Slide 1: Q3 2023 Sales
Q3 2023 SALES October 26, 2023 Christophe Périllat Robert Charvier Chief Executive Officer Chief Financial Officer VALEO RESERVED | 1
Slide 2: 2023 Q3 Sales Summary
2023 Q3 Sales Summary 01 02 03 04 Highlights Sales Outlook Backup slides Q3 2023 SALES | OCTOBER 26, 2023 2
Slide 3: Q3 & 9M sales: Key figures
01 Q3 & 9M sales: Key figures Q3 Total Sales 9M Total Sales €5,224m €16,436m lfl +4% lfl** +14% OEM €4,433m Perf.* in line OEM €13,977m Perf.** +5 pts Aftermarket €569m lfl +3% Aftermarket €1,736m lfl** +4% * S&P Global Mobility estimates as of October 16, 2023. ** To calculate year-on-year changes in sa
Slide 4: Q3 business update, 2023 guidance reaffirmed
01 Q3 business update, 2023 guidance reaffirmed • Lower demand for specific EV programs in Europe 2023 guidance • Sales guidance reaffirmed Temporary low • Large inventory drawdowns of Valeo’s reaffirmed • EBIT and EBITDA margin guidance volumes in products following build-up in Q2 reaffirmed high-voltag
Slide 5: 2023 guidance reaffirmed
01 2023 guidance reaffirmed FY 2022 2023 guidance H1 2023 Move Up 2025 adjusted* reaffirmed** Sales €20.4bn €11.2bn €22bn - €23bn ~ €27.5bn EBITDA (as % of sales) 11.4% 11.6% 11.5% - 12.3% ~ 14.5% Operating margin (as % of sales) 2.4% 3.2% 3.2% - 4.0% ~ 6.5% €(156)m Free cash flow €205m ~€260m recorded
Slide 6: Q3 2023: Total sales amounting to €5.2 bn
02 Q3 2023: Total sales amounting to €5.2 bn Q3 sales by type Total sales OEM Aftermarket Miscellaneous €5,224m €4,433m €569m €222m incl. high-voltage powertrain €220m (vs €321m in Q3 2022) +4% +4% +3% +10% lfl growth lfl growth lfl growth lfl growth Reported growth: -1% Reported growth: -1% Reported gr
Slide 7: Q3 OEM sales performance in line with automotive production
02 Q3 OEM sales Performance in line with automotive production Performance* by region Lower EV car production for specific programs in Europe with large inventory drawdowns following build-up in Q2 Continued repositioning of our customer base in China World Europe (including Africa) North America Asi
Slide 8: Comfort & Driving Assistance Systems
02 Comfort & Driving Assistance Systems Continued strong business momentum in ADAS CDA +8% ADAS business highlights Q3 Sales OEM sales lfl growth • Sustainable growth driven by front and €1,158m +4pts Perf.* vision camera • Launch of Valeo anSWer: a new offer +11% software as a product and software a
Slide 9: Partnership with Mobileye
02 Partnership with Mobileye Win-win strategic partnership September 2023 Since 2015 New partnership in imaging radars signed: • Delivering a detailed, 4-dimensional Valeo has become image of surroundings the no. 1 partner of Mobileye, in front cameras: • Range of 300 meters and beyond • 15 million
Slide 10: Powertrain Systems
02 Powertrain Systems Negatively impacted by lower sales in high-voltage Business highlights • Solid growth in traditional powertrain PTS +2% businesses: up 13% lfl or 9pts outperf. OEM sales lfl growth Q3 Sales • Lower EV volumes for specific programs in -2pts Perf.* Europe combined with large invento
Slide 11: Focus on the high-voltage business
02 Focus on the high-voltage business Since 2021, recovery in … leading to better diversification … with long-term sales target high-voltage powertrain order in geo. and customer exposure … for high-voltage powertrain intake … unchanged ~€6bn NEW €1bn order intake in Q3 2023 €4bn ~€3bn 2023 9M sales
Slide 12: Thermal Systems
02 Thermal Systems Turnaround confirmed Business highlights • Remaining inflation compensation negotiations completed in Q4 THS +4% • Improvement in industrial efficiency in the Q3 Sales OEM sales lfl growth front-end module business is on track, leading to margin improvement in H2 €1,146m Perf.* in lin
Slide 13: Visibility Systems
02 Visibility Systems Business highlights • Numerous production launches in Europe (European OEMs), North America VIS (pick up for an American OEM) and +4% Q3 Sales OEM sales lfl growth China (Chinese OEMs and BEV for an American OEM) €1,280m Perf.* in line Acceleration in Q4 driven by numerous produ
Slide 14: On track to achieve our key H2 business
03 Template Conclusion Guidelines 01. Introduction 03. Font theme Deliver first step of THS recovery We recommend that you use this presentation directly and edit or delete The graphical guidelines of the presentation require the use of the "Fira On track slides that you do not need (see next point).
Slide 15: Thank you - Q&A session
THANK YOU Q&A SESSION Q3 2023 SALES | OCTOBER OCTOBER 26, 26TH2023 2023 15
Slide 16: Backup slides
04 Backup slides 16
Slide 17: Total sales amounting to €16.4bn, up 12% LFL
04 Total sales amounting to €16.4bn, up 12% lfl 9M sales by type Total sales OEM Aftermarket Miscellaneous €16,436m €13,977m €1,736m €723m incl. high-voltage powertrain* €1,042m (vs €715m) +12% +14% +4% +0% lfl adjusted growth* lfl adjusted growth* lfl adjusted growth* lfl adjusted growth* Reported growt
Slide 18: 9M OEM sales performance by region
04 9M OEM sales Performance* by region World Europe North Asia South (including Africa) America (excluding China) China America +5pts +4pts** -2pts** +11pts** -3pts** +1pt** adjusted** perf. 9M +2pts -2pts* -2pts* +10pts* -3pts* +1pt* Perf.* * S&P Global Mobility estimates as of October 16, 2023. **
Slide 19: 9M sales by Business Group
04 9M sales by Business Group Change Sales 9M 2022 Change Change in OEM sales Perf. *** (in millions of euros) 9M 2022 adjusted*** 9M 2023 in sales in OEM sales* Perf.** adjusted* adjusted Comfort & Driving Assistance 3,078 3,078 3,489 +13% +16% +7pts +16% +7pts Systems**** Powertrain Systems 4,129
Slide 20: 9M geographic & customer positioning
04 9M geographic & customer positioning OEM sales by production region (% of OEM sales) 9M 2022 9M 2023 ▲ Western Europe 29% 30% +1pp US 8% 7% -1pp Asia & emerging countries Of which Asia excluding China 63% 15% 63% 15% stable stable 63% Of which China 18% 16% -2pp of OEM sales Of which Eastern Euro
Slide 21: Share information
04 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 September 29, 2023 243,501,944 Depositary Bank J.P. Morgan Contact at J.P. Mor
Slide 22: Glossary
04 Glossary Order intake corresponds to business awarded by automakers during the period to EBITDA corresponds to (i) operating margin before depreciation, amortization and Valeo, and to joint ventures and associates based on Valeo’s share in net equity, (except impairment losses (included in the op
Slide 23: Safe harbour statement
04 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 re
Slide 24: Smart technology for smarter mobility
SMART TECHNOLOGY FOR SMARTER MOBILITY