slide 8: 2019 Outlook
2019 OUTLOOK February 21, 2019
Slide 9: Strict control of R&D, SG&A and capex
STRICT CONTROL OF R&D, SG&A AND CAPEX INCREASED MASSIVE SHIFT TO EFFICIENCY PLANS STANDARDIZATION OFFSHORE (BY BUSINESS AND PRODUCT) SOFTWARE PLATFORMS CAPEX ACCELERATION OF NEAR-TERM STRICT CONTROL SHIFT TO LOW- IMPLEMENTATION COST COUNTRIES OF VALEO PLANT CAPACITY REUSE OF THE FUTURE AND MANAGEMEN
Slide 10: A gradual increase in like-for-like growth and market outperformance during the year
A GRADUAL INCREASE IN LIKE-FOR-LIKE GROWTH AND MARKET OUTPERFORMANCE DURING THE YEAR Arrival of new p platforms in 2019 Examples p of new products p +85% Content per car for Valeo Averageleading content to €x / +x% % vs previous i vehicles hi l +€800m Additional sales in 2019 10 February 21, 2019
Slide 11: 2019 Outlook
2019 OUTLOOK In a context of: volatile l til global l b l automotive t ti production d ti (estimated ( ti t d growth th off between b t 0% and d -1% 1% over the th year compared d with ith 2018) with ith a decline in the first half due to the economic environment in China, and an improvement in th
Slide 12: Growth potential confirmed
GROWTH POTENTIAL CONFIRMED 2018 ORDER INTAKE AT 1.7X OEM SALES OR €28.6bn €24.2bn OR 1.5X OEM SALES (EXCL. VALEO SIEMENS EAUTOMOTIVE), 10% CAGR SINCE 2013 €4.4bn AT VALEO SIEMENS EAUTOMOTIVE, A CUMULATIVE €10.5bn AT YEAR-END February 21, 2019
Slide 13: Total order intake of €28.6bn
TOTAL ORDER INTAKE OF €28.6bn €24.2bn EXCLUDING VALEO SIEMENS EAUTOMOTIVE… …CONFIRMING CONFIRMING VALEO’S VALEO S FUTURE CAPACITY TO OUTPERFORM AUTOMOTIVE PRODUCTION Full-year order intake*** €bn V l Si Valeo Siemens eAutomotive A i 33.7 A cumulative €10.5bn order intake at year-end 6.1 28.6 44 4.4
Slide 14: Order intake/OEM sales ratio at 1.7x
ORDER INTAKE/OEM SALES RATIO AT 1.7X (INCL. VALEO SIEMENS EAUTOMOTIVE) OEM sales of €16.5bn Order intake of €24.2bn 14% SA 2% 18% SA NA Asia 2% Order excl. China Asia NA Asia excl. intake/OEM €3.4bn 16% 41% €3.0bn China Asia sales ratio €9.9bn 19% 34% €5.5bn Asia 1.8x Of which China 2.4x China 32% E
Slide 15: Innovation fueling organic growth
INNOVATION FUELING ORGANIC GROWTH Valeo order intake 24 2 24.2 > €1bn €1b order d intake: i k AI-enriched AI i h d surround d Artificial Intelligence view & automated parking systems with by Valeo object and pedestrian detection features €1bn order intake for robotaxis Valeo 53%* Increasing order in
Slide 16: Q4 and H2 2018 sales
Non- IFRS 15 Q4 2018 SALES TOTAL SALES OF €4.8bn, €4 8bn UP 1% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE H2 2018 SALES TOTAL SALES OF €9.3bn, UP 3% AT CONSTANT EXCHANGE RATES DOWN 1% LIKE FOR LIKE OEM SALES UP 2% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE AFTERMARKET SALES UP 7% AT CONS
Slide 17: Q4 18 sales up 1% at constant exchange rates
Non- IFRS 15 Q4 18 SALES UP 1% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE At constant Q4 18 exchange rates -1% +3% +37% +1% 212 487 4,834 €m 4,135 OEM Aftermarket Miscellaneous Sales Like for like -3% +1% +28% -2% Reported +0% +2% +23% +1% Q4 17 4,134 Q4 17 478 Q4 17 173 Q4 17 4,785 Exchange r
