Q Sales. Jacques ASCHENBROICH CEO. October 21, 2010

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1 Q Sales Jacques ASCHENBROICH CEO October 21, 2010

2 Valeo revises upwards its 2010 operating margin guidance 2nd half margin level higher than that of the 1st half (% of sales) Third quarter Increase in consolidated sales of 22% +16% like-for-like Third quarter and first nine months of the year Outperformance of OE sales vs global automotive production Outperformance of OE sales of the Business Groups Outlook for full-year 2010 Sales higher than 9.4 billion euros Operating margin level1 of 2nd half slightly higher than 1st half Free cash flow2 of around 400 million euros Net cash flow3 of around 340 million euros 1 Operating income less other income and expenses 2 Free cash flow corresponds to net operating cash flow less net disbursements on tangible/intangible assets. This indicator is therefore calculated before payment of interest payments. 3 Net cash flow corresponds to free cash flow less interest payments and after taking into account other financial flows Q3-10 Sales I 2 October 21, 2010

3 Automotive production back to pre-crisis level Economic environment per region Fundamental shift of automotive production towards Asian market Light vehicles production* (million of vehicles) Q3-07 Q3-08 Q3-09 Q3-10 (Q3-10/ Q3-07) (Q3-10/ Q3-09) Europe % 0% Asia % +15% North America % +26% South America % +11% Worldwide % +12% * JD Power estimates Q3-10 Sales I 3 October 21, 2010

4 Strong performance of Q3 sales on a like-for-like basis In euro million +22% 1,913 2,342 Perimeter -0.4% Currencies* Sales at same perimeter and exchange rate +6.5% +16% Q3-09 Q3-10 *Exchange rates: Appreciation vs Euro (change YoY): JPY (+21%), BRD (+18%), Won (+16%), CNY (+12%), USD (+11%) Q3-10 Sales I 4 October 21, 2010

5 Strong improvement of OE and Aftermarket sales In euro million and YoY variation Q3-07 Q3-08 Q3-09 Q3-10 Q3-09/ Q3-10 Original Equipment as % of sales 1,809 82% 1,680 81% 1,555 81% 1,929 82% +17%* Aftermarket as % of sales % % % % +14%* Miscellaneous as % of sales 42 1% 62 3% 51 3% 54 3% -3%* Sales 2,217 2,079 1,913 2, % Sales at same perimeter & exchange rates +16%* *At same perimeter and exchange rates Q3-10 Sales I 5 October 21, 2010

6 Outperformance in our main regions Q3 OE sales vs automotive production (YoY) World Q3-10 Valeo OE sales* +16% Production** +12% Production +26%** +52%* North America Production 0%** Europe +9%* Production +15%** Production +11%** South America +3%* Asia +23%* * Light vehicle OE sales at same perimeter & exchange rates ** JD Power estimates Q3-10 Sales I 6 October 21, 2010

7 Outperformance in our main regions OE sales vs automotive production (YTD) World 9 months Valeo OE Sales* +31% Production** +30% Production +54%** +72%* North America Production +17%** Europe +23%* Production +33%** Production +15%** South America +13%* Asia +45%* * Light vehicle OE sales at same perimeter & exchange rates ** JD Power estimates Q3-10 Sales I 7 October 21, 2010

8 Outperformance in Asia Asian OE sales vs automotive production (YTD) Production +33%** +45%* Asia Production +26%** Production +32%** 19% of sales +42%* +32%* Korea Japan Production +34%** China +57%* 19% of sales 32% of sales Production +34%** India +86%* 40% of sales 4% of sales * Light vehicle OE sales at same perimeter & exchange rates ** JD Power estimates Q3-10 Sales I 8 October 21, 2010

9 Rebalanced geographical exposure In % of OE sales (YoY) 62%* Europe & Africa 56%* Europe & Africa 9%* South America 9%* South America 11%* North America 18%* Asia & others 15%* North America 20%* Asia & others Q3-09 Q3-10 * In % of light vehicle OE sales Q3-10 Sales I 9 October 21, 2010

