Q3 2019 SALES JACQUES ASCHENBROICH – CHAIRMAN & CEO October 24, 2019
Q3 HIGHLIGHTS � In line with our projections Increasing outperformance in all Business Groups and all production regions including China; Cost (> €100m) and capex (increased to ~ €200m) reduction plans; Share in net earnings of equity-accounted companies expected to have a similar impact (in €m) in H2 as in H1, due to Valeo Siemens eAutomotive and a challenging environment in China; Free cash flow generation supported by capex reduction. � As part of an ongoing review of its business portfolio, Valeo has decided to withdraw from its top column module product line. 2 October 24, 2019
IMPACT OF THE GENERAL MOTORS STRIKE � One-off impact of the GM strike One-off effect estimated at around -€160 in sales and around -€50m in operating margin; Guidance confirmed for operating margin excluding the impact of the GM strike. 3 October 24, 2019
OUTPERFORMANCE ACCELERATION THANKS TO START OF PRODUCTION ON NEW CONTRACTS OEM sales outperformance (like for like) In percentage points +8pts** +4pts** +3pts** +2pts** 0pts* H1 18 H2 18 Q1 19 Q2 19 Q3 19 *IHS estimates ** IHS estimates - China Passenger Car Association (CPCA) estimates for China 4 October 24, 2019
8 POINTS OEM SALES OUTPERFORMANCE IN A CHALLENGING ENVIRONMENT Q3 19 8 pts 249 outperformance 477 4,772 €m 4,046 OEM Aftermarket Miscellaneous Sales +7% -1% +46% +8% Reported +5% -3% +42% +6% Like for like Exchange rates +2.1% Exchange rates +1.9% Exchange rates +1.7% Exchange rates +2.1% Scope -0.1% Scope -0.2% Scope +1.7% Scope -0.1% 5 October 24, 2019
8 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q3 19 OEM sales (2) OEM Like for like +5% sales (2) 44% of Valeo sales (2) +5% World OEM Europe (1) 21% of Valeo sales (2) sales (2) +14% North America North America Outperformance Outperformance OEM sales** +6% +5pts vs IHS +8pts vs IHS/CPCA Production*** +4% Outperformance +14pts vs IHS OEM 32% of Valeo sales (2) sales (2) -1% OEM Asia (1) sales (2) 3% of Valeo sales (2) +9% South America Outperformance Of which OEM +5pts vs IHS/CPCA sales (2) Outperformance +5% China +14pts vs IHS ) Outperformance (1) Europe including Africa; +11pts vs CPCA Asia including Middle East (2) Valeo OEM sales by destination IHS estimates released on October 16, 2019 – China Passenger Car Association (CPCA) estimates for China 6 October 24, 2019
IN CHINA, BACK TO POSITIVE OEM SALES OUTPERFORMANCE (+ 11 POINTS) Q3 19 OEM 25% of Asian sales (2) sales (2) Like for like -9% OEM Japan 32% of Valeo sales (2) sales (2) OEM -1% 25% of Asian sales (2) Asia (1) sales (2) Outperformance +4% -16pts vs IHS South Korea Outperformance +5pts vs IHS/CPCA OEM 41% of Asian sales (2) Outperformance sales (2) +5% +5pts vs IHS China OEM Outperformance 3% of Asian sales (2) sales (2) +11pts vs CPCA -22% India Outperformance -2pts vs IHS (1) Asia including Middle East (2) Valeo OEM sales by destination IHS estimates released on October 16, 2019 – China Passenger Car Association (CPCA) estimates for China 7 October 24, 2019
5 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 19 OEM sales (2) OEM Like for like -1% sales (2) 48% of Valeo sales (2) 0% World OEM Europe (1) 20% of Valeo sales (2) sales (2) +9% North America North America Outperformance Outperformance OEM sales** +6% +4pts vs IHS +5pts vs IHS/CPCA Production*** +4% Outperformance +11pts vs IHS OEM 30% of Valeo sales (2) OEM sales (2) sales (2) 2% of Valeo sales (2) -7% +5% Asia (1) South America Of which OEM Outperformance sales (2) Outperformance -11% +2pts vs IHS/CPCA China +9pts vs IHS Outperformance (1) Europe including Africa; +2pts vs CPCA Asia including Middle East (2) Valeo OEM sales by destination IHS estimates released on October 16, 2019 – China Passenger Car Association (CPCA) estimates for China 8 October 24, 2019
BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 16% Western Western Europe Europe 32% 32% Asia excl. Asia excl. China 60% in Asia 58% in Asia China 18% & emerging 20% & emerging countries countries US US China 8% 10% China 11% Mexico 12% Mexico SA 10% SA 11% 2% 2% 2019 2018 YTD September 9 October 24, 2019
DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 5% French French 13% 14% German German 30% 31% American American 19% 18% Asian Asian 32% 32% 2019 2018 YTD September 10 October 24, 2019