Slide 18: H2 18 sales up 3% at constant exchange rates
Non- IFRS 15 H2 18 SALES UP 3% AT CONSTANT EXCHANGE RATES DOWN 1% LIKE FOR LIKE At constant H2 18 exchange rates +2% +7% +22% +3% 314 969 9,322 €m 8,039 OEM Aftermarket Miscellaneous Sales Like for like -2% +2% +16% -1% Reported +2% +5% +13% +3% H2 17 7,885 H2 17 924 H2 17 277 H2 17 9,086 Exchange r
Slide 19: 3-point OEM sales outperformance in H2
Non- IFRS 15 3-POINT 3 POINT OEM SALES OUTPERFORMANCE IN H2 (LIKE FOR LIKE) At constant exchange Q4 & H2 18 rates -1% +2% +6% OEM sales €m 16,667 8,039 4 135 4,135 Q4 18 H2 18 2018 Reported 0% +2% +3% Exchange rates +0 5% +0.5% Exchange rates +0.2% +0 2% Exchange rates -2 1% -2.1% Scope +2.8% Scope
Slide 20: 3-point OEM sales outperformance (like for like)
Non- IFRS 15 3-POINT 3 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) H2 18 OEM sales(2) Like for like OEM -2% 44% of Valeo sales(2) sales((2)) OEM -4% W ld World 21% of Valeo sales(2) sales(2) Europe (1) +6% North North America America OEM sales** +6% Outperformance Outperformance +1pt 1pt vs IHS(3
Slide 21: In Asia, 1-point OEM sales outperformance
Non- IFRS 15 IN ASIA, 1 1-POINT POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) H2 18 26% of Asian sales(1) OEM sales(1) Like for like +11% Japan OEM 33% of total sales(1) sales(1) Outperformance -6% OEM +11pts vs IHS(2) sales(1) Asia 23% of Asian sales(1) -3% S th Korea South K Outperformance Outper
Slide 22: H2 2018 sales by Business Group
Non- IFRS 15 H2 2018 SALES BY BUSINESS GROUP At constant exchange rates +2% +14%* +1% -5% CDA VIS 19% 29% Group €9.3bn PTS 26% THS 26% 2,715 2,426 2,448 Total sales 1,797 In €m % of H2 18 sales Comfort & Driving Powertrain Thermal Visibility Powertrain negatively impacted by: : Assistance WLTP in
Slide 23: 2018 total sales of €19.3bn
Non- IFRS 15 2018 TOTAL SALES TOTAL SALES OF €19.3bn, €19 3bn UP 6% AT CONSTANT EXCHANGE RATES UP 1% LIKE FOR LIKE OEM SALES UP 6% AT CONSTANT EXCHANGE RATES UP 0% LIKE FOR LIKE, 1.5-POINT OUTPERFORMANCE AFTERMARKET SALES UP 10% AT CONSTANT EXCHANGE RATES UP 4% LIKE FOR LIKE February 21, 2019
Slide 24: 2018 sales up 6% at constant exchange rates
Non- 2018 SALES UP 6% AT CONSTANT EXCHANGE RATES IFRS 15 UP 1% LIKE FOR LIKE At constant 2018 exchange rates +6% +10% +14% +6% 584 2,010 19,261 €m 16,667 OEM Aftermarket Miscellaneous Sales Like for like +0% +4% +7% +1% Reported +3% +7% +8% +4% 2017 16,120 2017 1,887 2017 543 2017 18,550 Exchange ra
Slide 25: 1.5-point OEM sales outperformance
Non- IFRS 15 1.5-POINT 1.5 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) 2018 At constant exchange +9% +2% +6% rates 8,039 OEM sales 16,667 €m 8,628 H1 18 H2 18 2018 Reported +5% +2% +3% Exchange rates -4 3% -4.3% Exchange rates +0 2% +0.2% Exchange rates -2 1% -2.1% Scope +6.3% Scope +4.1% Scope +
Slide 26: 1.5-point OEM sales outperformance (like for like)