10 Rebalanced geographical exposure In % of OE sales (YTD) 65%* Europe & Africa 60%* Europe & Africa 8%* South America 8%* South America 10%* North America 17%* Asia & others 13%* North America 19%* Asia & others * In % of light vehicle OE sales Q3-10 Sales I 10 October 21, 2010

11 BG outperformance OE sales performance vs worldwide automotive production (YoY) Worldwide Production** (YoY) +12% Comfort & Driving Assistance OE sales +19%* In M In M Sales +19%* Powertrain Sales +23%* OE sales +25%* Q3-09 Q3-10 Q3-09 Q3-10 OE sales +14%* Sales +15%* Sales +9%* Thermal In M In M Visibility OE sales +12%* Q3-09 Q3-10 Q3-09 Q3-10 * At same perimeter and exchange rate ** JD Power light vehicle production estimates Q3-10 Sales I 11 October 21, 2010

12 BG outperformance Worldwide Production** (YoY) +30% OE sales performance vs worldwide automotive production (YTD) Comfort & Driving Assistance OE sales +31%* In M In M Sales +29%* Powertrain Sales +36%* OE sales +39%* 972 1,266 1,440 1, Thermal OE sales +30%* In M In M Sales +28%* Visibility Sales +23%* OE sales +30%* 1,616 2,182 1,395 1, * At same perimeter and exchange rate ** JD Power light vehicle production estimates Q3-10 Sales I 12 October 21, 2010

13 Continued evolution of client exposure In % of OE sales (YTD) 29% German 27% German 25% French* 23% French* 9% 10% Others Others 17% American 20% Asian** 18% American 22% Asian** * Excluding Nissan ** Including Nissan Q3-10 Sales I 13 October 21, 2010

14 Outlook 2010 Q3-10 Sales I 14 October 21, 2010

15 2010 business environment & developments Given market s perspectives (change YoY) Europe (& Africa) Asia (& others) North America South America Worldwide FY 2010* +10% +22% +34% +12% +19% And thanks to Valeo s capacity to: outperform its main markets * figures disclosed September 27, 2010 keep costs under strict control while maintaining the flexibility of the cost structure deploy as planned the new organization around 4 Business Groups Q3-10 Sales I 15 October 21, 2010

16 Valeo revises upwards its 2010 operating margin guidance 2nd half margin level higher than that of the 1st half (% of sales) Third quarter Increase in consolidated sales of 22% +16% like-for-like Third quarter and first nine months of the year Outperformance of OE sales vs global automotive production Outperformance of OE sales of the Business Groups Outlook for full-year 2010 Sales higher than 9.4 billion euros Operating margin level1 of 2nd half slightly higher than 1st half Free cash flow2 of around 400 million euros Net cash flow3 of around 340 million euros 1 Operating income less other income and expenses 2 Free cash flow corresponds to net operating cash flow less net disbursements on tangible/intangible assets. This indicator is therefore calculated before payment of interest payments. 3 Net cash flow corresponds to free cash flow less interest payments and after taking into account other financial flows Q3-10 Sales I 16 October 21, 2010

17 Contact Investor Relations Thierry Lacorre 43, rue Bayen F Paris Cedex 17 France Tel.: +33 (0) Fax: +33 (0) Web site: Q3-10 Sales I 17 October 21, 2010

18 Share Information Share Data Bloomberg Ticker Reuters Ticker ISIN Number Shares outstanding as per FR FP VLOF.PA FR ,209,617 ADR Data Ticker/trading symbol CUSIP Number Exchange Ratio (ADR: ord) Depositary Bank VLEEY OTC 1:2 J.P. Morgan Q3-10 Sales I 18 October 21, 2010

19 Back-up Q3-10 Sales I 19 October 21, 2010

20 Quarterly information in million Sales by segments Q1-10 Q2-10 Q3-10 Comfort and Driving Assistance Powertrain Systems Thermal Systems Visibility Systems Total sales 2,309 2,478 2,342 OE & aftermarket sales Q1-10 Q2-10 Q3-10 OE Sales 1,898 2,059 1,929 Aftermarket Miscellaneous Total sales 2,309 2,478 2,342 Q3-10 Sales I 20 October 21, 2010

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