Slide 1: FY 2022 Results
FY 2022 Results CHRISTOPHE PÉRILLAT CEO
Slide 2: Table of contents
FY 2022 RESULTS Table of contents 01 A snapshot in 4 slides 05 Profitability 2022 guidance achieved in a challenging environment throughout the year 02 Sustainability 06 Solid cash generation At the heart of our strategy above FY 2022 guidance 03 Sales 07 Capital allocation Outperformance in all regi
Slide 3: A snapshot in 4 slides
01 A snapshot in 4 slides VALEO RESERVED | FEB 23
Slide 4: FY 2022 guidance achieved
01 FY 2022 GUIDANCE ACHIEVED ✓ FY 2022 Group Sales EBITDA Operating margin Free cash flow RESULTS €20,037M €2,401M €635M €388M 12.0% 3.2% FY 2022 Group Sales EBITDA Operating margin Free cash flow GUIDANCE €19.2-20BN 11.8%-12.3% 3.2%-3.7% €320M Higher than guidance VALEO RESERVED | FEB 23 4
Slide 5: FY sales up 16%
01 FY sales up 16% Main change in scope: Integration of the high-voltage powertrain business as of July 1, 2022* Group Sales OEM Aftermarket Miscellaneous €20,037m €16,748m €2,256m €1,033m incl. Powertrain high-voltage* incl. Powertrain high-voltage* €644m €620m +16% reported +18% as reported +9% as
Slide 6: Order intake up 48%
01 Order intake up 48% Highly driven by the acceleration in electrification & ADAS Electrification ADAS Acceleration Acceleration Comfort & Driving Powertrain + Thermal Assistance Order intake €32.6BN* related to Order intake €22.1BN* high-voltage EV in ADAS 2/3 3X FY 2021 FY 2022 of 2022 total Powert
Slide 7: 2023 outlook
01 2023 outlook 2022 2022 2023 Given the uncertainty regarding automotive production in our main business regions, published adjusted* guidance** and taking into account net inflation and Sales (in billions of euros) 20.0 20.4 22.0 - 23.0 cost reduction measures, we are setting the following objectiv
Slide 8: Sustainability at the heart of our strategy
02 Sustainability at the heart of our strategy VALEO RESERVED | FEB 23
Slide 9: Solid governance
02 Solid governance Highly skilled Board of Directors with diversified competencies Separation of the roles Number of directors 14 of Chairman of the Board and CEO Proportion of women* 42% Independent Board Members** 92% Nationalities Gilles Michel Christophe Perillat Chairman of the CEO Strong commi
Slide 10: Strong commitment to sustainable development, 2022 objectives achieved
02 Strong commitment to sustainable development 2022 objectives achieved Base -9% -28% -17% -45% year 2022 Targets 47.4 43.7 Carbon neutrality trajectory on track Valeo’s “Cap50” plan defines the 49.6 SBTi Net SBTi Net SBTi Net trajectory for reducing greenhouse 45.2 41.5 45.3 37.9 41.4 27.8 gas emis
Slide 11: An ESG leader recognized by rating agencies
02 An ESG leader recognized by rating agencies #1 #2 #1 72/100 10.6* B- Prime low-risk #1 #1 Top3 Climate A Change AAA 66/100 Most represented auto parts company in ESG indices including CAC40 ESG Global ESG ESG Leaders CAC40 SBT 1.5° Leaders VALEO RESERVED | FEB 23 # Auto Parts excl. Tires sector r
Slide 12: Sales: Outperformance in all regions
03 Sales Outperformance in all regions VALEO RESERVED | FEB 23
Slide 13: FY OEM sales outperformance in all regions
03 FY OEM sales outperformance in all regions World Europe (incl. Africa) 44% of OEM sales Asia (incl. China) 34% of OEM sales North America 20% of OEM sales South America 2% of OEM sales 3pts +10% OEM sales lfl +9% OEM sales lfl +13% OEM sales lfl +25% OEM sales lfl outperformance 0% Production* +8% Pr
Slide 14: Q4 OEM sales outperformance in all regions
03 Q4 OEM sales outperformance in all regions World Europe (incl. Africa) 44% of OEM sales Asia (incl. China) 35% of OEM sales North America 19% of OEM sales South America 2% of OEM sales 15pts +24% OEM sales lfl +12% OEM sales lfl +14% OEM sales lfl +34% OEM sales lfl outperformance +7% Production* +1%
Slide 15: Business Groups
04 Business Groups Strong acceleration in electrification & ADAS VALEO RESERVED | 15
Slide 16: Comfort & Driving Assistance Systems: Acceleration in ADAS
04 Comfort & Driving Acceleration in ADAS Assistance Acceleration in ADAS & Interior Experience Reinvention Systems pts (CDA) +11 Outperformance OEM sales organic Up 18% lfl growth vs. 2021 Orders in ADAS 3 X OEM sales Leader in cameras ADAS €2.5bn in 2022 OEM Sales +29% lfl growth World's first 2 Leve
