2015 Results Jacques Aschenbroich CEO February 18, 2016 February - PowerPoint PPT Presentation

2015 Results Jacques Aschenbroich – CEO February 18, 2016 February 18, 2016 I 1

H2 highlights Innovation Order intake (1) of € 9.4bn +12% fueling future growth +14% as reported Sales of € 7.2bn +8% like-for-like (2) OEM sales of € 6.3bn Growth +15% as reported 7-percentage point outperformance +9% like-for-like (2) accelerating +6% as reported Aftermarket sales of € 0.8bn +4% like-for-like (2) Operating margin (1) of € 578m up 21% 8.0% of sales Profitability Net income (1) of € 385m improving up 26% 5.3% of sales EBITDA (1) of € 934m up 18% 12.9% of sales € 259m Free cash flow (1) up 49% Cash generation increasing Cash conversion rate (FCF/EBITDA) 28% ROCE (1) 33% See glossary page 49 (1) Constant Group structure and exchange rates. (2) February 18, 2016 I 2

FY highlights Innovation Order intake (1) of € 20.1bn +15% fueling future growth +14% as reported Sales of € 14.5bn +7% like-for-like (2) +16% as reported OEM sales of € 12.6bn +8% like-for-like (2) OEM sales outperformance Growth (2) Outperformance (3) growth World +8% +6pts accelerating Europe +11% +6pts throughout the year China +8% +4pts Asia (excluding China) +6% +7pts North America +5% +2pts South America -18% +1pt +7% as reported Aftermarket sales of € 1.6bn +3% like-for-like (2) See glossary page 49 (1) Constant Group structure and exchange rates. (2) February 18, 2016 I 3 Vs automotive production (3)

FY highlights +14% as reported Sales of € 14.5bn Growth accelerating +7% like-for-like (2) Operating margin (1) of € 1,116m up 22% 7.7% of sales Net income (1) of € 729m Profitability up 30% 5.0% of sales Net income excl. non recurring items of € 825m up 39% 5.7% of sales continuing to improve € 9.33 EPS up 29% € 10.56 EPS excl. non recurring items up 38% EBITDA (1) of € 1,847m up 21% 12.7% of sales € 565m Free cash flow (1) up 73% Cash Conversion rate (FCF/EBITDA) 31% Strong financial position ROCE (1) 33% ROA (1) 20% Net debt (3) of € 124m down € 253m 2015 dividend of € 3 per share up 36% Dividend proposed at the next AGM Payout ratio 32% See glossary page 49 (1) Constant Group structure and exchange rates (2) New definition available in glossary page 49 – applied also on 2014 February 18, 2016 I 4 (3) amount on a retrospective basis

2016 outlook Based on the following key assumptions for full-year 2016:  Automotive production growth:  World: around 2.5%  Europe: around 2%  China: around 5%  North America: around 2%  Raw material prices and currencies in line with current levels Valeo sets the following objectives for 2016:  Strong sales growth, outperforming the market in the main production regions including China  Slight increase in operating margin* (as a % of sales) despite higher net R&D expenses to fuel future growth in CO 2 emission reductions and intuitive driving Mid term objectives:  Confidence in achieving 2020 targets thanks to high level of order intake * Including joint ventures and associates in accordance with new IFRS standards. February 18, 2016 I 5

Order intake of € 20.1bn, up 15% confirming high growth potential February 18, 2016 I 6

Acceleration in order intake up 15%… … leading to stepped-up future organic growth Innovation fueling future organic growth … as a % of order intake** Order intake** € bn € 20.1bn Innovation CAGR* 37% (1) Average over the period +13% € 17.5bn € 15bn € 13bn (1) Products and technologies sold by less than 3 years … with 2015 half-year order intake** reaching € 8.8bn a new record high € bn 9,4 8.4 7.4 7.5 6.6 5.6 4.6 4.9 4.6 5.8 2.8 10.7 9 . 1 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 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 H2 *Reference 2008 (average 2005-2009)  2015 **Excluding the Access Mechanisms business and including joint ventures consolidated proportionally February 18, 2016 I 7

Acceleration in order intake fueling future organic growth China: local OEMs represent ~20% of OEM sales and 41% of order intake % of 2015 order intake* % of 2015 OEM sales* Asia SA 25% 28% 1% Asia € 5.6bn excl. China 22% SA 8% NA 2% Asia excl. Asia Order China China € 5bn 29% NA 13% Intake/OE € 3.7bn sales ratio* 20% € 2.8bn Europe 1.5x China 16% Asia 1.5x Of which China 2.0x North America 1.8x Europe Europe € 6.1bn Group 1.6x € 9.2bn 47% 46% Order intake of € 20.1bn OEM sales of € 12.6bn *OEM sales and order intake by destination including joint ventures consolidated proportionally February 18, 2016 I 8

G rowth accelerated throughout the year Sales of € 14.5bn, up 14% as reported up 7% like-for-like OEM sales, up 16% as reported up 8% like-for like , 6-point outperformance Aftermarket sales, up 7% as reported up 3% like-for-like February 18, 2016 I 9

