JACQUES ASCHENBROICH CHAIRMAN & CEO July 24, 2019 FOCUS ON - PowerPoint PPT Presentation

H1 2019 RESULTS JACQUES ASCHENBROICH – CHAIRMAN & CEO July 24, 2019

FOCUS ON MARGIN IMPROVEMENT COMPARED TO H2 18 AND FREE CASH FLOW GENERATION THANKS TO COST-SAVING AND CAPEX REDUCTION PLANS H1 Sales €9,776m Operating margin (excl. JV & associates) down 1% as reported €514m or 5.3% of sales H1 OEM sales up 0.5pts vs H2 2018 down 3% like for like 4pts outperformance with an acceleration in Q2 Net income Free cash flow €162m or 1.7% of sales €237m incl. €30m of non-recurring expenses up 90% vs H2 2018 up 0.7pts vs H2 2018 leading to a cash conversion rate of 19% JV & associates of €(107)m EBITDA of €1,218m or 12.5% of sales Tax rate of 29.3% CAPEX* of €618m, down 11% vs H2 2018 *recorded CAPEX, excl. Capitalized R&D In a challenging environment with H1 worldwide automotive production down 7% 2 July 24, 2019

ACCELERATION OF OEM SALES OUTPERFORMANCE IN Q2 TOTAL SALES OF €4.9bn, DOWN 1% AS REPORTED DOWN 2% LIKE FOR LIKE OEM SALES DOWN 3% AS REPORTED DOWN 4% LIKE FOR LIKE, 4 POINT OUTPERFORMANCE AFTERMARKET SALES DOWN 3% AS REPORTED DOWN 4% LIKE FOR LIKE July 24, 2019

OUTPERFORMANCE IMPROVEMENT THANKS TO START OF PRODUCTION ON NEW CONTRACTS OEM sales like for like In percentage points +4pts** +4pts** +3pts** +2pts** 0pts* Q1 19 Q2 19 H1 18 H2 18 H1 19 *IHS estimates ** IHS estimates - China Passenger Car Association (CPCA) estimates, for China 4 July 24, 2019

4 POINTS OEM SALES OUTPERFORMANCE IN A DIFFICULT ENVIRONMENT Q2 19 4 pts 332 outperformance 504 4,935 €m 4,099 OEM Aftermarket Miscellaneous Sales -3% -3% +37% -1% Reported -4% -4% +35% -2% Like for like Exchange rates +1.4% Exchange rates 0.0% Exchange rates +2.1% Exchange rates +1.3% Scope Scope Scope Scope -0.1% -0.2% +0.9% -0.8% 5 July 24, 2019

4 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q2 19 OEM sales (2) OEM Like for like -4% 49% of Valeo sales (2) sales (2) World -3% OEM Europe (1) 20% of Valeo sales (2) sales (2) +6% North America North America Outperformance Outperformance OEM sales** +6% +3pts vs IHS (3) +4pts vs IHS (3) Production*** +4% Outperformance +8pts vs IHS (3) OEM sales (2) 29% of Valeo sales (2) OEM -12% sales (2) 2% of Valeo sales (2) Asia (1) +8% South America Outperformance Outperformance -1pt vs IHS/CPCA (3) +10pts vs IHS (3) (1) Europe including Africa; Asia including Middle East (2) Valeo OEM sales by destination (3) IHS estimates released on July 16, 2019 – China Passenger Car Association (CPCA) estimates, for China 6 July 24, 2019

IN ASIA, -1 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) Q2 19 OEM 26% of Asian sales (2) Sales (2) Like for like -9% OEM Japan sales (2) 29% of Valeo sales (2) -12% OEM Asia (1) 31% of Asian sales (2) Sales (2) Outperformance -3% -15pts vs IHS (3) South Korea Outperformance -1pt vs IHS (2) OEM Outperformance 34% of Asian sales (2) Sales (2) -19% -6pts vs IHS (3) China OEM Outperformance 4% of Asian sales (2) Sales (2) 0pts vs CPCA (3) -22% India Outperformance -10pts vs IHS (3) (1) Asia including Middle East (2) Valeo OEM sales by destination (3) IHS estimates released on July 16, 2019 – China Passenger Car Association (CPCA) estimates, for China 7 July 24, 2019