Slide 17: Powertrain Systems: Acceleration in electrification
Powertrain 04 Systems Acceleration in electrification (PTS) Electrification Acceleration pts +5 Adj.* outperf. OEM sales organic growth Up 12% lfl Adjusted* vs. 2021 2/3 of 2022 Powertrain order intake related to high-voltage EV Major wins in 2022 incl. 800V SiC Incl. 4 pts additional perf. driven by h
Slide 18: Integration of Valeo Siemens eAutomotive according to Move Up plan
01 Integration of Valeo Siemens eAutomotive according to Move Up plan New PTS 2030 2025 2016 2021 2022 ~€4bn ~€2bn in sales in sales Expected in Creation of a 50/50 JV 8 sites around the world €1bn in sales Expected high-voltage dedicated to Powertrain in high-voltage in high-voltage powertrain high
Slide 19: Thermal Systems: Growth fueled by electrification
Thermal 04 Systems Growth fueled by electrification (THS) Electrification Acceleration pts +5 2/3 of 2022 order intake related Up 12% lfl to Thermal systems for high-voltage EV Outperformance 2 key wins for technologies related to electrified vehicles OEM sales organic growth vs. 2021 Strong commercial
Slide 20: Visibility Systems: Turning point in Q4
Visibility 04 Systems Turning point in Q4 (VIS) with an outperformance of +6pts Lighting everywhere pts -2 Multiple orders in illuminated fascia & logo Up 5% lfl Business extending to many surfaces of the vehicle (interior and exterior) Outperformance Strategic alliances with SRG Global in OEM sales
Slide 21: Dynamic aftermarket business
04 Aftermarket business Dynamic aftermarket business 1M products remanufactured % +9 in 2022 Aftermarket like-for-like sales growth vs. FY 2021 Drivers Ageing & growing car fleet Extension of the product range and higher value products in Transmission Dynamic growth despite unfavorable base systems (
Slide 22: EBITDA margin by Business Group
04 EBITDA margin by Business Group Guidance achieved in a challenging environment Change in EBITDA margin Change EBITDA 2022 2022 vs 2021 2022 vs 2021 €2,401M In % of sales In % pts 12.0% of sales In €m CDA +84 15.8% -1.4 Per Business Group: ADAS +62 18.0% -3.1 iX* +22 11.2% +0.6 CDA taking advantag
Slide 23: Profitability
05 Profitability 2022 guidance achieved in a challenging environment throughout the year VALEO RESERVED | 23
Slide 24: Operating margin at 3.2% of sales
05 Operating margin at 3.2% of sales 3.2% Operating margin (€M) FY 2021 FY 2022 ▲ In line with 2022 guidance & Move Up plan Total Sales 17,262 20,037 16% (9.4)% Gross margin 3,040 3,447 13% As a % of sales 17.6% 17.2% -40bps R&D expenditure (1,510) (1,880) +25% R&D expenditure As a % of sales (8.7)%
Slide 25: Resilient gross margin in an unfavorable environment
05 Resilient gross margin in an unfavorable environment As a % of sales +0.5pts (0.4)pts (0.9)pts (0.3)pts +1.1pts (0.4)pts In line with the In line with favorable (+) Efficiencies & guidance of the guidance product mix (-) dilution effect* €200m of €60m over 17.6% over 2022 2022 17.2% FY 2021 Volume
Slide 26: Operating margin at 3.2% of sales
05 Operating margin at 3.2% of sales As a % of sales (0.4)pts (0.6)pts 0.2 pts Gross R&D expenditure driven 4.0% by order intake momentum 3.2% SG&A FY 2021 Gross margin R&D expenditure FY 2022 Efficiency plan ** Difference between capitalized development expenditure and amortization, net of investmen
Slide 27: FY net income of €230M
05 FY net income of €230M FY 2021 FY 2022 ▲ Total Sales 17,262 20,037 +16% €(106)m Operating margin incl. JV & associates 456 750 +65% Other income & expenses As a % of sales 2.6% 3.7% +110bps incl. €43M one-off impairment charge Other income & expenses (50) (106) -112% linked to full writedown of a
Slide 28: Solid cash generation above FY 2022 guidance
06 Solid cash generation above FY 2022 guidance VALEO RESERVED | FEB 23
Slide 29: Strong discipline in recorded CAPEX
06 Strong discipline in recorded CAPEX In €M and as a % of sales €1,035M €979M 5.2% 5.7% IFRS 16 €127M IFRS 16** €199M INVESTMENT CASH OUTFLOWS*** €753M €908M* Strong discipline in investment €780M* 4.5% cash outflows to optimize 4.5% capital allocation FY 2021 FY 2022 VALEO RESERVED | FEB 23 * Excl.
