A SUCCESSFUL TRANSFORMATION - Valeo...SYSTEM COMPONENT SOFTWARE 18% CAGR 2019-2022 1 OUT OF 4...

JACQUES ASCHENBROICHCHAIRMAN & CHIEF EXECUTIVE OFFICER

A SUCCESSFUL TRANSFORMATION

A SUCCESSFULTRANSFORMATION

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A SUCCESSFUL TRANSFORMATION

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~5 PTS SALES OUTPERFORMANCE

FOCUS ON PROFIT & CASH

WE CREATED #1 POSITIONIN ELECTRIFICATION AND ADAS

THANKS TO 12 NEW KEYTECHNOLOGICAL PLATFORMS

EXPANDING OUR COMPETITIVE EDGE THROUGH HIGH BARRIERS TO ENTRY

LEADING TO A STRONG INCREASEOF OUR CONTENT PER CAR

A SUCCESSFUL TRANSFORMATION

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IN ELECTRIFICATION IN ADAS

2 OUT OF 3EUROPEAN OEMs HV LAUNCHES IN 2019-2022 EQUIPPED WITH

OUR HV SOLUTIONS

1 OUT OF 4PRODUCED VEHICLES IN 2019

EQUIPPED WITH OUR ADAS SOLUTIONS

#1 #1

WE HAVE INVESTED TO CREATE UNIQUE TECHNOLOGICAL PLATFORMSWITH HIGH BARRIERS TO ENTRY

ELECTRIFICATION

High voltage

HEAT PUMP

E-THERMALINTERIOR

BATTERY COOLING

E-thermal

DCDC

E-MACHINE& E-AXLE

48V

DRIVER MONITORING

FRONT CAMERA

AUTONOMOUS POD

LIDARSCALA®

ON-BOARD CHARGER

INVERTER

E-MACHINE& E-AXLE

5

ADAS

6

MARKET PUSHES TOWARDS

ELECTRIFICATION

SAFER MOBILITY

SMART MOBILITY

MARKET PUSHES TOWARDS

ELECTRIFICATION

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MARKET PUSHES TOWARDS ELECTRIFICATION

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REGULATIONSPUSH

CITIES ARE NEW REGULATORS

OFFER IS READY CONSUMERSINCREASINGLY OPEN

~1 millionelectric cars in EUin 2020 to avoidCO2 penalties

700city access regulationsin UE

>300new xEV modelsuntil 2024

42%of consumers would consider an EV for their next car

SOURCE: www.urbanaccessregulations.euMcKinsey ACES survey 2019

MARKET PUSHES TOWARDS ELECTRIFICATION

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- CO2- DIESEL

=+ ELECTRIFICATION

MARKET PUSHES TOWARDS ELECTRIFICATION FOR BOTH 48V & HIGH VOLTAGE SOLUTIONS

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HIGH VOLTAGE ELECTRIFICATION**

48V ELECTRIFICATION*

INTERNAL COMBUSTION ENGINE

84%

7% 9%

2020

26%

34%40%

2030

55%

23% 22%

2025

* Incl. 48V and 12V+12V** Incl. HV BEV, PHEV, FCEV & FHEVSource: IHS McKinsey Valeo estimation

45%74%

16%

WE HAVE DEVELOPED SUCCESSFULNEW KEY TECHNOLOGICAL PLATFORMS ALREADY IN SOP IN 2019

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48V ELECTRIFICATION

HIGH VOLTAGEELECTRIFICATION

* Incl. 48V and 12V+12V** Incl. HV BEV, PHEV, FCEV & FHEV

E-THERMAL SOLUTIONS

CUMULATED OI

7.5bn€

CUMULATED OI

11bn€

CUMULATED OI

2bn€

CONTENT PER CAR RATIO

X2

CONTENT PER CAR RATIO

X9

CONTENT PER CAR RATIO

X21/3EUROPEAN OEMS HV LAUNCHES IN 2019-2022EQUIPPED WITH OUR HV E-THERMAL SOLUTIONS

1/2EUROPEAN OEMS HV LAUNCHES IN 2019-2022EQUIPPED WITHHV VSEA SOLUTIONS

>40% MARKET SHARE 48V IN 2022

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MARKET PUSHES TOWARDS

SAFER MOBILITY

TOWARDS A SAFER MOBILITY

1.35 million people die

in traffic accidents every year,as if an Airbus A320 with 150 people on board was crashing every hour of every day, every month in the year

J. KRAFCIK (Waymo CEO)

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MARKET PUSHES TOWARDS SAFER MOBILITY

