Slide 1: H1 2025 Results
H1 2025 Results July 24, 2025 Christophe Périllat Edouard de Pirey Chief Executive Officer Chief Financial Officer VALEO HALF YEAR RESULTS | JULY 25, 2024
Slide 2: Contents
Contents 01 02 03 04 H1 25 highlights H1 25 results 2025 financial Backup roadmap slides & Conclusion H1 2025 RESULTS | JULY 24, 2025 2
Slide 3: H1 25 highlights
01 H1 25 highlights Christophe Périllat Chief Executive Officer H1 2025 RESULTS | JULY 24, 2025 3
Slide 4: H1 results confirm our trajectory of improving profitability & cash generation
01 | H1 25 highlights H1 results confirm our trajectory of improving profitability & cash generation Operating margin, 0.5 pts higher than last year FCF more than doubled vs last year after €80m in one-off restructuring costs Sales EBITDA Operating Free cash flow margin +6% +7% -1.4% lfl X2 +1.4 pts +0.
Slide 5: Valeo highly focused on a new step of financial improvement in 2025
01 | H1 25 highlights Valeo highly focused on a new step of financial improvement in 2025 Overcoming H1 operating environment Taking appropriate actions Rapid change in the customer & geographic mix Ongoing repositioning with Chinese OEMs Under exposure to Chinese OEMs Improving position towards Chin
Slide 6: Cost reductions / Restructurings resulting in a lower break-even point
01 | H1 25 highlights Cost reductions / Restructurings resulting in a lower break-even point Up 1.1pts YoY Gross margin Positive effects of self-help measures improvement Control of operations & strict price management to 19.6% of sales Tariffs direct impact successfully managed Gross R&D Improved e
Slide 7: Free cash flow of €252m after €80m in one-off restructuring costs
01 | H1 25 highlights Free cash flow of €252m after €80m in one-off restructuring costs Intangible Improved efficiency of R&D investments Intangible investments, down €106m down 18% YoY Capitalized R&D, down 17% or €97m PP&E Strict control of Capex investments PP&E, down €171m down 29% YoY 4.0% of sal
Slide 8: 2025 profitability and cash guidance confirmed
01 | H1 25 highlights 2025 profitability and cash guidance confirmed Sales guidance adjustment, taking into account the significant change in FX vs guidance (-€750m) as well as a lackluster market FY 2025 guidance(a) (b) Sales ~€20.5bn previous [€21.5bn to €22.5bn] (in €bn) EBITDA(c) [13.5%-14.5%] unch
Slide 9: Key recognition by our customers
01 | H1 25 highlights Key recognition by our customers Recognized by General Motors as a Supplier Valeo Honored with Volkswagen Group of the Year in the Advanced Driver Assistance Award 2025 for Best Supplier Systems (ADAS) category The announcement marks the third consecutive year in which GM Valeo
Slide 10: Order intake, good start to the year
01 | H1 25 highlights Order intake, good start to the year Business Highlights €11.8bn POWER Thermal Solutions with major European OEM for HVAC + and two Chinese JVs for Smart Heat Pumps China 5 in 1 Deep integration power electronics (Inverter + OBC + DCDC + PDU + eFuse) for major Chinese brand (SO
Slide 11: H1 25 results
02 H1 25 results Edouard de Pirey Chief Financial Officer H1 2025 RESULTS | JULY 24, 2025 11
Slide 12: Growth potential intact despite current market headwinds
02 | H1 2025 results Growth potential intact despite current market headwinds Rapid change in the geo-mix & the customer mix in China with ongoing repositioning Aftermarket sales showing robust performance Total sales OEM Aftermarket Miscellaneous* €10,660m €8,904m €1,114m €642m -1.4% lfl growth -2.0
Slide 13: OEM sales performance by region
OEM sales Outperformance in Europe in all Divisions Performance by region North American performance affected by delays in SOPs Customer mix in China still challenging despite ongoing repositioning World Europe (including Africa) North America Asia (excluding China) China South America Perf. -5pts O
