Slide 1: Half-Year 2024 Results
Half-Year 2024 Results July 25, 2024 Christophe Périllat Edouard de Pirey Chief Executive Officer Chief Financial Officer FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024 1
Slide 2: Contents
H1 2024 Results Contents 01 02 03 04 Highlights Performance Conclusion Backup slides & results Q&A VALEO HALF YEAR RESULTS | JULY 25, 2024 2
Slide 3: Highlights
01 | H1 2024 Results Highlights Christophe Périllat Chief Executive Officer VALEO HALF YEAR RESULTS | JULY 25, 2024 3
Slide 4: H1 margins and free cash flow aligned with FY guidance
01 | Highlights H1 margins and free cash flow aligned with FY guidance Strict cost & cash control in a slow market environment Group Sales EBITDA Operating margin Free cash flow after one-off restructuring costs H1 2024 RESULTS €11.1bn €1,383m €445m €121m 12.4% 4.0% +6% as reported +23% as reported +€
Slide 5: H1 main achievements
01 | Highlights H1 main achievements Cost control Strict POWER Division New worldwide & cash management Divestment for all powertrain CSR customer at every level program architectures agreement compensation On track Sale of Fostering Higher flexibility to achieve Shift in mindset Thermal Commercial a
Slide 6: Focus on cost control
01 | Highlights Focus on cost control Gross margin → Good control of operations +1.4pts → First effects of self-help measures Cost control & customer R&D → Increased efficiency compensation Peak reached in Q1 → Start of R&D and IFRS impact decrease in Q2 ‘24 On track to achieve FY guidance SG&A → Str
Slide 7: New segment reporting around Divisions
01 | Highlights New segment reporting around 3 Divisions Creation of the new POWER Division Formerly Comfort & Driving Assistance Formerly Visibility POWER BRAIN LIGHT Addressing all powertrain architectures: Driving assistance Lighting everywhere Combustion engine Software Defined Vehicle Enhanced c
Slide 8: POWER
01 | Highlights POWER Powertrain & thermal solutions for all powertrain architectures … Compact & Low Consumption Compact & Silent CABIN COMFORT ELECTRIC AXLE incl. eMotor, Inverter & Reducer Heating Ventilation & Air Conditioning, Surface Flex Heaters Light & Low Carbon STRUCTURAL PARTS Compact & S
Slide 9: BRAIN
01 | Highlights BRAIN Strategic agreement announced during the Consumer Electronics Show in Las Vegas, January 2024 Thermal Camera completing Valeo’s sensor set Thermal camera provides imagery regardless of lighting or atmospheric conditions 75% Thermal cameras are the of pedestrian deaths occur at
Slide 10: LIGHT
01 | Highlights LIGHT Close to 300 starts of production throughout 2024 Peugeot 3008 Lynk&Co Z10 Renault 5 E-Tech eletric (Pixel 50) (First RGB, coast to coast signaling, Thinbilite) (RefLED, Signal holographic, DRL) BMW 3 series Cupra Leon Honda Lingxi L (Carpet light) (Coast to coast signaling, Ho
Slide 11: Margins and free cash flow objectives reaffirmed
01 | Highlights Margins and free cash flow objectives reaffirmed Sales objectives adjusted to market conditions, especially in electrification FY 2024 FY 2025 guidance (a) (b) objectives (b) ~€22.0bn €23.5bn to €24.5bn Sales previously previously €22.5bn to €23.5bn €24.5bn to €25.5bn EBITDA 12.1% to 13
Slide 12: Performance & results
02 | H1 2024 Results Performance & results Edouard de Pirey Chief Financial Officer VALEO HALF YEAR RESULTS | JULY 25, 2024 12
Slide 13: H1 OEM sales impacted by slower high-voltage sales
• 02 | Performance & results 0 H1 OEM sales impacted by slower high-voltage sales vs H1 2023 2 Total sales OEM Aftermarket Miscellaneous €11,117m €9,295m €1,190m €632m +1% lfl growth -1% lfl growth +5% lfl growth +30% lfl growth Reported growth: -1.0% Reported growth: -2.6% Reported growth: +2.0% Report