EVERY BUSINESS GROUP IS OUTPERFORMING THE MARKET +6pts +3pts +3pts +4pts Outperformance CDA 20% VIS 30% Group €4.9bn PTS 26% THS 24% 1,512 Q2 total sales 1 ,299 1 ,187 In €m % of Q2 19 sales 974 Comfort & Driving Powertrain Thermal Visibility Assistance Reported +1% -3% -1% 0% OEM sales -2% -5% -5% -4% Like for like 8 July 24, 2019

ACCELERATION OF OEM SALES OUTPERFORMANCE IN H1 TOTAL SALES OF €9.8bn, DOWN 1% AS REPORTED DOWN 2% LIKE FOR LIKE OEM SALES DOWN 2% AS REPORTED DOWN 3% LIKE FOR LIKE, 4 POINT OUTPERFORMANCE AFTERMARKET SALES DOWN 4% AS REPORTED DOWN 4% LIKE FOR LIKE July 24, 2019

4 POINTS OEM SALES OUTPERFORMANCE IN A DIFFICULT ENVIRONMENT H1 19 4 pts 551 10 000 outperformance 9 000 1,005 8 000 7 000 6 000 5 000 9,776 €m 8,220 4 000 3 000 2 000 1 000 0 OEM Aftermarket Miscellaneous Sales -2% -4% +23% -1% Reported -3% -4% +21% -2% Like for like Exchange rates +1.9% Exchange rates +0.3% Exchange rates +2.2% Exchange rates +1.7% Scope Scope Scope Scope -0.3% -0.4% -0.1% -0.3% 10 July 24, 2019

4 POINTS OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) H1 19 OEM sales (2) OEM Like for like -3% 49% of Valeo sales (2) sales (2) World -2% OEM Europe (1) 20% of Valeo sales (2) sales (2) +6% North America North America Outperformance Outperformance OEM sales** +6% +3pts vs IHS (3) +4pts vs IHS (3) Production*** +4% Outperformance +9pts vs IHS (3) OEM sales (2) 29% of Valeo sales (2) OEM -11% sales (2) 2% of Valeo sales (2) Asia (1) +3% South America Outperformance Outperformance -1pt vs IHS/CPCA (3) +6pts vs IHS (3) (1) Europe including Africa; Asia including Middle East (2) Valeo OEM sales by destination (3) IHS estimates released on July 16, 2019 – China Passenger Car Association (CPCA) estimates, for China 11 July 24, 2019

IN ASIA, -1 POINT OEM SALES OUTPERFORMANCE (LIKE FOR LIKE) H1 19 OEM 27% of Asian sales (2) Sales (2) Like for like -8% OEM Japan sales (2) 29% of Valeo sales (2) -11% OEM Asia (1) 27% of Asian sales (2) Sales (2) Outperformance 0% -11pts vs IHS (3) South Korea Outperformance -1pt vs IHS (3) OEM Outperformance 36% of Asian sales (2) Sales (2) -19% -1pt vs IHS (3) China OEM Outperformance 4% of Asian sales (2) Sales (2) -3pts vs CPCA (3) -15% India Outperformance -8pts vs IHS (3) (1) Asia including Middle East (2) Valeo OEM sales by destination (3) IHS estimates released on July 16, 2019 – China Passenger Car Association (CPCA) estimates, for China 12 July 24, 2019

BALANCED GEOGRAPHIC POSITIONING OEM sales by production region % of OEM sales Eastern Eastern Europe & Europe & Africa Africa 16% 17% Western Western Europe Europe 33% 32% Asia excl. 58% in Asia China Asia excl. 59% in Asia 19% China & emerging & emerging 18% countries countries US US China 8% 9% China 11% 13% Mexico Mexico SA 11% SA 9% 2% 2% H1 19 H1 18 13 July 24, 2019

