Slide 1: Investor Meeting September 2016
INVESTOR MEETING SEPTEMBER 2016 1
Slide 2: Jacques Aschenbroich, Chairman and CEO
JACQUES ASCHENBROICH CHAIRMAN AND CHIEF EXECUTIVE OFFICER 2
Slide 3: Valeo Team
VALEO TEAM JACQUES ASCHENBROICH CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHRISTOPHE ROBERT PÉRILLAT CHARVIER CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER XAVIER MARC GEOFFREY DUPONT VRECKO BOUQUOT POWERTRAIN COMFORT & DRIVING ASSISTANCE CORPORATE STRATEGY SYSTEMS BUSINESS GROUP SYSTEMS BUSINESS GROUP
Slide 4: A New Valeo
A NEW VALEO MORE TECHNOLOGICAL MORE INNOVATIVE MORE DYNAMIC MORE PROFITABLE 4
Slide 5: Valeo, a Tech Company
VALEO, A TECH COMPANY WELL POSITIONED FOR THE 3 REVOLUTIONS OF THE AUTOMOTIVE INDUSTRY FROM MECHANICS TO ELECTRONICS AND SOFTWARE 5
Slide 6: Innovation: Our DNA
INNOVATION : OUR DNA WORLDWIDE INNOVATION 17 R&D CENTERS** 35 DEVELOPMENT CENTERS** Source: Valeo * Strategic products and services that are positioned on growth markets or generate a significant increase in Group sales ** As at end-2015 6
Slide 7: We Are Ahead of the Plan
WE ARE AHEAD OF THE PLAN ANNOUNCED IN MARCH 2015 7
Slide 8: Growth Fueled by Record Level of Order Intake
GROWTH FUELED BY RECORD LEVEL OF ORDER INTAKE ORDER INTAKE AT RECORD HIGH THANKS TO INNOVATION * PRODUCTS AND TECHNOLOGIES IN SERIES PRODUCTION FOR LESS THAN THREE YEARS (YEAR 2015) 8
Slide 9: Focus on Growth and Profitability
FOCUS ON GROWTH AND PROFITABILITY VALEO SALES VALEO OPERATING MARGIN In €bn IN % OF SALES AFTERMARKET SALES 9
Slide 10: 4 Balanced & Coherent Business Groups
4 BALANCED & COHERENT BUSINESS GROUPS WITH LEADING MARKET POSITIONS AND GROWTH POTENTIAL DRIVING # 1 ASSISTANCE WIPER SYSTEMS # 1 # 2 TELEMATICS LIGHTING 2 INTERIOR SYSTEMS # 2 # CONTROLS ELECTRICAL SYSTEMS THERMAL # 1 # 2 & POWER POWERTRAIN ELECTRONICS # 2 CLIMATE TRANSMISSION # 2 CONTROL SYSTEMS 1
Slide 11: Thermal Systems Business Group
THERMAL SYSTEMS BUSINESS GROUP 2020 > €5.0 BILLION IN SALES* ~12.5% EBITDA* 2015 €4.1 BILLION IN SALES 28% OF GROUP TOTAL 2015 10.7% EBITDA 24% OF GROUP TOTAL €4.1 BILLION IN SALES 20,100 EMPLOYEES 10.7% EBITDA 48 PRODUCTION SITES We are ahead of the plan *PRESENTED AT OUR INVESTOR DAY HELD IN LONDO
Slide 12: Growth Will Be Fueled by Electrification
GROWTH WILL BE FUELED BY ELECTRIFICATION THERMAL SYSTEMS 300 ELECTRIFICATION DEMAND CONTENT IN BATTERY COOLERS PER CAR SEGMENT 150 120 100 ICE High performance ICE PHEV BEV Fuel cell NEW GENERATION OF PHEV 2016 HIGH POWER BEV DIRECT REFRIGERANT 2017-2020 COOLER ULTRA LARGE & HONDA , PSA, FORD HYBRID
Slide 13: Visibility Systems Business Group
VISIBILITY SYSTEMS BUSINESS GROUP 2020 > €5.5 BILLION IN SALES* ~12.5% EBITDA* 2015 €4.2 BILLION IN SALES 28% OF GROUP TOTAL 2015 12.4% EBITDA 28% OF GROUP TOTAL €4.2 BILLION IN SALES 26,300 EMPLOYEES 12.4% EBITDA 35 PRODUCTION SITES We are ahead of the plan *PRESENTED AT OUR INVESTOR DAY HELD IN LO
Slide 14: Electrification and ADAS Will Fuel Visibility Growth
ELECTRIFICATION AND ADAS WILL FUEL VISIBILITY GROWTH ELECTRIFICATION WILL ACCELERATE LED TAKE RATE LED FOR ADAS COMMUNICATION SYSTEMS SENSOR CLEANING INTERIOR LIGHTING 14
Slide 15: Powertrain Systems Business Group
POWERTRAIN SYSTEMS BUSINESS GROUP 2020 > €6.0 BILLION IN SALES* ~13.5% EBITDA* 2015 €3.8 BILLION IN SALES 26% OF GROUP TOTAL 2015 12.8% EBITDA 26% OF GROUP TOTAL €3.8 BILLION IN SALES 19,400 EMPLOYEES 12.8% EBITDA 36 PRODUCTION SITES We are ahead of the plan *PRESENTED AT OUR INVESTOR DAY HELD IN LO