Non- IFRS 15 1.5-POINT 1.5 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) 2018 OEM sales(2) Like for like OEM +0% 46% of Valeo sales(2) sales((2)) World OEM +0% 20% of Valeo sales(2) sales(2) Europe (1) +2% North North America America Outperformance OEM sales** +6% Outperformance +1.5pts vs IHS(3) +
Slide 27: In Asia, 1-point OEM sales outperformance
Non- IFRS 15 IN ASIA, 1 1-POINT POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) 2018 26% of Asian sales(1) OEM sales(1) Like for like +9% Japan OEM 32% of total sales(1) sales(1) Outperformance -1% OEM +9pts vs IHS(2) sales(1) Asia 23% of Asian sales(1) -1% S th Korea South K Outperformance Outperfor
Slide 28: Balanced geographic positioning
Non- IFRS 15 BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern p & Europe Europe & Africa Africa 15% 15% Western Western Europe Europe Asia excl. 32% 31% China Asia excl. 57% in Asia 15% 59% in Asia China & emerging & emerging i 19% countries countries Chi
Slide 29: Diverse customer portfolio
Non- IFRS 15 DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 6% French* French* 14% 13% German German 28% 29% American** American** 18% 19% Asian Asian Asian** Asian** 33% 34% 26% 26% 2017 2018 * Including Opel ** Excluding Opel 29 February 21, 2019
Slide 30: 2018 sales by Business Group
Non- IFRS 15 2018 SALES BY BUSINESS GROUP At constant +3% +20%* +3% 0%** CDA exchange rates VIS 19% 29% Group €19.3bn PTS 26% THS 26% 5,703 5,059 4,996 Total sales In €m 3,638 % of 2018 sales Powertrain negatively impacted by: : Comfort & Driving Powertrain Thermal Visibility Assistance WLTP in Eu
Slide 31: Operating margin and net income
IFRS 15 IFRS 9 OPERATING MARGIN EXCL. EXCL JV & ASSOCIATES OF €1,203M OR 6.3% OF SALES NET INCOME OF €546M OR 2.9% OF SALES February 21, 2019
Slide 32: Gross margin of €3,674m or 19.2% of sales
IFRS 15 IFRS 9 GROSS MARGIN OF €3,674M OR 19.2% OF SALES As a % of sales €.3,832m €1,894m -4% -20bps -12% +20bps 20bps -50bps 60bps -60bps -30bps 30bps €3 674m €3,674m -80bps -30bps -50bps +0bps -10bps €1,676m -60bps -60bps +10bps -10bps 20.7% 20.9% 19.2% 18.1% 2017 Volume/ Commodities Operational Q
Slide 33: Strict control of R&D expenditure, at 8.2% of sales
IFRS 15 STRICT CONTROL OF R&D EXPENDITURE, AT 8.2% OF SALES IFRS 9 IN LINE WITH 2018 DESPITE CHALLENGING ENVIRONMENT IN H2 R&D expenditure In €m and as a % of sales Peak of capitalization Capitalized development impact in 2018 expenditure In €m and as a % of sales 1,560 716 1 494 1,494 577 +4% 3.1%
Slide 34: Strict control of SG&A expenses at 4.8% of sales
IFRS 15 STRICT CONTROL OF SG&A EXPENSES AT 4.8% OF SALES, IFRS 9 STABLE DESPITE CHALLENGING ENVIRONMENT IN H2 2018 2018 SG&A +2% % 911 890 In €m and as a % of sales Selling Selling expenses expenses €303m* €316m* Admin. Admin. expenses expenses 4.8% = 4.8% €587m €595m Selling Selling expenses expens
Slide 35: Operating margin excl. JV & associates of €1,203m or 6.3% of sales