Slide 30: Free cash flow generation higher than guidance
06 Free cash flow generation higher than guidance (€M) FY 2021 FY 2022 €99M Working Capital EBITDA 2,308 2,401 Positive working capital contribution despite Change in operating working capital (460) 99 voluntary inventory increase to secure deliveries Taxes (237) (291) to customers Restructuring & so
Slide 31: Capital allocation
07 Capital allocation Move Up plan: Deleveraging priority confirmed VALEO RESERVED | 31
Slide 32: Leverage ratio of 1.67x EBITDA
07 Leverage ratio of 1.67x EBITDA In line with guidance As of December 31, 2022 Net Debt/EBITDA ratio Gearing ratio Deleveraging 1.67x 105% Significant headroom vs covenant: Net debt/EBITDA < 3.5 priority Credit ratings LT Outlook ST confirmed Baa3 Negative Prime-3 BB+ Stable B VALEO RESERVED | FEB 23
Slide 33: €500m in disposals of non-strategic assets: progress report
07 €500m in disposals of non-strategic assets: progress report Wave 1 Wave 2 Wave 3 Agreement for the sale of 3 assets Advanced discussions for Additional assets to be disposed of for a total amount of €80m additional asset disposals for have been identified a total amount of around €120m These dispo
Slide 34: Dividend of €0.38 per share, up 9%
07 Progressive increase in the dividend per share Dividend of €0.38 per share, Up 9% YoY To be proposed at the next shareholder meeting VALEO RESERVED | FEB 23 34
Slide 35: 2022 achievements, 2023 outlook
2022 achievements 2023 outlook Significant improvement in financial All financial objectives met performance vs 2022 adjusted data Further acceleration in electrification Acceleration in electrification and ADAS and ADAS High level of order intake Strong growth VALEO RESERVED RESERVED || FEB-23 35
Slide 36: Thank you, Q&A session
THANK YOU Q&A SESSION VALEO RESERVED | FEB 23 36
Slide 37: Backup slides
08 Backup slides VALEO RESERVED | FEB 23 37
Slide 38: Q4 sales
07 Q4 sales €M Reported: +29% +5% +8% +25% Like for like: +18% +4% +5% +15% Exchange rates: +2.1% -0.2% +1.7% +1.8% Scope: +9.1% +0.8% +0.5% +7.4% VALEO RESERVED | FEB 23 38
Slide 39: FY sales
07 FY sales €M Reported: +18% +9% -1% +16% Like for like: +10% +9% -5% +9% Exchange rates: +4.1% +0.4% +3.4% +3.6% Scope: +4.2% -0.2% +0.1% +3.4% VALEO RESERVED | FEB 23 39
Slide 40: Asia FY OEM sales outperformance
03 FY OEM sales outperformance China Japan South Korea India 50% of Asian sales 20% of Asian sales 19% of Asian sales 4% of Asian sales Asia +7% OEM sales lfl +14% OEM sales lfl 2% OEM sales lfl -6% OEM sales lfl 1pt +6% Production* 0% Production* 8% Production* +23% Production* outperformance Productio
Slide 41: FY geographic & customer positioning
07 FY geographic & customer positioning OEM sales by production region (% of OEM sales) 2021 2022 ▲ Western Europe 31% 29% -2pts % US Asia & emerging countries 8% 63% 8% 61% Stable -2pts 61 Of which Asia excluding China 18% 15% -3pts of OEM Sales Of which China 16% 18% +2pts Exposure to Asian Of whi
Slide 42: Comfort & Driving Assistance Systems: ADAS acceleration
04 ADAS Acceleration Comfort & Interior Experience Reinvention & Driving Acceleration in ADAS Assistance 3 Orders in ADAS X OEM sales ADAS : key wins pts Systems (CDA) +11 Outperformance OEM sales organic incl. with BMW (controller, sensors, SW) & recently fully automated parking up to Level 4, Stel
