ASUCCESSFULTRANSFORMATION

JACQUES ASCHENBROICHCHAIRMAN & CHIEF EXECUTIVE OFFICER

AGENDA

4

11H00 - 13H00A SUCCESSFUL TRANSFORMATION

11H00 - 11H30 : JACQUES ASCHENBROICH - A SUCCESSFUL TRANSFORMATION11H30 - 11H45 : HANS-PETER KUNZE - PLATFORMS DRIVE OUR CONTENT PER CAR INCREASE 11H45 - 12H10 : CHRISTOPHE PERILLAT - DRIVING THE PERFORMANCE12H10 - 12H30 : ROBERT CHARVIER - FOCUS ON PROFIT & CASH GENERATION12H30 - 13H00 : Q&A

13H00 – 13H45LUNCH

13H45 - 15H45FOCUS ON NEW TECHNOLOGICAL PLATFORMS

13H45 - 14H50 : XAVIER DUPONT & MICHEL FORISSIER - LEADERSHIP IN ELECTRIFICATION14H50 - 15H55 : MARC VRECKO & JOACHIM MATHES - LEADERSHIP IN ADAS15H55 - 16H20 : WRAP-UP

16H20 - 18H00SHOWROOM VISIT

5

JACQUES ASCHENBROICH

ROBERT CHARVIER

CHRISTOPHE PERILLAT

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

CHIEF FINANCIAL OFFICERCHIEF OPERATING OFFICER

HANS-PETERKUNZE

EXECUTIVE VICE PRESIDENT,SALES & BUSINESS DEVELOPMENT

6

XAVIER DUPONT

MARC VRECKO

MICHEL FORISSIER

POWERTRAIN SYSTEMS BUSINESS GROUP

PRESIDENT

COMFORT & DRIVING ASSISTANCE SYSTEMS BUSINESS GROUP

PRESIDENT

POWERTRAIN SYSTEMS CHIEF TECHNICAL OFFICER

JOACHIM MATHES

COMFORT & DRIVINGASSISTANCE SYSTEMS

CHIEF TECHNICAL OFFICER

FRANÇOISBORDES

THERMAL SYSTEMS BUSINESS GROUP CHIEF TECHNICAL

OFFICER

CHRISTOPHE LE LIGNÉ

VISIBILITY SYSTEMSCHIEF TECHNICAL OFFICER

FRANCISCOMORENO

THERMAL SYSTEMS BUSINESS GROUP PRESIDENT

MAURIZIO MARTINELLI

VISIBILITY SYSTEMS BUSINESS GROUP PRESIDENT

ERIC SCHULER

VALEO SERVICE PRESIDENT

BRUNOGUILLEMET

SENIOR VICE-PRESIDENT,HUMAN RESOURCES

THIERRY LACORRE

FINANCIAL RELATIONS DIRECTOR

ERIC ANTOINE FREDETTE

GENERAL COUNSEL

GEOFFREY BOUQUOT

CORPORATE STRATEGY AND EXTERNAL RELATIONS

VICE-PRESIDENT

FABIENNE DE BRÉBISSON

COMMUNICATIONVICE-PRESIDENT

CATHERINE DELHAYE

CHIEF ETHICS ANDCOMPLIANCE OFFICER

7

JEAN-FRANÇOIS TARABBIA

GROUPCHIEF TECHNICAL OFFICER

A SUCCESSFULTRANSFORMATION

8

A SUCCESSFUL TRANSFORMATION

9

~5 PTS SALES OUTPERFORMANCEFOCUS 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

10

#1IN ELECTRIFICATION

#1IN 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

OVERPERFORMING MOST OF OUR PEERSIN GROWTH AND EBITDA

11

100

116

132130

100 100

115111

2015 2016 2017 2018

Peers includes Bosch Auto, Denso, Continental Auto excl. tyres, ZF, Magna, AptivSource : Capital IQ, Peers publications

Sales Growth (base 100 – 2015) EBITDA evolution (base 100 – 2015)

100

114

127131

100

108

117121

100104

107 106

2015 2016 2017 2018

ValeoCAGR: +9%

Valeo PeersCAGR: +7%

WW Auto. Prod.CAGR: +2%

ValeoCAGR: +9%

Valeo PeersCAGR: +4%

12

WE HAVE INVESTED TO CREATE UNIQUE TECHNOLOGICAL PLATFORMS WITH HIGH BARRIERS TO

ENTRY

1.2

0.7

-0.5

TRADITIONAL PRODUCTS

NEW KEY TECHNOLOGICAL

PLATFORMSVALEO

Cumulated Free Cash Flow 2017-2019 (€bn)

