Q3 2014 Sales Jacques Aschenbroich CEO October 21, 2014 I 1 October 21, 2014
Q3 2014 highlights Consolidated sales of 3,069 million, up 10% on a reported basis up 6% on a like-for-like basis(1) OEM sales of 2,644 million, up 13% on a reported basis up 7% on a like-for-like basis(1) Near 7-pt above-market growth in OEM sales OEM sales growth* Aftermarket sales up 1% on a reported basis down 1% on a like-for-like basis(1) Performance** China +25.3% +20.3pts Europe +9.0% +9.2pts Asia (excl. China) (2) +5.1% +5.3pts North America (2) +4.2% +0.4pt South America -21.7% -2.2pts World +7.3% +6.6pts *like-for-like **vs automotive production (1) Constant Group structure and exchange rates. (2) Including Valeo Sylvania October 21, 2014 I 2
2014 outlook Based on the automotive production assumptions published in the H1 2014 results: World: growth of approximately 3% Europe: growth of approximately 2% Valeo confirms its objectives for 2014: Sales growth outperformance in the main production regions Operating margin* slightly higher than 7% of sales * Incl. JV and associates in accordance with new IFRS standards October 21, 2014 I 3
Sales of 3.1bn, up 10% as reported, up 6% like-for-like OEM sales, up 13% as reported, up 7% like-for like, a near 7-point outperformance Aftermarket sales, up 1% as reported, down 1% like-for-like October 21, 2014 I 4
Total sales up 10% as reported, up 6% like-for-like YTD sales up 8% like-for-like *Like-for-like growth +6%* +10%* +8%* 9,416 6,347 m 3,069 Q3 14 H1 14 YTD 14 As reported +10% As reported +7% As reported +8% Exchange rates 0.0% Perimeter +4.3% Exchange rates -3.1% Perimeter +0.4% Exchange rates -2.1% Perimeter +1.7% October 21, 2014 I 5
OEM sales up 13% on a reported basis, up 7% like-for-like Aftermarket up 1% on a reported basis, down 1% like-for-like Aftermarket OEM sales -1%* +3%* +2%* *Like-for-like growth +7%* +10%* +9%* 366 2,516 753 X,XXX 1,119 Q3 14 H1 14 YTD 14 +1%** +1%** +1%** 8,076 5,432 Miscellaneous m 2,644-14%* +16%* +5%* **Change as reported Q3 14 H1 14 YTD 14 +13%** Exchange rates 0.0% Perimeter 5.3% +8%** Exchange rates -3.2% Perimeter +0.7% +9%** Exchange rates -2.1% Perimeter 2.2% 221 162 59 Q3 14 H1 14 YTD 14-29%** +3%** -8%** October 21, 2014 I 6
OEM sales outpaced the global market by 7 points Outperformance in China of more than 20 points and in Europe of more than 9 points Q3 Like-for-like proforma 2014 North America OEM sales** +4.2% Production*** +3.8% 22% of Valeo sales Outperf. +0.4pts South America OEM sales** -21.7% Production***-19.5% 3% of Valeo sales Underperf. -2.2pts Europe* OEM sales** +8.9% Production***-0.2% 49% of Valeo sales Outperf. +9.1pts Asia* excl. China OEM sales** +5.1% Production***-0.2% 13% of Valeo sales Outperf. +5.3pts Outperf. +7.0pts World OEM sales** +7.7% Production***+0.7% China OEM sales** +25.4% Production***+5.0% 13% of Valeo sales Outperf. +20.4pts * Europe including Africa; Asia including Middle East ** Valeo OEM sales by destination ***LMC estimates light vehicle production October 21, 2014 I 7
OEM sales outpaced the global market by more than 7 points Outperformance in all production regions YTD Like-for-like proforma 2014 North America OEM sales** +7.7% Production*** +3.4% 21% of Valeo sales Outperf. +4.3pts South America OEM sales** -16.0% Production***-18.9% 4% of Valeo sales Outperf. +2.9pts Europe* OEM sales** +9.4% Production***+3.2% 50% of Valeo sales Outperf. +6.2pts Asia* excl. China OEM sales** +8.4% Production***+1.0% 13% of Valeo sales Outperf. +7.4pts Outperf. +7.2pts World OEM sales** +9.9% Production***+2.7% China OEM sales** +32.0% Production***+8.5% 12% of Valeo sales Outperf. +23.5pts * Europe including Africa; Asia including Middle East ** Valeo OEM sales by destination ***LMC estimates light vehicle production October 21, 2014 I 8
Geographic repositioning Asia and North America (US & Mexico) both up 1 point Western Europe down 2 points OEM sales by production region Sales including joint-ventures consolidated proportionally 54% in Asia & emerging countries Asia excl. China 14% China 13% Eastern Europe & Africa 13% SA 4% Mexico 10% Western Europe 36% US 10% 55% in Asia & emerging countries Asia excl. China 14% China 14% Eastern Europe & Africa 14% SA 3% Mexico 10% Western Europe 34% US 11% Q3 2013 Q3 2014 October 21, 2014 I 9
