1 CONTENTS I Valeo presents a demonstrator of its Automated Valet Parking at CES 2014 2 II Innovations for a more intuitive and intelligent driving experience 4 - Gaze detection-based eye control systems for easier driving 5 - BeamAtic PremiumLED for smart, glare-free LED headlights 5-100% LED lighting systems on the new Cadillac Escalade 6 III Strategy for innovation and growth 7 - A strategy focused on reducing CO 2 emissions and on innovation 7 - Valeo Innovation Challenge: an innovation contest open to students around the world 7 Appendix 11 - About Valeo - A few key dates 11 12
2 I Valeo presents a demonstrator of its Automated Valet Parking at CES 2014 Tomorrow s automobiles will handle a number of driving situations that people find bothersome. At the forefront of innovation, Valeo s research programs are committed to developing technologies for safer, more environmentally-friendly and more energy-efficient mobility. City-center congestion in industrialized and emerging countries is already prompting carmakers to offer semi-automatic driving systems. Each year, 10 million vehicles worldwide are fitted with Valeo s classic parking assistance solutions. Increasing traffic fluidity also concerns car parks and will lead to the emergence of new automated parking solutions. Valeo is anticipating this trend with the invention of its valet parking feature, which can be smartphone-activated. Automated Valet Parking Automated Valet Parking allows drivers to leave a car at the entrance of an outside or underground car park and let the car find a space and park by itself, by activating the remote automated parking system on their smartphones. At the begining, the car exchanges data with the infrastructure to learn about the closest parking space and the best way to it. The vehicle then will find the space fully autonomous, before maneuvering itself into the space using Valeo s existing fully automatic parking system, with no action required from the driver, who is notified when the process is complete. Similarly, the driver can use his or her smartphone to be picked up at the exit.
3 Thanks to this system, the driver is freed up to do something else while the car is parking itself. Over a year, the time saved by this innovation can add up to an entire week. The Automated Valet Parking demonstration at this year s CES goes much farther than the connected car: the solution offers complete autonomy, with no action at all required from the driver throughout the process. The driver can leave the car at the car park entrance and already do something more pleasurable while the car parks or unparks itself. With the Automated Valet Parking service application, the car finds a suitable space and parks by itself. The car also steers itself out of the space and returns to the exit to pick up the driver when instructed via smartphone. In this way, the driver can transform his or her vehicle into a smartphone-controlled valet parking service. The Automated Valet Parking solution uses ultrasonic sensors, cameras and unique laser scanner technology to detect any static or moving obstacle. The laser scanner allows the car to find its way by scanning its surroundings. As an option the onboard cameras send images directly to the driver s smartphone screen. With this camera view, the driver can remotely see the vehicle at any time during the maneuver. This revolutionary solution is safer, ensuring extreme precision and avoiding minor accidents. The laser scanner, twelve ultrasonic sensors around the car and four cameras allow the vehicle to determine its environment at all times, anticipate what is coming, and calculate a route to an available parking space. Outdoor demonstration Check out a demonstration vehicle with the Automated Valet Parking system CES Gold Lot Circuit
4 II Innovations for a more intuitive and intelligent driving experience Valeo s intuitive driving solutions: aligned with the mobility of tomorrow One of the Group s top priorities is to reduce CO 2 emissions while also improving driving quality. Attaining this dual objective involves the use of intuitive technologies or intelligent systems. Valeo is helping to make mobility of the future more intuitive though a portfolio of innovative products and solutions that use the latest technologies. These intuitive driving solutions make driving safer and more comfortable. Intuitive driving technologies are intended to meet three main objectives: make parking easier, improve driver safety and simplify interaction between the driver and the vehicle. By making cars more automated, intuitive driving will free the motorist from certain driving tasks because the vehicle is more intelligent, simpler to drive and more fuel efficient. In the future, the vehicle will be able to take over in tedious situations to allow the driver to do something else, in complete safety. Examples where autonomy can come in handy include parking, with Automated Valet Parking and advancing at low speed in traffic jams while remaining in the same lane. The Group is developing an extensive range of high-technology systems based on ultrasonic sensors, radar devices, cameras, laser scanners and software that allow the car to detect its environment. Similarly, Valeo s research investments focus on technologies that will enable the car and its passengers to remain constantly connected to their environment and infrastructure, in line with what a growing proportion of drivers want. Ever attentive to emerging motorist needs, Valeo is developing automated solutions to enhance safety in addition to driving comfort. The intuitiveness and safety of these functions are based on integrated connectivity techniques and on solutions that enable interaction with the driver. These intuitive driving solutions help reduce CO 2 emissions and also ease the flow of traffic through connected services or automatic driving systems.
