Slide 1: H1 2018 Results
H1 2018 RESULTS JACQUES ASCHENBROICH – CHAIRMAN & CEO July 25, 2018
Slide 2: High growth potential confirmed
HIGH GROWTH POTENTIAL CONFIRMED INCREASE IN TOTAL ORDER INTAKE H1 18 Growth rate H1 2017 H1 2018 CAGR since 2013 Order intake (1) (excl. Valeo Siemens eAutomotive) (€bn) 14.9 14.0 +14% VV Innovative products (in % of order intake) 42% 48% Valeo Siemens eAutomotive (€bn) 3.0 4.7 Valeo Siemens eAutomo
Slide 3: 9% growth at constant exchange rates
Non- IFRS 15 9% GROWTH AT CONSTANT EXCHANGE RATES H1 18 H1 2017 H1 2018 Year on year At constant Like for like Reported exchange rates Sales (€bn) 9.5 9.9 +9% +3% +5% v OEM Sales (€bn) 8.2 8.6 +9% +3% +5% Aftermarket Sales (€bn) 1.0 1.0 +13% +5% +8% As a reminder, OEM sales growth in H1 2017 of +15%
Slide 4: Operating margin at 7.7% of sales, stable on H1 2017
IFRS 15 OPERATING MARGIN (EXCL. JV & ASSOCIATES) AT 7.7% OF SALES, STABLE ON H1 2017 DESPITE STRONG INCREASE IN RAW MATERIAL PRICES H1 18 H1 2017 H1 2018 Year on year Gross margin (€m) 1,938 1,998 +3% (as a % of sales) 20.5% 20.3% -20bps R&D expenditure (€m) 761 774 +2% (as a % of sales) 8.1% 7.8% -
Slide 5: 11% increase in EBITDA, strict control of PP&E capex
IFRS 15 IFRS 9 11% INCREASE IN EBITDA STRICT CONTROL OF PP&E CAPEX H1 18 H1 2017 H1 2018 Year on year EBITDA (1) (€m) 1,213 1,341 +11% (As a % of sales) 12.9% 13.6% +70bps Change in working capital* (€m) (43) (141) na PP&E CAPEX (excl. capitalized R&D) (€m) 616 641 +4% (As a % of sales) 6.5% 6.5% =
Slide 6: Outlook
OUTLOOK July 25, 2018
Slide 7: Outlook
OUTLOOK 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: In view of uncertainties relating to the rise in raw material prices (in
Slide 8: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE Valeo Siemens eAutomotive had a strong order intake of 4.7 billion euros in H1 2018 and a cumulative 10.8 billion euros at end-June 2018; to accommodate its fast-paced expansion going forward, Valeo Siemens eAutomotive will bear the costs required to push ahead with ong
Slide 9: High growth potential confirmed
HIGH GROWTH POTENTIAL CONFIRMED HALF-YEAR ORDER INTAKE OF €18.7bn: €14bn (EXCL. VALEO SIEMENS EAUTOMOTIVE), 14% CAGR SINCE H1 2013 €4.7bn AT VALEO SIEMENS EAUTOMOTIVE , A CUMULATIVE €10.8bn AT END-JUNE July 25, 2018
Slide 10: Total order intake to €18.7bn
TOTAL ORDER INTAKE TO €18.7bn INCLUDING VALEO SIEMENS EAUTOMOTIVE TO €4.7bn… …CONFIRMING VALEO’S FUTURE CAPACITY TO OUTPERFORM AUTOMOTIVE PRODUCTION H1 order intake** Innovation fueling future organic growth as a % of order intake** €bn 18.7 17.9 Valeo Siemens eAutomotive A cumulative €10.8bn order
Slide 11: Book to bill at 2.2x
BOOK TO BILL AT 2.2X (INCL. VALEO SIEMENS EAUTOMOTIVE) OEM sales of €8.6bn Order intake of €14bn 16% SA 2% Asia Asia 17% NA SA Book to excl. China 44% 2% NA Asia bill* €2.2bn 14% €6.1bn Asia excl. €1.5bn China 33% 18% €2.8bn Asia 2.2x Of which China 3.3x 32% North America 1.5x China 15% with local S
Slide 12: Valeo Siemens eAutomotive