Total sales growth accelerated throughout the year +6% +6% +7% +9% +7% Like-for-like 14,544 € m 3,797 3,717 3,581 3,449 Q1 15 Q2 15 Q3 15 Q4 15 2015 Reported +15% +15% +12% +14% +15% Q1 14 3,112 Q2 14 3,235 Q3 14 3,069 Q4 14 3,309 FY 14 12,725 Exchange rates +8.3% Exchange rates +8.8% Exchange rates +5.9% Exchange rates +7.1% Exchange rates +5.3% +0.4% +0.4% 0.0% Scope +0.2% Scope Scope Scope Scope 0.0% February 18, 2016 I 10

Total sales growth accelerated throughout the year H1 up 6%, H2 up 8% like-for-like Like-for-like +6% +8% +7% 14,544 7,298 7,246 € m H1 15 H2 15 2015 Reported +15% +14% +14% FY 14 12,725 H1 14 6,347 H2 14 6,378 Exchange rates +7.1% Exchange rates +8.5% Exchange rates +5.5% +0.2% +0.5% 0.0% Scope Scope Scope February 18, 2016 I 11

OEM Sales growth accelerated throughout the year +7% +6% +7% +12% +8% Like-for-like 12,600 € m 3,203 3,294 3,113 2,990 Q1 15 Q2 15 Q3 15 Q4 15 2015 Reported +16% +16% +13% +16% +17% Q1 14 2,677 Q2 14 2,755 Q3 14 2,644 Q4 14 2,814 FY 14 10,890 Exchange rates +8.7% Exchange rates +9.3% Exchange rates +6.3% Exchange rates +7.4% Exchange rates +5.6% +0.5% +0.6% 0.0% Scope +0.3% Scope Scope Scope Scope 0.0% February 18, 2016 I 12

OEM sales growth accelerated throughout the year 2015 up 8%, H2 up 9% and Q4 up 12% like-for-like Aftermarket +7%* excl. sales +6%* excl. sales +5%* excl. sales OEM sales from Korea from Korea from Korea 1,599 X,XXX +12%* +9%* +8%* *Like-for-like 2,516 786 399 Q4 15 H2 15 2015 +6%** +6%** +7%** +4%* +4%* +3%* 12,600 Miscellaneous 6,284 -23%* -10%* -5%* € m 3,294 Q4 15 H2 15 2015 345 **Reported +17%** +15%** +16%** 176 104 Q4 14 2,814 H2 14 5,458 FY 14 10,890 Exchange Exchange Exchange +5.6% +5.9% +7.4% Q4 15 H2 15 2015 rates rates rates Scope +0.0% Scope +0.0% Scope +0.3% -13%** -1%** +2%** February 18, 2016 I 13

Outperformance accelerated throughout the year H2 Outperf. +7pts Like-for-like World Outperf. OEM sales** +9% +8pts Production***+2% Europe* Outperf. +2pts OEM sales** +13% North America Production***+5% OEM sales** +6% 48% of OEM sales Production*** +4% Outperf. 23% of OEM sales +10pts Asia* excl. China OEM sales** +9% Production***-1% Perf. 0pts 13% of OEM sales South America Outperf. OEM sales** -23% +3pts China Production***-23% OEM sales**+7% 2% of OEM sales Production***+4% 14% of OEM sales * Europe including Africa; Asia including Middle East ** Valeo OEM sales by destination ***LMC estimates – light vehicle production February 18, 2016 I 14

Outperformance in all Asian production countries H2 Like-for-like Outperf +1pt Japan Outperf OEM sales* -3% +6pts Production** -4% Asia 17% of Asian sales OEM sales* +8% Outperf Production** +2% +15pts Korea 27% of OEM sales OEM sales* +18% Production** +3% 23% of Asian sales Outperf +3pts China OEM sales* +7% Outperf Production** +4% +49pts 52% of Asian sales India OEM sales* +54% Production** +5% 4% of Asian sales *Valeo OEM sales by destination **LMC estimates – light vehicle production February 18, 2016 I 15

Outperformance in all production regions 2015 Outperf. +6pts Like-for-like World Outperf. OEM sales** +8% +6pts Production***+2% Europe* Outperf. +2pts OEM sales** +11% North America Production***+5% OEM sales** +5% 49% of OEM sales Production*** +3% Outperf. 22% of OEM sales +7pts Asia* excl. China OEM sales** +6% Production***-1% Outperf. +1pt 13% of OEM sales South America Outperf. OEM sales** -18% +4pts China Production***-19% OEM sales** +8% 2% of OEM sales Production***+4% 14% of OEM sales * Europe including Africa; Asia including Middle East ** Valeo OEM sales by destination ***LMC estimates – light vehicle production February 18, 2016 I 16

Outperformance in all Asian production countries 2015 Like-for-like Outperf Outperf +6pts +4pts Asia Japan OEM sales* +7% OEM sales* -2% Production** +1% Outperf Production** -6% +11pts 18% of Asian sales 27% of OEM sales Korea OEM sales* +12% Production** +1% 22% of Asian sales Outperf +4pts China OEM sales* +8% Outperf Production** +4% +31pts India 52% of Asian sales OEM sales* +36% Production** +5% 3% of Asian sales *Valeo OEM sales by destination **LMC estimates – light vehicle production February 18, 2016 I 17