5 Eye control systems Gaze detection technology can be used both to monitor driver alertness and activate controls, for a user interface that makes driving easier than ever before. At CES 2014, Valeo is presenting an infotainment system controlled by eye movement. With this system, controls on the dashboard or instrument cluster are activated when the driver looks at them. An animated display at the Valeo booth shows you how the driver and car interact using eye-tracking technology. Thanks to a gaze detection camera, the driver can change the radio station or get traffic information, for example, simply by looking at a control button on the instrument cluster or dashboard. When combined with Valeo s heads-up display (HUD) technology, which projects dashboard controls onto the windshield, this system allows motorists to activate a control without taking their eyes off the road. A compelling example of Valeo s intuitive driving solutions, eye-control technology helps make driving simpler and safer. In developing this technology for use in automobiles, Valeo is building on consumers growing experience with interactive digital media in their leisure time activities. Adapting gaze detection technology to automobiles opens the door to applications that go beyond activating controls; the system can also prove useful in monitoring driver behavior thanks to its eye-tracking camera. The system can monitor the driver's attentiveness, eye and eyelid movements, detect fatigue and intervene to alert the driver or automatically take control of the car, if necessary, in the event of an emergency. For Valeo, the challenge of the future lies in offering intuitive driving systems in which cars will interact with drivers in a completely natural way. Gaze detection is undoubtedly one of the technologies that will contribute to this future. BeamAtic PremiumLED for smart, glare-free LED lighting systems With fully automatic BeamAtic PremiumLED, drivers can keep their high beams on without blinding other motorists. The system s onboard camera, coupled with powerful image professing software, detects and locates other vehicles and then adjusts the high beams so that the entire road is lit, except for a shadowy area around the vehicle that is approaching or being approached. BeamAtic PremiumLED features all the advantages of LED lighting, including reduced electrical consumption, a working life that is considerably longer than that of the vehicle, lighting that is nearly the color of sunlight, design and styling flexibility.
6 Valeo has developed a range of BeamAtic Premium LED solutions to meet carmakers different design or functional requirements: Multi Beam reproduces the movement of the beams in the original xenon system, in which the entire beam is deflected around the detected vehicle to create a shadowy area. Sail Beam creates a beam of which only the upper part above the road is mobile. Dynamic Shadow positions a dynamic shadow area in the beam, which remains always centered on the road, offering unparalleled driving comfort. The system comprises a fixed module equipped with a mobile internal mask. Matrix Beam combines several dozen luminous pixels to form a beam. These pixels turn on and off independently, as vehicles are detected in the vicinity. The first three BeamAtic PremiumLED solutions will be seen on volume and premium vehicles starting in 2014, while Matrix Beam will be offered as standard equipment as from 2016. 100% LED lighting systems on the new Cadillac Escalade The brand new Cadillac Escalade, available in 2014 in the USA, will feature Valeo FullLED headlights. LED lighting systems make it possible to differentiate headlight styling more sharply and create a specific visual signature for a particular brand or model. They give Valeo engineers and automobile stylists more freedom to be creative and personalize vehicles. In addition, the lower electrical consumption of LED systems improves a vehicle s overall energy performance. LED lighting is twice as efficient as xenon and five times as efficient as halogen. For equivalent lighting, LED low beams consume only 12W, whereas halogen bulbs consume 65W. Given these figures, a vehicle with all-led cabin and exterior lighting would emit 2.8 grams per kilometer less CO 2 than a car with conventional bulbs.