Slide 14: Sharp reduction in costs and investments
02 | H1 2025 results Sharp reduction in costs and investments Strong price discipline - Sharp decrease in gross R&D and SG&A Gross margin Gross R&D SG&A Up 1.1 pts to 19.6% Down 11% to 11.8% of sales Down 5% to 4.7% of sales Strong purchasing price discipline Increasing efficiency thanks to: First ef
Slide 15: Operating margin, up 0.5pts to 4.5% of sales
02 | H1 2025 results Operating margin, up 0.5pts to 4.5% of sales Sharp decrease in R&D capitalization impact R&D capitalization R&D capitalization impact of 0.8pts As a % of sales Significantly lower than: H1 24 of 2.4 pts +1.1pt -0.7 pts Guidance of 1.5 pts +0.1 pts 4.5% 4.0% Lower R&D capitalizati
Slide 16: POWER Sales €5,403m
02 | H1 2025 results POWER Favorable impact of restructuring measures despite low activity in EV in North America and on certain platforms in Europe Sales SALES Business excl. high-voltage €4,941m POWER €5,403m -3pt OEM sales performance High-voltage business €462m -5%* -4pt OEM sales performance -1
Slide 17: BRAIN Sales €2,526m
02 | H1 2025 results BRAIN R&D reduction, cost variabilization & favorable customer claim resolution supporting higher EBITDA Sales SALES ADAS €1,575m BRAIN €2,526m -12pt OEM sales performance -2%* Interior Experience €951m -7pt OEM sales performance +1pt OEM sales performance €2,569m €2,526m 19.0%
Slide 18: LIGHT Sales €2,728m
02 | H1 2025 results LIGHT Profitability improving thanks to new product launches and production ramp-ups Sales SALES LIGHT €2,728m -2% lfl growth OEM sales -4%* -5pt OEM sales performance €2,853m €2,728m BUSINESS HIGHLIGHTS 13.2% Sequential performance improvement - Q2 > Q1 12.7% Production ramp-ups
Slide 19: Net income of €104m or 1.0% of sales
02 | H1 2025 results Net income of €104m or 1.0% of sales Other income & expenses Restructuring costs totaling €63m mainly one-off restructuring costs €m H1 25 H1 24 In H1 24, this caption included a Operating margin excl. JV & associates 476 445 €94m capital gain on the sale of the As a % of sales
Slide 20: FCF more than doubled after €80m restructuring costs
02 | H1 2025 results FCF more than doubled after €80m restructuring costs €m H1 25 H1 24 Capitalized R&D EBITDA 1,472 1,383 Focus on R&D efficiency in a context As a % of sales 13.8% 12.4% of high order intake since 2022 Intangible CAPEX (486) (592) of which capitalized R&D (468) (565) €0.5bn Tangibl
Slide 21: Gross debt, down €449m
02 | H1 2025 results Gross debt, down €449m Net debt increase due to unfavorable FX impact of €260m Cash & Cash equivalents Leverage ratio at 1.4x Undrawn €2.4bn Net debt in €bn credit lines €4.2bn €1.6bn €3.8bn June 30, 2025 June 30, 2025 Action plan aiming at reducing the FX risk through specific c
Slide 22: Conclusion
03 Conclusion Christophe Périllat Chief Executive Officer H1 2025 RESULTS | JULY 24, 2025 22
Slide 23: 2025, a new step of structural increase in margins & cash generation
03 | Conclusion 2025, a new step of structural increase in margins & cash generation Price Cost base Investment Order intake discipline reduction reduction Growth potential intact Protect our selling prices in Challenge every cost across Manage strictly our Keep booking order intake the context of l
Slide 24: Thank you
Thank you Q&A H1 2025 RESULTS | JULY 24, 2025 24
Slide 25: Backup slides
Backup slides H1 2025 RESULTS | JULY 24, 2025 25
Slide 26: ESG Highlights
ESG Highlights 2626
Slide 27: Key ESG KPIs
04 | Backup slides Key ESG KPIs 2019 2024 base year Emissions from operating activities – Scopes 1 & 2 in MtCO2eq. 1.1 0.4 Emissions from purchased goods and services – Upstream Scope 3 in MtCO2eq. 9.5 7.9 E Emissions from the use of Valeo products – Downstream Scope 3 Emissions reduction (Scopes 1,
