Valeo Growth momentum 90 years of innovation

Valeo Growth momentum 90 years of innovation Jacques Aschenbroich Chief Executive Officer 1

Valeo Growth momentum In a deeply changing world and an accelerating automotive industry Serving our customers On the cutting edge of innovation A solid financial performance 2

Robust expansion in Asia and emerging markets 30% 25% Contribution of BRICS to global domestic product (GDP) BRICS 28% of global GDP 20% 15% China 17% of global GDP 10% 5% 0% 1980 1985 1990 1995 2000 2005 2010 2015 2020 Source: IMF World Economic Outlook, Goldman Sachs (current USD GDP) 4

Uneven economic growth North America: a return to growth Europe: toward protracted stagnation? Japan: a transitory renewal? South America: chaotic expansion 5

The war for talent and skills Number of engineering graduates per year ~200,000 a ~550,000 a ~ 2.2m b ~800,000 c a Source: BCG, Eurostat (includes engineering, manufacturing and construction) b Source: BCG, National Bureau of Statistics of China c Source: Engineering UK 6

A more volatile world Crude oil WTI ($/b) US natural gas ($/MMBTU) 140 120 100 14 12 10 10000 8000 Copper ($/MT) 2,5 2,4 2,3 2,2 80 60 40 20 0 8 6 4 2 0 ±75% 6000 4000 2000 0 1 USD => INR 2,1 2 1,9 1,8 1,7 1,6 ±75% 1,5 ±25% Oil and gas Copper Dollar/Brazilian real Market source 7

An accelerating automotive industry 110 World automotive production (in millions of units) +3.4%/year +4.5%/year 100 90 80 70 60 Source: LMC 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9

From mature markets to emerging markets and Asia Japan Eastern Europe Eastern Europe China Other Asia Other South America Mexico 3% 5% 4% 3% 17% 10% 2000 Source: Valeo automotive production 27% USA + Canada 29% Western Europe 74% Mature Markets Western Europe 37% Japan USA + Canada 14% 9% 14% Mexico 9% 2017 3% 5% South America 26% 17% China Other Asia Other 10

World automotive production in 2000 11

Vision 2030 15

Increase in number of models by brand 1992 2012 14 models 22 models 8 models 20 models Number of passenger car models 16

Priority focus on reducing CO 2 emissions while enhancing the pleasure of driving Increasingly tough emissions standards g CO 2 e/km 270 250 230 210 190 170 150 130 110 90 USA China Europe Japan 2000 2005 2010 2015 2020 2025 117 105 95 109 A priority for carmakers as well as consumers Simultaneously improving the driving experience Source: International Council for Clean Transportation 17

2012, a pivotal year Strong growth and margins for global players US auto industry comeback Europe challenged by shrinking demand and excess capacity North American divisions of US carmakers Operating margin (%) 15% 10% 5% 0% -40% -20% 0% 20% 40% 60% -5% -10% Growth (%) Global carmakers European carmakers* and European divisions Source: financial data * Mainly European carmakers 18

Valeo Growth momentum In a deeply changing world and an accelerating automotive market Serving our customers on growth drivers On the cutting edge of innovation A solid financial performance 19

A growth strategy built around two priorities CO2 Emissions reduction and innovation Asia and emerging countries With the goal of outperforming the market in each region 20

Serving our customers on growth drivers Hans-Peter Kunze Group Senior Executive Vice-President, Sales & Business Development 21

Growth in order intake far outpaces market Order intake ( bn) Automotive production (millions of units) Order intake +12% per year 16 14.9 15.8 140 14 12 10 8 6 4 7.7 9.7 10.0 10.1 9.2 12.5 120 100 80 60 40 Automotive production +3.6% per year 2 20 0 2005 2006 2007 2008 2009 2010 2011 2012 0 22

Growth in Valeo sales led by German and Asian carmakers Other 14% 20% Asian U.S. 18% Other 7% 28% Asian U.S. 17% French 25% 24% German French 18% 29% German 2007 2012 Original equipment sales by customer base 23

