Slide 1: Q3 2020 Sales
Q3 2020 SALES JACQUES ASCHENBROICH CHAIRMAN & CEO SMART TECHNOLOGY FOR SMARTER MOBILITY
Slide 2: Table of Contents
Q3 2020 SALES TABLE OF CONTENTS Ol HEALTH PROTECTION, OUR IST PRIORITY 02 STRONG RECOVERY IN Q3 AS COMPARED TO Q2 OB 4PTs OUTPERFORMANCE YTD 04 STRONG LIQUIDITY POSITION VALEO RESERVED 0° 05 Conrinwepeymscr 06 QE 2020 outLook 20 1 QF Backup siipes 24 16 Valeo October 27, 2020 | 2
Slide 3: Health Protection, Our 1st Priority
01 HEALTH PROTECTION, OUR 1°" PRIORITY VALEO RESERVED Valeo October 27,2020 | 3
Slide 4: Our 1st Priority
OUR 1st PRIORITY A reinforced protocol has been implemented: ● As a worldwide mandatory standard; ● ensuring maximum protection for all employees; ● audited and valid as long as the virus is active. Allowing our sites to operate in normal conditions
Slide 5: Strong Recovery in Q3 as Compared to Q2
02 STRONG RECOVERY IN Q3 AS COMPARED TO Q2 FY OUTPERFORMANCE ESTIMATED AT AROUND 5PTS
Slide 6: Quarter on Quarter Sales Growth Up 70% Without Major Operational Issues
Q3 2020 QUARTER ON QUARTER SALES GROWTH UP 70% WITHOUT MAJOR OPERATIONAL ISSUES
Slide 7: Valeo's Growth in Line with the Market
VALEO’S GROWTH IN LINE WITH THE MARKET FY OUTPERFORMANCE ESTIMATED AT AROUND 5PTS Q3 2020 OEM sales outperformance 0pts €m Reported -7% -6% -24% -8% -5% -2% -22% -6% Like for like ' Exchange rates -2.5% Exchange rates -4.0% Exchange rates +3.8% Exchange rates -2.6% Scope +0.1% Scope 0.0% Scope -5.7%
Slide 8: Q3 Regional Performance Drivers
Q3 2020 ● Europe, strong performance driven by 48V, ADAS and lighting systems; ● China, strong performance driven by ADAS and lighting systems; ● North America, negative base effect (outperformance of 14 pts in 2019) and unfavorable customer mix (exposure to Nissan); ● Asia excluding China: ○ Japan,
Slide 9: Growth in Line with the Market
GROWTH IN LINE WITH THE MARKET Q3 2020 OEM Like for like sales(2) -5% OEM World 46% of Valeo sales(2) sales(2) OEM -3% 21% of Valeo sales(2) sales(2) -4% Europe (1) Outperformance 0pts vs IHS(3) North America North America Outperformance OEM sales** +6% Production*** +4% +5pts vs IHS(3) Outperforman
Slide 10: 4pts Outperformance in China
4PTS OUTPERFORMANCE IN CHINA Q3 2020 Like for like OEM 21% of Asian sales(2) sales(2) OEM -22% 31% of Valeo sales(2) sales(2) -7% OEM Japan (2) sales(2) Asia (1) 23% of Asian sales -15% Outperformance South Korea -10pts vs IHS(3) Outperformance -3pts vs IHS(3) OEM 50% of Asian sales(2) sales(2) Outp
Slide 11: 4pts Outperformance YTD
03 4PTS OUTPERFORMANCE YTD VALEO RESERVED Valeo October 27,2020 | 11
Slide 12: 4pts Outperformance YTD
4PTS OUTPERFORMANCE YTD 2020 OEM sales outperformance +4pts €m Reported -22% -14% -30% -21% Like for like -21% -13% -30% -21% Exchange rates -0.7% Exchange rates -1.7% Exchange rates -4.0% Exchange rates -0.8% Scope 0.0% Scope +3.6% Scope +0.1% Scope +0.1%
Slide 13: YTD Outperformance in All Production Regions
YTD OUTPERFORMANCE IN ALL PRODUCTION REGIONS YTD 2020 Like for like OEM sales(2) OEM -21% 47% of Valeo sales(2) sales(2) OEM -23% World 19% of Valeo sales(2) sales(2) -25% Europe (1) North America North America Outperformance OEM sales** +6% Outperformance +4pts vs IHS(3) Production*** +4% +7pts vs
Slide 14: 5pts Outperformance in Asia
5PTS OUTPERFORMANCE IN ASIA YTD 2020 Like for like OEM 24% of Asian sales(2) sales(2) OEM -25% 32% of Valeo sales(2) sales(2) -15% OEM Japan (2) sales(2) Asia (1) 25% of Asian sales -20% Outperformance South Korea -3pts vs IHS(3) Outperformance +5pts vs IHS(3) OEM 44% of Asian sales(2) sales(2) Outp
