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Valeo — Mondial Press Conference 2010

47 slides from Valeo's conference presentation, Oct 1, 2010

1. Slide 1: Focus on CO2 emission reduction as sustainable growth strategy

   Focus on CO2 emission reduction as sustainable growth strategy Jacques Aschenbroich – CEO October 1, 2010

2. Slide 2: Increasing role of the suppliers in innovation

   Increasing role of the suppliers in innovation Distribution of R&D expenses in the automotive industry 170 160 160 base points - 100 in 2004 150 140 130 OEMs 120 Suppliers 110 107 100 90 80 2004 2005 2006 2007 2008 Valeo fully committed in this trend October 1, 2010 I 2 © Valeo 2010 Mondial Press Co

3. Slide 3: Mondial Press Conference I

   October 1, 2010 I 3 © Valeo 2010 Mondial Press ConferenceI

4. Slide 4: Mondial Press Conference I

   October 1, 2010 I 4 © Valeo 2010 Mondial Press ConferenceI

5. Slide 5: 80% of Valeo portfolio linked to CO2 emissions reduction

   80% of Valeo portfolio linked to CO2 emissions reduction Engine optimizing & Downsizing Hybrid vehicles Electric vehicles Lower consumption & weight reduction across product range Maintain R&D investments to meet consumer & citizen demand October 1, 2010 I 5 © Valeo 2010 Mondial Press ConferenceI

6. Slide 6: A diversified customer basis

   A diversified costumer basis In % of OE sales 29% 27% German German 26% 24% French* French* 16% 19% 18% 21% American Asian** American Asian** H1-09 H1-10 * Excluding Nissan ** Including Nissan October 1, 2010 I 6 © Valeo 2010 Mondial Press ConferenceI

7. Slide 7: Record order intake at €6.5 billion

   Record order intake at €6.5 billion At a margin level in line with long term Group objectives 31% German 24% French* Order intake (Order Intake / OE Sales) 23% 18% American Asian** 1.64x 1.52x 1.45x 1.29x * Excluding Nissan ** Including Nissan 2007 2008 2009 H1-10 October 1, 2010 I 7 © Valeo 2010 Mo

8. Slide 8: Better than expected 2010 market forecasts

   Better than expected 2010 market forecasts (change YoY) Full year previous revised Europe (& Africa) +6% +10% Asia (& others) +18% +22% North America +30% +34% South America +12% +12% Worldwide +16% +19% Valeo outperforming its main markets October 1, 2010 I 8 © Valeo 2010 Mondial Press ConferenceI

9. Slide 9: Outperforming the market in each region

   Outperforming the market in each region World H1-10 OE sales Valeo* +40% Production +39% Production +72%** Production +23%** +86%* +31%* North America Europe 12% of sales 61% of sales Production +43%** +59%* Production +17%** Asia +19%* 19% of sales South America 8% of sales * At same perimeter & ex

10. Slide 10: Outperforming the market in each country

    Outperforming the market in each country Asian OE sales Production +43%** +59%* Asia Production +47%** Production +37%** 19% of sales +55%* +49%* Korea Japan Production +47%** 19% of sales 32% of sales +72%* China Production +36%** 40% of sales +89%* India 4% of sales * At same perimeter & exchange

11. Slide 11: Enhanced exposure to emerging markets, esp. Asia

    Enhanced exposure to emerging markets, esp. Asia In % of OE sales 67% 61% Europe Europe & Africa & Africa 8% 8% South South America America 9% 16% 12% 19% North Asia & North Asia & America Others America Others H1-09 H1-10 More than 60% of Capex in emerging markets October 1, 2010 I 11 © Valeo 2010

12. Slide 12: Highest operating margin recorded in the last 10 years

    Highest operating margin recorded in the last 10 years With sales close to pre-crisis level Sales 6000 (in € million) 0.2 4,848 4,787 0.19 5000 0.18 4,027 4000 3,829 0.17 3,472 0.16 3000 0.15 2000 0.14 Operating margin 1000 0.13 (in € million & as % of sales) 0.12 350 7 0 0.11 6.1% H1-08 H2-08 H1-09

13. Slide 13: Confidence in sustainability of current financial performance

    Confidence in sustainability of current financial performance in normal market conditions In line with 2013 objectives 2009 H1-10 2013 ∆ 2013/2009 Total sales €7.5 bn €4.8 bn €10 bn +33% Operating margin 1.8% 6.1% 6-7% + 4-5pt Capital turnover 3.9 4.7* 5 +1.1 ROCE** 7.1% 25%* ≥ 30% > +20pt * Calcula

14. Slide 14: Future growth drivers

    Future growth drivers Strengthened presence in Asia and emerging markets  60% of CAPEX Focus on CO2 emissions reduction technologies  From downsizing and micro-hybrid through to electric vehicle  Energy consumption and weight reduction  Smart driving October 1, 2010 I 14 © Valeo 2010 Mondial Pre

15. Slide 15: Technology delivering the Strategy

    Technology delivering the Strategy Martin Haub Group Vice President R&D and Product Marketing Mondial Press Conference October 1, 2010

