Slide 1: Q3 2018 Sales
Q3 2018 SALES JACQUES ASCHENBROICH – CHAIRMAN & CEO October 25, 2018
Slide 2: Overall Market Conditions
OVERALL MARKET CONDITIONS July guidance: In view of uncertainties relating to disruptions to the production of certain vehicles in Europe (mainly during the third quarter) in connection with the WLTP Global automotive production at +1.5% Q3 18 market conditions: World: ~ -3% Europe excl. Rus
Slide 3: Q3 Outperformance Impacted by Market Conditions
Q3 OUTPERFORMANCE IMPACTED BY MARKET CONDITIONS Growth of 5% in Q3 at same exchange rate 2 percentage point OEM Sales outperformance (Like for Like) in Q3 (vs. 3.5 percentage point outperformance guidance) Start of production delays (primarily in Europe) -1 point* Unfavorable geographical and client
Slide 4: Valeo's H2 Action Plan
VALEO’S H2 ACTION PLAN Quick reaction to the market conditions Cost reduction initiatives €100m in costs Reduction in PP&E capex €100m vs 2017 (at constant Group structure) Action plan to be continued, as necessary, in 2019 4 October 25, 2018
Slide 5: Impact on Valeo's 2018 Margins
IMPACT ON VALEO’S 2018 MARGINS A PARTICULARLY DIFFICULT ENVIRONMENT IN H2 Valeo’s action plan for cost reduction ~ €100m WLTP in Europe and decline in business activity in China ~ €(150m) Continued increase in raw material prices (steel, plastic resins, etc.) and shortage of electronic components ~
Slide 6: 2018 Outlook Updated
2018 OUTLOOK UPDATED The Valeo Group has set the following objectives for 2018: Growth of around 6% at constant exchange rates OEM sales outperformance of around 2 points in H2 2018 Operating margin excluding share in net earnings of equity-accounted companies (as a % of sales) at between 6.2%
Slide 7: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE To accommodate its fast-paced expansion going forward, Valeo Siemens eAutomotive will bear the costs required to push ahead with ongoing projects and structure its organization. Accordingly, the “Share in net earnings of equity-accounted companies” caption will have an im
Slide 8: Q3 Sales Growth: Sales of €4.5bn, Up 5%
Non- IFRS 15 Q3 SALES GROWTH SALES OF €4.5bn, UP 5% AT CONSTANT EXCHANGE RATES DOWN 1% LIKE FOR LIKE OEM SALES UP 4% AT CONSTANT EXCHANGE RATES DOWN 1% LIKE FOR LIKE, 2-POINT OUTPERFORMANCE AFTERMARKET SALES UP 11% AT CONSTANT EXCHANGE RATES UP 3% LIKE FOR LIKE October 25, 2018
Slide 9: 2-Point OEM Sales Outperformance (Like for Like)
Non- 2-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) IFRS 15 SALES UP +5% AT CONSTANT EXCHANGE RATES At constant Q3 18 exchange rates +4% +11% -3% +5% 102 482 4,488 €m 3,904 OEM Aftermarket Miscellaneous Sales Like for like -1% +3% -1% -1% Reported +4% +8% -2% +4% Q3 17 3,751 Q3 17 446 Q3 17 104 Q3
Slide 10: 2-Point OEM Sales Outperformance by Region
Non- IFRS 15 2-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q3 18 OEM sales(2) OEM Like for like 44% of Valeo sales(2) sales(2) World -1% OEM -3% 21% of Valeo sales(2) sales(2) Europe (1) +5% Outperformance North North America America Outperformance +2pts vs IHS/CPCA(3) OEM sales** +6% +1pt vs IHS
Slide 11: 1-Point OEM Sales Outperformance in Asia
Non- IFRS 15 1-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) IN ASIA Q3 18 OEM 26% of Asian sales(1) sales (1) Like for like +7% OEM Japan 33% of total sales(1) sales(1) Outperformance -3% +10pts vs IHS(2) OEM Asia 24% of Asian sales(1) sales(1) -10% South Korea Outperformance Outperformance +1pt v
Slide 12: Q3 2018 Sales by Business Group
Non- IFRS 15 Q3 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +2% +23%* +2% -5% CDA VIS 20% 28% Group €4.5bn PTS 26% THS 26% 1,179 1,180 1,282 880 % of Q3 2018 sales Total sales In €m Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth Like for li
Slide 13: YTD Sales Growth: Sales of €14.4bn, Up 8%
Non- IFRS 15 YTD SALES GROWTH SALES OF €14.4bn, UP 8% AT CONSTANT EXCHANGE RATES UP 2% LIKE FOR LIKE OEM SALES UP 8% AT CONSTANT EXCHANGE RATES UP 2% LIKE FOR LIKE, 2-POINT OUTPERFORMANCE AFTERMARKET SALES UP 12% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE October 25, 2018
Slide 14: 2-Point OEM Sales Outperformance (Like for Like)