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REGULATION TECHNOLOGY CONSUMER PUSH SOCIETAL GOAL

Active safety push Technology is ready

50% of consumers recognize High safety standards as biggest driver

No fatalities or serious injuries through road accidents

SOURCE: McKinsey ACES survey 2019

SAFER MOBILITY WILL BE DRIVING ADAS MARKET GROWTH

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3TYPES OF SENSORS

€2 000

4TYPES OF SENSORS

€10 000+

CAMERA

RADAR

LIDAR

CAMERA

RADAR

LIDAR

THERMALIMAGING

ADAS AD

LEVEL 3CONDITIONALAUTOMATION

LEVEL 4HIGH

AUTOMATION

LEVEL 2ADVANCED PARTIAL

AUTOMATIONLEVEL 2+

CONTENT PER CAR

1TYPE OF SENSORS

UP TO

€200

2TYPES OF SENSORS

€500

CAMERA OR RADAR CAMERA

RADAR

LEVEL 2ADVANCED PARTIAL

AUTOMATION

LEVEL 1DRIVER ASSISTANCE

ADAS

3TYPES OF SENSORS

3TYPES OF SENSORS

CAMERA

RADAR

LIDAR

€2 000

A FAST GROWING MARKET

2019 2022 2030

10-12 bn€ 15-20 bn€ 35-40 bn€

Park Assist only

3-star NCAP

5-star NCAPLevel 2

Level 3Park Assist only

3-star NCAP

5-star NCAP

Level 2+

Level 2

3-star NCAP

5-star NCAP

Level 2

Level 2+

Level 3

Level 4

Driverless

Level 2+

Driverless

Park Assist only

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WE BUILT SUCCESSFUL PLATFORMS FOR ADAS

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CUMULATEDORDER INTAKE 2017-2019

>€11Bn

~€3.2BnSALES IN 2022

SYSTEM

COMPONENT

SOFTWARE

18%CAGR2019-2022

1 OUT OF 4PRODUCED VEHICLES IN 2019

EQUIPPED WITH OUR ADAS SOLUTIONS

WE BUILT SUCCESSFUL PLATFORMS FOR ADAS

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CUMULATEDORDER INTAKE 2017-2019

>€11Bn

~€3.2BnSALES IN 2022

18%CAGR2019-2022

19

MARKET PUSHES TOWARDS

SMART MOBILITY

MARKET PUSHES TOWARDS SMART MOBILITY

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MOBILITY NEEDS ARE INCREASING