Geographic repositioning North America (US & Mexico) up 2 points, Asia up 1 point Western Europe down 1 point OEM sales by production region Sales including joint-ventures consolidated proportionally 54% in Asia & emerging countries Asia excl. China 14% China 12% Eastern Europe & Africa 14% Western Europe 37% 54% in Asia & emerging countries Asia excl. China 14% China 13% Eastern Europe & Africa 14% Western Europe 36% SA 5% Mexico 9% US 9% SA 3% Mexico 10% US 10% 2013 YTD end-september 2014 October 21, 2014 I 10
Balanced customer portfolio German and Asian customers stable at 30% and 26% respectively, American customers up 1 point, French customers down 1 point % of OEM sales Sales including joint-ventures consolidated proportionally Other 6% Other 6% French* 17% German 30% French* 16% German 30% American 21% Asian** 26% 29% American 22% Asian** Asian** 26% 26% 2013 YTD end-september 2014 * Excluding Nissan ** Including Nissan October 21, 2014 I 11
Above-market growth in all Business Groups VIS 27% CDA 18% YTD total sales change (on a reported basis) OEM sales growth (like-for-like) Q3 H1 YTD THS 29% Group 3.1bn PTS 26% % Q3 2014 sales CDA** -1% +13% +16% +15% Powertrain +6% +3% +8% +7% Thermal +7% +6% +10% +8% Visibility +20% +9%* +12%* +11%* *2014 perimeter ** Comfort & Driving Assistance October 21, 2014 I 12
2014 outlook October 21, 2014 I 13
2014 outlook Based on the automotive production assumptions published in the H1 2014 results: World: growth of approximately 3% Europe: growth of approximately 2% Valeo confirms its objectives for 2014: Sales growth outperformance in the main production regions Operating margin* slightly higher than 7% of sales * Incl. JV and associates in accordance with new IFRS standards October 21, 2014 I 14
Contact Investor Relations Thierry Lacorre 43, rue Bayen F-75848 Paris Cedex 17 France Tel.: +33 (0) 1.40.55.37.93 Fax: +33 (0) 1.40.55.20.40 E-mail: thierry.lacorre@valeo.com Web site: www.valeo.com October 21, 2014 I 15
Share Information Share Data Bloomberg Ticker Reuters Ticker ISIN Number Shares outstanding as of September 30, 2014 FR FP VLOF.PA FR 000130338 79,462,540 ADR Data Ticker/trading symbol CUSIP Number Exchange Ratio (ADR: ord) Depositary Bank Contact at J.P. Morgan ADR broker relationship desk VLEEY 919134304 OTC 1:2 J.P. Morgan Jim Reeves +1 212-622-2710 October 21, 2014 I 16
Back-up October 21, 2014 I 17
Quarterly information In m (2014 as reported and 2013 restated in accordance with IFRS 11) Sales by segment Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Comfort & Driving Assistance Systems Powertrain Systems 623 569 515 531 552 572 573 774 817 752 818 848 848 798 Thermal Systems 818 885 832 837 880 934 889 Visibility Systems 733 762 711 764 876 925 856 Total sales 2,927 3,017 2,792 2,926 3,112 3,235 3,069 OE & aftermarket sales Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 OE sales 2,470 2,567 2,348 2,449 2,677 2,755 2,644 Aftermarket 375 374 361 377 376 377 366 Miscellaneous 82 76 83 100 59 103 59 Total sales 2,927 3,017 2,792 2,926 3,112 3,235 3,069 October 21, 2014 I 18
Comfort & Driving Assistance Systems Sales performance Growth rate on a like-for-like basis OEM sales Like-for-like change +13% +16% +15% H1 2014 key figures: Sales: 1.1bn (18% of Group sales) Ebitda: 14.2% (22% of Group Ebitda) 2013 key figures: 13,431 employees 23 production units 9 development centers 7 research centers Total sales ( m) Total sales - change as reported 1,697 1,124 573 Q3 14 H1 14 YTD 14 +11% -6% -1% Market share* and competitors: - Driving Assistance: Valeo no.1 Valeo+Bosch+Continental > 60%* - Interior Controls: Valeo no.1 Valeo+Kostal+Tokai Rika > 25%* Key growth drivers: Development of solutions for connected and autonomous vehicles (Valeo first automotive supplier to present a product like the Valet Park4U driving assistance system) Change in regulations: mandatory rear camera in the US as from May 2016 (100% applicable in 2018) Latest innovations: Park4U with comfort braking launched in 2013 2014 Pace Award for the Back-Over Protection System for reversing maneuvers First order intake received for laser scanner technology * 2013 Valeo estimate October 21, 2014 I 19