Slide 28: Sustainability is in our DNA
04 | Backup slides Sustainability is in our DNA An ESG leader recognized by rating agencies Valeo is included in major ESG indices CAC40 SBT 1.5° 74/100 17.6 B- Prime low risk Global ESG Leaders A Climate Change AAA 61/100 ESG Leaders A- Water H1 2025 RESULTS | JULY 24, 2025 28
Slide 29: Q2 Backup Slides
Q2 Backup Slides 2929
Slide 30: Q2 sales by type
• 04 | Backup slides 0 Q2 sales by type 2 Total sales OEM Aftermarket Miscellaneous* €5,347m €4,404m €540m €403m -1.9% lfl growth -3.4% lfl growth +0.6% lfl growth +13.7% lfl growth Reported growth: -6.0% Reported growth: -7.1% Reported growth: -9.1% Reported growth: +13.3% Exchange rate: -2.5% Exchange
Slide 31: Q2 OEM sales performance by region
Q2 OEM sales Performance by region World Europe (including Africa) North America Asia (excluding China) China South America Perf. -6pts OEM Sales mix OEM Sales mix OEM Sales mix OEM Sales mix OEM Sales mix Q2 24: 50% of sales Q2 24: 20% of sales Q2 24: 15% of sales Q2 24: 13% of sales Q2 24: 2% of s
Slide 32: Q2 sales by Division
04 | Backup slides Q2 sales by Division Sales by Division Change Change (in millions of euros) Q2 25 Q2 24 in sales in OEM sales* Perf.** POWER 2,680 2,909 -8% -2% -5pts High-voltage 221 314 -30% -32% -35pts Other 2,459 2,595 -5% +1% -2pts BRAIN 1,288 1,340 -4% -8% -11pts ADAS 805 864 -7% -12% -15pt
Slide 33: H1 Backup Slides
H1 Backup Slides 33
Slide 34: H1 Segment information
04 | Backup slides H1 Segment information BRAIN POWER LIGHT Other Total H1 25 (€m) Sales: 2,526 5,403 2,728 3 10,660 Segment (Excluding Group) 2,511 5,338 2,724 87 10,660 Intersegment (Group) 15 65 4 (84) 0 EBITDA 480 595 361 36 1,472 Research & Development expenditure, net (503) (392) (214) (6) (1,
Slide 35: H1 R&D expenditure
04 | Backup slides H1 R&D expenditure H1 25 H1 24 Change Sales (in €m) 10,660 11,117 -4% (in €m) 468 565 -17% Capitalized development expenditure (as a % of sales) 4.4% 5.1% (in €m) (385) (302) +27% Amortization and impairment of capitalized development expenditure* (as a % of sales) (3.6)% (2.7)% (
Slide 36: Long term debt profile
04 | Backup slides Long term debt profile Average maturity: 3.2 years Undrawn credit €1.6BN As of June. 30, 2025 facilities Average maturity: 2.3 years Cash & cash €2.4BN equivalents As of June. 30, 2025 Sustainability-linked senior bond (EMTN) EIB loan Maturity Amount Coupon Maturity Amount Coupon M
Slide 37: 2025, a new step in improving financial performance
04 | Backup slides 2025, a new step in improving financial performance FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 incl. VSeA incl. VSeA Actual Actual Guidance(a) (b) Sales ~€20.5bn €18.0bn €20.4bn €22.0bn €21.5bn previous (in €bn) €21.5bn to €22.5bn EBITDA(c) 11.3% 11.4% 12.0% 13.3% [13.5%-14.5%] (as %
Slide 38: Share information
04 | Backup slides 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, 2024 244,633,504 Depositary Bank J.P. Morgan Contact
Slide 39: Glossary
04 | Backup slides Glossary Order intake corresponds to business awarded by automakers during the period to Free cash flow corresponds to net cash from operating activities (excluding changes in Valeo, and to joint ventures and associates based on Valeo’s share in net equity (except non-recurring sal
Slide 40: Safe harbour statement
04 | Backup slides Safe harbour statement Statements contained in this document which, when they are not historical fact, constitute “forward-looking statements”. These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intention
Slide 41: FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024
FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024 41