Growth in Valeo sales surging in Asia and emerging markets ~60% +13 pts 50% 2011 +4 pts 54% 2012 27% Asia 14% Eastern Europe 2017 vision 37% 2007 Asia & Emerging markets South America Mexico 5% 8% 8% 38% Western Europe United States Original equipment sales by manufacturing region 2012 24

Growth in Valeo sales surging in Asia and emerging markets Asia will account for 50% of Valeo s growth by 2015 In 2014, China will be the leading market alongside France 25

Growth in Valeo sales driven by our capacity for innovation 30% of order intake over the last three years coming from innovative products 26

Capacity for innovation recognized by our customers and by the market Example: orders for CO 2 emissions reduction solutions up 70% since 2009 Air Intake Module 2005 2009 2010 2012 Demonstrator vehicle Pre-Development Design & development, Customer financial contribution (prototypes, R&D) Product naming Series production Product Innovation Innovation Partnership with 27

Capacity for innovation recognized by our customers Example: orders for intuitive driving solutions up 130% since 2009 2011 2012 2015 What s next? 2015 Sept 2013 IAA Frankfurt Pre-development contract Product naming Application development Launch of series production a world first 28

Valeo Growth momentum In a deeply changing world and an accelerating automotive industry Serving our customers with a strong brand On the cutting edge of innovation A solid financial performance 29

Valeo is a strong brand Brand value is built on: Innovation Customer service Quality Operating performance Valeo is an innovative business - R&D effort up 50% from 2009 to 2012 - R&D > 10% OE sales and is perceived as such - Valeo ranks among the Top 100 most innovative companies in the world 30

Valeo is a strong brand Brand value is built on: Innovation Our surging order intake attests to customer confidence Customer service Quality Operating performance H1 H2 7.7 3.4 9.7 10.0 10.1 4.9 5.0 5.1 x 2 9.2 6.1 12.5 6.0 14.9 7.2 15.8 7.8 4.3 4.8 5.0 5.0 3.1 6.5 7.7 8.0 2005 2006 2007 2008 2009 2010 2011 2012 31

Valeo is a strong brand Brand value is built on: Innovation Continuous quality improvement Customer service Quality 32 0 km quality (parts per million) Operating performance 15 11 14 7 7 12 7 2 DEC 2005 DEC 2006 DEC 2007 DEC 2008 DEC 2009 DEC 2010 DEC 2011 DEC 2012 Objective The parts quality rate was 99.9993% at end-2012 32

Valeo is a strong brand Brand value is built on: Innovation Customer service Quality Operating performance A production system built on operating excellence THE 5 AXES FOR CUSTOMER SATISFACTION 33

An ambitious ethics and compliance program Training on antitrust and anticorruption provided to 13,000 employees, including all managers Procedures and resources deployed across the organization 34

A steadfast commitment to social and environmental responsibility Safety Environment Top Employer Diversity Reduction in lost-time accidents (Number of accidents with lost-time per million hours worked) Reduction in direct CO 2 emissions (t C0 2 e/sales in m) Percentage of women among new hires on permanent contracts 5,5-52% 2,64 16-31% 11 1,120,000 training hours in 2012 23% +40% 32% 2007 2012 2007 2012 2009 2012 35

Embracing individual diversity 36

Valeo Growth momentum In a deeply changing world and an accelerating automotive industry Serving our customers On the cutting edge of innovation: 90 years of innovation A solid financial performance 37

Innovative products that reduce CO 2 emissions Since 2009, order intake for CO 2 emissions reduction solutions has increased by over 70% Main drivers Examples of innovations Recent order intake Hybrid/electric Power electronics Range extenders Orders from American and OEMs European Stop-Start i-stars Restarter New order for i-stars from a Japanese OEM Combustion engine improvement Air intake module Launch with a European OEM Transmission improvement Dual clutch transmission Only supplier mastering all technologies Energy efficiency Full LED headlamps First Full LED headlamps for the Ford Mondeo and the Seat Leon 38