Powertrain Systems Sales performance Growth rate on a like-for-like basis OEM sales Like-for- like change +3% +8% +7% H1 2014 key figures: Sales: 1.7bn (26% of Group sales) Ebitda: 12.4% (28% of Group Ebitda) 2013 key figures: 18,769 employees 32 production units 16 development centers 5 research centers Total sales ( m) Total sales - change as reported 2,494 1,696 798 Q3 14 H1 14 YTD 14 +6% +7% +6% Market share* and competitors: - Transmission Systems: Valeo no.2 Luk+Valeo+ZF Sachs = 45%* - Electrical Systems: Valeo no.1 Valeo+Denso+Bosch = 70%* Key growth drivers: Dual objective of reducing CO 2 emissions and fossil fuel consumption, based on 3 priorities for engines: Downsizing Downspeeding Electrification Latest innovations: High efficiency alternators awarded by the European Commission s eco innovation label Production of the dual dry-clutch launched in 2014 First order intake received for the electric supercharger *2013 Valeo estimate October 21, 2014 I 20
Thermal Systems Sales performance Growth rate on a like-for-like basis OEM sales Like-for-like change +6% +10% +8% H1 2014 key figures: Sales: 1.8bn (28% of Group sales) Ebitda: 11.0% (27% of Group Ebitda) 2013 key figures: 18,128 employees 45 production units 7 development centers 2 research centers Total sales ( m) Total sales - change as reported 2,703 1,814 889 Q3 14 H1 14 YTD 14 +7% +7% +7% Market share* and competitors: - Thermal Systems: Valeo no.2 Denso+Valeo+Halla (Visteon) = 50%* Key growth drivers: New technological solutions to respond to air conditioning systems becoming more complex Innovative solutions to comply with new regulations on gas pollutants and fuel consumption Latest business developments: Air intake module: awarded a PACE Award by Automotive News Battery thermal management system *2013 Valeo estimate October 21, 2014 I 21
Visibility Systems Sales performance Growth rate on a like-for-like basis OEM sales Like-for- like change +9%* +12%* +11%* H1 2014 key figures: Sales: 1.8bn (28% of Group sales) Ebitda: 9.3% (23% of Group Ebitda) 2013 key figures: 23,012 employees 33 production units 13 development centers 4 research centers Total sales ( m) Total sales - change as reported 2,657 1,801 856 Q3 14 H1 14 YTD 14 +20% +20% +20% Market share** and competitors: - Lighting Systems: Valeo no.2 Koito+Valeo+Magnetti Marelli > 50%* - Wiper Systems: Valeo no.1 Valeo+Bosch+Denso = 75%* Key growth drivers: Automakers widespread implementation of lighting systems with LED low beam, high beam or daytime running lights Growing interest in electronic wiper systems and Aquablade wiper technology Latest business developments: Valeo BiLED (100% LED) selected for emblematic models such as the BMWi3 and the new Mini Omniblade technology chosen for the front of the new Cadillac Escalade in the US Start of production of the electronic wiper systems using direct drive blades for the Ford Kuga *2014 perimeter **2013 Valeo estimate October 21, 2014 I 22
Safe Harbor Statement Statements contained in this report, which are not historical fact, constitute Forward-Looking Statements. Even though Valeo s management feels that the Forward-Looking Statements are reasonable, investors are put on notice that actual results may differ materially due to numerous important factors, risks and uncertainties to which Valeo is exposed. Such factors include, among others, the company s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions. The risks and uncertainties to which Valeo is exposed are mainly the risks resulting from the investigations currently being carried out by the antitrust authorities as they have been identified in the Registration Document and any legal actions which could arise as a result of these investigations, operational risks which relate to being a supplier in the automotive industry and to the development of new products and risks due to certain global and regional economic conditions. Also included are environmental and industrial risks as well as risks and uncertainties described or identified in the public documents submitted by Valeo to the French Autorité des marchés financiers (AMF), including those set out in the Risk Factors section of Valeo s Registration Document registered at the AMF on March 28, 2014 (ref. no. D.14-0234). The company assumes no responsibility for any estimates made by analysts and any other information prepared by third parties which may be used in this report. Valeo does not intend to, or assume any obligation to, review or to confirm the estimates of analysts or to update any Forward-Looking Statements to reflect events or circumstances which occur after the date of this report. October 21, 2014 I 23
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