*

* only Valeo

13

THOSE NEW KEY TECHNOLOGICAL PLATFORMSARE OUR MAIN DRIVER FOR FUTURE GROWTH AND

OUTPERFORMANCE OF THE MARKET

1.2-0.5

Cumulated Free Cash Flow 2017-2019 (€bn)

€2.6bn

2022FREE CASH FLOW

BREAKEVEN

ADDITIONALSALES 2022

0.7

*

* only ValeoTRADITIONAL

PRODUCTSNEW KEY

TECHNOLOGICAL PLATFORMS

VALEO

14

VALEO SIEMENS e-AUTOMOTIVE HAS INVESTED TO CREATE UNIQUE TECHNOLOGICAL PLATFORMS

WITH HIGH BARRIERS TO ENTRY

Cumulated Free Cash Flow 2017-2019 (€bn)

-1.2*

* financing 50% Valeo 50% Siemens

15

VALEO SIEMENS e-AUTOMOTIVETHE EMERGENCE OF A LEADER

€1.4bn

8%EBITDA 2022

SALES 2022

>€2.0bnSALES 2024

>12%EBITDA 2024

2022FREE CASH FLOW

BREAKEVEN

Cumulated Free Cash Flow 2017-2019 (€bn)

-1.2

-1.2*

* financing 50% Valeo 50% Siemens

ONGOING NEGOTIATION ON NEW PROJECTS AND RENEWALS

ADASELECTRIFICATION

WE HAVE INVESTED IN 12 NEW KEY TECHNOLOGICAL PLATFORMSTO CREATE AND COMPLETE A UNIQUE PRODUCT PORTFOLIO

IN ELECTRIFICATION AND ADAS

16

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

EXPANDING OUR COMPETITIVE EDGE THROUGH HIGH BARRIERS TO ENTRY

17

CUSTOMER PROJECT

GROSS R&D EXPENDITURE1ST PROJECT BASE 100

0.

25.

50.

75.

100.

1 2 3 4 5

HIGHLY STANDARDIZED HARDWARE & SOFTWARE PLATFORMS

WE LEVERAGE OUR 12 NEW KEY TECHNOLOGICAL PLATFORMSFOR EACH NEW PROJECT

18

MARKET PUSHES TOWARDS

ELECTRIFICATIONSAFER MOBILITYSMART MOBILITY

MARKET PUSHES TOWARDS ELECTRIFICATION

19

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

20

52%50%

45%

37%

32%

2015 2016 2017 2018 09 2019YTD

% OF DIESEL TAKE RATE IN EUROPEUE C02 EMISSIONS REDUCTION PROPOSAL (g/km)

- CO2- DIESEL

=+ ELECTRIFICATION

2015

95

2020 203020252016 2017

117

59

<-27%ACTUAL OEM CO2 EMISSIONS

2018

CO2 REDUCTION SCHEMES

-37.5%

130~118

120

2019

118

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

21

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

22

48V ELECTRIFICATIONCONTENT PER CAR RATIO

X2CUMULATED OI

7.5bn€

HIGH VOLTAGEELECTRIFICATION

CONTENT PER CAR RATIO

X9CUMULATED OI

11bn€* Incl. 48V and 12V+12V** Incl. HV BEV, PHEV, FCEV & FHEV

E-THERMAL SOLUTIONS

CONTENT PER CAR RATIO

X2CUMULATED OI

2bn€

>40%market share 48V in 2022

1 OUT OF 3EUROPEAN

OEMs HV LAUNCHES IN

2019-2022EQUIPPED

WITH OUR HV e-thermal

SOLUTIONS

1 OUT OF 2EUROPEAN

OEMs HV LAUNCHES IN

2019-2022EQUIPPED

WITH HV VSeA SOLUTIONS

MARKET PUSHES TOWARDS SAFER MOBILITY

23

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

24

1TYPE OF SENSORS

UP TO€200

2TYPES OF SENSORS

€500

3TYPES OF SENSORS

€2 000

4TYPES OF SENSORS

€10 000+CONTENT PER CAR

CAMERA OR RADAR CAMERA

RADAR

CAMERA

RADAR

LIDAR

CAMERA

RADAR

LIDAR

THERMALIMAGING

LEVEL 2ADVANCED PARTIAL

AUTOMATION

ADAS AD

LEVEL 1DRIVER

ASSISTANCE

LEVEL 3CONDITIONALAUTOMATION

LEVEL 4HIGH

AUTOMATION

2TYPES OF SENSORS

€500

LEVEL 2ADVANCED PARTIAL

AUTOMATIONLEVEL 2+

LIDAR

CAMERA

RADAR

3TYPES OF SENSORS

€2 000

WE BUILT SUCCESSFUL PLATFORMS FOR ADAS

25

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

26

CUMULATEDORDER INTAKE 2017-2019

>€11Bn

~€3.2BnSALES IN 2022

18%CAGR2019-2022

MARKET PUSHES TOWARDS SMART MOBILITY

27

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 TRAVELLEDsource : 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

