Slide 1: 2017 Results
2017 RESULTS JACQUES ASCHENBROICH – CHAIRMAN & CEO February 22, 2018 CONFIDENTIAL
Slide 2: 2017 Highlights P&L
2017 HIGHLIGHTS P&L 2016 2017 Year-on-year Reported Like-for-like Sales (€bn) 16.5 18.6 +12% +7% OEM Sales (€bn) 14.4 16.1 +12% v +7% OEM Sales outperformance +8pts +5pts na na Gross margin (€m) 3,020 3,474 +15% (as a % of sales) 18.3% 18.7% Net R&D (€m) 956 1,130 +18% (as a % of sales) 5.8% 6.1% Op
Slide 3: 2017 Highlights Order intake
2017 HIGHLIGHTS Order intake 2016 2017 Year-on-year Order intake (1) (excl. Valeo Siemens eAutomotive) (€bn) 23.6 27.6 +17% Innovative products (in % of order intake) 50% 50% = VV Valeo Siemens eAutomotive 2017 (€bn) na 6.1 na Valeo Siemens eAutomotive 2017 + 2018 YTD (€bn) na 10.0 na (1) See glossa
Slide 4: 2017 Highlights Cash
2017 HIGHLIGHTS Cash 2016 2017 Year-on-year EBITDA(1) (€m) 2,144 2,436 +14% CAPEX (€m) 1,249 1,745 +40% Free cash flow(1) (€m) 661 278 -58% Cash conversion rate (FCF/EBITDA) 31% 11% -20pts ROCE(1) 34% 30% -4pts Net debt(1)(€m) 537 1,852 +€1,315m Proposed 2017 dividend (in €/share) 1.25 1.25 = Payout
Slide 5: Outlook
OUTLOOK February 22, 2018 CONFIDENTIAL
Slide 6: Valeo Group
VALEO GROUP Based on the following assumptions: an increase in global automotive production of 1.5% in 2018; raw material prices and exchange rates in line with current levels. The Valeo Group has set the following objectives: nominal sales growth of around 8% for 2018; in 2018, like-for-like growth
Slide 7: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE as previously noted, the joint venture had a strong order intake of 6.1 billion euros in 2017 and a cumulative 10 billion euros at end-February 2018; accordingly, the “Share in net earnings of equity-accounted companies” caption will have an impact of around -0.2 points on
Slide 8: 2017 Order intake
Ahead of mid-term plan CONFIRMING OUR FUTURE HIGH GROWTH POTENTIAL 2017 ORDER INTAKE OF: €27.6BN AT VALEO (EXCL. VALEO SIEMENS EAUTOMOTIVE), UP 17% YOY €6.1BN AT VALEO SIEMENS EAUTOMOTIVE February 22, 2018 CONFIDENTIAL
Slide 9: Order intake of €27.6bn and €6.1bn at Valeo Siemens eAutomotive
€27.6BN VALEO ORDER INTAKE €6.1BN VALEO SIEMENS EAUTOMOTIVE ORDER INTAKE IN 2017, A CUMULATIVE €10BN AT END-FEBRUARY 3.9**** Valeo Siemens eAutomotive Order intake A cumulative €10bn order intake at end-February €bn Valeo Group order intake** Valeo Siemens eAutomotive*** 6.1*** 27.6 Valeo Group’s or
Slide 10: Book to bill at 1.6x
BOOK TO BILL AT 1.6X (EXCL. VALEO SIEMENS EAUTOMOTIVE) OEM sales of €16.1bn Order intake of €27.6bn 16% SA 2% Asia Asia 20% Order Intake/ NA excl. China SA 2% 40% annualized €4.4bn 13% €11bn NA Asia excl. Asia OEM sales China 32% €3.2bn 16% ratio* €5.3bn Asia 1.9x China Of which China 2.5x 31% 16% w