7 III Strategy for innovation and growth Valeo s twofold strategy is to develop technologies that are innovative and reduce CO 2 emissions, and to expand geographically in Asia and emerging markets. Valeo s three key growth drivers are: innovating to create cars of the future; developing technologies and products which anticipated market trends; and establishing a presence in regions where the car industry of tomorrow is developing, namely in Asia and emerging markets. Technologies that reduce fuel consumption and carbon dioxide emissions should represent 75% of Valeo s growth between now and 2015. In 2012, order intake again reached a record level, rising to 15.8 billion compared with 14.9 billion in 2011. This growth is built on innovation, with new products accounting for 30% of the order book. In order to ensure growth, over 10% of original equipment revenue is allocated to research and development. The Group filed 722 patents and recruited 1,800 engineers in 2012. It now has almost 9,000 researchers in 56 different R&D centers. Valeo Innovation Challenge Valeo has launched the Valeo Innovation Challenge, a global contest open to engineering students around the world. Just 40 days left to go! Engineering students around the world have just 40 days left to take part in the global Valeo Innovation Challenge. Projects must be submitted to the contest s dedicated website by February 14, 2014. The goal of the Valeo Innovation Challenge is to design equipment that, between now and 2030, will make cars more intelligent and intuitive.
8 Students taking part in the challenge must develop bold, revolutionary solutions for the cars of 2030. So far, close to 200 teams from more than 30 countries around the world have signed up. On April 15, 2014, the 20 teams shortlisted by the Valeo experts will be named. Valeo will grant each team 5,000 to create a functioning prototype. The three teams that submit the most innovative projects will be chosen on September 17, 2014 to present their projects to a jury chaired by Jacques Aschenbroich, Valeo Chief Executive Officer, and comprised of members of the Group s senior management team, as well as eminent figures from the worlds of science and design. The jury will designate the winning team, which will receive 100,000, with the second and third-place teams each receiving 10,000. With the Innovation Challenge, Valeo is demonstrating once again that innovation and R&D are top priorities for the Group. Indeed, innovation guides the teams who are working each day to invent the automobiles of tomorrow. In 2013, for the second consecutive year, Valeo was featured in Thomson Reuters Top 100 Global Innovators ranking, reflecting the Group s commitment to innovation. Valeo was also awarded the Top Employers Europe label for 2013. Most of Valeo s research and development programs are focused on the design of technologies that reduce motor vehicle carbon emissions and promote intuitive driving. The company ranks among the leading patent filers in France and dedicates nearly 10% of its original-equipment revenue to Research and Development. With close to 9,000 researchers in 20 research centers and 36 development centers around the world, Valeo has developed an array of innovative products and technologies that represent more than 30% of orders. The Group plans to hire some 1,000 engineers and technicians a year over the next three years, including 400 in France. Four Business Groups Thanks to its sustained focus on R&D, Valeo is a world leader in almost all of its product lines. It is organized into four Business Groups: Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems.
9 Powertrain Systems The Powertrain Systems Business Group covers all activities related to the vehicle s powertrain. Its objective is to develop innovative solutions aimed at reducing fuel consumption and CO 2 emissions with three priority areas of focus: - Engine downsizing, with the development of an innovative electric supercharger concept. - Automation of transmissions with the development of automatic and dual clutch transmissions with eight or more gears. - Electrification of the powertrain with the widespread implementation of Stop-Start systems and the development of affordable hybrid solutions for all vehicle segments. In addition, innovative power electronics for plug-in hybrids and EVs are also being developed. In response to strict regulations regarding CO 2 emissions reduction, the technological solutions developed by the Powertrain Business Group help carmakers meet their consumption objectives while enabling the Group to benefit from the growth of the worldwide market, especially in emerging markets. The Business Group has a clear advantage given that it operates in all regions of the world: Europe, North and South America, as well as Japan, China, South Korea and India. Valeo s Powertrain Systems Business Group is a world leader in electrical systems and ranks second in transmission systems. It accounted for 3.2 billion, or 28%, of consolidated 2012 sales. Thermal Systems The Thermal Systems Business Group develops and produces solutions to manage the thermal energy of powertrains and optimize cabin comfort for the driver and passengers. It also provides innovative front-end modules. These solutions play a significant role in lowering fuel consumption, reducing polluting gases and harmful particulate matter from internal combustion engines and improving passenger comfort. In addition the Business Group s engineers have designed systems to improve hybrid and electric vehicles battery performance and to extend their life span.