Slide 16: Comfort & Driving Assistance Systems Business Group
COMFORT & DRIVING ASSISTANCE SYSTEMS BUSINESS GROUP 2020 > €4.0 BILLION IN SALES* ~17.5% EBITDA* 2015 €2.7 BILLION IN SALES 18% OF GROUP TOTAL 2015 14.5% EBITDA 26% OF GROUP TOTAL €2.7 BILLION IN SALES 15,300 EMPLOYEES 14.5% EBITDA 26 PRODUCTION SITES We are ahead of the plan *PRESENTED AT OUR INVES
Slide 17: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 17
Slide 18: CDA Growth Is Fueled by Successive Innovation Waves
CDA GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES AUTONOMOUS CAR INTUITIVE DRIVING TRADITIONAL PRODUCTS 2016 2019 2022 2025 18
Slide 19: Christophe Périllat, Chief Operating Officer
CHRISTOPHE PÉRILLAT CHIEF OPERATING OFFICER 19
Slide 20: We Control Our Growth
WE CONTROL OUR GROWTH What we have done: What we are going to do: profitable growth ACCELERATE profitable growth VALEO SALES VALEO ORDER INTAKE In €bn In €bn And we will continue to deliver 20
Slide 21: A Culture of Excellence and Improvement
A CULTURE OF EXCELLENCE AND IMPROVEMENT ORDER INTAKE = TRUST 21
Slide 22: A Hiring and Training Machine at Work
A HIRING AND TRAINING MACHINE AT WORK A HIRING MACHINE AT WORK +30,600 EMPLOYEES DURING 2010 - 2015 (INCL. ~11 300 ENGINEERS) ~ 20,000 SPONTANEOUS APPLICATIONS RECEIVED IN 2015 A TRAINING MACHINE AT WORK VALEO TECHNICAL INSTITUTES ~ 750,000 HOURS OF TECHNICAL TRAINING FOR ENGINEERS 22
Slide 23: Excitement and Engagement at Work
EXCITEMENT AND ENGAGEMENT AT WORK SOURCE: BIENNIAL INTERNAL ANONYMOUS SURVEY - TOWERS WATSON AGENCY 23
Slide 24: Strict Follow-up of Project Milestones
STRICT FOLLOW-UP OF PROJECT MILESTONES HIGH LEVEL OF STANDARDIZATION SYSTEMATIC DESIGN REVIEW, INDEPENDENT FROM PROJECT TEAMS RATIO OF PROJECTS REQUIRING ESCALATION DIVIDED BY TWO (2015 VS 2013) STRICT FOLLOW-UP OF PROFITABILITY IN LINE WITH EXPECTATIONS 24
Slide 25: More Growth for Our Suppliers
MORE GROWTH FOR OUR SUPPLIERS A SOURCING MACHINE AT WORK €200m - €250m SOURCED EVERY WEEK 25
Slide 26: Best in Class in Quality PPM
BEST IN CLASS IN QUALITY 4 PPM H1 2016 65 AWARDS YTD 2016 (X2 VERSUS 2015) PPM: NUMBER OF DEFECTIVE PARTS PRODUCED PER MILLION MEASURED IN CUSTOMER PLANTS 26
Slide 27: More Efficiency in Our Plants
MORE EFFICIENCY IN OUR PLANTS LABOR COST / SALES (%) SALES / M² (€K/M²) DIRECT LABOR HEADCOUNT IN LOW COST COUNTRIES (%) 13.5 7.4 65 12.4 5.4 50 2010 2015 2010 2015 2010 2015 27
Slide 28: Valeo Factory of the Future
FACTORY VALEO FACTORYOF OFTHE FUTURE THE NEAR FUTURE TOWARDS PAPERLESS AND E-PROCESSES INCREASING ROBOTIZATION ROBOTICS DENSITY (# ROBOTS / 10,000 MANUFACTURING EMPLOYEES) 1,060 800 2015 2016 2018 2019 2021 28
Slide 29: Investor Meeting September 2016
INVESTOR MEETING SEPTEMBER 2016 29
Slide 30: Valeo's Leadership in the Field of Driving Assistance
VALEO’S LEADERSHIP IN THE FIELD OF DRIVING ASSISTANCE 30
Slide 31: Marc Vrecko, Joachim Mathes
MARC VRECKO COMFORT & DRIVING ASSISTANCE SYSTEMS BUSINESS GROUP PRESIDENT JOACHIM MATHES DRIVING ASSISTANCE SYSTEMS MARKETING, RESEARCH AND DEVELOPMENT DIRECTOR 31
Slide 32: CDA Growth Is Fueled by Successive Innovation Waves
CDA GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES AUTONOMOUS CAR INTUITIVE DRIVING TRADITIONAL PRODUCTS 2016 2019 2022 2025 32
Slide 33: Growth Potential Ahead of the Plan