VALEO SIEMENS EAUTOMOTIVE €4.7bn OF ORDER INTAKE IN H1 2018, A CUMULATIVE €10.8bn AT END-JUNE 2018 Valeo and Siemens join forces to create a global champion in innovative and affordable high-voltage components and systems for Hybrid and Electric Vehicles with a world-class portfolio, excellent custo
Slide 13: Strong positioning of Valeo Siemens eAutomotive in the electric market
STRONG POSITIONING OF VALEO SIEMENS EAUTOMOTIVE IN THE ELECTRIC MARKET Charger 6% Electric Europe China Inverter motor 50% 50% 36% 58% % of cumulative €10.8bn order intake at end-June 2018 13 July 25, 2018
Slide 14: Q2 2018 sales
Non- IFRS 15 Q2 2018 SALES SALES OF €5.0bn, UP 10% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE OEM SALES UP 10% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE AFTERMARKET SALES UP 13% AT CONSTANT EXCHANGE RATES UP 8% LIKE FOR LIKE July 25, 2018
Slide 15: Q2 sales up 10% at constant exchange rates
Non- Q2 18 SALES UP 10% AT CONSTANT EXCHANGE RATES IFRS 15 UP 5% LIKE FOR LIKE At constant Q2 18 exchange rates +10% +13% -3% +10% 151 518 5,022 €m 4,353 OEM Aftermarket Miscellaneous Sales Like for like +5% +8% -3% +5% Reported +7% +9% -6% +7% Q2 17 4,061 Q2 17 476 Q2 17 160 Q2 17 4,697 Exchange ra
Slide 16: Like-for-like OEM sales outperformance
Non- LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IFRS 15 IN LINE WITH LMC PRODUCTION Q2 18 OEM sales(2) OEM Like for like 48% of Valeo sales(2) sales(2) World +5% OEM +5% 19% of Valeo sales(2) sales(2) Europe (1) -1% Outperformance North North America America Outperformance 0pts vs LMC(3) OEM sales** +6%
Slide 17: Like-for-like OEM sales outperformance in Asia
Non- LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IN ASIA IFRS 15 1-POINT OUTPERFORMANCE VS LMC PRODUCTION ESTIMATES Q2 18 OEM 24% of Asian sales(1) sales (1) Like for like +10% OEM Japan 31% of total sales(1) sales(1) Outperformance +7% +10pts vs LMC(2) South OEM +9pts vs IHS(3) Korea Asia 23% of Asian s
Slide 18: Q2 2018 sales by business group
Non- IFRS 15 Q2 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +5% +28%* +6% +5% CDA VIS 18% 30% Group €5.0bn PTS 26% THS 26% 1,497 % of Q2 2018 sales 1,323 1,308 Total sales In €m 928 Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth Like for li
Slide 19: H1 sales of €9.9bn, up 9%
Non- IFRS 15 HIGH H1 SALES GROWTH SALES OF €9.9bn, UP 9% AT CONSTANT EXCHANGE RATES UP 3% LIKE FOR LIKE OEM SALES UP 9% AT CONSTANT EXCHANGE RATES UP 3% LIKE FOR LIKE, 1-POINT OUTPERFORMANCE AFTERMARKET SALES UP 13% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE July 25, 2018
Slide 20: High sales growth up 9% at constant exchange rates
HIGH SALES GROWTH Non- UP 9% AT CONSTANT EXCHANGE RATES IFRS 15 UP 3% LIKE FOR LIKE At constant exchange H1 18 rates +9% +10% +9% 5,022 €m 9,939 4,917 Q1 18 Q2 18 H1 18 Like for like +1% +5% +3% Reported +3% +7% +5% Q1 17 4,767 Q2 17 4,697 H1 17 9,464 Exchange rates -5.4% Exchange rates -3.3% Exchan
Slide 21: High OEM sales growth