IFRS 15 IFRS 9 OPERATING MARGIN EXCL. JV & ASSOCIATES OF €1,203M , OR 6.3% OF SALES As a % of sales €1,448m -17% €725m -38% €1,203m -150bps -10bps* €448m 0bps -280bps -40bps 0bps 7.8% 8.0% 6.3% 4.8% 2017 Gross R&D SG&A 2018 H2 17 Gross R&D SG&A H2 18 margin expenses margin expenses +4% €755m €723m -
Slide 36: Operating margin of €1,203m or 6.3% of sales
IFRS 15 IFRS 9 OPERATING MARGIN MARGIN* OF €1,203M OR 6.3% OF SALES H2 17 H2 18 2017 2018 9,051 9,261 +2% Total sales (€m) 18,484 19,124 +4% 1,894 1,676 -12% Gross margin 3,832 3,674 -4% 20.9% 18.1% -280bps As a % of sales 20.7% 19.2% -150bps (733) (786) +7% R&D expenditure (1,494) (1,560) +4% 8
Slide 37: Net income of €546m or 2.9% of sales
IFRS 15 IFRS 9 NET INCOME OF €546M OR 2.9% OF SALES H2 17 H2 18 2017 2018 9,051 9,261 +2% Total sales (€m) 18,484 19,124 +4% 716 365 -49% Operating margin incl. JV & Associates 1,468 1,092 -26% 7.9% 3.9% -400bps As a % of sales 7.9% 5.7% -220bps (43) (38) -12% Other income & expenses (66) (56) -
Slide 38: Excluding non-recurring items, EPS down 42%
IFRS 15 IFRS 9 EXCLUDING NON NON-RECURRING RECURRING ITEMS, EPS DOWN 42% 2017 2018 Change Net income (€m) 877 546 -38% EPS €3 7 €3.7 €2 3 €2.3 -38% 38% Net income (€m) (excluding non-recurring items) 1,031 599 -42% EPS (excluding non-recurring items) €4.3 €2.5 -42% 38 February 21, 2019
Slide 39: ROCE at 19% and ROA at 12%
IFRS 15 IFRS 9 ROCE AT 19% AND ROA AT 12% 2017 2018 Total sales 18,484 19,124 Operating margin* 1,468 1,092 ROCE 29% 19% ROA 19% 12% * Including joint ventures and associates 39 February 21, 2019
Slide 40: EBITDA and free cash flow generation
IFRS 15 IFRS 9 EBITDA OF €2,410M OR 12.6% OF SALES FREE CASH FLOW GENERATION OF €161M February 21, 2019
Slide 41: EBITDA of €2,410m or 12.6% of sales
IFRS 15 IFRS 9 EBITDA OF €2,410M OR 12.6% OF SALES In €m and as a % of sales 2,431 2,410 H2 17* H2 18* Business Groups 2017* 2018* 14.3 13.1 Comfort & Driving Assistance 14.2 14.0 13.3 12.3 Powertrain 13.0 13.1 12.1 9.3 Thermal 11.5 10.8 12 8 12.8 93 9.3 Visibility 12 9 12.9 11 1 11.1 13.5 11.5 Grou
Slide 42: Strict control of capex
IFRS 15 IFRS 9 STRICT CONTROL OF CAPEX CAPEX* 2018 In €m and as a % of sales 1,325 , 1,337 , +1% 1% 7 2% 7.2% -20bps 20b 7.0% 2017 2018 2017 2018 * Excluding capitalized R&D 42 February 21, 2019
Slide 43: Free cash flow generation of €161m
IFRS 15 IFRS 9 FREE CASH FLOW GENERATION OF €161M H2 17 H2 18 2017 2018 1 218 1,218 1 069 1,069 EBITDA (€m) (€ ) 2 431 2,431 2 410 2,410 at 12.6% of sales 66 228 Change in operating working capital 23 87 (28) (13) Restructuring & antitrust (105) (31) (166) (129) Other operating items (incl. (incl ta
Slide 44: Strong balance sheet
STRONG BALANCE SHEET February 21, 2019
Slide 45: Debt ratios
DEBT RATIOS Net debt to EBITDA Shareholders’ equity and net debt 2 559 2,559 2,431 2,410 4,388 4,522 4,571 2,291 2,248 1,842 2,291 2,248 1 842 1,842 Dec 31, June 30, Dec 31, 2017 2018 2018 Gearing Gearing G Gearing 42% 51% 49% Dec 31, 2017 0 June 30, 2018 0 Dec 31, 2018 Shareholders’ equity (€m) Lev
Slide 46: Debt maturity profile