Slide 11: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE €6.1BN OF ORDER INTAKE IN 2017, A CUMULATIVE €10BN AT END-FEBRUARY 2018 Join forces to create a global champion of innovative and affordable high voltage components and systems for Hybrid and Electric Vehicles with a world-class portfolio, excellent customer reputation, eng
Slide 12: Strong positioning of Valeo Siemens eAutomotive in the electric market
STRONG POSITIONING OF VALEO SIEMENS EAUTOMOTIVE IN THE ELECTRIC MARKET Charger 9% Electric Inverter motor 40% 51% €6.1bn €10bn % of €10bn order intake Europe China 49% 51% 2017 2017 + 2018 YTD 12 February 22, 2018 CONFIDENTIAL
Slide 13: H2 Highlights
H2 HIGHLIGHTS February 22, 2018 CONFIDENTIAL
Slide 14: Sales up 12% as reported, up 7% like-for-like
SALES UP 12% AS REPORTED, UP 7% LIKE-FOR-LIKE H2 Like-for-like +9% +5% +7% 9,086 18,550 €m 9,464 H1 17 H2 17 2017 Reported +16% +8% +12% H1 16 8,130 H2 16 8,389 FY 16 16,519 Exchange rates +1.3% Exchange rates -3.5% Exchange rates -1.1% Scope +6.4% Scope +7.2% Scope +6.8% 14 February 22, 2018 CONFID
Slide 15: OEM sales up 12% as reported
OEM SALES UP 12% AS REPORTED, UP 7% LIKE-FOR-LIKE OEM sales Aftermarket H2 +5%* +3%* +4%* *Like-for-like +9%* +5%* +7%* 924 1,887 963 7,885 H1 17 H2 17 2017 16,120 +14%** +11%** +12%** €m 8,235 7,884 Miscellaneous +27%* -3%* +9%* H1 17 H2 17 2017 277 **Reported +16%** +8%** +12%** 543 H1 16 7,106 H2
Slide 16: 3-point OEM sales outperformance
3-POINT OEM SALES OUTPERFORMANCE, INCLUDING -0.6 PT IMPACT OF SOUTH KOREA OEM South H2 sales** Korean impact Like-for-like OEM +5% -0.6pts 46% of Valeo sales** sales** World OEM +5% Production***+2% 19% of Valeo sales** sales** Europe* Production*** +5% +1% Outperf. +3pts North NorthAmerica America
Slide 17: 5-point outperformance in Asia
5-POINT OUTPERFORMANCE IN ASIA, INCLUDING – 2.2 PT IMPACT OF SOUTH KOREA OEM H2 24% of Asian sales* OEM sales as sales* reported Like-for-like Japan -3% South +73% OEM Production** +3% 33% of total sales* Korean sales** impact +7% -2.2pts Underperf. -6pts Asia Production** +2% OEM South Korean 18% o
Slide 18: Gross margin to 18.9% of sales
GROSS MARGIN TO 18.9% OF SALES, UP 12% OR €1,713M H2 As a % of sales €1,713m +12% €1,532m -0.2pts -0.1pts +0.3pts +0.6pts 18.9% 18.3% H2 16 Volume & Operational Depreciation Perimeter H2 17 inflation efficiency linked (mainly Ichikoh) improvement to growth NB: rounded figures 18 February 22, 2018 CO
Slide 19: Operating margin to 8.0% of sales