28

LAST MILE DELIVERY E-MICROMOBILITY ROBOTAXIS ROBOSHUTTLES

FIRST ORDERS FIRST ORDERS FIRST ORDERSCOOPERATIONS

29

WE ARE READY TO LEVERAGE OUR NEW KEY TECHNOLOGICALPLATFORMS IN A CHALLENGING ENVIRONMENT

29

PESSIMISTIC SCENARIOCAGR 2019-2022: +1%

BASE SCENARIO (IHS MARKIT)CAGR 2019-2022: +2%

WORLDWIDEAUTOMOTIVE PRODUCTION (M vehicles)IHS Markit November 2019Excluding LCV China

~88

2016 2017 2018 2019 2020 2021 2022

88.6

91.090.3

85.1 85.5

90.7

30

~5PTS SALES OUTPERFORMANCE2020 – 2022

+6pts

+4pts

+0pt+1pts

+4pts

+8pts

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Q3 2019

Back to outperformance

STRONG INCREASEOF OUR

CONTENT PER CAR

~5PTS SALES OUTPERFORMANCE

31

SILVERADO 208 GOLF 8 ID.3**

X3.4 X4.5

STRONG INCREASE OF OUR CONTENT PER CAR*

*Ratio : Valeo + VSeA (average content per car new vehicle )/(average content per car previous generation)**Ratio : Valeo + VSeA (average content per car ID.3)/(average content per car Golf 7)

X1.6

SOP 2019SOP 2019SOP 2019SOP 2019

e-208

X1.3 X2.9

32

LEVERAGING OUR NEW KEY TECHNOLOGICAL PLATFORMSTO REDUCE OUR GROSS R&D EXPENDITURE

Gross R&D expenditure(In percentage of sales)

2016 2017 2018 2019 2020 2021 2022 2023 2024

9.5%

10.8% 10.6%*

9.4%

*estimated 2019

33

LEVERAGING OUR NEW KEY TECHNOLOGICAL PLATFORMSTO OPTIMIZE CAPITAL EXPENDITURE

2016 2017 2018 2019 2020 2021 2022 2023 2024

CAPITAL EXPENDITURE(In percentage of sales)

5.6%5.9%*

7.1% 7.0%

6.0%

*estimated 2019

34

INCREASING IN EBITDA

>15%EBITDA

IN % OF SALES2019*

EBITDAIN % OF SALES2022

*estimated 2019

12.8%

35

DOUBLING OUR FREE CASH FLOW GENERATION

€[1.3-1.5]bn

CUMULATEDFREE CASH FLOW

2017-2019*

CUMULATEDFREE CASH FLOW2020-2022

*estimated 2019

€0.7bn

36

DOUBLING OUR FREE CASH FLOW GENERATION

CUMULATEDFREE CASH FLOW

2020-2022

MAINTAIN DIVIDEND POLICY

SUPPORT VSeA DEVELOPMENT

DELEVERAGE OUR BALANCE SHEET

€[1.3-1.5]bn

WE WILL PURSUE THE ACTIVE MANAGEMENT OF OUR PORTFOLIO

37

SUSTAINIBILITY IS IN OUR DNA

38

#1 #1 #1

ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCEPERFORMANCE RANKING OF GLOBAL AUTOMOTIVE SUPPLIERS

* *

* excl. Tyres companies

A SUCCESSFUL TRANSFORMATION

39

~5 PTS SALES OUTPERFORMANCEFOCUS 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