GROWTH POTENTIAL AHEAD OF THE PLAN OEM SALES GROWTH INVESTOR DAY HELD IN TODAY LONDON ON MARCH 15, 2015 2013 2019 2015 2021 TRADITIONAL PRODUCTS GROWTH ENGINES* * Strategic products and services that are positioned on growth markets or generate a significant increase in Group sales 33
Slide 34: A Unique Organisation Focused on the User Experience
A UNIQUE ORGANISATION FOCUSED ON THE USER EXPERIENCE CONNECTED CARS INTUITIVE CONTROLS AUTOMATED CARS THE ONLY PLAYER SIMULTANEOUSLY WITHIN THE AUTONOMOUS CAR SEGMENT, CONNECTED CAR SEGMENT AND INTUITIVE HMI ACTIVITIES 34
Slide 35: A Unique and Coherent Offering for the Autonomous Car
A UNIQUE AND COHERENT OFFERING FOR THE AUTONOMOUS CAR FULL CONNECTIVITY FROM SHORT DISTANCE TO CLOUD NEW USER EXPERIENCE THROUGH INTUITIVE CONTROLS FULL ADAS TECHNOLOGIES AND SYSTEM OFFERING FOR AUTOMATED CARS A COMPREHENSIVE TECHNOLOGY PORTFOLIO FOR AUTONOMOUS CARS, CONNECTED CARS, INTUITIVE HMI PR
Slide 36: Valeo Roadmap for Automated Driving
VALEO ROADMAP FOR AUTOMATED DRIVING HIGHWAY PRIVATE OWNERSHIP FLEET SERVICE HIGHWAY ASSIST HIGHWAY CHAUFFEUR HIGHWAY PILOT / PLATOON ROBOT TRUCK ACC TRAFFIC JAM ASSIST TRAFFIC JAM CHAUFFEUR URBAN URBAN ASSIST URBAN PILOT ROBOT TAXI AUTONOMOUS PARKING DRIVING PARK4U® HOME VALET PARK4U® PARK4U® REMOTE
Slide 37: Mobility and Ownership Models Will Diversify
MOBILITY AND OWNERSHIP MODELS WILL DIVERSIFY WITH NEW PLAYERS EMERGING AUTONOMOUS DRIVING PERSONAL MOBILE LIVING SPACE MOBILITY ON DEMAND (OWNERSHIP) (SERVICE) TRADITIONAL CAR MARKET CAR MANUFACTURERS MANUAL DRIVING MOBILITY PROVIDERS 37
Slide 38: Mobility and Ownership Models Will Diversify
MOBILITY AND OWNERSHIP MODELS WILL DIVERSIFY WITH NEW PLAYERS EMERGING AUTONOMOUS DRIVING PERSONAL MOBILE LIVING SPACE MOBILITY ON DEMAND (OWNERSHIP) (SERVICE) "Self-driving cars will enable car-sharing “The car is growing beyond its role as a mere even in spread-out suburbs. A car will come to you
Slide 39: Incremental Path vs Moon Shot Approach
INCREMENTAL PATH VS MOON SHOT APPROACH AUTONOMOUS DRIVING EVERYTHING SOMETHING LEVEL 4 LEVEL 4/5 SOMEWHERE EVERYWHERE SOME TIME EVERY TIME LEVEL 3 LEVEL 2 CAR MANUFACTURERS MANUAL DRIVING MOBILITY PROVIDERS FLEET MANAGEMENT HELPS RESTRICT FUNCTIONAL AND GEOGRAPHIC COVERAGE 39
Slide 40: Sensors Are the Foundation of Autonomous Driving
SENSORS ARE THE FOUNDATION OF AUTONOMOUS DRIVING FULL 360° COVERAGE, SAFETY THROUGH REDUNDANCY, HIGH RESOLUTION DATA WITH 3D MODELING 40
Slide 41: Building the Broadest Sensor Portfolio in the Automotive Industry
BUILDING THE BROADEST SENSOR PORTFOLIO IN THE AUTOMOTIVE INDUSTRY PARK4U® 2.0 (BRAKING) PARK4U® 3.0 (MAP-BASED) PARK4U® WITH COMFORT BRAKING PARK4U® 5-CAMERA SYSTEM 3-FUNCTION FRONT CAMERA PARK4U® REMOTE PARKVUE® 360VUE® RAIN-LIGHT- STEERING ANGLE HUMIDITY SENSOR FOR ESC 360VUE® 2.0 PROGRAMMABLE (OB
Slide 42: Building the Broadest Sensor Portfolio in the Automotive Industry
BUILDING THE BROADEST SENSOR PORTFOLIO IN THE AUTOMOTIVE INDUSTRY ULTRASONIC RAIN FRONT SURROUND RADAR SOLID-STATE LASER FUSION SYSTEMS SENSOR CAMERA CAMERA COCOON LIDAR SCANNER CONTROLLER A CUMULATIVE TOTAL OF MORE THAN 700 MILLION ADAS SENSORS DELIVERED BY END OF THE YEAR NEARLY 20% OF THIS TOTAL
Slide 43: Valeo Sensing Cocoon for the Car of Tomorrow
VALEO SENSING COCOON FOR THE CAR OF TOMORROW SURROUND FRONT CAMERA CAMERA ULTRASONIC RADAR COCOON COCOON LIDAR FUSION RANGING CONTROLLERS 43
Slide 44: Sensor Leadership as a Foundation for Autonomous Driving
SENSOR LEADERSHIP AS A FOUNDATION FOR AUTONOMOUS DRIVING 44