OPERATING MARGIN* TO 8.0% OF SALES, UP 5% OR €723M H2 As a % of sales €723m +5% €687m -0.4pts +0.1pts +0.6pts -0.5pts** 8.2% 8.0% H2 16 Gross margin Net R&D SG&A JV & Associates H2 17 * Including joint ventures and associates **rounded figure 19 February 22, 2018 CONFIDENTIAL
Slide 20: 2017 Sales growth
2017 SALES GROWTH WITH SALES OF €18.6BN, UP 12% AS REPORTED UP 7% LIKE-FOR-LIKE OEM SALES, UP 12% AS REPORTED UP 7% LIKE-FOR-LIKE, 5-POINT OUTPERFORMANCE, INCLUDING SOUTH KOREAN IMPACT AFTERMARKET SALES, UP 12% AS REPORTED UP 4% LIKE-FOR-LIKE February 22, 2018 CONFIDENTIAL
Slide 21: Sales up 12% as reported, up 7% like-for-like
SALES UP 12% AS REPORTED, UP 7% LIKE-FOR-LIKE 2017 Like-for-like +7% +4% +9% +7% 1,887 543 18,550 €m 16,120 Incl. - 0.9 pt impact of South Korea OEM Aftermarket Miscellaneous Total sales Reported +12% +12% +24% +12% FY 16 14,403 FY 16 1,679 FY 16 437 FY 16 16,519 Exchange rates -1.1% Exchange rates
Slide 22: 5-point OEM sales outperformance
5-POINT OEM SALES OUTPERFORMANCE, INCLUDING - 0.9 PT IMPACT OF SOUTH KOREA OEM South 2017 sales** Korean impact Like-for-like OEM +7% -0.9pts 47% of Valeo sales** sales** World OEM +6% Production***+2% 20% of Valeo sales** sales** Europe* Production*** +3% +4% Outperf. +5pts North NorthAmerica Ameri
Slide 23: 7-point outperformance in Asia
7-POINT OUTPERFORMANCE IN ASIA, INCLUDING – 3.5 PT IMPACT OF SOUTH KOREA 2017 OEM OEM 25% of Asian sales* sales as sales* Like-for-like reported South Japan +2% OEM +83% Korean Production** +5% 31% of total sales* sales** impact +10% -3.5pts Underperf. -3pts Asia Production** +3% OEM South 18% of As
Slide 24: Balanced geographic positioning
BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 15% Western Western Asia excl. Europe Asia excl. Europe China 34% China 32% 54% in Asia 12% 57% in Asia 15% & emerging & emerging countries countries China 14% US China U
Slide 25: Balanced customer portfolio
BALANCED CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 6% French* French* 15% 14% German** German** 30% 28% American American 19% 22% Asian Asian Asian** 33% 27% 26% 2016 2017 *Including Opel **Excluding Opel 25 February 22, 2018 CONFIDENTIAL
Slide 26: Growth in the business groups
GROWTH IN THE 4 BUSINESS GROUPS As a % of Group Total sales growth OEM sales growth sales (year-on-year) (like-for-like) 2017 CDA* 19% +7%** +6% POWERTRAIN Powertrain 23% +7% +4% Incl. - 4.6pt impact of South Korea Thermal 27% +8%*** +9% Visibility 31% +25%**** +7% Group 100% +12% +7% * Comfort & Dr
Slide 27: Gross margin, operating margin and net income