Slide 15: YTD Outperformance in All Business Groups
YTD OUTPERFORMANCE IN ALL BUSINESS GROUPS YTD MAINLY DRIVEN BY ADAS, ELECTRIC SYSTEMS AND LIGHTING 2020 Outperformance +8pts +4pts +1pt +4pts Group €11.4bn YTD total sales In €m % of YTD 20 sales Total reported sales -18% -20% -26% -22% OEM sales Like for like -17% -21% -24% -21% *excl. TCM
Slide 16: Strong Liquidity Position
04 STRONG LIQUIDITY POSITION
Slide 17: €2.3bn in Undrawn Credit Lines
END €2.3BN IN UNDRAWN CREDIT LINES OF JUNE ● €2.3bn in undrawn credit lines; ● Liquidity position: ○ €2.1bn in cash and cash equivalent; ○ No debt falling due before June 2021; ○ Average debt maturity of 3.4 years; ○ Adequate headroom under the bank covenant (3.5 times the EBITDA).
Slide 18: AAA ESG Rating Confirmed by MSCI
05 AAA ESG RATING CONFIRMED BY MSCI
Slide 19: Greener & Safer Mobility at the Heart of Our Strategy
GREENER & SAFER MOBILITY AT THE HEART OF OUR STRATEGY ● “The company falls into the highest scoring range relative to global peers. SAFER (36%) ● Governance practices are generally well 2019 OEM Sales* #1 ● aligned with shareholder interests. Opportunities in clean tech: high proportion of revenues
Slide 20: 2020 Outlook
O06 2020 OUTLOOK VALEO RESERVED Valeo October 27,2020 | 20
Slide 21: EBITDA Margin Guidance
EBITDA MARGIN GUIDANCE EBITDA margin revised upward to more than 12% in H2
Slide 22: Key Levers
KEY LEVERS Free cash flow revised upward to more than 600 million euros in H2 ● EBITDA margin improvement; ● Positive change in the net balance of accounts and notes receivable and payable; ● Tight management of inventories; ● Strict control of CAPEX.
Slide 23: H2 2020 Guidance Based on IHS Production Estimates
For the second half of 2020, Valeo has based its guidance on production volume estimates published by IHS. These estimates do not factor in any significant adverse impact on production, supply chain and market evolution of a second wave of Covid-19. Based on this scenario, i.e., a fall of 3% in autom
Slide 24: Backup Slides
07 BACKUP SLIDES VALEO RESERVED Valeo October 27,2020 | 24
Slide 25: Customer Portfolio
CUSTOMER PORTFOLIO % of OEM sales German 31% German 31% Asian Asian 32% 32% YTD 19 YTD 20
Slide 26: Geographic Positioning
GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Western Western Europe Europe 32% 32% 58% in Asia 58% in Asia & emerging & emerging countries countries YTD 19 YTD 20
Slide 27: Performance by Business Group
PERFORMANCE BY BUSINESS GROUP Q3 2020 Outperformance +2pts -2pts 0pts 0pts Group €4.4bn Q3 total sales In €m % of Q3 20 sales Total reported sales -5% -8% -10% -9% OEM sales Like for like -3% -7% -5% -5% *excl. TCM
Slide 28: Reconciliation of Valeo and Top Column Module (TCM) Data
RECONCILIATION OF VALEO AND TOP COLUMN MODULE (TCM) DATA The Group decided to withdraw from the TCM Segment. The table below reconciles reported consolidated data for Q3 2020 with data excluding the TCM business.
Slide 29: Contacts
INVESTOR RELATIONS VALEO 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: valeo.corporateaccess.mailbox@valeo.com Website: www.valeo.com CONTACTS
Slide 30: Share Data and ADR Data
Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of September 30, 2020 241,036,743 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • Contact at J.P. Mor
Slide 31: Forward-looking statements
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 respect to future financial r
Slide 32: Valeo - Smart Technology for Smarter Mobility
Valeo SMART TECHNOLOGY FOR SMARTER MOBILITY