Slide 45: Sensor Leadership as a Foundation for Autonomous Driving
SENSOR LEADERSHIP AS A FOUNDATION FOR AUTONOMOUS DRIVING LASER SCANNER FRONT CAMERA ULTRASONIC SYSTEMS INFRARED RANGING SURROUND CAMERA COCOON RADAR 45
Slide 46: Valeo Leadership in Sensor Technology: Ultrasonic Systems
VALEO LEADERSHIP IN SENSOR TECHNOLOGY ULTRASONIC SYSTEMS ROADMAP HIDDEN ULS GENERATION 6 HIGH PERF. ULS USV HIGH GENERATION 6 GENERATION 10.2 STANDARD ULS USV MID USV NG GENERATION 5 GENERATION 10.1 GENERATION 11 45% MARKET SHARE 2015 USV LOW LIN ULS GENERATION 5.8 GENERATION 10.3 MORE THAN 600 MILL
Slide 47: Valeo Leadership in Sensor Technology: Camera Systems
VALEO LEADERSHIP IN SENSOR TECHNOLOGY CAMERA SYSTEMS ROADMAP SATELLITE CAM SATELLITE CAM GENERATION 4 GENERATION 7 SATELLITE CAM HD CAMERA GENERATION 3 GENERATION 1 SMART CAM SMART CAM GENERATION 5 GENERATION 6 30% MARKET SHARE INTERIOR CAM PASSENGER CAM 2015 GENERATION 1 GENERATION 2 STRONG MARKET
Slide 48: Valeo Leadership in Sensor Technology: Laser Scanner Systems
VALEO LEADERSHIP IN SENSOR TECHNOLOGY LASER SCANNER SYSTEMS ROADMAP SCALA GENERATION 3 SCALA GENERATION 2 AUTOMECHANIKA INNOVATION AWARD 2016 SCALA GENERATION 1 SOLID-STATE SIDE SENSOR LOW-COST SOLID STATE FIRST TO MARKET 2017 UNIQUE PRODUCT FOR AUTOMATED DRIVING, BUILDING COMPETENCY AND UNRIVALED M
Slide 49: Sensors Leadership as a Foundation for Autonomous Driving
SENSORS LEADERSHIP AS A FOUNDATION FOR AUTONOMOUS DRIVING 49
Slide 50: A Brain for Sensor Fusion and Vehicle Control
A BRAIN FOR SENSOR FUSION AND VEHICLE CONTROL ROADMAP AUTOM. PARKING ULTRASONIC MANEUVERING CONTROLLER SURROUND VIEW VIEWING CAMERA FUSION VEHICLE PLATFORM CONTROLLER ACC RADAR/FRONT CAMERA ACTIVE SAFETY CONTROLLER LANE KEEPING FRONT CAMERA PARK4U REMOTE FUSION PLATFORM LAUNCHED IN 2016, & CRUISE4U
Slide 51: Sensor Leadership as a Foundation for Autonomous Driving
SENSOR LEADERSHIP AS A FOUNDATION FOR AUTONOMOUS DRIVING 51
Slide 52: Several Missions for Automated Vehicles in Progress
SEVERAL MISSIONS FOR AUTOMATED VEHICLES IN PROGRESS AUTOMATED DRIVING PLATFORM (LEVEL 2-5) CRUISE4U (LEVEL3) DRIVE4U (LEVEL4/5) GLOBAL ACADEMIC MEDIUM SPEED COUNTRY TRAFFIC JAM & MOTORWAY BACKGROUND ROADS & CITY DRIVING CRUISE4U - US DRIVE4U - US MORE THAN 125 000 KM COVERED IN AUTOMATED MODE ON TWO
Slide 53: Valeo Ecosystem for Automated Vehicle Development
VALEO ECOSYSTEM FOR AUTOMATED VEHICLE DEVELOPMENT V-DRIVE SIL Multi-Physics System Content Knowledge Simulation Simulation (Software-in- Management Annotation the-Loop) Base Machine Learning Virtual Testing Locali- Connec- Super- HMI zation tivity vision Path Driving Software Perception Fusion Contr
Slide 54: Machine Learning Is Becoming the Game Changer
MACHINE LEARNING IS BECOMING THE GAME CHANGER EXPERT NETWORK ACROSS ORGANIZATIONS AND SITES, COMPLEMENTED BY AN ECOSYSTEM OF EXTERNAL PARTNERS 54
Slide 55: Traditional/Incremental Path vs. Moon Shot Approach
TRADITIONAL/INCREMENTAL PATH VS. MOON SHOT APPROACH AUTONOMOUS DRIVING LEVEL 4 LEVEL 4/5 LEVEL 3 LEVEL 2 LEVEL 2 - PARTIAL AUTOMATION ~ €500 CAR MANUFACTURERS MANUAL DRIVING MOBILITY PROVIDERS VALEO DRIVING ASSISTANCE CONTENT PER CAR BASED ON 2016 PRODUCTS (PRICES & TECHNOLOGY) 55
Slide 56: Traditional/Incremental Path vs. Moon Shot Approach