GROSS MARGIN UP 15% TO €3,474M OR 18.7% OF SALES OPERATING MARGIN* UP 11% TO €1,477M OR 8.0% OF SALES NET INCOME EXCL. A €117M NON-RECURRING EXPENSE RELATING TO THE DECLINE IN VALUE OF DEFERRED TAX ASSETS UP 8% TO €1,003M OR 5.4% OF SALES NET INCOME INCL. A €117M NON-RECURRING EXPENSE RELATING TO TH
Slide 28: Gross margin at 18.7% of sales
GROSS MARGIN AT 18.7% OF SALES, UP 15% TO €3,474M As a % of sales €3,474m +15% €3,020m +0.2pts -0.2pts -0.1pts +0.5pts 18.3% 18.7% 2016 Volume Operational Depreciation Perimeter 2017 & inflation efficiency linked (mainly Ichikoh)/ improvement to growth exchange rates NB: rounded figures 28 February
Slide 29: Stable R&D total development effort/order intake ratio
STABLE “R&D TOTAL DEVELOPMENT EFFORT/ORDER INTAKE” RATIO 2012-2015 2016-2017 average average R&D TDE* (€bn) 1.1 1.8 R&D TDE*/order intake (%) 6.6 6.8 Innovation /order intake (%) 33 50 R&D TOTAL DEVELOPMENT EFFORT PROPORTIONAL TO ORDER INTAKE *R&D Total Development Effort 29 February 22, 2018 CONFID
Slide 30: Net R&D expenditure to 6.1% of sales
NET R&D EXPENDITURE, TO 6.1% OF SALES Net R&D Capitalized development In €m and as a % of sales expenditure In €m and as a % of sales +18% 1,130 577 437 956 2.6% 3.1% 2016 2017 +30bps 6.1% Amortization and impairment 5.8% of capitalized development expenditure In €m and as a % of sales 253 267 1.5%
Slide 31: SG&A expenses stable at 4.8% of sales
SG&A EXPENSES STABLE AT 4.8% OF SALES SG&A SG&A as a % of sales In €m +12% 889 791 = Selling Selling expenses 4.8% 4.8% expenses €302m €258m Selling Selling Admin. Admin. expenses expenses expenses expenses 1.6% 1.6% €533m €587m Admin. = Admin. 2016 2017 expenses expenses 3.2% 3.2% 2016 2017 ON A LI
Slide 32: Operating margin to 8.0% of sales
OPERATING MARGIN* TO 8.0% OF SALES, UP 11% OR €1,477M As a % of sales €1,477m +11% €1,334m +0.4pts -0.3pts +0.0pts -0.2pts 8.1% 8.0% 2016 Gross margin Net R&D SG&A JV & Associates 2017 * Including joint ventures and associates 32 22 février 2018 CONFIDENTIAL
Slide 33: Operating margin to 8.0% of sales
OPERATING MARGIN* TO 8.0% OF SALES, UP 11% OR €1,477M H2 16 H2 17 2016 2017 8,389 9,086 +8% Total sales (€m) 16,519 18,550 +12% 1,532 1,713 +12% Gross margin 3,020 3,474 +15% 18.3% 18.9% +60bps As a % of sales 18.3% 18.7% +40bps 471 548 +16% Net R&D expenditure 956 1,130 +18% 5.6% 6.0% +40bps As a %
Slide 34: Net income to 4.8% of sales
NET INCOME TO 4.8% OF SALES, DOWN 4% TO €886M H2 16 H2 17 2016 2017 8,389 9,086 +8% Total sales (€m) 16,519 18,550 +12% 687 723 +5% Operating margin incl. JV & Associates 1,334 1,477 +11% 8.2% 8.0% -20bps As a % of sales 8.1% 8.0% -10bps 1 (44) -4500% Other income & expenses (33) (67) +103% 0.0% -0.
