2013 Results Jacques ASCHENBROICH CEO February 20, 2014 February - PowerPoint PPT Presentation

2013 Results Jacques ASCHENBROICH – CEO February 20, 2014 February 20, 2014 I 1

Highlights Acceleration in Q4 & H2 2013 � In Q4 � Total sales up 13% like-for-like � Acceleration in OEM sales up 17% like-for-like (10pt outperformance) � Aftermarket sales up 11% like-for-like � In H2 � In H2 � Total sales up 12% on a like-for-like basis � Operating margin (2) up 16% reached 6.9% of sales � Net income up 40% � Free cash flow (7) of €202m February 20, 2014 I 2

Highlights FY 2013 � Order intake (1) of €14.8bn � Sales of €12.1bn, up 9% like-for-like (3% on a reported basis) � OEM sales, up 10% like-for-like, 6pt outperformance � Aftermarket sales, up 8% like-for-like � Operating margin, up 10% to reach €795m or 6.6% of sales � Net income, up 18% � Tax rate of 20.5%, down 7pts � Free cash flow of €315m � Dividend of €1.70 per share, up 13% to be proposed at the next Shareholders’ meeting February 20, 2014 I 3

2014 outlook Based on the following key assumptions for FY 2014: � Automotive production: � World: +2% to +3% � Europe: +1% to +2% � Raw material prices and currencies in line with current levels Valeo has set the following objectives for 2014: � Sales growth outperformance in the main production regions � A slight increase in operating margin (as a % of sales) compared to 2013 February 20, 2014 I 4

In Q4, total sales up 13% total sales up 13% like-for-like Acceleration in OEM sales, up 17% like-for-like (10pt outperformance) Aftermarket sales up 11% like-for-like February 20, 2014 I 5

Acceleration of sales growth throughout 2013 With strong performance of OEM (+17%*) and aftermarket (+11%*) sales in Q4 OEM sales In M€ Total sales €m 0%* +12%* +13%* +17%* 2,675 2,575 2,564 2,461 *Like-for-like +1%* +10%* +12%* +13%* growth Q1 13 Q2 13 Q3 13 Q4 13 -1%** +6%** +3%** +7%** 3,127 3,039 3,039 2,905 Aftermarket In M€ Q1 13 Q2 13 Q3 13 Q4 13 +4%* +8%* +10%* +11%* **Year-on-year 0%** +5%** +2%** +4%** change 383 384 382 368 Q1 13 Q2 13 Q3 13 Q4 13 +4%** +6%** -3%** +5%** February 20, 2014 I 6

OEM sales growth outpaced the global market by 10pts Outperformance in all regions Q4 Q3 Outperf. +10pts* World OEM sales*** +17% Outperf. Outperf. Production**** +7% +9pts* +8pts* Europe** North America OEM sales*** +14% OEM sales*** +13% Production**** +5% Production**** +5% 49% of Valeo sales 18% of Valeo sales Outperf. +5pts* Asia** excl. China Outperf. OEM sales*** +7% +6pts* Production**** +2% South America Outperf. +34pts* OEM sales*** -1% 16% of Valeo sales China Production**** -7% OEM sales*** +55% 4% of Valeo sales Production**** 21% 13% of Valeo sales *At same perimeter and exchange rates ** Europe including Africa, Asia including Middle East *** Valeo OEM sales by destination **** LMC estimates – light vehicle production February 20, 2014 I 7

Double-digit OEM sales growth in all the Business Groups With strong performance of Visibility and Comfort & Driving Assistance OEM sales growth like-for-like Q1 Q2 Q3 Q4 CDA +20% -3% +10% +18% Powertrain Powertrain +13% +13% -2% +7% +6% +13% Thermal -3% +8% +10% +22% Visibility +10% +26% +23% February 20, 2014 I 8

Full year 2013 data Full year 2013 data February 20, 2014 I 9

Order intake of €14.8bn Order intake of €14.8bn confirming growth potential February 20, 2014 I 10

Innovation fueling future organic growth High-quality order intake at €14.8bn % of order intake CAGR Innovation +14% 30%* €bn 15.1* 14.8* 14.0* 11.9* 7.4 7.5 6.6 9.6* 9.4* 9.4* 8.9* 8.9* 8.8* 8.8* 5.6 *Products or technologies sold by less than 3 years 7.1* 4.6 4.9 4.6 5.8 2.8 7.7 7.4 7.3 6.3 4.8 4.7 4.3 4.3 3.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 H2 *Excluding Access Mechanisms business February 20, 2014 I 11

China and North America fueling future organic growth Acceleration in China (24% of OI, 13% of OEM sales) and NA (22% of OI, 19% of OEM sales) % of 2013 OEM sales* % of 2013 order intake* SA 5% SA Asia excl. 5% Asia NA China NA excl. Asia 22% Asia 19% 13% China 37%** 13% 26% China China 13% China 24% Europe 50% Europe 36% OEM sales: €10.3bn Order intake**: €14.8bn (of which Asia**: €5.5bn) * By destination ** Excluding Access Mechanisms business February 20, 2014 I 12

Sales of €12.1bn, up 9% Sales of €12.1bn, up 9% like-for-like or 3% reported or 3% OEM sales, up 10% like-for like , 6pt outperformance Aftermarket sales up 8% like-for-like February 20, 2014 I 13