TRADITIONAL/INCREMENTAL PATH VS. MOON SHOT APPROACH AUTONOMOUS DRIVING LEVEL 4 LEVEL 4/5 LEVEL 3 LEVEL 3 LEVEL 2 CONDITIONAL AUTOMATION ~ €1,500 LEVEL 2 - PARTIAL AUTOMATION ~ €500 CAR MANUFACTURERS MANUAL DRIVING MOBILITY PROVIDERS VALEO DRIVING ASSISTANCE CONTENT PER CAR BASED ON 2016 PRODUCTS (PR
Slide 57: Traditional/Incremental Path vs. Moon Shot Approach
TRADITIONAL/INCREMENTAL PATH VS. MOON SHOT APPROACH AUTONOMOUS DRIVING LEVEL 4 LEVEL 4/5 LEVEL 4/5 HIGH / FULL LEVEL 3 AUTOMATION > €5,000 LEVEL 3 LEVEL 2 CONDITIONAL AUTOMATION ~ €1,500 LEVEL 2 - PARTIAL AUTOMATION ~ €500 CAR MANUFACTURERS MANUAL DRIVING MOBILITY PROVIDERS VALEO DRIVING ASSISTANCE
Slide 58: Valeo Peiker Telematics: A Leader in the Connected Car
VALEO PEIKER TELEMATICS: A LEADER IN THE CONNECTED CAR VALEO PEIKER IN FIGURES #2 14% WORLDWIDE MARKET SHARE SOLUTIONS FOR TELEMATICS APPLICATIONS PLATFORM FOR PROPRIETARY NAD 1,000 FAST AND RELIABLE DATA EXCHANGE BETWEEN VEHICLE AND ITS SURROUNDINGS EMPLOYEES WORLDWIDE ECALL (MANDATORY IN THE EU BY
Slide 59: Open Innovation and Partnerships to Boost Time to Market
OPEN INNOVATION AND PARTNERSHIPS TO BOOST TIME TO MARKET 59
Slide 60: Conclusion
CONCLUSION VALEO CDA GROWTH IS BEING FUELED BY SUCCESSIVE TRADITIONAL INNOVATION WAVES AROUND ITS AUTONOMOUS DRIVING, PRODUCTS CONNECTIVITY AND INTUITIVE HMI HIGH-TECH PRODUCTS HIGH PERFORMING SENSORS ARE THE ABSOLUTE FOUNDATION OF AUTONOMOUS DRIVING: INTUITIVE VALEO HAS DEVELOPED THE BROADEST SENSO
Slide 61: Investor Meeting September 2016
INVESTOR MEETING SEPTEMBER 2016 61
Slide 62: Valeo's Leadership in the Field of Powertrain Electrification
VALEO’S LEADERSHIP IN THE FIELD OF POWERTRAIN ELECTRIFICATION 62
Slide 63: Xavier Dupont, Michel Forissier
XAVIER DUPONT POWERTRAIN SYSTEMS BUSINESS GROUP PRESIDENT MICHEL FORISSIER POWERTRAIN SYSTEMS BUSINESS GROUP MARKETING, RESEARCH AND DEVELOPMENT DIRECTOR 63
Slide 64: Valeo Powertrain Systems Equation
VALEO POWERTRAIN SYSTEMS EQUATION
Slide 65: Less Diesel = More Electrification
LESS DIESEL = MORE ELECTRIFICATION DIESEL TAKE RATE IN EUROPE 48% INITIAL GREEN 33% DISRUPTIVE 23% 15% 2014 2016 2018 2020 2022 2024 3 SCENARIOS ANALYSIS 65 5
Slide 66: Less Diesel + Electrification + Content per Car
- DIESEL = + ELECTRIFICATION = + CONTENT PER CAR FOR VALEO 66
Slide 67: Electrification Trend: There Is No Single Solution
ELECTRIFICATION TREND THERE IS NO SINGLE SOLUTION LOW VOLTAGE SOLUTIONS (12V & 48V) HIGH VOLTAGE SOLUTIONS (60V+) MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER • LONG HAUL • ZERO EMISSION (ZE) AREAS • LOW COST • ALTERNATIVE TO DIESEL • PERFORMANCE • HIGH EMISSIONS • SHORT TRIPS • ALREADY LOW CO2 • PRIC
Slide 68: Valeo Powertrain Content per Car
VALEO POWERTRAIN CONTENT PER CAR LOW VOLTAGE SOLUTIONS (12V & 48V) HIGH VOLTAGE SOLUTIONS (60V+) MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER x2 x2 x3 x9 x7 LOW POWER BEV 12V MILD 48V MILD PHEV HIGH POWER BEV (Battery Electric Vehicle) HYBRID HYBRID (Plug-In Hybrid Vehicle) (Battery Electric Vehicle)
Slide 69: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 69
Slide 70: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 70
Slide 71: Transmissions – Valeo's Position
TRANSMISSIONS – VALEO’S POSITION TRANSMISSION No.2 WORLDWIDE IN TRANSMISSION SYSTEMS VALEO PATENTED LAUNCH OF DUAL LAUNCH OF DUAL LAUNCH OF DEVELOPMENT OF A REVOLUTION IN LONG TRAVEL DRY CLUTCH IN WET CLUTCH PENDULUM TECHNICAL MANUAL DAMPER BECOMES CHINA AND KOREA DAMPER BREAKTHROUGH: THE TRANSMISSI
Slide 72: Transmissions – Valeo's Position