40

PLATFORMS DRIVE OUR CONTENT PER CAR INCREASE

HANS-PETER KUNZEEXECUTIVE VICE PRESIDENT, SALES & BUSINESS DEVELOPMENT

WE WILL OUTPERFORM THE MARKET

WORLDWIDEAUTOMOTIVE PRODUCTION*Base scenario2019-2022: +2% CAGR

VALEO SALES OUTPERFORMANCE2020-2022: ~5 PTS

WORLDWIDE AUTOMOTIVE PRODUCTIONPessimistic scenario2019-2022: +1% CAGR

*IHS Markit November 2019, excluding LCV China

43

WE WILL OUTPERFORM THE MARKETTHANKS TO OUR BALANCED CUSTOMERS PORTFOLIO

EUROPENORTH AMERICA

17%ASIA

33%14% 27% 9%

HEAVY DUTIES

2022 Valeo sales by OEM origin

44

WE WILL OUTPERFORM THE MARKETTHANKS TO OUR GLOBAL PRESENCE

NORTH AMERICA

SOUTH AMERICA

EUROPE & AFRICA CHINA

ASIA EXCL. CHINA

21% 3% 44% 14% 18%

2022 Valeo sales by destination

45

OUR ELECTRIFICATION AND ADAS STRATEGYIS MATCHING WITH THE ONES OF OUR CUSTOMERS

46

€6bnBY 2023

€12bnBY 2022

€60bnBY 2024

€20bnBY 2030

€14bnBY 2023

€11bnBY 2022

€3bnBY 2020

€32bnBY 2025

MAJOR INVESTMENTS FOR A COMPLETE TRANSFORMATION

OUR ELECTRIFICATION AND ADAS STRATEGYIS SUPPORTING THE ONES OF OUR CUSTOMERS

47

WE HAVE INVESTED IN 12 NEW KEY TECHNOLOGICAL PLATFORMS TO CREATE A UNIQUE PRODUCT PORTFOLIO

A COMPLETE OFFERING IN HARDWARE, SOFTWARE AND SYSTEMS

ADASELECTRIFICATION

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

48

WE HAVE INVESTED IN SOFTWARE RESOURCES TO CREATE INTELLIGENT PRODUCTS IN ELECTRIFICATION AND ADAS

SURROUND VIEW CAMERA

16 000

4 00048V

10 000INVERTER

Requirements

SURROUND VIEW CAMERA

2 000 000

600 00048V

1 000 000INVERTER

Lines of Code

7 000 SYSTEMS AND SOFTWARE ENGINEERS WORLDWIDE 49

IMPLEMENTATION

Concept ofOperations

Requirementsand

architecture

DetailedDesign

Operation andmaintenance

SystemVerification

and Validation

Integration,Test, and

Verification

Verificationand

Validation

WITH THIS PRODUCT PORTFOLIO WE HAVE WON MAJOR ORDER INTAKE

IN INNOVATIVE TECHNOLOGIES

X 3 WITHIN 10 YEARS

ORDER INTAKE (bn€)

9,6bn€

53%

28,6bn€

2008 2018

33,7bn€

2017

27,6bn€

24,2bn€

Incl.

Incl.

X 2 WITHIN 10 YEARS

30%

53%

59% Incl.

2008 2018

INNOVATION % OF ORDER INTAKE

50

SURROUND VIEW CAMERAS

LED HEADLAMP

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #1: SILVERADO

MAIN TECHNOLOGIES

SOP 2019

AC MODULE

X 1.6

Ratio : Valeo + VSeA (average content per car new vehicle) / (average content per car previous generation)

51

SOP 2019

X 1.3

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #2: 208 ICE

MAIN TECHNOLOGIES

Ratio : Valeo + VSeA (average content per car new vehicle) / (average content per car previous generation)

52

LED HEADLAMP

PASSIVE ENTRY/START

AUTOMATED PARKING

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #3: e-208

SOP 2019

X 2.9LED HEADLAMP

PASSIVE ENTRY/START

AUTOMATED PARKING

MAIN TECHNOLOGIES

Ratio : Valeo + VSeA (average content per car new vehicle) / (average content per car previous generation)

HEAT PUMP

BATTERY THERMAL MANAGEMENT

53

SOP 2019

X 3.4 FRONT CAMERA

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #4: GOLF 8

PIXEL HEADLAMP

48V

AC MODULE

MAIN TECHNOLOGIES

Ratio : Valeo + VSeA (average content per car new vehicle) / (average content per car previous generation)

54

FRONT CAMERA

INVERTER

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #5: ID.3

HIGH VOLTAGE HEATER

SOP 2019

Ratio : Valeo + VSeA (average content per car ID.3) / (average content per car Golf 7)

X 4.5

MAIN TECHNOLOGIES

BATTERY THERMAL MANAGEMENT

55

TO BE LAUNCHED SOON

X 5.8

A STRONG INCREASE OF OUR CONTENT PER CAREXAMPLE #6: PREMIUM CAR

HIGH VOLTAGEDRIVETRAIN SYSTEM

MAIN TECHNOLOGIES

LIDAR SCALA®

AC MODULE

Ratio : Valeo + VSeA (average content per car new vehicle) / (average content per car previous generation)