HIGH OEM SALES GROWTH Non- UP 9% AT CONSTANT EXCHANGE RATES IFRS 15 UP 3% LIKE FOR LIKE H1 18 At constant exchange rates +8% +10% +9% 4,353 €m 8,628 4,275 Q1 18 Q2 18 H1 18 Like for like +1% +5% +3% Reported +2% +7% +5% Q1 17 4,174 Q2 17 4,061 H1 17 8,235 Exchange rates -5.4% Exchange rates -3.1% Ex
Slide 22: High aftermarket sales growth
HIGH AFTERMARKET SALES GROWTH Non- UP 13% AT CONSTANT EXCHANGE RATES IFRS 15 UP 5% LIKE FOR LIKE H1 18 At constant exchange +13% +13% +13% rates 518 €m 1,041 523 Q1 18 Q2 18 H1 18 Like for like +3% +8% +5% Reported +7% +9% +8% Q1 17 487 Q2 17 476 H1 17 963 Exchange rates -5.1% Exchange rates -4.5% E
Slide 23: Like-for-like OEM sales outperformance
Non- LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IFRS 15 1-POINT OUTPERFORMANCE VS LMC PRODUCTION ESTIMATES OEM H1 18 sales(2) OEM +3% Like for like 48% of Valeo sales(2) sales(2) World OEM +3% 19% of Valeo sales(2) sales(2) Europe (1) -1% Outperformance North North America America Outperformance +1pt vs
Slide 24: Like-for-like OEM sales outperformance in Asia
Non- LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IN ASIA IFRS 15 1-POINT OUTPERFORMANCE VS LMC PRODUCTION ESTIMATES H1 18 OEM 25% of Asian sales(1) sales (1) Like for like +8% OEM Japan 31% of total sales(1) sales(1) Outperformance +4% +8pts vs LMC(2) OEM +7pts vs IHS(3) Asia 22% of Asian sales(1) sales(
Slide 25: Balanced geographic positioning
Non- IFRS 15 BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 16% Western Western Europe Europe Asia excl. 32% 32% China Asia excl. 56% in Asia 58% in Asia China & emerging 15% & emerging 18% countries countries China U
Slide 26: Diverse customer portfolio
Non- IFRS 15 DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 6% French* French* 15% German 14% German 28% 29% American** American** 18% 20% Asian Asian Asian** 31% Asian** 33% 26% 26% H1 2017 H1 2018 * Including Opel ** Excluding Opel 26 July 25, 2018
Slide 27: Growth in the business groups
Non- IFRS 15 GROWTH IN THE 4 BUSINESS GROUPS H1 18 H1 total sales growth OEM sales growth (like for like) CDA At constant VIS 18% Reported exchange Q1 Q2 H1 30% rates Group €9.9bn PTS 26% CDA* +0% +3% +1% +5% +3% THS 26% Powertrain +22%** +26%** -1% +7% +3% % H1 2018 sales Thermal -2% +4% +2% +4% +3
Slide 28: Operating margin stable despite raw material prices
IFRS 15 IFRS 9 OPERATING MARGIN EXCL. JV & ASSOCIATES STABLE DESPITE STRONG INCREASE IN RAW MATERIAL PRICES €755M OR 7.7% OF SALES, UP 4% JV & ASSOCIATES €(28)M OR -0.3% OF SALES NET INCOME €453M OR 4.6% OF SALES, DOWN 10% July 25, 2018
Slide 29: Gross margin to €1,998m or 20.3% of sales
IFRS 15 GROSS MARGIN TO €1,998M OR 20.3% OF SALES, UP 3% IFRS 9 RAW MATERIAL IMPACT MORE THAN OFFSET BY OPERATIONAL EFFICIENCY As a % of sales €1,998m +3% €1,938m +10bps -10bps +50bps -30bps -10bps -30bps 20.5% 20.3% H1 17 Volume/ Raw material Operational Fixed costs R&D Perimeter & H1 18 inflation
Slide 30: Strict control of R&D expenditure
IFRS 15 IFRS 9 STRICT CONTROL OF R&D EXPENDITURE, AT 7.8% OF SALES R&D expenditure Capitalized development In €m and as a % of sales expenditure In €m and as a % of sales 347 +2% 278 299 761 774 3.5% 3.0% 3.3% H1 17 H2 17 H1 18 Amortization and impairment 8.1% -30bps 7.8% of capitalized development