16. Slide 16: Agenda – Technology delivering the Strategy

    Agenda – Technology delivering the Strategy Focus on CO2 emissions reduction technologies  Downsizing and micro-hybrid  Electric vehicle  Energy consumption and weight reduction  Smart driving October 1, 2010 I 16 © Valeo 2010 Mondial Press ConferenceI

17. Slide 17: Automotive Challenges: CO2 Reduction – Regulations worldwide

    Automotive Challenges CO2 Reduction – Regulations worldwide gg CO CO22/km /km 260 2020 240 95 g CO2/km 220 200 180 160 6,7 6,7 l/100 l/100 Obama Plan 6,6 6,6 l/100 l/100 140 66 l/100 l/100 120 55 l/100 l/100 100 Source: International Energy Agency 44 l/100 l/100 80 2002 2004 2006 2008 2010 2012 2014

18. Slide 18: Solutions for CO2 Reduction – Gen1 @ 120 g CO2/km

    Solutions for CO2 Reduction – Gen1 @ 120 g CO2/km FlexFuel E85 Electromagnetic valves Watercooled charge air cooler Cooled EGR, high compression rate Electronic thermal Stop-Start ++ Stop-Start management Regenerative Regenerative braking braking Dual clutch Optimized A/C 2.0 liter Turbo gasoline MP

19. Slide 19: Gen2 – 95 g CO2/km affordable technologies

    Solutions for CO2 Reduction – Gen2 We deliver affordable technologies for 95 g CO2/km Extreme Downsizing ISG + GDI DDC + Down speeding with DDC + Mild Hybrid with ISG + Advanced Thermal Management = 100 kw 95 g CO2/km GDI ECU Inverter TCU (-38% vs base) October 1, 2010 I 19 © Valeo 2010 Mondial Pres

20. Slide 20: Gen2 innovative system components for 95 g CO2/km

    Solutions for CO2 Reduction – Gen2 Innovative system components for 95 g CO2/km October 1, 2010 I 20 © Valeo 2010 Mondial Press ConferenceI

21. Slide 21: Advanced Thermal Management – Ultimate Cooling

    Solutions for CO2 Reduction We deliver complete system solutions – Example: Advanced Thermal Management – Ultimate Cooling October 1, 2010 I 21 © Valeo 2010 Mondial Press ConferenceI

22. Slide 22: Advanced Thermal Management – HVAC and BTM

    Solutions for CO2 Reduction We deliver complete system solutions – Example: Advanced Thermal Management – HVAC and BTM October 1, 2010 I 22 © Valeo 2010 Mondial Press ConferenceI

23. Slide 23: Gearbox Automization and Advanced Torque Transfer

    Solutions for CO2 Reduction We deliver complete system solutions – Example: Gearbox Automization and Advanced Torque Transfer Manual Self‐Adjusting LTD Technology (SAT) Dual Mass Flywheels range Transmissions clutch Automatic Valeo torque transfer Compact Torque LTD solutions Pendulum absorber Trans

24. Slide 24: Hybridization – We deliver the roadmap

    Solutions for CO2 Reduction – Hybridization We deliver the roadmap - examples i-StARS in Internal Starter Generator Prototypes of Gen 2 Mass production for Mild Hybrid defined Driveline Stop-Start complete Range -15% -25% -100% Urban cycle -12% FULL HYBRID ELECTRIC -12% MILD DRIVELINE And PLUG-INs M

25. Slide 25: Agenda – Technology delivering the Strategy

    Agenda – Technology delivering the Strategy Focus on CO2 emissions reduction technologies  Downsizing and micro-hybrid  Electric vehicle  Energy consumption and weight reduction  Smart driving October 1, 2010 I 25 © Valeo 2010 Mondial Press ConferenceI

26. Slide 26: EV Solutions Showcar – complete system solutions

    Solutions for CO2 Reduction – EV Solutions Showcar We and partners deliver complete system solutions Powertrain Systems Electric Drivetrain Batteries Power Control Thermal Systems Thermal Management e-Motor • Drivetrain • Battery • Interior Comfort & Driving Gear reductor Assistance Systems HMI Conn

27. Slide 27: Electric Drivetrain Gen2

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver affordability - Electric Drivetrain Gen2 Range: 210 km – Fast charge: 50 km range in 20 min October 1, 2010 I 27 © Valeo 2010 Mondial Press ConferenceI

28. Slide 28: Electric Drivetrain Gen2 – Stakes and Valeo Solutions

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver affordability - Electric Drivetrain Gen2 The Stakes Valeo Solutions  Incentives will not last!  Costs for New highly integrated Inverter/Charger, power fully compatible with smart grid electronics and via better Valeo proprietary high V

29. Slide 29: Advanced Thermal Solutions for Interior and Battery

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver comfort and range – Advanced Thermal Solutions for Interior and Battery October 1, 2010 I 29 © Valeo 2010 Mondial Press ConferenceI

30. Slide 30: Thermal Solutions – The Stakes

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver comfort and range – Advanced Thermal Solutions for Interior and Battery The Stakes Needed Electric Power Power With current technology 8kW Winter: 6kW Operating Range of e-Motor 5,7 kW 4kW Summer: 2kW 2,8 kW -20°C 0°C 20°C 40°C External T