Slide 35: Excl. non-recurring items, EPS up 10%
EXCL. NON-RECURRING ITEMS, EPS UP 10% 2016 2017 Change Net income (€m) 925 886 -4% EPS €3.91 €3.72 -5% Net income (€m) (excluding non- recurring items) 940 1,040 +11% EPS (excluding non-recurring items) €3.98 €4.37 +10% EXCL. NON-RECURRING ITEMS (incl. a €117m non-recurring expense relating to the d
Slide 36: ROCE at 30% and ROA at 19%
ROCE AT 30% AND ROA AT 19% 2016 2017 Total sales €16.5bn €18.6bn Operating margin* 8.1% 8.0% ROCE(1) 34% 30% ROA(1) 21% 19% *incl. joint ventures & associates (1) See glossary page 77 36 February 22, 2018 CONFIDENTIAL
Slide 37: Cash conversion rate at 11% of EBITDA
In line with Investor Day CASH CONVERSION RATE AT 11% OF EBITDA FREE CASH FLOW GENERATION OF €278M February 22, 2018 CONFIDENTIAL
Slide 38: EBITDA to 13.1% of sales
EBITDA TO 13.1% OF SALES, UP 14% OR +0.1 PTS In €m and as a % of sales 2015 2016 2017 As a % of sales FY FY FY CDA 14.5 14.7 14.5 13.1% 13.0% Powertrain 12.8 13.3 13.2 12.7% Thermal 10.7 10.0 10.8 Visibility 12.4 13.9 13.2 Group 12.7 13.0 13.1 15% 2,436 2,144 13% 1,841 11% 9% 7% 2015 2016 2017 2014
Slide 39: Recorded capex 10.3% of sales
RECORDED CAPEX (INCLUDING CAPITALIZED R&D) 10.3% OF SALES UP 210BPS OR €1,902M As a % of sales In €m +40% +210bps 1,902 10.3% 1,361 1,325 8.2% 924 Capex* Capital. 577 437 Capex* 7.1% R&D 5.6% 2016 2017 2.6% Capitalized R&D 3.1% 2016 2017 40% INCREASE IN RECORDED CAPEX supporting record high order in
Slide 40: Free cash flow generation of €278m
FREE CASH FLOW GENERATION OF €278M H2 16 H2 17 2016 2017 1,097 1,221 EBITDA (€m) 2,144 2,436 +14% at 13.1% of sales 40 64 Operating working capital 76 19 (34) (28) Restructuring & antitrust (52) (105) (130) (167) Other operating items (incl. taxes) (258) (327) Of which: (124) (115) Taxes (257) (265)
Slide 41: Strong balance sheet
STRONG BALANCE SHEET February 22, 2018 CONFIDENTIAL
Slide 42: Debt ratios
DEBT RATIOS Net financial debt over EBITDA Shareholders’ equity and net debt 2,436 4,414 2,312 4,117 4 ,116 2,144 1,852 1,852 1,118 1,118 537 Dec 31, June 30, Dec 31, 2016 2017 2017 Gearing Gearing Gearing 537 13% 27% 42% Dec 31, 2016 0 June 30, 2017 0 Dec 31, 2017 Shareholders’ equity (€m) Leverage
Slide 43: Debt maturity profile
DEBT MATURITY PROFILE 4000 Outstanding Maturity Coupon amount 3500 EMTN May 2018 €273m 4.875% Undrawn BEI loan Nov 2018 USD 25.75m 6M USD Libor +1.9% 3000 credit lines 4.3 years Euro PP Nov 2019 €350m 0% maturity Convertible bond June 2021 USD 575m 0% 2500 EMTN Sept. 2022 €600m 0.375% EMTN January 2
Slide 44: Dividend & Outlook
DIVIDEND & OUTLOOK February 22, 2018 CONFIDENTIAL
Slide 45: 2017 dividend of €1.25/share to be proposed at the next AGM
2017 DIVIDEND OF €1.25/SHARE TO BE PROPOSED AT THE NEXT AGM 1.25 1.25 Dividend (€/share) 1.0 0.73 0.57 0.47 0.5 0.4 2010 2011 2012 2013 2014 2015 2016 2017 EPS (€/share) 1.62 1.89 1.68 1.90 2.41 3.11 3.91 3.72 EPS excl. non -recurring items (€/share) 1.62 1.89 1.85 2.17 2.54 3.52 3.98 4.37 Payout ra
Slide 46: Valeo Group