Slide 43: Powertrain Systems: Acceleration in electrification
Powertrain 04 Systems Acceleration in electrification Electrification Acceleration (PTS) 2/3 of 2022 Powertrain order intake pts +5 Adj.* outperf. related to high voltage EV OEM sales organic Up 12% lfl growth vs. 2021 Major wins in 2022 involving existing & new Adjusted* customers, all the powertrain
Slide 44: Thermal Systems: Growth fueled by electrification
Thermal 04 Systems Growth fueled by electrification Electrification Acceleration (THS) +5pts Outperformance OEM sales organic 2/3 of 2022 order intake related to Thermal high voltage EV Up 12% lfl growth vs. 2021 2 key wins for technologies related to electrified vehicles with Stellantis (Smart Heat pum
Slide 45: Visibility Systems: Lighting everywhere
Visibility 04 Lighting everywhere Systems Growth of 5% like-for-like (VIS) Multiples orders in illuminated fascia & logo pt -2 Outperformance Business extending in many surfaces of the OEM sales organic vehicle (illuminated fascia, logo, light surface, Up 5% lfl growth vs. 2021 coast to coast lightin
Slide 46: FY Segment information
07 FY Segment information FY 2022 CDA* PTS THS VIS Other Total (€m) Sales: Segment (Excluding Group) 4,192 5,574 4,463 5,331 320 19,880 Intersegment (Group) 42 115 80 32 (112) 157 EBITDA 671 619 333 705 73 2,401 Research & Development expenditure, net (724) (435) (314) (379) (246) (2,098) Investment
Slide 47: Net R&D costs at 6.8% of sales
05 Net R&D costs at 6.8 % of sales IFRS impact of 0.4% (€M) FY 2021 FY 2022 ▲ 6.8% Gross Research and Development expenditure (1,704) (2,077) +22% As a % of sales (9.9)% (10.4)% -50bps IFRS impact* 52 87 +67% Net R&D cost Subsidies and grants, and other income 142 122 -14% In line with Move Up objec
Slide 48: Balanced debt profile
07 SLB aligned with Valeo’s commitment to carbon Balanced debt profile neutrality by 2050 Average maturity: 3.0 years €750M -45% Amount In Valeo’s CO2 emissions by 2030 May 2027 Maturity 37.95 MtCO2eq. As an intermediary 5.375% target end of 2025* Coupon Senior bond (EMTN) Schuldschein loan Maturity
Slide 49: Committed to the UN Sustainable Development Goals
02 Committed to the United Nations Sustainable Development Goals (SDGs) 4 MEGATRENDS TO SUPPORT VALEO’S GROWTH, FULLY ALIGNED WITH THE UN’S SDGs LEADER IN TECH INNOVATION Interior Autonomous, connected driving & electrification Electrification ADAS Lighting Experience Acceleration Acceleration Everywh
Slide 50: 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 51: 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 <IR> Integrated Report For more insights on the Group’
Slide 52: 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 Dec. 31, 2022 243,501,944 Depositary Bank J.P. Morgan Contact at J.P. Morgan – AD
Slide 53: Glossary
Glossary Order intake corresponds to business awarded by automakers during the period to ROA, or return on assets, corresponds to operating income divided by capital employed Valeo, and to joint ventures and associates based on Valeo’s share in net equity, (except (including investments in equity-ac
Slide 54: 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 55: Smart technology for smarter mobility
SMART TECHNOLOGY FOR SMARTER MOBILITY