Slide 31: SG&A expenses stable at 4.8% of sales
IFRS 15 SG&A EXPENSES “STABLE” AT 4.8% OF SALES, IFRS 9 DESPITE INCREASED PPA IN CONNECTION WITH CHANGES IN SCOPE SG&A SG&A as a % of sales In €m +3% = 454 469 4.8% 4.8% Selling Selling Selling Selling expenses expenses expenses €149m* €158m* expenses 1.6% 1.6% of which 0.10% of which 0.20% Admin. A
Slide 32: Operating margin excl. JV & associates €755m
IFRS 15 IFRS 9 OPERATING MARGIN EXCL. JV & ASSOCIATES TO €755M OR 7.7% OF SALES, UP 4% As a % of sales +4% €755m €723m 0bps -20bps +20bps* 7.7% 7.7% H1 17 Gross R&D SG&A H1 18 margin expenses * Rounded figures 32 July 25, 2018
Slide 33: Operating margin incl. JV & associates €727m
IFRS 15 IFRS 9 OPERATING MARGIN INCL. JV & ASSOCIATES TO €727M OR 7.4% OF SALES, DOWN 3% H1 17 H1 18 Total sales (€m) 9,433 9,863 +5% Gross margin 1,938 1,998 +3% As a % of sales 20.5% 20.3% -20bps R&D expenditure 761 774 +2% As a % of sales 8.1% 7.8% -30bps SG&A 454 469 +3% As a % of sales 4.8% 4
Slide 34: Net income to €453m
IFRS 15 IFRS 9 NET INCOME TO €453M OR 4.6% OF SALES, DOWN 10% H1 17 H1 18 Total sales (€m) 9,433 9,863 +5% Operating margin incl. JV & Associates 752 727 -3% As a % of sales 8.0% 7.4% -60bps Other income & expenses (23) (18) -22% As a % of sales (0.2%) (0.2%) = Operating income 729 709 -3% As a %
Slide 35: Excluding non-recurring items, EPS down 10%
IFRS 15 IFRS 9 EXCLUDING NON-RECURRING ITEMS, EPS DOWN 10% H1 17 H1 18 Change Net income (€m) 504 453 -10% EPS €2.12 €1.91 -10% Net income (€m) (excluding non-recurring items) 512 463 -10% EPS (excluding non-recurring items) €2.16 €1.95 -10% 35 July 25, 2018
Slide 36: ROCE at 26% and ROA at 17%
IFRS 15 IFRS 9 ROCE AT 26% AND ROA AT 17% H1 17 H1 18 Total sales €9.4bn €9.9bn Operating margin* 8.0% 7.4% ROCE 33% 26% ROA 22% 17% * Including joint ventures and associates 36 July 25, 2018
Slide 37: Free cash flow generation of €36m
IFRS 15 IFRS 9 11% INCREASE IN EBITDA TO 13.6% OF SALES STRICT CONTROL OF PP&E CAPEX CHANGE IN WORKING CAPITAL TO BE REVERSED IN THE SECOND HALF OF 2018 FREE CASH FLOW GENERATION OF €36M July 25, 2018
Slide 38: 11% increase in EBITDA to €1,341m
IFRS 15 IFRS 9 11% INCREASE IN EBITDA TO €1,341M OR 13.6% OF SALES, UP 0.7 PTS In €m and as a % of sales 13.6% H1 17 H1 18 As a % of sales Comfort & Driving Assistance 14.1 14.9 12.9% Powertrain 12.6 13.9 Thermal 11.0 12.3 Visibility 13.0 12.7 1,341 1,213 Group 12.9 13.6 H1 17 H1 18 38 July 25, 2018
Slide 39: Strict control of PP&E capex
IFRS 15 IFRS 9 STRICT CONTROL OF PP&E CAPEX In €m As a % of sales +11% 988 894 +50bps 10.0% 9.5% 641 Capex* 616 6.5% Capex* 6.5% 347 278 Capital. R&D H1 17 H1 18 3.0% Capitalized R&D 3.5% H1 17 H1 18 * Excluding capitalized R&D 39 July 25, 2018
Slide 40: Free cash flow generation of €36m
