JACQUES ASCHENBROICH CHAIRMAN & CEO July 25, 2018 HIGH GROWTH - PowerPoint PPT Presentation

H1 2018 RESULTS JACQUES ASCHENBROICH – CHAIRMAN & CEO July 25, 2018

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 eAutomotive 2017 + 2018 YTD ( € bn) na 10.8 Total order intake ( € bn) 17.9 18.7 (Valeo + Valeo Siemens eAutomotive) (1) See glossary page 70 2 July 25, 2018

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% at constant exchange rates i.e. a 25% growth in 2 years 3 July 25, 2018

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 +3% 1,998 (as a % of sales) 20.5% -20bps 20.3% R&D expenditure ( € m) 761 +2% 774 (as a % of sales) 8.1% -30bps 7.8% SG&A ( € m) 454 +3% 469 (as a % of sales) 4.8% = 4.8% Operating margin excl. JV & Associates (1) ( € m) 723 +4% 755 VV (as a % of sales) 7.7% = 7.7% JV & Associates ( € m) 29 na (28) (as a % of sales) 0.3% na (0.3%) Operating margin incl. JV & Associates (1 (1) ( € m) 752 -3% 727 (as a % of sales) 8.0% -60bps 7.4% Net income ( € m) 504 -10% 453 (as a % of sales) 5.3% -70bps 4.6% (1) see glossary page 70 4 July 25, 2018

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 +11% 1,341 12.9% +70bps (As a % of sales) 13.6% (43) na Change in working capital* ( € m) (141) 616 +4% PP&E CAPEX (excl. capitalized R&D) ( € m) 641 6.5% = (As a % of sales) 6.5% na 99 Free cash flow (1) ( € m) 36 na 8% 3% Cash conversion rate (FCF/EBITDA) + € 449m 1,107 2,291 Net debt (1) ( € m) vs end-2017 ROCE (1) 33% 26% na na ROA (1) 22% 17% See glossary page 70 (1) * Change in working capital excluding the change in non-recurring sales of accounts and notes receivable (in a positive amount of 10 million euros in first-half 2018 and a negative amount of 36 million euros in first-half 2017). 5 July 25, 2018

OUTLOOK July 25, 2018

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 particular, steel and resins) and disruptions to the production of certain vehicles in Europe (mainly during the third quarter) in connection with the new Worldwide Harmonised Light Vehicle Test (WLTP):  growth of 9% at constant exchange rates in 2018;  like-for-like growth in original equipment sales of around 5% in H2 2018, ahead of expected double-digit growth in 2019 based on our order book;  2018 operating margin excluding share in net earnings of equity-accounted companies (as a % of sales) might be slightly below that of 2017 (7.8% of sales);  free cash flow generation in line with that of 2017 (278 million euros). 7 July 25, 2018

VALEO SIEMENS E AUTOMOTIVE  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 ongoing projects and structure its organization. Accordingly, the “Share in net earnings of equity-accounted companies” caption will have an impact of around -0.3 points on Valeo’s statement of income in 2018. Medium-term objectives: By 2022, Valeo Siemens eAutomotive should be delivering:  sales of more than 2 billion euros; and  a similar EBITDA margin (as a % of sales) to that of Valeo. 8 July 25, 2018

HIGH GROWTH POTENTIAL CONFIRMED HALF-YEAR ORDER INTAKE OF € 18.7bn:  € 14bn (EXCL. VALEO SIEMENS E AUTOMOTIVE) , 14% CAGR SINCE H1 2013  € 4.7bn AT VALEO SIEMENS E AUTOMOTIVE , A CUMULATIVE € 10.8bn AT END-JUNE July 25, 2018