TRANSMISSIONS – VALEO’S POSITION TRANSMISSION No.2 WORLDWIDE IN TRANSMISSION SYSTEMS Valeo Dual Clutches production Valeo pendulum damper Dry and Wet cumulated (in millions of units) production (in millions of units) 2,5 2.5 20 24% 25% MARKET MARKET SHARE SHARE 4 0.1 0,1 2016 2021 2016 2021 2013 201
Slide 73: Still More Value Ahead
STILL MORE VALUE AHEAD TRANSMISSION MORE AUTOMATIC TRANSMISSIONS MARKET CAGR 2015 - 2026 Manual Automatic ELECTROMECHANICAL ACTUATION 48% CLUTCH ✓ DUAL CLUTCH OR TORQUE CONVERTER ✓ PASSIVE HYDRAULIC ✓ ELECTROHYDRAULIC ✓ ELECTROHYDRAULIC ACTUATION 33% ACTUATION ELECTROMECHANICAL ACTUATION ✓ ELECTRONI
Slide 74: Even More Value Ahead
TRANSMISSION EVEN MORE VALUE AHEAD LAUNCH OF E-CLUTCH VALEO LAUNCH OF BLADE REACHES 1M DAMPER LAUNCH OF VALEO PENDULUM PENDULUM DAMPERS VALEO TECHNOLOGY REACHES IN MILLIONS OF UNITS 3M DOUBLE CLUTCHES LAUNCH 14 OF VALEO DOUBLE LAUNCH WET CLUTCH FOR OF VALEO SEVERAL OE DOUBLE DRY CLUTCH 41 2015 2016
Slide 75: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 75
Slide 76: Baseline Scenario
BASELINE SCENARIO M of CARS 120.0 26 90.0 21 60.0 30.0 69 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Conventional ICE (incl. Stop-Start) Mild Hybrid (12V+48V) High Power (PHEV, Full hybrid & BEV) Cars containing ICE ICE POWERTRAIN SYSTEMS WILL CONTINUE TO GROW THROUGH 2026 76
Slide 77: Electrification – Valeo's Leadership
ELECTRIFICATION – VALEO’S LEADERSHIP No.1 WORLDWIDE IN No.1 WORLDWIDE IN 48V ELECTRICAL SYSTEMS: SYSTEMS: WITH MORE THAN 1 IN 3 CARS WITH A VALEO MACHINE ON 25 CONTRACTS AT THE END OF 2016 PLANET EARTH (CHINA, EUROPE, INDIA, KOREA) World’s first 12V Stop- Start. World’s first aircooled MORE THAN 3 M
Slide 78: Electrification Trend: There Is No Single Solution
ELECTRIFICATION TREND THERE IS NO SINGLE SOLUTION DIFFERENT USAGES, DIFFERENT SEGMENTS, DIFFERENT SOLUTIONS MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER • LONG HAUL • ZERO EMISSION (ZE) AREAS • LOW COST • ALTERNATIVE TO DIESEL • PERFORMANCE • HIGH EMISSIONS • SHORT TRIPS • ALREADY LOW CO2 • PRICE CONS
Slide 79: Electrification Trend: There Is No Single Solution
ELECTRIFICATION TREND THERE IS NO SINGLE SOLUTION LOW VOLTAGE SOLUTIONS (12V & 48V) HIGH VOLTAGE SOLUTIONS (60V+) MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER • LONG HAUL • ZERO EMISSION (ZE) AREAS • LOW COST • ALTERNATIVE TO DIESEL • PERFORMANCE • HIGH EMISSIONS • SHORT TRIPS • ALREADY LOW CO2 • PRIC
Slide 80: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 80
Slide 81: Electrification Trend Wave 2: Low Voltage
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE 105 LOW VOLTAGE SOLUTIONS (12V & 48V) 79 53 CAGR CAGR ~51% 26 CAGR ~26% ~15% 0 2016 2026 Low Power BEV Mild Hybrid 48V LOW POWER BEV 12V MILD 48V MILD Mild Hybrid 12V (Battery Electric Vehicle) HYBRID HYBRID ICE Convent
Slide 82: Electrification Trend Wave 2: Low Voltage
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE • 12V Belt Starter Generator with Dual 12V battery and e-Clutch for coasting function • Low power (6 kW) energy recovery and 12V MILD HYBRID boost • Up to 6-8% fuel economy • Hybrid tag in India (FAME program) and 8.0 i
Slide 83: Electrification Trend Wave 2: Low Voltage x2
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE 12V MILD ICE HYBRID • 12V Belt Starter Generator with Dual 12V battery and e-Clutch for coasting function STARTER ✓ ALTERNATOR ✓ • Low power (6 kW) energy recovery and BELT STARTER 12V MILD HYBRID boost GENERATOR ✓ • Up