DIFFERENT BUSINESS MODELS EMERGE

INVESTMENT FLOW IS INCREASING IN DIGITAL MOBILITY

ROBOTAXIS ARE A REALITY

PKT* is expected to grow by

30%between2010 & 2050

$35Bninvested in 2018 in venture transportation technology

*PKT: PASSENGER x KM TRAVELLED

source : McKinsey ACES Survey 2019

46% of US vehicle tripsare < 5km

Waymo launchedfirst rides in Phoenix without safety drivers

SMART MOBILITY OFFERS MANY OPPORTUNITIESTO LEVERAGE OUR PLATFORMS

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LAST MILE DELIVERY E-MICROMOBILITY ROBOTAXIS ROBOSHUTTLES

FIRST ORDERS FIRST ORDERS FIRST ORDERSCOOPERATIONS

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INCREASING IN EBITDA

>15%

EBITDAIN % OF SALES

2019*

EBITDAIN % OF SALES2022

*estimated 2019

12.8%

DOUBLING OUR FREE CASH FLOW

GENERATION

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CHRISTOPHE PERILLATCHIEF OPERATING OFFICER

A SUCCESSFUL TRANSFORMATION

27

VALEO DELIVERS LEADING SOLUTIONS & SYSTEMS IN

ELECTRIFICATION

HIGH VOLTAGE ELECTRIFICATION: GROWTH IS THERE

€11Bn ORDER INTAKE28

2017

BMW 5.30e

LEV TX5

BAIC EU400

Renault Master ZE

Cadillac XT5

GMC SierraChevrolet Silverado

2013 2014 2015 20162012

Volvo V60 BMW i3Volvo XC90

Renault ZOE

BMW 3.30e

Smart For2

Smart For4

Chevrolet Malibu

Renault Kangoo ZE

GAC Trumpchi GE3

2018

eGO Life

Volvo XC60

Volvo S90

Volvo V90

DS7 Crossback e-tense

Peugeot 3008

Opel GrandLand X

BAIC C10

Tata Nexon

Renault Clio

Land Rover Discovery

Renault ZOE2

Renault Captur

2020 and Beyond

VW ID3

And 60 more to come

Launches on

90 vehicles

up to 2022

VALEO-SIEMENS IS ACCELERATING

2019 29

48V e-MACHINE PLATFORM

Key enablerFor CO2 reduction

>40%Market Share in 2022

>300 000Machines shipped

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NEXT GENERATIONS ARE BASED ON THE SAME PLATFORM

Starter Generator4-12 kW

Full Electric rear axle25 kW

Electric motor 15 kW 31

SMART e-MOBILITY BASED ON 48V PLATFORM

Same 48V e-motor32

WE ARE ALREADY ENTERING SMART e-MOBILITY MARKET

SOP

Q1 2020

SOP

Q2 2020

SOP

Q3 2020 Expected in 2021

EuropeanOEM

EuropeanOEM

IndianOEM

33

WE ARE ALREADY ENTERING SMART e-MOBILITY MARKET

ELECTRIFICATION KITS

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35

VALEO DELIVERS LEADINGSOLUTIONS & SYSTEMS FOR

SAFER MOBILITY

THE BROADEST SENSOR PORTFOLIO ON THE MARKETFOR EXTERIOR AND INTERIOR COCOONS

INTERIOR COCOONDriver and cabin monitoring

EXTERIOR COCOONPerception and Situational Awareness

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Adversarial Entropy minimization forUnsupervised Domain Adaptation

Introducing WoodScapeMulti-sensor multi-task fisheye dataset

Confidence Estimation in Deep Learning

ARTIFICIAL INTELLIGENCE IS POWERING VALEO’S PERCEPTION SYSTEMS

200+ AI Experts

LIDAR SCALA® PLATFORM

Key enabler for safe automated driving

>100 000 Valeo SCALA® shipped

€500mioorder intake

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LIDAR SCALA® PLATFORM

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SCALA 3 NEAR FIELD LIDARSCALA 1 SCALA 2

LIDAR IS A KEY ENABLER FOR SAFE AUTOMATED DRIVING

Valeo SCALA®

can detect

overhead objects

road debris

road markings

offset static objects

FRONT CAMERA PLATFORM

World’s 1stStand-alone

SAE Level 2 in 2019

>€4bn order intake since 2017

50model launches in 2019/2020

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VALEO’S SMART FRONT CAMERA LEVEL 2 ADAS SYSTEM

Honda’s Fit abolishesmillimeter-wave radar,changed from Bosch to Valeo

Computer Vision Adaptive Cruise Control

Vehicle Steering/BrakingLane Centering System

Automatic Emergency BrakingPeripherals

Host Computer

Communication

Developed / integrated by Valeo

Camera Frontend

Nikkei Automotive Technology2019, October 1st

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SURROUND VIEW CAMERA PLATFORM

4

4

12%camera CAGR 2019-2022

35%market share in 2019

XtraVue Trailersystem launched in 2019

INTUITIVE AND FUN TO USE...

45

DRIVER MONITORING PLATFORM

SelfieFunction

for 2021 SOP

World’s 1st

A-pillar Driver Monitoring System

World’s 1st

EmotionDetection System

46

ENSURING AVAILABILITY OF SERVICE THROUGH AUTOMOTIVE GRADE QUALITY

WE ARE A KEY PARTNER TO NEW MOBILITY PLAYERS

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J. KRAFCIK (Waymo CEO) - IAA 2019

« …Proud to count Valeo as a partner… »

WE ARE A KEY PARTNER TO NEW MOBILITY PLAYERS

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50

VALEO DELIVERS LEADING SOLUTIONS & SYSTEMS IN

SMART MOBILITY

SMART SOLUTIONS PROVIDING IMMERSIVE EXPERIENCE

Come & see our teleportation experience on the Strip 51

SMART SOLUTIONS PROVIDING IMMERSIVE EXPERIENCE

Come & see our teleportation experience on the Strip 52

BUT SMART MOBILITYIS MORE THAN CARS

5353

LEVERAGING OUR PERCEPTION PLATFORMSFOR NEW USE CASES

INTRODUCING eDELIVER4U

ELECTRIC AUTOMATED DELIVERY BY VALEO

VALEO ELECTRIFICATION & MOBILITY KITS AVAILABLE

CONTINUOUS

INNOVATION

AUTOMOTIVE QUALITYON-THE-SHELF

OFFER

COMPETITIVE

PRICE

MOBILITY KITS

THE BEGINNING

IT IS JUST

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