Non- 2-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) IFRS 15 SALES UP +8% AT CONSTANT EXCHANGE RATES At constant YTD 18 exchange rates +8% +12% +3% +8% 372 1,523 14,427 €m 12,532 OEM Aftermarket Miscellaneous Sales Like for like +2% +5% -2% +2% Reported +5% +8% +1% +5% YTD 17 11,986 YTD 17 1,409 YT
Slide 15: 2-Point OEM Sales Outperformance (Like for Like)
Non- IFRS 15 2-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 18 At constant exchange rates +9% +4% +8% 3,904 12,532 €m 8,628 H1 18 Q3 18 YTD 18 OEM sales growth Like for like +3% -1% +2% IHS/CPCA +2% -3% 0% Worldwide production estimates Outperformance +1pt +2pts +2pts 15 October 25, 2018
Slide 16: 2-Point OEM Sales Outperformance by Region (YTD)
Non- IFRS 15 2-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 18 OEM sales(2) OEM Like for like 47% of Valeo sales(2) sales(2) World +2% OEM +1% 19% of Valeo sales(2) sales(2) Europe (1) +1% Outperformance North North America America Outperformance +2pts vs IHS/CPCA(3) OEM sales** +6% 0pt vs IHS
Slide 17: 1-Point OEM Sales Outperformance in Asia (YTD)
Non- IFRS 15 1-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) IN ASIA YTD 18 OEM 25% of Asian sales(1) sales (1) Like for like +8% OEM Japan 32% of total sales(1) sales(1) Outperformance +2% +9pts vs IHS(2) OEM Asia 23% of Asian sales(1) sales(1) -3% South Korea Outperformance Outperformance +1pt vs
Slide 18: Balanced Geographic Positioning
Non- IFRS 15 BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 15% Western Western Europe Europe Asia excl. 32% Asia excl. 32% China China 55% in Asia 15% 56% in Asia 18% & emerging & emerging countries countries China U
Slide 19: Diverse Customer Portfolio
Non- IFRS 15 DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 6% French* French* 13% 15% German German 28% 29% American** American** 18% 19% Asian Asian Asian** Asian** 32% 34% 26% 26% 2017 YTD September 2018 * Including Opel ** Excluding Opel 19 October 25, 2018
Slide 20: YTD 2018 Sales by Business Group
Non- IFRS 15 YTD 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +3% +25%* +4% +2%** CDA VIS 19% 29% Group €14.4bn PTS 26% THS 4,270 26% 3,812 3,728 2,721 Total sales % of YTD 2018 sales In €m Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth Like
Slide 21: Back-up
BACK-UP IFRS 15 & IFRS 9 impact in Q3 & YTD 2018 21 Q3 & YTD 2018 sales under IFRS 15 28 Business Group information 33 October 25, 2018
Slide 22: Appendix – IFRS 15 & IFRS 9 Impact in Q3 & YTD 2018
APPENDIX – IFRS 15 & IFRS 9 IMPACT IN Q3 & YTD 2018 October 25, 2018
Slide 23: Q3 Sales Growth: Sales of €4.4bn, Up 4%
IFRS 15 Q3 SALES GROWTH SALES OF €4.4bn, UP 4% AT CONSTANT EXCHANGE RATES DOWN 1% LIKE FOR LIKE OEM SALES UP 4% AT CONSTANT EXCHANGE RATES DOWN 2% LIKE FOR LIKE, 1-POINT OUTPERFORMANCE AFTERMARKET SALES UP 11% AT CONSTANT EXCHANGE RATES UP 3% LIKE FOR LIKE October 25, 2018
Slide 24: 1-Point OEM Sales Outperformance (Like for Like)
IFRS 15 1-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) SALES UP +4% AT CONSTANT EXCHANGE RATES At constant Q3 18 exchange rates +4% +11% -3% +4% 171 482 4,434 €m 3,781 OEM Aftermarket Miscellaneous Sales Like for like -2% +3% -2% -1% Reported +4% +8% -2% +4% Q3 17 3,648 Q3 17 446 Q3 17 175 Q3 17 4
Slide 25: Q3 2018 Sales by Business Group
IFRS 15 Q3 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +3% +23%* +1% -6% CDA VIS 20% 29% Group €4.4bn PTS 27% THS 24% 1,190 1,296 1,076 905 % of Q3 2018 sales Total sales In €m Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth Like for like +3
Slide 26: YTD Sales Growth: Sales of €14.3bn, Up 7%
IFRS 15 YTD SALES GROWTH SALES OF €14.3bn, UP 7% AT CONSTANT EXCHANGE RATES UP 1% LIKE FOR LIKE OEM SALES UP 7% AT CONSTANT EXCHANGE RATES UP 1% LIKE FOR LIKE, 1-POINT OUTPERFORMANCE AFTERMARKET SALES UP 12% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE October 25, 2018
Slide 27: 1-Point OEM Sales Outperformance (Like for Like)
IFRS 15 1-POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) SALES UP +7% AT CONSTANT EXCHANGE RATES YTD 18 At constant exchange rates +7% +12% +2% +7% 618 1,523 14,297 €m 12,156 OEM Aftermarket Miscellaneous Sales Like for like +1% +5% -1% +1% Reported +4% +8% 0% +4% YTD 17 11,675 YTD 17 1,409 YTD 17 6