DEBT MATURITY PROFILE 4000 Outstanding Maturity Coupon amount 3500 Euro PP Nov 2019 €350m 0% Undrawn Convertible bond June 2021 USD 575m 0% 3000 credit lines 4.0 year EMTN Sept. 2022 €600m 0.375% maturity EMTN January 2023 €500m 0.625% 2500 EMTN January 2024 €700m 3.25% EMTN June 2025 €600m 1.50% 20
Slide 47: Medium term target update
MEDIUM TERM TARGET UPDATE MEDIUM-TERM February 21, 2019
Slide 48: Medium-term target update
MEDIUM-TERM MEDIUM TERM TARGET UPDATE Valeo’s growth model unchanged In the long term Relevant positioning of the Group and an array of state-of-the-art technologies in the areas of electric, autonomous and connected vehicles; A capacity for constant innovation grounded in the synergies betw
Slide 49: Back-up
BACK-UP 50 IFRS 16 IFRS 15 & IFRS 9 54 Q4 2018 sales (non IFRS 15) 60 Q4, H2 & FY 2018 sales (IFRS 15) 64 Business Group information 77 February 21, 2019
Slide 50: IFRS 16 impact
IFRS 16 IMPACT February 21, 2019
Slide 51: Impacts of IFRS 16
IMPACTS OF IFRS 16 51 February 21, 2019
Slide 52: Impacts of IFRS 16
IMPACTS OF IFRS 16 Impacts for the The Group is currently finalizing its assessment of the impact of applying IFRS 16 on its Group consolidated financial statements, based on the leases identified and an analysis of their main terms and conditions conditions. Valeo has lease contracts for land and b
Slide 53: Impacts of IFRS 16
IMPACTS OF IFRS 16 Application by the Valeo will apply IFRS 16 using the modified retrospective approach. This simplified Group approach does not require restatement of financial statements published before the date IFRS 16 is first applied. applied Within the scope of its transition to IFRS 16, the
Slide 54: IFRS 15 & IFRS 9
IFRS 15 & IFRS 9 February 21, 2019
Slide 55: Impacts of IFRS 15 and IFRS 9 on 2017 comparative information
IMPACTS OF THE APPLICATION OF IFRS 15 AND IFRS 9 ON 2017 COMPARATIVE INFORMATION A press release covering the impacts of the application of IFRS 15 and IFRS 9 on 2017 comparative information was published on July 17, 2018. The press release is also available on Valeo’s website: https://www.valeo.com
Slide 56: Impacts of IFRS 15 and IFRS 9 in 2018
IMPACTS OF THE APPLICATION OF IFRS 15 AND IFRS 9 IN 2018 The impacts of the application of IFRS 15 – “Revenue from Contracts with Customers” on 2018 sales are as follows: the external cost of components imposed by customers, which was previously accounted for in original equipment sales, is now pr
Slide 57: 2018 comparative information
IFRS 15 2018 COMPARATIVE INFORMATION IFRS 9 IMPACT SALES BY TYPE Before IFRS 15 Fourth-quarter Second-half Full-year (in millions of LFL Reported LFL Reported LFL Reported euros) 2018* 2017 2018* 2017 2018* 2017 change** change change** change change** change Original equipment 4 135 4 134 -3% 0% 8
Slide 58: 2018 comparative information
IFRS 15 2018 COMPARATIVE INFORMATION IFRS 9 IMPACT ORIGINAL EQUIPMENT SALES BY REGION Fourth-quarter Second-half Full-year Before IFRS 15 (in millions of euros) LFL LFL LFL 2018* 2017 2018* 2017 2018* 2017 change** change** change** Europe & Africa 1 830 1 904 -5% 3 550 3 630 -4% 7 702 7 550 0% Asia