VALEO GROUP Based on the following assumptions: an increase in global automotive production of 1.5% in 2018; raw material prices and exchange rates in line with current levels. The Valeo Group has set the following objectives: nominal sales growth of around 8% for 2018; in 2018, like-for-like growth
Slide 47: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE as previously noted, the joint venture had a strong order intake of 6.1 billion euros in 2017 and a cumulative 10 billion euros at end-February 2018; accordingly, the “Share in net earnings of equity-accounted companies” caption will have an impact of around -0.2 points on
Slide 48: Back-up
BACK-UP February 22, 2018 CONFIDENTIAL
Slide 49: Table of content
TABLE OF CONTENT Business Groups Q4 17 Statement of income 2021 mid-term plan SRI 49 February 22, 2018 CONFIDENTIAL
Slide 50: 4 balanced & coherent business groups
4 BALANCED & COHERENT BUSINESS GROUPS WITH MARKET-LEADING POSITIONS & GROWTH POTENTIAL COMFORT & #2 DRIVING ASSISTANCE WIPER SYSTEMS #1 DRIVING #1 ASSISTANCE LIGHTING SYSTEMS #1 THERMAL #2 ELECTRICAL #1 SYSTEMS SYSTEMS THERMAL BUS #1 MANAGEMENT TRANSMISSION #2 50 February 22, 2018 CONFIDENTIAL
Slide 51: Comfort & Driving Assistance
COMFORT & DRIVING ASSISTANCE OEM sales Like-for-like +7% +6% +6% change Market share* and competitors: 2017 key figures: • Sales: €3.6bn (19% of Group sales) 3,590 • EBITDA: 14.5% (21% of Group EBITDA) -Comfort & Driving Total sales (€m) Assistance: Valeo no.2 1,837 1,753 • 22,900 employees Continen
Slide 52: Powertrain Systems
POWERTRAIN SYSTEMS OEM sales Like-for- like +6% +3% +4% Market share* and competitors: 2017 key figures: change • Sales: €4.3bn (23% of Group sales) • EBITDA: 13.2% (23% of Group EBITDA) - Electrical Systems: Valeo no.1 Valeo + Denso + Bosch/ZMJ ~ 70%* • 25,000 employees 4,300 • 55 production units
Slide 53: Thermal Systems
THERMAL SYSTEMS OEM sales Like-for-like +11% +7% +9% change 2017 key figures: • Sales: €5.0bn (27% of Group sales) • EBITDA: 10.8% (22% of Group EBITDA) Market share* and competitors: 5,003 Total sales (€m) • 24,200 employees Thermal Systems: Valeo no.2 2,594 2,409 • 62 production units Denso + Vale
Slide 54: Visibility Systems
VISIBILITY SYSTEMS OEM sales Like-for- like +11% +4% +7% change 2017 key figures: Market share* and competitors: • Sales: €5.8bn (31% of Group sales) • EBITDA: 13.2% (32% of Group EBITDA) - Lighting Systems: Valeo no.1 Total sales (€m) 5,808 Valeo + Koito + Magnetti Marelli ~ 58%* • 37,200 employees
Slide 55: Growth in the business groups
GROWTH IN THE 4 BUSINESS GROUPS OEM sales growth 2017 total sales (like-for-like) growth CDA 19% (year-on-year) H2 2017 VIS 31% Group €18.6bn CDA* +7%** +6% +6% PTS 23% THS 27% +3% +4% Powertrain +7% South Korean impact South Korean impact –3.6 pts –4.6 pts % 2017 sales Thermal +8%*** +7% +9% Visibi
Slide 56: EBITDA to 13.1% of sales