10 This year, Thermal Systems leveraged its extensive customer portfolio, worldwide operations and innovative product launches to harness the very strong growth in emerging countries. The Business Group strengthened its overall position with its main customer, added a number of major Chinese companies to its customer portfolio and made further inroads in India and the ASEAN markets. With sales of 3.3 billion in 2012, Valeo s Thermal Systems Business Group accounted for 28% of the consolidated Valeo Group total and ranked second among suppliers of thermal energy management solutions. Comfort and Driving Assistance Systems The Comfort and Driving Assistance Systems Business Group develops systems that handle the interface between drivers, vehicles and the environment. It contributes to improving comfort and safety through intelligent driving assistance systems, while putting an emphasis on intuitive driving with solutions to enhance driving agility and smartphone-vehicle connectivity. Backed by a record order book in 2012 and both market and technological leadership (No. 1 in driving assistance and interior control systems), Comfort and Driving Assistance Systems is a key player in this segment and perfectly positioned to serve emerging markets. The Business Group generated sales of 2.5 billion in 2012, or 21% of the consolidated total. Visibility Systems The Visibility Systems Business Group develops and produces innovative lighting and wiper systems aimed at improving driving safety in adverse conditions. One key development driver of the Business Group is its contribution to CO 2 emissions reduction through systems that weigh less and are also more energy efficient. The Business Group offers a full range of wiping and lighting solutions that integrate the latest technologies. Valeo is among the major worldwide players in these segments, ranking number one in wiping systems and number two in lighting systems. The presence of Valeo s visibility systems in high-growth markets is a key factor for the success of the Business Group, which aims to strengthen its position in Asian markets. Visibility Systems generated sales of 2.7 billion in 2012, or 23% of the consolidated total.
11 Appendix About Valeo Ranked among the world's top automotive suppliers, Valeo is fully focused on the design, production and sale of components, integrated systems and modules for the car and truck industry in both the original equipment and replacement segments. It develops innovative technologies that provide optimal safety, enhanced driving comfort and greater energy efficiency. The Group offers solutions that reduce the consumption of internal combustion, hybrid and electric vehicles, as well as the weight and energy use of components. Valeo is comprised of four Business Groups (Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems), as well as Valeo Services in the aftermarket segment. Key figures 75,300 employees Operations in 29 countries 124 production facilities 12 distribution platforms 20 research centers 36 development centers 11.8 million in 2012 revenue, up 8.2% compared with 2011 10% of original equipment reinvested in R&D each year
12 A few key dates The early years: 1923-1961 Valeo s beginnings can be traced back to 1923, when Eugène Buisson, the French representative for Ferodo brake linings, opened workshops in Saint-Ouen (France) to manufacture his own brake linings and clutch facings under license. A few years later, he began manufacturing complete clutches. In 1932, the company was listed on the Paris stock exchange. On the eve of World War II, the company owned almost all clutch patents. Conquering Europe: 1962-1978 The company then made a series of acquisitions, created subsidiaries in Spain and Italy, built plants and became a key player in the modernization of automotive components. By acquiring Sofica and becoming a shareholder in Usines Chausson, the company was able to integrate a third core business thermal systems. The subsequent acquisition of SEV-Marchal enabled the company to incorporate electrical and then electronic activities. The electrical activity was later strengthened by the acquisition of Cibié-Paris-Rhône and Ducellier, making the company a major player in lighting. The birth of a brand and international expansion: 1980-1990 In 1980, the shareholders chose the name Valeo, which means I am well in Latin, to unite the different brands and teams under the same name. In 1987, the Group embarked on a major international expansion strategy. With the acquisition of Neiman and its subsidiary, Paul Journée, Valeo entered the security systems business and was able to strengthen its wiper and lighting activities. By acquiring the electrical systems business of ITT Industries, the company was able to assert its leadership in wipers and parking assistance systems. Technological innovation In the early 2000s, the Group became a world leader in parking assistance systems using ultrasonic sensors. At the same time, Valeo was the first to launch Stop-Start technology in the automobile industry. In 2004, the Group opened its first R&D center in China (Wuhan) dedicated to lighting. In 2005, Valeo acquired the Engine Electronics Division of Johnson Control, allowing the Group to strengthen its powertrain efficiency operations for cleaner, more efficient and more economical vehicles.
13 In 2011, Valeo acquired the Japanese automotive supplier Niles, becoming the world leader in the interior controls market. The Group s outlook for growth is excellent, and its key objective has not changed since 1923: to work closely with automakers with the goal of making vehicles cleaner, safer and more efficient.