Intuitive solutions for uncompromised driving pleasure Since 2009, order intake for intuitive driving solutions has increased by around 130% Main drivers Examples of innovations Recent order intake Automated/connected car Park4U Remote Order from a European OEM Low-speed maneuvering 360Vue /mega pixel Launch from a European OEM Safe & intuitive HMI Multifunction Touchscreen Orders from European OEMs 39

A 1bn total R&D effort Innovation at Valeo: A 1bn total R&D effort More than 10% of OE sales 8,800 employees 1,300 engineers hired each year, of which 300-400 in France thanks to the research tax credit This is what makes Valeo a top global innovator 40

Cutting edge innovation: The electric supercharger Francine Laisney Research Project Manager 41

A world first Superchargers go electric A revolution compared with the conventional turbocharger: Instant boost response 300 milliseconds Reduces engine size and lowers engine RPM without sacrificing performance Cuts fuel consumption by 10% to 20% Currently being tested by our main customers 42

Increased performance with equivalent fuel consumption Acceleration improved by 27%* (*at equivalent consumption) 43

Valeo has returned to growth 14 12 10 8 Sales ( bn) -3.8%/year +28.4% 9.6 +12.8% 10.9 +8.2% 11.8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 45

Performance excluding Japanese OEMs in line with market North America (Detroit 3) OE sales** +17% Production +8% Outperf. +9pts* Europe OE sales** -3% Production -5% Outperf. +2pts* World (excl. Japan) OE sales +2% Production +2% Perf. 0pt* South America OE sales** -8% Production -1% -7pts* Asia OE sales** +14% Production +4% Outperf. +10pts* * Like-for-like ** Valeo sales by destination Note: Japanese car production heavily impacted by the 2011 earthquake Detroit 3 (excluding Japanese OEMs) Excluding Japanese OEMs 46

Valeo outperformed the market in all Asian countries but Japan Asia OE sales +8% Production +9% 26% of total sales -1pt* India OE sales** +17% Production +10% Outperf. +7pts* China OE sales** +16% Production +7% 40% of Asian sales Outperf. +9pts* South Korea OE sales** +8% Production -2% 20% of Asian sales Outperf. +10pts* Japan OE sales** -1% Production +20% 29% of Asian sales -21pts* 4% of Asian sales * Like-for-like ** Valeo sales by destination 47

Net income of 380m with EPS of 5.03 Excl. non-recurring items, net income came to 420m with EPS to 5.56 2011 2012 Sales ( m) 10 868 11 759 +8.2% Operating margin ( m) % of sales Other income and expenses ( m) % of sales Operating income ( m) % of sales Cost of net debt ( m) Other financial expenses ( m) Share of net earnings of associates ( m) 704 6.5% 0 0.0% 704 6.5% (71) (35) 2 725 6.2% (53) -0.5% 672 5.7% (103) (30) 14 +3.0% -0.3pt na -0.5pt -4.5% -0.8pt +45.1% -14.0% na Income before tax ( m) 600 553-7.8% Income tax ( m) Effective tax rate Loss from discontinued operations ( m) Non-controlling interests and other ( m) Net income for the year ( m) % of sales Net income excl. non-recurring items ( m) % of sales (148) 25% (1) (24) 427 3.9% 427 3.9% (146) 27% (2) (25) 380 3.2% 420 3.6% -1.4% +2pts na na -11.0% -0.7pt -1.6% -0.3pt Earnings per share ( ) 5.68 5.03-11.4% Earnings per share excl. non-recurring items ( ) 5.68 5.56-2.1% Out of which Access Mecanism capital loss and carve out costs of 49m & restructuring of 11m 48

A top automotive equipment industry performer Above average growth over the past five years Above average ROCE for 2012 130 Growth in sales base of 100 in 2008 120 110 100 90 80 70 60 50 2008 2009 2010 2011 2012 50% ROCE 40% 30% 20% 10% 0% -10% -20% 2008 2009 2010 2011 2012 Panel of 22 direct competitors 7 European 14 US 1 Japanese Valeo Average Second and third quartiles 49