EBITDA TO 13.1% OF SALES, UP 14% OR €2,436M In €m and as a % of sales 2015 2016 2017 As a % of sales FY FY H1 H2 FY CDA 14.5 14.7 14.5 14.6 14.5 13.1% 13.0% Powertrain 12.8 13.3 12.8 13.6 13.2 12.7% Thermal 10.7 10.0 10.3 11.3 10.8 Visibility 12.4 13.9 13.3 13.1 13.2 Group 12.7 13.0 12.8 13.4 13.1 1
Slide 57: Segment information
SEGMENT INFORMATION Comfort & 2017 Driving Assistance Powertrain Thermal Visibility (€m) Systems Systems Systems Systems Others Total Sales: 16,519 ● segment (excluding Group) 3,565 4,220 4,953 5,712 100 18,484 ● intersegment (Group) 25 80 50 96 (251) 66 EBITDA 522 566 539 767 42 2,436 Research & De
Slide 58: Quarterly information (in €m)
QUARTERLY INFORMATION (IN €M) Sales by segment Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Comfort & Driving Assistance Systems 623 569 515 531 552 572 573 614 657 679 663 721 794 866 825 877 938 899 859 894 Powertrain Syste
Slide 59: Q4 sales up 9% as reported
Q4 SALES UP 9% AS REPORTED, UP 4% LIKE-FOR-LIKE Like-for-like +4% +5% +7% 18,550 9,086 €m 4,785 Q4 17 H2 17 2017 Reported +9% +8% +12% Q4 16 4,395 H2 16 8,389 FY 16 16,519 Exchange rates -3.7% Exchange rates -3.5% Exchange rates -1.1% Scope +8.4% Scope +7.2% Scope +6.8% 59 February 22, 2018 CONFIDEN
Slide 60: Q4 OEM sales up 8% as reported
Q4 OEM SALES UP 8% AS REPORTED, UP 4% LIKE-FOR-LIKE Aftermarket OEM sales +4%* +3%* +4%* *Like-for-like +4%* +5%* +7%* 1,887 924 478 Q4 17 H2 17 2017 +15%** +11%** +12%** 16,120 Miscellaneous 7,885 +5%* -3%* +9%* €m 4,134 Q4 17 H2 17 2017 543 **Reported +8%** +8%** +12%** 277 173 Q4 16 3,825 H2 16 7
Slide 61: 3-pt OEM sales outperformance in Q4
3-PT OEM SALES OUTPERFORMANCE, INCLUDING - 0.2 PT IMPACT OF SOUTH KOREA OEM South Q4 sales** Korean impact Like-for-like OEM +4% -0.2pts 46% of Valeo sales sales** OEM +6% World 18% of Valeo sales sales** Europe* Production***+1% Production*** +6% +1% North NorthAmerica America Outperf. +3pts Outper
Slide 62: 3-pt outperformance in Asia
3-PT OUTPERFORMANCE IN ASIA, INCLUDING - 0.5 PT IMPACT OF SOUTH KOREA OEM Q4 22% of Asian sales OEM sales as sales* reported Like-for-like -11% OEM South Japan +64% sales** Korean Production** +3% 34% of total sales impact +3% -0.5pts Underperf. -14pts OEM South Asia 18% of Asian sales sales* Korean
Slide 63: Statement of income with half year breakdown
STATEMENT OF INCOME WITH HALF YEAR BREAKDOWN 2013 2014* 2015 2016 2017 In €m H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Sales 5,944 5,718 6,347 6,378 7,298 7,246 8,130 8,389 9,464 9,086 Gross margin 1,011 998 1,080 1,123 1,280 1,293 1,488 1,532 1,761 1,713 as a % of sales 17,0% 17.5% 17.0% 17.6% 17.5% 17.8% 18.3
Slide 64: 3 revolutions in the automotive industry
3 REVOLUTIONS IN THE AUTOMOTIVE INDUSTRY MOBILITY & DIGITAL ELECTRIFICATION & AUTONOMOUS & SMART ENGINES CONNECTED CAR 64 February 22, 2018 CONFIDENTIAL
Slide 65: No single solution in electrification
THERE IS NO SINGLE SOLUTION IN ELECTRIFICATION EACH SOLUTION WILL ENABLE TO INCREASE THE PTS CONTENT PER CAR LOW VOLTAGE SOLUTIONS (12V & 48V) HIGH VOLTAGE SOLUTIONS MEDIUM HIGH CITY SMALL PREMIUM LARGE POWER x2 x2 x3 x9 x7 • ZERO EMISSION (ZE) • ALTERNATIVE TO • LONG HAUL • PERFORMANCE • LOW COST A