IFRS 15 IFRS 9 FREE CASH FLOW GENERATION OF €36M H1 17 H1 18 EBITDA (€m) 1,213 1,341 +11% at 13.6% of sales Change in operating working capital** (43) (141) To be reversed in H2 2018 Restructuring & social costs (77) (18) Other operating items (incl. taxes) (160) (151) Of which: Taxes (150) (138) Pe
Slide 41: Strong balance sheet
STRONG BALANCE SHEET July 25, 2018
Slide 42: Debt ratios
DEBT RATIOS Net debt to EBITDA Shareholders’ equity and net debt 2,559 4 ,390 4,522 2,431 4,095 2,310 2,291 1,842 2,291 1,842 1,107 1,107 June 30, Dec 31, June 30, 2017 2017 2018 Gearing Gearing Gearing 27% 42% 51% June 30, 2017 0 Dec 31, 2017 0 June 30, 2018 Shareholders’ equity (€m) Leverage Lever
Slide 43: Debt maturity profile
DEBT MATURITY PROFILE 4000 Outstanding Maturity Coupon amount 3500 BEI loan Nov 2018 USD 25.75m 6M USD Libor +1.9% Undrawn Euro PP Nov 2019 €350m 0% 3000 credit lines 4.6 years Convertible bond June 2021 USD 575m 0% maturity EMTN Sept. 2022 €600m 0.375% 2500 EMTN January 2023 €500m 0.625% EMTN Janua
Slide 44: Back-up
BACK-UP IFRS 15 & IFRS 9 impact in H1 2018 43 Q2 & H1 2018 Sales under IFRS 15 51 Business Group information 63 July 25, 2018
Slide 45: Appendix – IFRS 15 & IFRS 9 impact in H1 2018
APPENDIX – IFRS 15 & IFRS 9 IMPACT IN H1 2018 July 25, 2018
Slide 46: Impacts of IFRS 15 and IFRS 9 on 2017 comparative information
IMPACTS OF THE APPLICATION OF IFRS 15 AND IFRS 9 ON 2017 COMPARATIVE INFORMATION A press release covering the impacts of the application of IFRS 15 and IFRS 9 on 2017 comparative information was published on July 17, 2018. The press release is also available on Valeo’s website: https://www.valeo.com
Slide 47: Impacts of IFRS 15 and IFRS 9 in H1 2018
IMPACTS OF THE APPLICATION OF IFRS 15 AND IFRS 9 IN H1 2018 On July 17, 2018, Valeo reported the impacts of the application of IFRS 15 and IFRS 9 on 2017 comparative information. The impacts of the application of IFRS 15 – “Revenue from Contracts with Customers” on first-half 2018 sales are as follo
Slide 48: H1 2018 comparative information impact: sales by type
IFRS 15 IFRS 9 H1 2018 COMPARATIVE INFORMATION IMPACT SALES BY TYPE 48 July 25, 2018
Slide 49: Original equipment sales by region
IFRS 15 IFRS 9 H1 2018 COMPARATIVE INFORMATION IMPACT ORIGINAL EQUIPMENT SALES BY REGION 49 July 25, 2018
Slide 50: Sales by business group (including intersegment sales)
IFRS 15 IFRS 9 H1 2018 COMPARATIVE INFORMATION IMPACT SALES BY BUSINESS GROUP (INCLUDING INTERSEGMENT SALES) 50 July 25, 2018
Slide 51: Appendix – Sales
APPENDIX – SALES July 25, 2018
Slide 52: Q2 2018 sales of €5bn
IFRS 15 Q2 2018 SALES SALES OF €5bn, UP 9% AT CONSTANT EXCHANGE RATES UP 4% LIKE FOR LIKE OEM SALES UP 10% AT CONSTANT EXCHANGE RATES UP 4% LIKE FOR LIKE AFTERMARKET SALES UP 13% AT CONSTANT EXCHANGE RATES UP 8% LIKE FOR LIKE July 25, 2018
Slide 53: Q2 sales up 9% at constant exchange rates
IFRS 15 Q2 18 SALES UP 9% AT CONSTANT EXCHANGE RATES UP 4% LIKE FOR LIKE Q2 18 At constant exchange +10% +13% -2% +9% rates 243 518 4,982 €m 4,221 OEM Aftermarket Miscellaneous Sales Like for like +4% +8% -2% +4% Reported +7% +9% -4% +6% Q2 17 3,960 Q2 17 476 Q2 17 254 Q2 17 4,690 Exchange rates -3.