Slide 84: Electrification Trend Wave 2: Low Voltage
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE • 48V Belt Starter Generator with 48V battery and a DC/DC converter • Optional e-Clutch and e-Supercharger • Medium power (12 kW) energy recovery and 48V MILD HYBRID boost • Up to 10-13% fuel economy (all markets) • Mai
Slide 85: Electrification Trend Wave 2: Low Voltage x3
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE • 48V Belt Starter Generator with 48V battery and a DC/DC converter 48V MILD ICE HYBRID • Optional e-Clutch and e-Supercharger STARTER ✓ • Medium power (12 kW) energy recovery and ALTERNATOR ✓ 48V MILD HYBRID boost BELT
Slide 86: Electrification Trend Wave 2: Low Voltage
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE • 48V e-motor on rear axle with speed reducer, DC/DC converter and 48V battery charger LOW POWER BEV • Low power (15-25 kW) electric propulsion (Battery Electric Vehicle) • Double hundred (100km/h, 100km range) in China
Slide 87: Electrification Trend Wave 2: Low Voltage x2
MEDIUM POWER ELECTRIFICATION TREND ELECTRIFICATION 12V + 48V WAVE 2: LOW VOLTAGE LOW • 48V e-motor on rear axle with speed ICE POWER reducer, DC/DC converter and 48V battery BEV charger STARTER ✓ ALTERNATOR ✓ • Low power (15-25 kW) electric propulsion LOW POWER BEV e-MACHINE ✓ (Battery Electric Vehi
Slide 88: Today: Low Voltage Valeo History
MEDIUM POWER LOW VOLTAGE VALEO HISTORY ELECTRIFICATION 12V + 48V WORLWIDE MARKET SHARE IN 2016 TODAY Stop-Start 30% World No.1 in 12V machines and Mild Hybrid 12V Belt Starter Generator 25 million generators produced per year More than 3 million Belt Starter Generators in the field High efficiency g
Slide 89: Tomorrow: Low Voltage Valeo History
MEDIUM POWER LOW VOLTAGE VALEO HISTORY ELECTRIFICATION 12V + 48V WORLWIDE MARKET SHARE IN 2020 Mild-Hybrid 48V Belt Starter Generator TOMORROW 40% World No.1 in 48V Mild Hybrids in 2020 89
Slide 90: 48V Mild Hybrid System: How It Works
MEDIUM POWER 48V MILD HYBRID SYSTEM ELECTRIFICATION 12V + 48V HOW IT WORKS BELT STARTER GENERATOR 48-12V DC/DC ENGINE CONVERTER START 48V CRANKING 48V BATTERY 12V 12V BATTERY 90
Slide 91: 48V Mild Hybrid System: How It Works
MEDIUM POWER 48V MILD HYBRID SYSTEM ELECTRIFICATION 12V + 48V HOW IT WORKS BELT STARTER GENERATOR 48-12V DC/DC ENERGY CONVERTER RECOVERY 48V BRAKING 48V BATTERY 12V 12V BATTERY 91
Slide 92: 48V Mild Hybrid System: How It Works
MEDIUM POWER 48V MILD HYBRID SYSTEM ELECTRIFICATION 12V + 48V HOW IT WORKS BELT STARTER GENERATOR 48-12V DC/DC EXTRA CONVERTER POWER 48V ACCELERATION 48V BATTERY 12V 12V BATTERY 92
Slide 93: 48V Mild Hybrid System: How It Works
MEDIUM POWER 48V MILD HYBRID SYSTEM ELECTRIFICATION 12V + 48V HOW IT WORKS ENGINE OFF BELT STARTER GENERATOR 48-12V DC/DC LOW SPEED CONVERTER ELECTRIC DRIVE 48V ZERO EMISSION 48V BATTERY 12V DRIVE 12V BATTERY 93
Slide 94: 48V Systems: We Develop Our Roadmap
MEDIUM POWER 48V SYSTEMS ELECTRIFICATION 12V + 48V WE DEVELOP OUR ROADMAP 48V PERFORMANCE PACK (HYBRID + E-SUPERCHARGER WORLWIDE + E-REAR AXLE) 48V HYBRID DCT 48V ELECTRIC MARKET SHARE IN 2020 (DUAL CLUTCH REAR AXLE WORLWIDE TRANSMISSION) MARKET SHARE IN 2020 60% 40% 2012 2016 2017 2018 2019 2020 94
Slide 95: PTS Growth Is Fueled by Successive Innovation Waves
PTS GROWTH IS FUELED BY SUCCESSIVE INNOVATION WAVES HIGH POWER ELECTRIFICATION MEDIUM POWER ELECTRIFICATION 12V + 48V TRANSMISSION 2016 2019 2022 2025 95