Slide 14: H1 OEM sales performance by region
02 | Performance & results H1 OEM sales Lower EV car production for specific programs in Europe Performance* by region Ongoing customer repositioning in China World Europe (including Africa) North America Asia (excluding China) China South America 49% of sales 20% of sales 15% of sales 14% of sales 2
Slide 15: Growth in all businesses except High-Voltage Powertrain
02 | Performance & results Growth in all businesses except High-Voltage Powertrain → +2% in POWER excl. high-voltage → +6% in BRAIN with +7% in ADAS Growth in +4% in Interior Experience Outperformance all businesses → +2% in LIGHT -1pt including: lfl growth in OEM sales → high-voltage impact -4pts →
Slide 16: POWER
02 | Performance & results POWER +0.7pts Ebitda margin YoY Despite low activity in high-voltage Sales Sales €5,692m POWER traditionals businesses (excl. high-voltage) -5% -5% lfl growth in OEM sales +2% lfl growth in OEM sales €5,951m €5,692m -5pts performance High-voltage Sales €513m incl. -7pts of h
Slide 17: BRAIN
02 | Performance & results BRAIN +2.2pts Ebitda margin YoY Driven by growth in ADAS & Interior Experience Sales Sales €2,569m ADAS Sales €1,659m +5% +6% lfl growth in OEM sales +7% lfl growth in OEM sales €2,448m * €2,569m * +6pts Interior experience outperformance +4% OEM sales lfl growth 15.9% 13.7%
Slide 18: LIGHT
02 | Performance & results LIGHT Strong underlying dynamics with close to 300 launches in 2024 Sales +1% Sales +2% lfl growth in OEM sales €2,853m +2pts outperformance €2,816m €2,853m 13.4% Business highlights 12.7% Growth in EV by Chinese OEMs and a North American automaker EBITDA margin EBITDA marg
Slide 19: Selective order intake with several projects postponed to H2
02 | Performance & results Selective order intake with several projects being postponed to H2 Several postponements to H2 pending key choices by OEMs on €34.9bn €32.6bn their vehicle architecture €20.3bn €18.8bn Margin embedded in orders significantly improved since 2022 €16.0bn H1 €9.5bn €9.1bn 2019
Slide 20: Results showing continued improvement in H1
02 | Performance & results Results showing continued improvement in H1 Sales Thanks to rigourous management of operations +1.0% like-for-like €m H1 2023 H1 2024 EBITDA Sales 11,212 11,117 +6% +0.8pts EBITDA 1,302 1,383 As a % of sales 11.6% 12.4% Operating margin Operating margin excl. JV & associat
Slide 21: Operating margin at 4.0% of sales
02 | Performance & results Gross margin improvement Operating margin at 4.0% of sales ➔ Good control of operations +0.8pts vs 2023 ➔ First effects of self-help measures ➔ Improved profitability of existing contracts, starts of production of new contracts with higher profitability As a % of sales & sli
Slide 22: Net income of €141m or 1.3% of sales
02 | Performance & results Net income of €141m or 1.3% of sales Other income & expenses €m H1 2023 H1 2024 → €(134)m in restructuring costs Sales 11,212 11,117 → €94m gain on disposal of Thermal Operating margin excl. JV & associates 363 445 Commercial Vehicles business As a % of sales 3.2% 4.0% €(5
Slide 23: Cost reduction measures
02 | Performance & results Cost reduction measures New Group cost base POWER Division adjustments Social and Legal Procedures More than €200m annual run rate savings ➔ Finalized ➔ €50m H2 savings ➔ involving 1,150 job cuts worldwide, incl. 735 in Europe ➔ €150m savings in 2025 ➔ €200m annual savings
Slide 24: Free Cash Flow of €121m