Slide 59: 2018 comparative information
IFRS 15 2018 COMPARATIVE INFORMATION IFRS 9 IMPACT SALES BY BUSINESS GROUP (INCLUDING INTERSEGMENT SALES) Fourth-quarter Second-half Full-year Before IFRS 15 (in millions of euros) Change Change in Change Change in Change Change in 2018* 2017 2018* 2017 2018* 2017 in sales OE sales** in sales OE sal
Slide 60: Q4 sales (non IFRS 15)
Q4 SALES (NON IFRS 15) February 21, 2019
Slide 61: 3-point OEM sales outperformance (like for like)
Non- IFRS 15 3-POINT 3 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q4 18 OEM sales(2) Like for like OEM -3% 44% of Valeo sales(2) sales((2)) OEM -5% W ld World 21% of Valeo sales(2) sales(2) Europe (1) +8% North North America America OEM sales** +6% Outperformance Outperformance) -1pt 1pt vs IHS(
Slide 62: In Asia, 0-point OEM sales outperformance
Non- IFRS 15 IN ASIA, 0 0-POINT POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q4 18 26% of Asian sales(1) OEM sales(1) Like for like +14% Japan OEM 33% of total sales(1) sales(1) Outperformance -8% OEM +11pts vs IHS(2) 23% of Asian sales(1) sales(1) Asia 0% S th Korea South K Outperformance Outperf
Slide 63: Q4 2018 sales by Business Group
Non- IFRS 15 Q4 2018 SALES BY BUSINESS GROUP At constant exchange rates +2% +7%* +1% -5% CDA VIS 19% 29% Group €4.8bn PTS 26% THS 26% Total sales 1,433 1,247 1,268 % of Q4 2018 sales In €m 917 Comfort & Driving Assistance Powertrain Thermal Visibility Reported +3% +6%* +6% +1% -5% 5% OEM sales Like
Slide 64: Q4, H2 & FY 2018 sales (IFRS 15)
Q4, H2 & FY 2018 SALES (IFRS 15) February 21, 2019
Slide 65: Q4 2018 sales up 1% at constant exchange rates
IFRS 15 Q4 2018 SALES UP 1% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE At constant Q4 18 exchange rates -1% +3% +23% +1% 350 487 €m 4,827 3,990 OEM Aftermarket Miscellaneous Sales Like for like -4% +1% +26% -2% Reported -1% +2% +23% +1% Exchange rates +0.5% Exchange rates -1.3% Exchange rates
Slide 66: 1-point OEM sales outperformance (like for like)
IFRS 15 1-POINT OEM SALES OUTPERFORMANCE ((LIKE FOR LIKE ) Q4 18 OEM sales(2) Like for like OEM -4% 46% of Valeo sales(2) sales((2)) OEM -5% W ld World 19% of Valeo sales(2) sales(2) Europe (1) +7% North North America America OEM sales** +6% Outperformance Outperformance -1pt 1pt vs IHS(3) +2pts 2pt
Slide 67: In Asia, -1-point OEM sales outperformance
IFRS 15 IN ASIA, -1-POINT 1 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q4 18 26% of Asian sales(1) OEM sales(1) Like for like +10% Japan OEM 33% of total sales(1) sales(1) Outperformance -9% OEM +7pts vs IHS(2) 24% of Asian sales(1) sales(1) Asia 0% S th Korea South K Outperformance Outperforman
Slide 68: Q4 2018 sales by Business Group
IFRS 15 Q4 2018 SALES BY BUSINESS GROUP At constant CDA exchange rates +3% +8%* -2% -5%** VIS 20% 30% Group €4.8bn PTS 26% THS 24% Total sales 1,457 1,287 1,152 % of Q4 2018 sales In €m 962 Comfort & Driving Assistance Powertrain Thermal Visibility p Reported +3% +8%* -1% -5%** OEM sales Like for li