TOTAL ORDER INTAKE TO € 18.7bn INCLUDING VALEO SIEMENS E AUTOMOTIVE 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 Innovation A cumulative € 10.8bn order intake at end-June 48% (1) 3.0 4.7 Incl. Valeo Siemens 56% (1) Products and technologies sold by less than 3 years excl. Valeo Siemens eAutomotive, FTE automotive & Valeo-Kapec 14.9 14.0 12.8 33.7 10.7 9 . 1 Full-year order intake** 7.7 7.4 7.3 6.3 € bn 6.1 4.8 4.7 4.3 4.3 3.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 27.6 23.6 11.9 14.0 15.1 14.8 17.5 20.1 CAGR* 9.4 9.6 8.9 8.8 +14% 7.1 H1 order intake H1 Valeo Siemens eAutomotive order intake 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * Reference H1 2013  H1 2018 (excluding Valeo Siemens eAutomotive) Valeo Siemens eAutomotive Valeo ** See glossary page 70 excluding Access Mechanisms between 2005 & 2013 & Valeo Siemens eAutomotive 10 July 25, 2018

BOOK TO BILL AT 2.2X (INCL. VALEO SIEMENS E AUTOMOTIVE) Order intake of € 14bn OEM sales of € 8.6bn SA 16% 2% Asia Asia 17% NA Book to excl. China SA 44% 2% 14% € 2.2bn bill* € 6.1bn NA Asia Asia excl. € 1.5bn 33% China Asia 2.2x € 2.8bn 18% Of which China 3.3x North America 1.5x 32% China Europe with local South America 1.5x 15% 55% Chinese Europe € 5.4bn with local OEMs China Europe 1.3x € 4.1bn Chinese 30% OEMs Group 1.6x 48% Incl. Valeo 2.2x 38% Siemens % of H1 2018 order intake** % of H1 2018 OEM sales** *Order Intake/ annualized OEM sales ratio **OEM sales and order intake by destination including joint ventures out of Valeo Siemens eAutomotive 11 July 25, 2018

VALEO SIEMENS E AUTOMOTIVE € 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 customer reputation, engaged employees and solid shareholder return on investment by 2020 12 July 25, 2018

STRONG POSITIONING OF VALEO SIEMENS E AUTOMOTIVE IN THE ELECTRIC MARKET Charger 6% Europe China Electric Inverter 50% 50% motor 36% 58% % of cumulative € 10.8bn order intake at end-June 2018 13 July 25, 2018

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

Non- Q2 18 SALES UP 10% AT CONSTANT EXCHANGE RATES IFRS 15 UP 5% LIKE FOR LIKE At constant Q2 18 +10% +13% -3% +10% exchange rates 151 518 5,022 € m 4,353 OEM Aftermarket Miscellaneous Sales Like for like +5% +8% -3% +5% +7% +9% -6% +7% Reported Q2 17 4,061 Q2 17 476 Q2 17 160 Q2 17 4,697 Exchange rates Exchange rates -3.1% Exchange rates -4.5% Exchange rates -3.1% -3.3% Scope +5.4% Scope +5.5% Scope +0.6% Scope +5.3% 15 July 25, 2018

Non- LIKE-FOR-LIKE OEM SALES OUTPERFORMANCE IFRS 15 IN LINE WITH LMC PRODUCTION Q2 18 OEM sales (2) OEM World Like for like +5% 48% of Valeo sales (2) sales (2) +5% OEM Europe (1) 19% of Valeo sales (2) sales (2) Outperformance -1% North America 0pts vs LMC (3) North America Outperformance +1pt vs IHS (4) OEM sales** +6% -1pt vs LMC (3) Production*** +4% +1pt vs IHS (4) Outperformance +1pt vs LMC (3) +2pts vs IHS (4) OEM sales (2) 18% of Valeo sales (2) +11% Asia (1) excl. China OEM sales (2) 2% of Valeo sales (2) +18% Outperformance South America +8pts vs LMC (3) OEM +8pts vs IHS (4) 13% of Valeo sales (2) sales (2) Outperformance +3% +8pts vs LMC (3) China +8pts vs IHS (4) Outperformance (1) Europe including Africa; -6pts vs LMC (3) Asia including Middle East -6pts vs IHS (4) (2) Valeo OEM sales by destination (3) LMC estimates released on July 10, 2018 – light vehicle production (4) IHS estimates released on July 16, 2018 – light vehicle production 16 July 25, 2018