Slide 54: Like-for-like OEM sales outperformance
IFRS 15 LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE - 1-POINT OUTPERFORMANCE VS LMC PRODUCTION ESTIMATES OEM Q2 18 sales(2) OEM +4% Like for like 49% of Valeo sales(2) sales(2) World OEM +5% 18% of Valeo sales(2) sales(2) Europe (1) -2% Outperformance North North America America Outperformance -1pt vs LM
Slide 55: Like-for-like OEM sales outperformance in Asia
IFRS 15 LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IN ASIA 1-POINT OUTPERFORMANCE VS LMC PRODUCTION ESTIMATES Q2 18 OEM 24% of Asian sales(1) sales (1) Like for like +8% OEM Japan 31% of total sales(1) sales(1) Outperformance +5% +8pts vs LMC(2) OEM +7pts vs IHS(3) Asia 24% of Asian sales(1) sales(1) +1
Slide 56: Q2 2018 sales by business group
IFRS 15 Q2 2018 SALES BY BUSINESS GROUP Total sales growth At constant exchange rates +6% +28%* +4% +2% CDA VIS 19% 30% Group €4.9bn PTS 27% THS 24% 1,516 1,338 % of Q2 2018 sales 1,201 Total sales 961 In €m Comfort & Driving Powertrain Thermal Visibility Assistance OEM sales growth +5% +7% +1% +4%
Slide 57: H1 2018 sales of €9.9bn
IFRS 15 H1 2018 SALES SALES OF €9.9bn, UP 9% AT CONSTANT EXCHANGE RATES UP 2% LIKE FOR LIKE OEM SALES UP 8% AT CONSTANT EXCHANGE RATES UP 2% LIKE FOR LIKE AFTERMARKET SALES UP 13% AT CONSTANT EXCHANGE RATES UP 5% LIKE FOR LIKE July 25, 2018
Slide 58: Sales up 9% at constant exchange rates
IFRS 15 SALES UP 9% AT CONSTANT EXCHANGE RATES UP 2% LIKE FOR LIKE H1 18 At constant exchange +8% +9% +9% rates 4,982 €m 9,863 4,881 Q1 18 Q2 18 H1 18 Like for like +0% +4% +2% Reported +3% +6% +5% Q1 17 4,743 Q2 17 4,690 H1 17 9,433 Exchange rates -5.1% Exchange rates -3.2% Exchange rates -4.2% Sco
Slide 59: OEM sales up 8% at constant exchange rates
IFRS 15 OEM SALES UP 8% AT CONSANT EXCHANGE RATES, UP 2% LIKE FOR LIKE OEM sales Aftermarket H1 18 +13%* +13%* +13%* +7%* +10%* +8%* 518 1,041 523 Q1 18 Q2 18 H1 18 4,221 +3%** +8%** +5%** €m 8,375 +7%*** +9%*** +8%*** 4,154 7,884 Miscellaneous Q1 18 Q2 18 H1 18 243 +0%** +4%** +2%** 447 204 204 +2%
Slide 60: Like-for-like OEM sales outperformance
IFRS 15 LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IN LINE WITH LMC PRODUCTION ESTIMATES OEM H1 18 sales(2) OEM +2% Like for like 49% of Valeo sales(2) sales(2) World OEM +3% 18% of Valeo sales(2) sales(2) Europe (1) -3% Outperformance North North America America Outperformance 0pts vs LMC(3) OEM sales*
Slide 61: Like-for-like OEM sales outperformance in Asia
IFRS 15 LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IN ASIA -1-POINT VS LMC PRODUCTION ESTIMATES H1 18 OEM 25% of Asian sales(1) sales (1) Like for like +6% OEM Japan 31% of total sales(1) sales(1) Outperformance +2% +6pts vs LMC(2) OEM +5pts vs IHS(3) Asia 23% of Asian sales(1) sales(1) +1% South Korea
Slide 62: Growth in the business groups