Slide 69: H2 2018 sales up 2% at constant exchange rates
IFRS 15 H2 2018 SALES UP 2% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE At constant H2 18 exchange rates +1% +7% +13% +2% 521 969 €m 9,261 7 771 7,771 OEM Aftermarket Miscellaneous Sales Like for like -3% +2% +15% -2% Reported +1% +5% +14% +2% Exchange rates +0.2% Exchange rates -1.8% Exchange
Slide 70: 2-point OEM sales outperformance (like for like)
IFRS 15 2-POINT OEM SALES OUTPERFORMANCE ((LIKE FOR LIKE ) H2 18 OEM sales(2) Like for like OEM -3% 46% of Valeo sales(2) sales((2)) OEM -4% W ld World 19% of Valeo sales(2) sales(2) Europe (1) +5% North North America America OEM sales** +6% Outperformance Outperformance +1pt 1pt vs IHS(3) +2pts 2pt
Slide 71: In Asia, 0-point OEM sales outperformance
IFRS 15 IN ASIA, 0 0-POINT POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) H2 18 26% of Asian sales(1) OEM sales(1) Like for like +8% Japan OEM 33% of total sales(1) sales(1) Outperformance -7% OEM +8pts vs IHS(2) 24% of Asian sales(1) sales(1) Asia -3% S th Korea South K Outperformance Outperformanc
Slide 72: H2 2018 sales by Business Group
IFRS 15 H2 2018 SALES BY BUSINESS GROUP At constant CDA exchange rates +3% +15%* -1% -5% VIS 20% 30% Group €9.3bn PTS 27% THS 24% 2,753 Total sales 2,477 2,228 % of H2 2018 sales In €m 1,867 Comfort & Driving Assistance Powertrain Thermal Visibility Reported p +3% +14%* 0% -5% OEM sales Like for lik
Slide 73: 2018 sales up 6% at constant exchange rates
IFRS 15 2018 SALES UP 6% AT CONSTANT EXCHANGE RATES 0% LIKE FOR LIKE At constant 2018 exchange rates +5% +10% +9% +6% 968 2,010 19,124 €m 16,146 OEM Aftermarket Miscellaneous Sales Like for like +0% +4% +7% +0% Reported +3% +7% +7% +4% Exchange rates -2.0% Exchange rates -3.3% Exchange rates -1.7% E
Slide 74: 1-point OEM sales outperformance (like for like)
IFRS 15 1-POINT 1 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) 2018 OEM sales(2) Like for like OEM +0% 48% of Valeo sales(2) sales((2)) World OEM +0% 18% of Valeo sales(2) sales(2) Europe (1) +1% North North America America Outperformance OEM sales** +6% Outperformance +1pt vs IHS(3) +1pt 1pt vs I
Slide 75: In Asia, 0-point OEM sales outperformance
IFRS 15 IN ASIA 0 0-POINT POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) 2018 26% of Asian sales(1) OEM sales(1) Like for like +7% Japan OEM 32% of total sales(1) sales(1) Outperformance -2% OEM +7pts vs IHS(2) sales(1) Asia 24% of Asian sales(1) -1% S th Korea South K Outperformance Outperformance
Slide 76: 2018 sales by Business Group
IFRS 15 2018 SALES BY BUSINESS GROUP At constant CDA exchange rates +3% +20%* +1% 0%** VIS 19% 30% Group €19.1bn PTS 27% THS 24% 5,783 5,141 Total sales 4,569 % of 2018 sales In €m 3,766 Comfort & Driving Assistance Powertrain Thermal Visibility p Reported +2% +18%* -2% -2%** OEM sales Like for like
Slide 77: Business Group information