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET IN Q3 +11pts Outperformance +8pts +9pts +4pts CDA 20% VIS 30% Group €4.8bn PTS 26% THS 24% 1,458 1,249 1,130 Q3 total sales 967 % of Q3 19 sales In €m Comfort & Driving Powertrain Thermal Visibility Assistance +7% +5% +5% +13% Reported OEM sales +5% +6% +1% +8% Like for like 11 October 24, 2019
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET YTD Outperformance +7pts +5pts +3pts +6pts CDA 20% VIS 30% Group €14.5bn PTS 26% THS 24% 4,472 3,814 3,460 YTD total sales 2,905 In €m % of YTD 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance +4% -1% +1% +3% Reported OEM sales +1% -1% -3% 0% Like for like 12 October 24, 2019
2019 OUTLOOK October 24, 2019 13
2019 OUTLOOK Valeo is confirming its 2019 guidance (excluding the one-off impact of the General Motors strike), despite the 6% decline in automotive production (versus a previously projected decrease of 4%): accelerating outperformance over the course of the year , driven by the start of production on projects in the camera, electrification systems and lighting segments; continued roll-out of the program, announced in February, to reduce costs by more than 100 million euros and capital expenditure by around 200 million euros (compared with more than 100 million euros previously) , the main impact of which is expected to be felt in the second half; EBITDA growth (in value terms); operating margin excluding share in net earnings of equity-accounted companies (as a % of sales) of between 5.8% and 6.5%, excluding the one-off impact of the General Motors strike in North America ; a “share in net earnings of equity-accounted companies” line which is expected to have a similar impact (in millions of euros) on Valeo’s statement of income in the second half as it did in the first half, due to the Valeo Siemens eAutomotive joint venture and to the challenging environment in China; continued free cash flow generation in the second half. The one-off cost of the General Motors strike is currently estimated at around 160 million euros in sales terms and around 50 million euros in operating margin terms. 14 October 24, 2019
BACK-UP � YTD sales 16 � Business Group information 20 October 24, 2019 15
5 POINTS OEM SALES OUTPERFORMANCE IN A CHALLENGING ENVIRONMENT YTD 19 5 pts 16 000 outperformance 800 14 000 1,482 12 000 10 000 8 000 €m 14,548 6 000 12,266 4 000 2 000 0 OEM Aftermarket Miscellaneous Sales +1% -3% +29% +2% Reported -1% -3% +27% 0% Like for like Exchange rates +2.0% Exchange rates +0.9% Exchange rates +2,1% Exchange rates +1.8% Scope -0.3% Scope -0.2% Scope 0.0% Scope -0.1% 16 October 24, 2019
5 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) YTD 19 OEM sales (2) OEM Like for like -1% sales (2) 48% of Valeo sales (2) 0% World OEM Europe (1) 20% of Valeo sales (2) sales (2) +9% North America North America Outperformance Outperformance OEM sales** +6% +4pts vs IHS +5pts vs IHS/CPCA Production*** +4% Outperformance +11pts vs IHS OEM 30% of Valeo sales (2) OEM sales (2) sales (2) 2% of Valeo sales (2) -7% +5% Asia (1) South America Of which OEM Outperformance sales (2) Outperformance -11% +2pts vs IHS/CPCA China +9pts vs IHS Outperformance (1) Europe including Africa; +2pts vs CPCA Asia including Middle East (2) Valeo OEM sales by destination IHS estimates released on October 16, 2019 – China Passenger Car Association (CPCA) estimates for China 17 October 24, 2019
IN CHINA, BACK TO POSITIVE OEM SALES OUTPERFORMANCE (+ 2 POINTS) YTD 19 OEM 26% of Asian sales (2) sales (2) Like for like -8% OEM Japan 30% of Valeo sales (2) sales (2) OEM -7% 26% of Asian sales (2) Asia (1) sales (2) Outperformance +1% -12pts vs IHS South Korea Outperformance +2pts vs IHS/CPCA OEM 38% of Asian sales (2) Outperformance sales (2) -11% 0pts vs IHS China OEM Outperformance 4% of Asian sales (2) sales (2) +2pts vs CPCA -17% India Outperformance -5pts vs IHS (1) Asia including Middle East (2) Valeo OEM sales by destination IHS estimates released on October 16, 2019 – China Passenger Car Association (CPCA) estimates for China 18 October 24, 2019
EVERY BUSINESS GROUP OUTPERFORMED THE MARKET YTD Outperformance +7pts +5pts +3pts +6pts CDA 20% VIS 30% Group €14.5bn PTS 26% THS 24% 4,472 3,814 3,460 YTD total sales 2,905 In €m % of YTD 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance +4% -1% +1% +3% Reported OEM sales +1% -1% -3% 0% Like for like 19 October 24, 2019
BUSINESS GROUP INFORMATION October 24, 2019 20
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