02 | Performance & results Free Cash Flow of €121m Capex (PP&E) under strict control in a context of strong €m H1 2023 H1 2024 increase in order intake EBITDA 1,302 1,383 €(600)m Tangible CAPEX (property, plant & equipment) (456) (600) Intangible CAPEX (480) (592) Working capital of which capitalize
Slide 25: Leverage ratio down to 1.5x
02 | Performance & results Leverage ratio down to 1.5x Undrawn Cash & cash credit lines equivalents Net debt in €bn €3.0bn €4.5bn €4.0bn €4.0bn €1.6bn June 30, 2024 June 30, 2024 June 30, 2023 Dec. 31, 2023 June 30, 2024 Green bonds and credit ratings New green bond issued on April 4, 2024 €850m - 4
Slide 26: Conclusion
03| H1 2024 Results Conclusion VALEO HALF YEAR RESULTS | JULY 25, 2024 26
Slide 27: H2 key business focus
03 | Conclusion H2 key business focus Reducing gross R&D to support Generating cash generation Closing cost savings from customer discussions our supply base Completing Accelerating our divestment program cost control by signing last 100m € initiatives transactions by year end VALEO HALF YEAR RESULT
Slide 28: Thank you - Q&A
Thank you Q&A VALEO HALF YEAR RESULTS | JULY 25, 2024 28
Slide 29: Backup slides
04| H1 2024 Results Backup slides VALEOYEAR FULL HALF2023 YEAR RESULTS RESULTS | JULY 25, 2024 | FEBRUARY 29, 2024 2929
Slide 30: Q2 Sales by type
• 04 | Backup slides 0 Q2 Sales by 2 type Total sales OEM Aftermarket Miscellaneous €5,690m €4,741m €593m €356m +0% lfl growth -2% lfl growth +8% lfl growth +28% lfl growth Reported growth: -0.7% Reported growth: -3.4% Reported growth: +7.4% Reported growth: +31.4% Exchange rate: -0.4% Exchange rate: -0
Slide 31: Q2 OEM sales performance by region
04 | Backup slides Q2 OEM sales Lower EV car production for specific programs in Europe Performance* by region Ongoing customer repositioning in China World Europe (including Africa) North America Asia (excluding China) China South America 50% of sales 20% of sales 15% of sales 13% of sales 2% of sal
Slide 32: Q2 sales by Division
04 | Backup slides Q2 sales by Division Sales by Division Change Change (in millions of euros) Q2 2023 Q2 2024 in sales in OEM sales* Perf.** -7pts POWER 3,069 2,909 -5% -7% high-voltage impact -7pts BRAIN 1,227 1,340 +9% +7% +7pts LIGHT 1,440 1,438 -% -1% -1pt Other (6) 3 na na na Group Total 5,730
Slide 33: H1 segment information
04 | Backup slides H1 segment information BRAIN POWER LIGHT Other Total Half-Year 2024 (€m) Sales: 2,569 5,692 2,853 3 11,117 Segment (Excluding Group) 2,549 5,615 2,851 102 11,117 Intersegment (Group) 20 77 2 (99) - EBITDA 408 585 362 28 1,383 Research & Development expenditure, net (423) (458) (19
Slide 34: Research & Development
04 | Backup slides Research & Development H1 2023 H1 2024 Change Sales (in €m) 11,212 11,117 -1.0% (in €m) 461 565 +23% Capitalized development expenditure (as a % of sales) 4.1% 5.1% +1.0pt (in €m) (272) (302) +11% Amortization and impairment of capitalized development expenditure* (as a % of sales
Slide 35: 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 June 30, 2024 244,633,504 Depositary Bank J.P. Morgan Contact
Slide 36: 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, less any non-recurring s
Slide 37: Debt profile
04 | Backup slides Debt profile Average maturity: 3 years Undrawn €1.6BN credit facilities As of June 30, 2024 Cash & cash €3.0BN equivalents As of June 30, 2024 Sustainability-linked senior bond (EMTN) EIB loan Maturity Amount Coupon Maturity Amount Coupon May 2027 €750m 5.375% Repayment from 2024 u
Slide 38: 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 39: FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024
FULL YEAR 2023 RESULTS | FEBRUARY 29, 2024 39