BUSINESS GROUP INFORMATION February 21, 2019
Slide 78: Comfort & Driving Assistance
Non- IFRS 15 COMFORT & DRIVING ASSISTANCE At constant +3% +2% +3% exchange rates Market share* and competitors: 2018 key figures: • Sales: €3.6bn ((19% of Group sales)) 1,797 - Comfort C f t & Driving Di i AAssistance: i t • EBITDA: 14.0% (22% of Group EBITDA) Valeo no. 2 3,638 • 24,600 employees Co
Slide 79: Powertrain Systems
Non- IFRS 15 POWERTRAIN SYSTEMS At constant +26% +14% +20% exchange rates 2018 key figures: Market share* and competitors: 2,426 , • Sales: €5.0bn (26% of Group sales) - Electrical Systems: Valeo no. 1 • EBITDA: 13.1% (28% of Group EBITDA) 5,059 Valeo + Denso + Bosch/ZMJ ~ 70%* • 24,400 employees To
Slide 80: Thermal Systems
Non- IFRS 15 THERMAL SYSTEMS At constant exchange rates +4% +1% +3% 2018 key figures: Market share* and competitors: • Sales: €5.0bn (26% of Group sales) 2 448 2,448 • EBITDA: 10.6% 10 6% (20% of Group EBITDA) Thermal Systems: Valeo no. 2 • 24,700 employees 4,996 Denso + Valeo + Hanon + Mahle ~ 54%*
Slide 81: Visibility Systems
Non- IFRS 15 VISIBILITY SYSTEMS At constant exchange rate +6% -5% 0% Market share* and competitors: 2018 key figures: • Sales: €5.7bn (29% of Group sales) 2,715 - Lighting g g Systems: y Valeo no. 1 • EBITDA: 11.1% (27% of Group EBITDA) 5,703 Valeo + Koito + Magnetti Marelli ~ 58%* Total sales • 37,
Slide 82: Segment information
IFRS 15 SEGMENT INFORMATION Comfort & 2018 Driving Assistance Powertrain Thermal Visibility (€m) Systems Systems Systems Systems Others Total Sales: ● segment (excluding Group) 3,741 5,036 4,517 5,699 131 19,124 ● intersegment (Group) 25 105 52 84 (266) EBITDA 528 674 495 642 71 2,410 Research & Dev
Slide 83: Glossary
GLOSSARY 1) Order intake corresponds to business awarded by automakers during the period (including joint ventures, ventures other than Valeo Siemens eAutomotive, eAutomotive accounted for based on Valeo’s share in net equity) less any cancellations, based on Valeo’s best reasonable estimates in ter
Slide 84: Contacts – Investor Relations
CONTACTS Investor Relations V l Valeo 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: valeo.corporateaccess.mailbox@valeo.com valeo corporateaccess mailbox@valeo com Website: www.valeo.com 84 February 21, 2019
Slide 85: Share information
SHARE INFORMATION Share Data • Bloomberg Bl b Ti Ticker k FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of December 31, 2018 240,253,100 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchangeg OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P.
Slide 86: Safe harbor statement
SAFE HARBOR STATEMENT Statements St t t contained t i d in i this thi document, d t which hi h are nott historical hi t i l fact, f t constitute tit t “forward-looking “f d l ki statements”. t t t ” These Th statements t t t include i l d projections and estimates and their underlying assumptions, s
Slide 87: Valeo – Smart technology for smarter cars
Valeo SMART TECHNOLOGY FOR SMARTER CARS