31. Slide 31: Energy consumption for heating reduced by 70%

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver comfort and range – Advanced Thermal Solutions for Interior and Battery Valeo Solutions New architecture, based on heatpump New high efficient heat exchangers New electric driven compressor Energy consumption for heating reduced by 70% Oc

32. Slide 32: Agenda – Technology delivering the Strategy

    Agenda – Technology delivering the Strategy Focus on CO2 emissions reduction technologies  Downsizing and micro-hybrid  Electric vehicle  Energy consumption and weight reduction  Smart driving October 1, 2010 I 32 © Valeo 2010 Mondial Press ConferenceI

33. Slide 33: Advanced Wiping Solutions – Aquablade

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver energy consumption and weight reduction Example: Advanced Wiping Solutions - Aquablade® Safety Environment Style Visibility CO2 Brand Brand reduction signature signature High performance Weight saving Large windshield wiping wiping & clea

34. Slide 34: Aquablade: minus 30% energy consumption and weight

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver energy consumption and weight reduction Example: Advanced Wiping Solutions - Aquablade® Minus 30% energy consumption and weight reduction October 1, 2010 I 34 © Valeo 2010 Mondial Press ConferenceI

35. Slide 35: Aquablade: no visual disturbance under all driving conditions

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver energy consumption and weight reduction Example: Advanced Wiping Solutions - Aquablade® Highway driving Night city driving No visual disturbance under all driving conditions October 1, 2010 I 35 © Valeo 2010 Mondial Press ConferenceI

36. Slide 36: Advanced LED Lighting – total savings for full LED

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver energy consumption and weight reduction Example: Advanced LED Lighting 2.50 2.00 1.50 1.00 0.50 0.00 Savings g.CO2/km Headlamps Low Beam DRL Front Position High Beam Front Fog Front Turn 0.60 Rearlamps 0.40 0.20 0.00 Savings g.CO2/km Tail

37. Slide 37: LED Headlamps in production and on Concept Cars

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver energy consumption and weight reduction Example: Advanced LED Lighting SEAT IBe Renault ZOE Nissan Leaf LED Headlamps in production and on Concept Cars October 1, 2010 I 37 © Valeo 2010 Mondial Press ConferenceI

38. Slide 38: Agenda – Technology delivering the Strategy

    Agenda – Technology delivering the Strategy Focus on CO2 emissions reduction technologies  Downsizing and micro-hybrid  Electric vehicle  Energy consumption and weight reduction  Smart driving October 1, 2010 I 38 © Valeo 2010 Mondial Press ConferenceI

39. Slide 39: Smart driving – HMI and Connectivity

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Human Machine Interface HMI and Connectivity Terminal Mode  Connection via USB  Smart Phone HMI appears on vehicle screen  Smart Phone can be fully Vehicle Touch Screen controlled via vehicle touch screen Smart

40. Slide 40: Smart Key connectivity solutions

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Human Machine Interface HMI and Connectivity Smart Key - Smart Phone Virtual Key in NFC Key phone Blue tooth low energy / NFC NFC reader Always In handle NFC Phone and start-stop unit connected Bridge Very short Bi

41. Slide 41: Special EV Function: vehicle status and preconditioning

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Human Machine Interface HMI and Connectivity Special EV Function: Check Vehicle Status & Autonomy Start Preconditioning in charge mode Preconditioning EV in charge mode: Key to reduce energy for interior comfort Oc

42. Slide 42: Virtual key in Phone

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Human Machine Interface HMI and Connectivity Virtual key in Phone Access and drive authorization via NFC readers in handle and start-stop button The NFC smart phone as virtual key for temporary access to the vehicl

43. Slide 43: Always Connected via Valeo ASM

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Human Machine Interface HMI and Connectivity Always Connected via Valeo ASM Smart phones in continous contact with vehicle October 1, 2010 I 43 © Valeo 2010 Mondial Press ConferenceI

44. Slide 44: Driving Assistance for EV and urban environment

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Driving Assistance for EV and urban environment Front and rear UPA and Park4U sensors Front and rear integrated cameras Front WiFi camera WiFi Camera Camera UPA sensors Park4U sensor Park4U sensor Camera UPA sensor

45. Slide 45: Valeo sensors and fusion algorithms in EV

    Solutions for CO2 Reduction – EV Solutions Showcar We deliver smart driving solutions Driving Assistance for EV and urban environment Proven Valeo Sensors and Fusion Algorithms find new applications in EV October 1, 2010 I 45 © Valeo 2010 Mondial Press ConferenceI

46. Slide 46: Conclusion: We deliver technologies! We deliver results!

    Conclusion We deliver technologies! We deliver results! Delivering 95 gCO2/km Delivering 210 km range for EV Visit our booth to see Electric Vehicle Showcar live! October 1, 2010 I 46 © Valeo 2010 Mondial Press ConferenceI

47. Slide 47: Mondial Press Conference I

    October 1, 2010 I 47 © Valeo 2010 Mondial Press ConferenceI

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