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Valeo — Investor Day (March 2017)

38 slides from Valeo's investor day presentation, Mar 1, 2017

  1. Slide 1: Valeo Investor Day London 2017

    VALEO INVESTOR DAY London 2017

  2. Slide 2: Powertrain Systems presenters

    POWERTRAIN SYSTEMS BUSINESS GROUP PRESIDENT POWERTRAIN SYSTEMS BUSINESS GROUP R&D AND PRODUCT MARKETING DIRECTOR 2

  3. Slide 3: Powertrain Systems: A Strong Global Player

    —————— POWERTRAIN SYSTEMS: A STRONG GLOBAL PLAYER 2 am HYBRID AND AIR LOOP ELECTRIC = ELECTRIC COMPLETE CONTROL } RANGE OF Ps SYSTEMS SUPERCHARGER HYBRID AND ELECTRIC SOLUTIONS TO MARKET POWERTRAIN WELL POSITIONED TO CATCH ALL MARKET OPPORTUNITIES |

  4. Slide 4: Valeo Powertrain Systems Key Figures (End of 2016)

    VALEO POWERTRAIN SYSTEMS KEY FIGURES (END OF 2016) TOTAL SALES e@e € 4.0 BN ivr 20,70 ° fy 2 PRODUCTION EBITDA ° 1 3 A % OF SALES @ ¥ 20 ms 2 nc & DEVELOPMENT CENTERS

  5. Slide 5: Sales and headcount by region

    SALES SALES SALES HEADCOUNT HEADCOUNT HEADCOUNT SALES SALES HEADCOUNT HEADCOUNT 5

  6. Slide 6: Annual growth and EBITDA margin improvement

    ANNUAL GROWTH OVER ANNUAL GROWTH FROM 2014 - 2020 PERIOD 2015 TO 2016 EBITDA MARGIN IMPROVEMENT 2016 EBITDA FROM 12.3% IN 2014 TO IN 2020 6

  7. Slide 7: We are ahead of the plan announced in March 2015

    WE ARE AHEAD OF THE PLAN ANNOUNCED IN MARCH 2015

  8. Slide 8: Valeo Powertrain Systems' Equation

    —————— VALEO POWERTRAIN SYSTEMS’ EQUATION - €O2 ln, SS “ = NOx g pat a _& O : - PARTICLES _ EMISSION = @ — +REGULATIONS _ & LOCAL POLICIES [_ fi

  9. Slide 9: Smarter engines, transmissions, hybridization, electrification

    SMARTER ENGINES + SMARTER TRANSMISSIONS + HYBRIDIZATION + ELECTRIFICATION GROWTH BOOSTERS

  10. Slide 10: Cars Containing Internal Combustion Engine

    M CARS 120,0 22% 90,0 18% 60,0 30,0 60% 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 Internal Combustion Engine 10

  11. Slide 11: Growth per year 2015-2021

    +4% PER YEAR 2015 2021 SOURCE: VALEO *STRATEGIC PRODUCTS AND SERVICES THAT ARE POSITIONED IN GROWING MARKETS OR GENERATE A SIGNIFICANT INCREASE IN GROUP SALES 11

  12. Slide 12: PTS growth is fueled by continuous innovation waves

    PTS GROWTH IS FUELED BY CONTINUOUS INNOVATION WAVES ELECTRIFICATION HIGH POWER ELECTRIFICATION MEDIUM POWER 12V + 48V SMART ENGINES AND TRANSMISSIONS 2016 2026

  13. Slide 13: Innovation waves: smart engines and transmissions

    PTS GROWTH IS FUELED BY CONTINUOUS INNOVATION WAVES SMART ENGINES AND TRANSMISSIONS 2016 2026

  14. Slide 14: Launch of dual wet clutch and pendulum damper

    ° WAVE LAUNCH OF DUAL JV WITH KAPEC REVOLUTION REVOLUTION REVOLUTION WET CLUTCH AND ACQUISITION OF FTE OF MANUAL IN CVT IN BEV PENDULUM DAMPER LAUNCH OF BLADE TRANSMISSION DAMPER LAUNCH OF e-CLUTCH ° IN TORQUE CONVERTER LAUNCH OF LAUNCH OF e-CVT e-TRANSMISSION ° IN HYDRAULIC ACTUATORS * * *Pending r

  15. Slide 15: Wave sales 2016-2021

    ° WAVE 2.5 20 4 0.1 2016 2021 2016 2021 15

  16. Slide 16: Wave products pending regulatory approvals

    WAVE * + * + € *Pending regulatory approvals 16

  17. Slide 17: Launch of electric supercharger and engine products

    WAVE LAUNCH OF LAUNCH OF LAUNCH OF LAUNCH OF ELECTRIC SMART GASOLINE LOW HIGH TEMPERATURE SUPERCHARGER GASOLINE PRESSURE EGR EXHAUST GAS THROTTLES SYSTEM SENSORS LAUNCH OF LAUNCH OF NEW POLYMER AIR PUMP ACTUATOR 17

  18. Slide 18: Wave sales 2016-2021

    WAVE 1.0 19 7 0.05 2016 2021 2016 2021 18

  19. Slide 19: Market CAGR 2016-2026

    WAVE MARKET CAGR 2016 - 2026 14% 8% 11% 27% 19

  20. Slide 20: Innovation waves: electrification medium power

    PTS GROWTH IS FUELED BY CONTINUOUS INNOVATION WAVES ELECTRIFICATION HIGH POWER & G ELECTRIFICATION MEDIUM POWER 12V + 48V 2016 2026