2013 sales totaled €12.1bn, up 9% like-for-like Up 3% on a reported basis after disposal of Access Mechanisms (April 30, 2013) €m *Like-for-like growth +9%* +6%* + +12%* %* +13%* + %* 12,110 6,166 5,944 3,039 FY 13 H1 13 H2 13 Q4 13 Year-on-year Year-on-year Year-on-year Year-on-year +3% +3% +3% +4% Exchange rates -3.1% Exchange rates Exchange rates Exchange rates -1.7% -4.7% -4.3% Perimeter -2.8% Perimeter -1.3% Perimeter -4.4% Perimeter -4.4% February 20, 2014 I 14

Strong & balanced growth between OEM (+10%) and aftermarket (+8%) Gradual entry into production of high order intake (OEM business) Aftermarket €m OEM sales €m +8%* +6%* +11%* +11%* *Like-for-like 1,517 +10%* +6%* +15%* +17%* growth 765 752 384 FY 13 H1 13 H2 13 Q4 13 +4%** +5%** +4%** +5%** 10,275 10,275 Miscellaneous 5,250 5,025 €m 2,564 -17%* +5%* -30%* -39%* FY 13 H1 13 H2 13 Q4 13 +4%** +3%** +5%** +7%** **Year-on-year change Exchange Exchange Exchange Exchange -1.8% -3.3% rates -4.9% -4.6% rates rates rates 318 Perimeter -1.3% Perimeter -3.1% Perimeter -5.1% Perimeter -5.1% 167 151 91 FY 13 H1 13 H2 13 Q4 13 -19%** +1%** -32%** -41%** February 20, 2014 I 15

Acceleration of the outperformance in H2 vs H1 H2 OEM sales outpaced the global market by 9pts vs 5pts in H1 Outperformance H1 Outperformance H2 H1 H2 Q3 +5pts* +9pts* H1 H2 World H1 H2 +6pts* +8pts* +10pts* +14pts* Europe** North America H1 H2 +0pt* +5pts* +0pt* +5pts* Asia** excl. China H1 H2 H1 H2 -5pts* +9pts* +9pts* +23pts* South America China *At same perimeter and exchange rates ** Europe including Africa, February 20, 2014 I 16 Asia including Middle East

2013 OEM sales outpaced the global market by 6pts Outperformance in all production regions, improvement in SA FY Outperf. +6pts* World OEM sales*** +10% Outperf. +7pts* Outperf. Europe** +12pts* OEM sales*** +7% North America OEM sales*** +17% 50% of Valeo sales Outperf. 19% of Valeo sales +3pts* Asia** excl. China OEM sales*** -1% Outperf. +3pts* 13% of Valeo sales South America Outperf. OEM sales*** +8% +16pts* China 5% of Valeo sales OEM sales*** +31% 13% of Valeo sales *At same perimeter and exchange rates ** Europe including Africa, Asia including Middle East *** Valeo OEM sales by destination February 20, 2014 I 17

OEM sales produced in Asia & emerging countries at 54% (37% in 2007) Geographic repositioning of Valeo’s businesses OEM sales by production region 54%* 2013 50%* 2011 37%* 37%* Eastern Europe & Europe & Africa 2007 14% Western Europe 37% Asia 27% US SA 9% Mexico 4% 9% *Share of Valeo total OEM production made In Asia & emerging countries February 20, 2014 I 18

German & Asian customers representing 57% of OEM sales Customer portfolio remained firm and diversified % of OEM sales Other Other 7% 6% French* 16% German German French* 30% 29% 18% American 21% American 18% Asian** Asian** A sian** Asian** 27% 28% 29% 26% FY 12 FY 13 * Excluding Nissan ** Including Nissan February 20, 2014 I 19

Above-market growth in all Business Groups Visibility & Comfort & Driving Assistance especially dynamic CDA VIS 18% 26% Group €12.1bn PTS 28% THS 28% % 2013 sales Total sales OEM sales (like-for-like growth) (like-for-like growth) FY FY H1 H2 Q4 +10% +10% +20% +20% CDA +9% +3% +19% +6% +13% Powertrain +6% +2% +10% +6% +3% +12% +7% +13% Thermal +17% +20% +18% +23% +22% Visibility February 20, 2014 I 20

H2 operating margin up 16% to 6.9% of sales Net income up 40% Net income up 40% FY operating margin up 10% to 6.6% of sales Net income up 18% February 20, 2014 I 21

H2 gross margin up 10% to €1,036m or 17.4% of sales FY gross margin up 6% to €2,073m or 17.1% of sales €m & % of sales 1,036 +10% 942 +30bp -30bp 0bp +100bp 17.4% 16.4% H2 2,073 2,073 +6% H2 12 Volume Emerging Startup Others H2 13 inflation countries of new 1,948 exchange rates plants -30bp +20bp +70bp -10bp 17.1% 16.6% FY FY 12 Volume Emerging Startup Others FY 13 inflation countries of new plants exchange rates February 20, 2014 I 22

H2 operating marginup 16% to €411m or 6.9% of sales FY operating margin up 10% to €795m or 6.6% of sales €m & % of sales 411 +16% 355 0bp -30bp +100bp 6.2% 6.9% H2 795 795 +10% 725 H2 12 Gross Net R&D SG&A H2 13 margin +10bp -20bp +50bp 6.6% 6.2% FY FY 12 Gross Net R&D SG&A FY 13 margin February 20, 2014 I 23