IFRS 15 GROWTH IN THE 4 BUSINESS GROUPS H1 18 H1 total sales growth OEM sales growth (like for like) CDA At constant VIS 19% 31% Reported exchange Q1 Q2 H1 rates Group €9.9bn PTS CDA* +1% +4% +1% +5% +3% 27% THS 24% Powertrain +22%** +26%** -1% +7% +3% % H1 2018 sales Thermal -4% +2% -1% +1% 0% Visi
Slide 63: Appendix – Business group information
APPENDIX – BUSINESS GROUP INFORMATION July 25, 2018
Slide 64: Valeo organizational structure of four business groups
VALEO AN ORGANIZATIONAL STRUCTURE BUILT ON FOUR MARKET-LEADING, HIGH-GROWTH POTENTIAL BUSINESS GROUPS 64 July 25, 2018
Slide 65: Comfort & Driving Assistance
Non- IFRS 15 COMFORT & DRIVING ASSISTANCE Total sales growth At constant exchange +1% +5% +3% rates Market share* and competitors: 2017 key figures: 928 • Sales: €3.6bn (19% of Group sales) - Comfort & Driving • EBITDA: 14.5% (21% of Group EBITDA) Total sales (€m) 1,841 Assistance: Valeo no. 2 • 22,
Slide 66: Powertrain Systems
Non- IFRS 15 POWERTRAIN SYSTEMS Total sales growth +23% +28% +26% At constant exchange rates Market share* and competitors: 2017 key figures: • Sales: €4.3bn (23% of Group sales) - Electrical Systems: Valeo no. 1 • EBITDA: 13.2% (23% of Group EBITDA) 1,323 Valeo + Denso + Bosch/ZMJ ~ 70%* 2,633 • 25
Slide 67: Thermal Systems
Non- IFRS 15 THERMAL SYSTEMS Total sales growth At constant exchange +2% +6% +4% rates 2017 key figures: • Sales: €5.0bn (27% of Group sales) 1,308 Market share* and competitors: • EBITDA: 10.8% (22% of Group EBITDA) 2,548 Thermal Systems: Valeo no. 2 • 24,200 employees Total sales (€m) 1,240 1,282
Slide 68: Visibility Systems
Non- IFRS 15 VISIBILITY SYSTEMS Total sales growth At constant exchange +8% +5% +6% rates Market share* and competitors: 2017 key figures: • Sales: €5.8bn (31% of Group sales) 1,497 • EBITDA: 13.2% (32% of Group EBITDA) - Lighting Systems: Valeo no. 1 Total sales (€m) 2,988 Valeo + Koito + Magnetti
Slide 69: Segment information
IFRS 15 SEGMENT INFORMATION Comfort & H1 2018 Driving Assistance Powertrain Thermal Visibility (€m) Systems Systems Systems Systems Others Total Sales: 1,899 2,664 2,341 3,030 (71) 9,863 ● segment (excluding Group) 1,885 2,615 2,317 2,988 58 9,863 ● intersegment (Group) 14 49 24 42 (129) EBITDA 283
Slide 70: Glossary
GLOSSARY 1) Valeo’s order intake corresponds to business awarded by automakers to Valeo during the period including joint ventures (except Valeo Siemens eAutomotive) accounted for based on Valeo’s share in net equity, less any cancellations. The order intake recorded by Valeo Siemens eAutomotive is
Slide 71: 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 71 July 25, 2018
Slide 72: Share information
SHARE INFORMATION Share Data • Bloomberg Ticker FR FP • Reuters Ticker VLOF.PA • ISIN Number FR 0013176526 • Shares outstanding as of June 30, 2018 240,253,100 ADR Data • Ticker/trading symbol VLEEY • CUSIP Number 919134304 • Exchange OTC • Ratio (ADR: ord) 1:2 • Depositary Bank J.P. Morgan • Contac
Slide 73: 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 74: Valeo – Smart technology for smarter cars
Valeo SMART TECHNOLOGY FOR SMARTER CARS