Four business groups with balanced performance Change in EBITDA margin per business group 14% 12% 10% 8% 6% 2008 2009 2010 2011 2012 % of sales 2012 Comfort & Driving Assistance 11.9% Powertrain 10.1% Thermal 11.5% Visibility 8.0% Consolidated EBITDA: 1,260m (10.7% of sales) 50

Investment increased to 879m to support growth m Tangible Capex (% of sales) 717 +23% 879 5% 5.4% 540 Tangible Capex 635 2011 2012 Increase in capitalized R&D driven by improving profitability of order book (% of sales) 177 Capitalized R&D 244 2011 2012 1.6% 2.1% 2011 2012 51

Free cash flow of 81m After investment and the impact of the European downturn on working capital ( m) 2011 2012 EBITDA 1,212 1,260 Operating working capital (29) (49) o/w impact of European downturn (66) Restructuring costs (52) (37) Other operating expenses (incl. taxes) o/w: Taxes Pensions (233) (169) (70) (236) (186) (60) Net cash from operating activities 898 938 Investment outlays (incl. capitalized R&D) (666) (857) Free cash flow (before interest payments) 232 81 Net interest expense (57) (66) Other financial items (402) (195) Net cash flow (227) (180) Net debt 523 763 Out of which tangible Capex of (613)m & capitalized R&D of (244)m Out of which dividend payment to stockholders of 106m & acquisition of minority interests in China JV of 52m 52

A solid financial structure to support growth Investment Grade rating affirmed by Moody s and Standard & Poor s 2,052 763 1,260 763 In m at December 31, 2012 * Excluding non-controlling interests Dette Net debt nette EBITDA Ebitda Leverage: 0.6x Dette Net debt nette Capitaux Equity propres Gearing: 37% 53

Strong liquidity position To cope with an uncertain European financial environment m 2 750 2 500 2 250 2 000 1 750 1 500 1 250 1 000 750 500 250 Liquidity: Cash and cash equivalents: 1.3bn Undrawn credit lines: 1.2bn Average maturity: 3.3 years Cash and cash equivalents Undrawn credit lines EMTNs EIB financing Syndicated loan 0 2013 2014 2015 2016 2017 2018 54

2013 outlook Based on the following market assumptions for FY 2013: Automotive production: Europe: - 4% World: + 1% Raw material prices in line with 2012 levels Valeo has set the following objectives for 2013: Performance higher than the market in each of the main production regions Assuming an upturn in the European market in the second half of 2013, operating margin in line with 2012 (in m), despite a decline in the first half of the year as a result of market conditions 55

Valeo s medium-term objectives A strategy that is paying off Reflecting the record order intake of the past few years driven by: a portfolio of innovative products expansion in Asia and emerging countries 2010-2012 profitability objectives achieved despite economic slowdown in Europe Valeo is less dependent on the European market to meet its objectives: Annual sales growth 3 percentage points above the market rate on average Medium-term operating margin above 7% Return on capital employed in the region of 30% Taking into account the additional investments required to support the increase in order intake, the Group has set as its priorities to generate positive free cash flow and maintain a solid financial position 56

The Valeo share has outperformed all the indices since January 1, 2013 Compared with the major indices since December 31, 2012 VALEO +38% DJ US AUTOPARTS +22% DJ Industrials +16% DJ STOXX AUTO +11% DAX +9% SBF 120 +8% CAC 40 +8% * Closing share price on June 04, 2013 57

The Valeo share has outperformed all the indices since before the crisis Compared with the major indices since December 31, 2007 VALEO +84% DJ US AUTOPARTS +27% DJ Industrials +14% DJ STOXX AUTO +9% DAX +3% SBF 120-25% CAC 40-30% * Closing share price on June 04, 2013 Valeo share price at highest level since 2001 58

Valeo to increase the dividend 2011 2012 1.40 per share +7% 1.50 per share Payout ratio 25% +5 points Payout ratio 30% 59