Q3-2010 Sales Jacques ASCHENBROICH CEO October 21, 2010
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
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 5.1 5.1 4.3 4.3-16% 0% Asia 6.8 7.0 7.9 9.0 +32% +15% North America 3.5 3.0 2.3 3.0-14% +26% South America 1.0 1.1 1.0 1.1 +10% +11% Worldwide 16.4 16.2 15.5 17.4 +6% +12% * JD Power estimates Q3-10 Sales I 3 October 21, 2010
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
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 366 17% 337 16% 307 16% 359 15% +14%* Miscellaneous as % of sales 42 1% 62 3% 51 3% 54 3% -3%* Sales 2,217 2,079 1,913 2,342 +22% Sales at same perimeter & exchange rates +16%* *At same perimeter and exchange rates Q3-10 Sales I 5 October 21, 2010
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
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
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
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
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 2009 2010 * In % of light vehicle OE sales Q3-10 Sales I 10 October 21, 2010
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%* 345 418 489 625 Q3-09 Q3-10 Q3-09 Q3-10 OE sales +14%* Sales +15%* Sales +9%* Thermal In M In M Visibility OE sales +12%* 604 735 491 547 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
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 1,969 2009 2010 2009 2010 Thermal OE sales +30%* In M In M Sales +28%* Visibility Sales +23%* OE sales +30%* 1,616 2,182 1,395 1,733 2009 2010 2009 2010 * At same perimeter and exchange rate ** JD Power light vehicle production estimates Q3-10 Sales I 12 October 21, 2010
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** 2009 2010 * Excluding Nissan ** Including Nissan Q3-10 Sales I 13 October 21, 2010
Outlook 2010 Q3-10 Sales I 14 October 21, 2010
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
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
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 Q3-10 Sales I 17 October 21, 2010
Share Information Share Data Bloomberg Ticker Reuters Ticker ISIN Number Shares outstanding as per 30.09.2010 FR FP VLOF.PA FR 000130338 78,209,617 ADR Data Ticker/trading symbol CUSIP Number Exchange Ratio (ADR: ord) Depositary Bank VLEEY 919134304 OTC 1:2 J.P. Morgan Q3-10 Sales I 18 October 21, 2010
Back-up Q3-10 Sales I 19 October 21, 2010
Quarterly information in million Sales by segments Q1-10 Q2-10 Q3-10 Comfort and Driving Assistance 408 440 418 Powertrain Systems 636 708 625 Thermal Systems 693 754 735 Visibility Systems 591 595 547 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 351 371 360 Miscellaneous 60 48 53 Total sales 2,309 2,478 2,342 Q3-10 Sales I 20 October 21, 2010