Slide 96: Electrification Trend Wave 3: High Voltage
HIGH POWER ELECTRIFICATION TREND ELECTRIFICATION WAVE 3: HIGH VOLTAGE HIGH VOLTAGE SOLUTIONS (60V+) BASE HIGH SCENARIO SCENARIO ON BEV ON BEV BASE HIGH 30 TAKE RATE TAKE RATE SCENARIO SCENARIO ON BEV ON BEV TAKE RATE TAKE RATE 23 5.0 9.5 CAGR CAGR 15 ~26% ~34% 21.0 HIGH POWER BEV HIGH POWER BEV 8 16
Slide 97: Electrification Trend Wave 3: High Voltage
HIGH POWER ELECTRIFICATION TREND ELECTRIFICATION WAVE 3: HIGH VOLTAGE BASE SCENARIO ON BEV • 2 engines in the car: ICE with auto TAKE RATE HIGH SCENARIO PHEV transmission for long range, e-motor for ON BEV (Plug-In Hybrid Vehicle) short range (30km to 50km) TAKE RATE • Supercredits in Europe for veh
Slide 98: Electrification Trend Wave 3: High Voltage x9
HIGH POWER ELECTRIFICATION TREND ELECTRIFICATION WAVE 3: HIGH VOLTAGE ICE PHEV STARTER ✓ ALTERNATOR ✓ • 2 engines in the car: ICE with auto BSG ✓ PHEV transmission for long range, e-motor for (Plug-In Hybrid Vehicle) E-MACHINE ✓ short range (30km to 50km) CLUTCH SYSTEM ✓ • Supercredits in Europe for
Slide 99: Electrification Trend Wave 3: High Voltage
HIGH POWER ELECTRIFICATION TREND ELECTRIFICATION WAVE 3: HIGH VOLTAGE • Pure electric drive: Electric motor + speed reducer, HV inverter, HV DC/DC, HV battery HIGH POWER BEV HIGH SCENARIO (Battery Electric Vehicle) charger ON BEV TAKE RATE • Access to Zero Emission areas (London), HOV lines (Los Ang
Slide 100: Electrification Trend Wave 3: High Voltage x7
HIGH POWER ELECTRIFICATION TREND ELECTRIFICATION WAVE 3: HIGH VOLTAGE HIGH ICE POWER • Pure electric drive: Electric motor + speed BEV reducer, HV inverter, HV DC/DC, HV battery STARTER ✓ HIGH POWER BEV charger ALTERNATOR ✓ (Battery Electric Vehicle) E-MACHINE ✓ • Access to Zero Emission areas (Lond
Slide 101: High Voltage: A Winning Team with Siemens
HIGH POWER HIGH VOLTAGE ELECTRIFICATION A WINNING TEAM WITH SIEMENS POWER CONVERTERS BATTERY AND INVERTERS CHARGER LITHIUM-ION BATTERY ELECTRIC MOTOR 101
Slide 102: The EV Roadmap in Progress
HIGH POWER HV SYSTEMS ELECTRIFICATION THE EV ROADMAP IN PROGRESS • SUPERPOWER ELECTRONICS • E-MOTORS • INVERTERS • CHARGERS • DC/DC CONVERTERS • HYBRID MODULES • RANGE EXTENDERS • WIRELESS CHARGE • ELECTRIC WHEELS • ELECTRIC TRANSMISSION TODAY TOMORROW 102
Slide 103: Protecting Our Innovations: Patent Filing Plan for Each Wave
PROTECTING OUR INNOVATIONS PATENT FILING PLAN FOR EACH WAVE PATENTS ELECTRIFICATION FOR HIGH POWER INCLUDING CONTRIBUTION 340 PATENTS ELECTRIFICATION FOR MEDIUM POWER 330 12V + 48V 40 40 PATENTS FOR 500 TRANSMISSIONS 260 2016 2026 103
Slide 104: Valeo Powertrain Content per Car
VALEO POWERTRAIN CONTENT PER CAR LOW VOLTAGE SOLUTIONS (12V & 48V) HIGH VOLTAGE SOLUTIONS (60V+) MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER x2 x2 x3 x9 x7 LOW POWER BEV 12V MILD 48V MILD PHEV HIGH POWER BEV (Battery Electric Vehicle) HYBRID HYBRID (Plug-In Hybrid Vehicle) (Battery Electric Vehicle)
Slide 105: Conclusion
CONCLUSION WE HAVE A SOLID BASELINE GROWTH SCENARIO FOR TRANSMISSION ENGINES AND TRANSMISSIONS THE SECOND WAVE IS EMERGING NOW WITH LOW VOLTAGE MILD HYBRIDS IN WHICH VALEO IS A KEY MEDIUM POWER TECHNOLOGY PLAYER WITH A COMPREHENSIVE ELECTRIFICATION AND PROVEN OFFERING 12V + 48V TOGETHER WITH SIEMENS
Slide 106: Investor Meeting September 2016
INVESTOR MEETING SEPTEMBER 2016 106
Slide 107: Automotive technology, naturally
Automotive technology, naturally