Slide 28: YTD 2018 Sales by Business Group
IFRS 15 YTD 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +3% +25%* +2% +2%** CDA VIS 19% 30% Group €14.3bn PTS 27% 4,326 THS 3,854 24% 3,417 2,804 Total sales % of YTD 2018 sales In €m Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth Like for
Slide 29: Impacts of the Application 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 30: Impacts of the Application of IFRS 15 and IFRS 9
IMPACTS OF THE APPLICATION OF IFRS 15 AND IFRS 9 On July 17, 2018, Valeo reported the impacts of the application of IFRS 15 and IFRS 9 on 2017 comparative information. The impacts of the application of IFRS 15 – “Revenue from Contracts with Customers” on sales for the first nine months of 2018 are a
Slide 31: YTD September 2018 Comparative Information Impact: Sales by Type
IFRS 15 IFRS 9 YTD SEPTEMBER 2018 COMPARATIVE INFORMATION IMPACT SALES BY TYPE 1er semestre 3ème trimestre Janvier-Septembre Avant IFRS 15 (en m€) Var. à Var. à Var. à 2018* 2 017 Var. 2018* 2 017 Var. 2018* 2 017 Var. pcc** pcc** pcc** Première monte 8 628 8 235 +3% +5% 3 904 3 751 -1% +4% 12 532 1
Slide 32: YTD September 2018 Comparative Information Impact: OE Sales by Region
IFRS 15 IFRS 9 YTD SEPTEMBER 2018 COMPARATIVE INFORMATION IMPACT ORIGINAL EQUIPMENT SALES BY REGION 1er semestre 3ème trimestre Janvier-Septembre Avant IFRS 15 (en m€) 2018* 2 017 Var. à pcc** 2018* 2 017 Var. à pcc** 2018* 2 017 Var. à pcc** Europe et Afrique 4 152 3 920 +3% 1 720 1 726 -3% 5 872 5
Slide 33: YTD September 2018 Comparative Information Impact: Sales by Business Group
IFRS 15 IFRS 9 YTD SEPTEMBER 2018 COMPARATIVE INFORMATION IMPACT SALES BY BUSINESS GROUP (INCLUDING INTERSEGMENT SALES) 1er semestre 3ème trimestre Janvier-Septembre Avant IFRS 15 (en m€) Var. CA Var. CA Var. CA 2018* 2 017 Var. CA 2018* 2 017 Var. CA 2018* 2 017 Var. CA OEM** OEM** OEM** Systèmes d
Slide 34: Appendix – Business Group Information
APPENDIX – BUSINESS GROUP INFORMATION October 25, 2018
Slide 35: Comfort & Driving Assistance
Non- IFRS 15 COMFORT & DRIVING ASSISTANCE Total sales growth +3% +2% +3% At constant exchange Market share* and competitors: 2017 key figures: rates 880 • Sales: €3.6bn (19% of Group sales) - Comfort & Driving Assistance: • EBITDA: 14.5% (21% of Group EBITDA) 2,721 Valeo no. 2 • 22,900 employees 1,8
Slide 36: Powertrain Systems
Non- IFRS 15 POWERTRAIN SYSTEMS Total sales growth +26% +23% +25% At constant exchange 2017 key figures: rates Market share* and competitors: • Sales: €4.3bn (23% of Group sales) 1,179 - Electrical Systems: Valeo no. 1 • EBITDA: 13.2% (23% of Group EBITDA) Valeo + Denso + Bosch/ZMJ ~ 70%* 3,812 • 25
Slide 37: Thermal Systems
Non- IFRS 15 THERMAL SYSTEMS Total sales growth At constant exchange +4% +2% +4% 2017 key figures: rates Market share* and competitors: • Sales: €5.0bn (27% of Group sales) 1,180 • EBITDA: 10.8% (22% of Group EBITDA) 3,728 Thermal Systems: Valeo no. 2 • 24,200 employees 2,548 1,282 Denso + Valeo + H
Slide 38: Visibility Systems
Non- IFRS 15 VISIBILITY SYSTEMS Total sales growth At constant exchange +6% -5% +2% 2017 key figures: rates Market share* and competitors: • Sales: €5.8bn (31% of Group sales) 1,282 - Lighting Systems: Valeo no. 1 • EBITDA: 13.2% (32% of Group EBITDA) Valeo + Koito + Magnetti Marelli ~ 58%* 4,270 •
Slide 39: Glossary
GLOSSARY 1) Like for like (or LFL): the currency impact is calculated by multiplying sales for the current period by the exchange rate for the previous period. The Group structure impact is calculated by (i) eliminating, for the current period, sales of companies acquired during the period, (ii) add
Slide 40: 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 40 October 25, 2018
Slide 41: Share Information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of June 30, 2018 240,253,100 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • Contac
Slide 42: 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 43: Valeo – Smart Technology for Smarter Cars
Valeo SMART TECHNOLOGY FOR SMARTER CARS