  21. Slide 21: World's firsts in 12V and 48V electrification

    WAVE WAVE ° ° World’s first 12V Stop Start. World’s first aircooled MORE THAN 3 MU 48V BELT STARTER PRODUCED SINCE GENERATOR AND DCDC CONVERTER World’s first electric World’s first 12V Mild Supercharger on Audi Hybrid on Nissan SQ7 Invention of 48V Serena Mild Hybrid « Hybrid4All » 12V SMART HYBRID

  22. Slide 22: Electrification segments from low power BEV to high power BEV

    WAVE WAVE MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER • ZERO EMISSION (ZE) AREAS • ALTERNATIVE TO DIESEL • LONG HAUL • PERFORMANCE • LOW COST • SHORT TRIPS • PRICE CONSTRAINT • HIGH EMISSIONS • ACCELERATION • ALREADY LOW CO2 • EASY PLUG-IN • COMMUTERS • HIGH PRICE • GREEN LUXURY • COMMUTERS • NEED TO

  23. Slide 23: Electrification segments from low power BEV to high power BEV

    WAVE WAVE MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER • ZERO EMISSION (ZE) AREAS • ALTERNATIVE TO DIESEL • LONG HAUL • PERFORMANCE • LOW COST • SHORT TRIPS • PRICE CONSTRAINT • HIGH EMISSIONS • ACCELERATION • ALREADY LOW CO2 • EASY PLUG-IN • COMMUTERS • HIGH PRICE • GREEN LUXURY • COMMUTERS • NEED TO

  24. Slide 24: Innovation waves: medium power 12V + 48V

    PTS GROWTH IS FUELED BY CONTINUOUS INNOVATION WAVES ELECTRIFICATION MEDIUM POWER 12V + 48V 2016 2026

  25. Slide 25: Average content per car and CAGR by electrification level

    WAVE 2% 10% 6% AVERAGE CONTENT PER CAR x x x CAGR CAGR ~51% CAGR ~26 % ~15% 2016 2026 Low Power BEV Mild Hybrid 48V LOW POWER BEV 12V MILD 48V MILD Mild Hybrid 12V (Battery Electric Vehicle) HYBRID HYBRID ICE Conventional (incl. Stop Start) PERCENTAGE OF TOTAL CAR PRODUCTION BASED ON 2016 PRODUCTS (

  26. Slide 26: 48V performance pack and e-supercharger

    WAVE 48V PERFORMANCE PACK 48V HYBRID 48V ELECTRIC 48V E SUPERCHARGER TRANSMISSION REAR AXLE 48V HYBRID SYSTEM 60%* 40%* *WORLWIDE MARKET SHARE IN 2020 26

  27. Slide 27: Innovation waves: high power electrification

    PTS GROWTH IS FUELED BY CONTINUOUS INNOVATION WAVES ELECTRIFICATION HIGH POWER 2016 2026

  28. Slide 28: High power BEV and PHEV scenarios

    WAVE BASE HIGH SCENARIO SCENARIO ON BEV ON BEV BASE HIGH TAKE RATE TAKE RATE SCENARIO SCENARIO ON BEV TAKE RATE x7 AVERAGE CONTENT PER CAR ON BEV TAKE RATE CAGR CAGR ~26% ~34% HIGH POWER BEV (BATTERY ELECTRIC VEHICLE) x9 AVERAGE CONTENT PER CAR 2016 2026 2026 PHEV HP BEV CAGR CAGR PERCENTAGE OF TOTA

  29. Slide 29: Full drivetrain integration

    WAVE INVERTER ELECTRIC MOTOR FULL DRIVETRAIN INTEGRATION INVERTER & DC/DC DC/DC CONVERTER ON-BOARD CHARGER & DC/DC GENERATOR ON-BOARD CHARGER 29

  30. Slide 30: Techcenters and production

    WAVE TECHCENTERS PRODUCTION 30

  31. Slide 31: Valeo Siemens eAutomotive: a quick winning team

    VALEO SIEMENS eAUTOMOTIVE > A QUICK WINNING TEAM eT -Obn ORDER INTAKE SINCE JV CREATION

  32. Slide 32: Market growth 2016-2026 CAGR

    WAVE €bn 45 40 CAGR: 6.3% CAGR: 5.8% 35 30 25 20 15 10 5 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 32

  33. Slide 33: Diesel decrease: an opportunity for growth

    DIESEL DECREASE AN OPPORTUNITY FOR GROWTH ELECTRIFICATION MORE ELECTRIC CARS HIGH POWER MEDIUM POWER 12V + 48V MORE AUTOMATIC SMART ENGINES MORE GASOLINE AND TRANSMISSIONS MORE AUTOMATIC & @ ELECTRIFICATION MORE HYBRID CARS &

  34. Slide 34: Less diesel, more electrification, more content per car

    - DIESEL + ELECTRIFICATION + CONTENT PER CAR FOR VALEO

  35. Slide 35: Average content per car

    WAVE WAVE WAVE x x x x x x AVERAGE CONTENT PER CAR BASED ON 2016 PRODUCTS (PRICE & TECHNOLOGY) 35

  36. Slide 36: Sales targets including Valeo-Kapec & FTE JV

    ~€ * € ~ * *INCLUDING VALEO-KAPEC & FTE JV CONSOLIDATED ON EQUITY 36

  37. Slide 37: Forward-Looking Statements

    Statements contained in this press release, 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 respect to future finan

  38. Slide 38: Valeo Investor Day London 2017

    VALEO INVESTOR DAY London 2017

Valeo — Investor Day (March 2017) on 6ix