DIVERSE CUSTOMER PORTFOLIO % of OEM sales Other Other 6% 5% French French 14% 15% German German 30% 31% American American 19% 17% Asian Asian Asian** Asian** 31% 32% 26% 26% H1 19 H1 18 14 July 24, 2019

EVERY BUSINESS GROUP IS OUTPERFORMING THE MARKET +6pts +3pts +3pts +3pts Outperformance CDA 20% VIS 30% Group €9.8bn PTS 26% THS 24% 3,014 2,565 H1 total sales 2,330 1,938 In €m % of H1 19 sales Comfort & Driving Powertrain Thermal Visibility Assistance Reported +2% -4% -1% -1% OEM sales -1% -4% -4% -4% Like for like 15 July 24, 2019

IMPROVEMENT OF OPERATING MARGIN EXCL. JV & ASSOCIATES OF 0.5PTS VS H2 2018 TO €514M OR 5.3% OF SALES JV & ASSOCIATES OF €(107)M OR (1.1%) OF SALES IMPROVEMENT OF NET INCOME AS A % OF SALES OF 0.7PTS VS H2 2018 TO €162M OR 1.7% OF SALES July 24, 2019

GROSS MARGIN OF €1,754M OR 17.9% OF SALES DOWN 0.2PTS VS H2 2018 As a % of sales €1,754m +5% €1,676m +30bps +10bps -30bps -30bps 18.1% 17.9% H2 18 Volume/ Operational Depreciation R&D H1 19 inflation inefficiency sales NB: rounded figures 17 July 24, 2019

R&D EXPENDITURE AT 8.0% OF SALES DOWN 0.5PTS VS H2 2018 R&D expenditure In €m and as a % of sales Capitalized development expenditure In €m and as a % of sales 401 369 0% 785 786 4.0% 4.1% H2 18 H1 19 Amortization and impairment of capitalized development expenditure (net of subsidies) In €m and as a % of sales 184 171 -50bps 8.5% 8.0% 1.8% 1.9% H2 18 H1 19 H2 18 H1 19 18 July 24, 2019

STRICT CONTROL OF SG&A EXPENSES AT 4.7% OF SALES DOWN 0.1PTS VS H2 2018 SG&A In €m and as a % of sales +3% 455 442 Selling Selling expenses expenses €155m €158m 4.8% -10bps 4.7% Admin. Admin. expenses expenses €284m €300m Selling Selling expenses expenses H2 18 H1 19 1.7% 1.6% Admin. Admin. = expenses expenses 3.1% 3.1% H2 18 H1 19 19 July 24, 2019

OPERATING MARGIN EXCL. JV & ASSOCIATES OF €514M OR 5.3% OF SALES UP 0.5PTS VS H2 2018 As a % of sales €514m +15% €448m +10bps -10bps* +50bps 5.3% 4.8% H2 18 Gross R&D SG&A H1 19 margin expenses * Rounded figures 20 July 24, 2019

OPERATING MARGIN* OF €514M OR 5.3% OF SALES UP 0.5PTS VS H2 2018 H1 18 H2 18 H1 19  9,863 Total sales (€m) 9,261 9,776 +6% 1,998 Gross margin 1,676 1,754 +5% 20.3% As a % of sales 18.1% 17.9% -20bps 774 R&D expenditure 786 785 0% 7.8% As a % of sales 8.5% 8.0% -50bps 469 SG&A 442 455 +3% 4.8% As a % of sales 4.8% 4.7% -10bps 755 Operating margin excl. JV & associates* 448 514 +15% 7.7% As a % of sales 4.8% 5.3% +50bps (28) JV & associates (83) (107) N/A N/A (0.3%) As a % of sales (0.9%) (1.1 %) 727 Operating margin incl. JV & associates 365 407 +12% 7.4% As a % of sales 3.9% 4.2% +30bps * Excluding joint ventures and associates 21 July 24, 2019