Slide 66: Comfort & Driving Assistance Systems: well positioned on autonomous and connected cars
COMFORT & DRIVING ASSISTANCE SYSTEMS: WELL POSITIONED ON AUTONOMOUS AND CONNECTED CARS 66 February 22, 2018 CONFIDENTIAL
Slide 67: 4 balanced & coherent business groups
4 BALANCED & COHERENT BUSINESS GROUPS WITH MARKET-LEADING POSITIONS & GROWTH POTENTIAL COMFORT & #2 DRIVING ASSISTANCE WIPER SYSTEMS #1 DRIVING #1 ASSISTANCE LIGHTING SYSTEMS #1 THERMAL #2 ELECTRICAL #1 SYSTEMS SYSTEMS THERMAL BUS #1 MANAGEMENT TRANSMISSION #2 67 February 22, 2018 CONFIDENTIAL
Slide 68: Business groups fueled by successive innovation waves
OUR 4 BUSINESS GROUPS ARE FUELED BY SUCCESSIVE INNOVATION WAVES MORE INTUITIVE REINVENTION OF WIPER SYSTEMS MORE CONNECTED GENERALIZATION OF MORE AUTOMATED LEDs ELECTRIFICATION HEALTH & WELL- HIGH POWER BEING ELECTRIFICATION ELECTRIC VEHICLE MEDIUM POWER RANGE & RELIABILITY 12V & 48V SMART ENGINES I
Slide 69: Profitability: EBITDA by business group
PROFITABILITY EBITDA BY BUSINESS GROUP 69 February 22, 2018 CONFIDENTIAL
Slide 70: A well-balanced geographical portfolio
A WELL-BALANCED GEOGRAPHICAL PORTFOLIO* 70 February 22, 2018 CONFIDENTIAL
Slide 71: A well-balanced customer portfolio
A WELL-BALANCED CUSTOMER PORTFOLIO 71 February 22, 2018 CONFIDENTIAL
Slide 72: Valeo's virtuous circle
VALEO’S VIRTUOUS CIRCLE 72 February 22, 2018 CONFIDENTIAL
Slide 73: Mid-term financial targets
MID-TERM FINANCIAL TARGETS 2016 2017 2021 SALES (€bn) 16.5 18.5 > 27 EBITDA* (as a % of sales) 13.0% 13.1% ~15% OPERATING MARGIN* (as a % of sales) 8.1% 8.0% ~9.0% FREE CASH FLOW (€m) 0.7 0.3 3.7 over the 2017-2021 period ROCE** 34% 30% ~30% ROA*** 21% 19% >20% * Including joint Ventures and associa
Slide 74: Transformation acknowledged by the sustainability indexes
A TRANSFORMATION ACKNOWLEDGED BY THE SUSTAINABILITY INDEXES N°1 N°1 DOWJONES ROBECOSAM’ BRONZE CLASS S® EURONEXT & INDUSTRY MOVER SUSTAINABILITY SUSTAINABILITY LOWCARBON100 INDEXES® MONDE EUROPEINDEX® AWARDS &EUROPE (2018) (2015) (2016) Products that directly or indirectly contribute to reducing CO2
Slide 75: Contacts: Investor Relations
CONTACTS Investor Relations Valeo 43, rue Bayen F-75848 Paris Cedex 17 France Thierry Lacorre E-mail: thierry.lacorre@valeo.com Website: www.valeo.com 75 February 22, 2018 CONFIDENTIAL
Slide 76: Share information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of December 29, 2017 239,653,121 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • Co
Slide 77: Glossary
GLOSSARY 1) Order intake corresponds to business awarded by automakers during the period (including joint ventures accounted for based on Valeo’s share in net equity) less any cancellations, based on Valeo’s best reasonable estimates in terms of volumes, selling prices and project lifespans. Unaudit
Slide 78: Safe harbor statement
SAFE HARBOR 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 respec
Slide 79: Valeo: Smart technology for smarter cars
Valeo SMART TECHNOLOGY FOR SMARTER CARS