56

OUR INVESTMENTS IN PLATFORMSGENERATE LEADING POSITIONS

1 OUT OF 4PRODUCED VEHICLES IN 2019

EQUIPPED WITH OUR ADAS SOLUTIONS

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

EQUIPPED WITH OUR HV SOLUTIONS

57

STANDARDIZATION OF OUR PLATFORMS LEADING TO CROSS-CUSTOMERS APPLICATIONS

6.2M UNITS BOOKEDWITH 15 OEM BRANDS

FOR DELIVERIES IN2020-2022

48V E-MACHINE & E-AXLE PLATFORM

58

STANDARDIZATION OF OUR PLATFORMS LEADING TO LARGE SCALE EFFECTS

FRONT CAMERA PLATFORM

17.5M UNITS BOOKEDWITH 10 OEM BRANDS

FOR DELIVERIES IN 2020-2022

59

STANDARDIZATION IS AN OPPORTUNITY FOR GROWTH ACROSS CAR LINES AND BRANDS

208SOP 2019

CORSASOP 2019

X 4.2AVERAGECONTENT

X 1.6AVERAGECONTENT

BATTERY THERMALMANAGEMENT

HEAT PUMP

AUTOMATED PARKING

LED HEADLAMP

60

FURTHER GROWTH OPPORTUNITIESUNDERWAY THROUGH OEMs PARTNERSHIPS

EUROPENORTH AMERICA ASIA

61

WE WILL OUTPERFORM THE MARKET THANKS TO OUR

TECHNOLOGICAL PLATFORMS

DRIVINGTHE PERFORMANCE

CHRISTOPHE PERILLATCHIEF OPERATING OFFICER

65

PERFORMANCE OF OUR INFLATION BALANCE

PERFORMANCEIN DEVELOPMENT

PERFORMANCE IN MANUFACTURING

AFTER PEAKS IN GROSS R&D & CAPITAL EXPENDITURES…

66

5.6%

7.1% 7.0%

2016 2017 2018

Capital expenditure(In % of sales)

Gross Research and Development expenditure(In % of sales)

9.5%

10.3%10.8%

2016 2017 2018

Order intake(€bn)

20.1

23.6

27.6

24.2

2015 2016 2017 2018 OI SOP Peak Sales

Y Y+1 Y+2 Y+3 Y+4 Y+5 Y+6

CAPEXTDE

FORECAST OF MARKET GROWTH

12 NEW KEY TECHNOLOGICAL PLATFORMS

EXTRAORDINARY ORDER INTAKE LEVEL FROM 2016 TO MID 2018

27.6

10.8%

23.6

10.3%

9.5%

5.6%

7.1% 7.0%

24.2

…WE DEMONSTRATED STRONG REACTION TO THE MARKET DROP OF 10% SINCE MID 2018

67

Capital expenditure(In % of sales)

Gross R&D expenditure(In % of sales)

COMPENSATION FROM CUSTOMERS

COST AND CAPEX REDUCTION PLANS

CAPEX SAVING PLAN : 100M€COST SAVING PLAN : 100M€

CAPEX SAVING PLAN : 200M€COST SAVING PLAN : 100M€

WHILE COMPLETING THE DEVELOPMENTOF 12 NEW KEY TECHNOLOGICAL PLATFORMS

9.5%

10.3%

10.8%10.5%

6.0%6.0%6.0%2016 2017 2018 2019

6%

7% 7%

6%

2016 2017 2018 2019

H22018

2019

10.5%*10.8%

10.3%

7.1% 7.0%

5.6% 5.9%*

9.5%

* Estimated 2019

WE ARE READY TO REACT QUICKLY TO A SLOWER MARKET EVOLUTION

68

PESSIMISTIC SCENARIOCAGR 2019-2022: +1%

BASE SCENARIO (IHS MARKIT)CAGR 2019-2022: +2%

WORLDWIDEAUTOMOTIVE PRODUCTION (M vehicles)IHS Markit November 2019Excluding LCV China

2016 2017 2018 2019 20222020 2021

90.391.0

88.6

~8885.1

SECURE NEW PROJECTS LAUNCHES

AND BE READY FORA PESSIMISTIC SCENARIO

COMPENSATION FROM CUSTOMERSCOST AND CAPEX REDUCTION PLANSTEMPORARY WORKERS RESTRUCTURING PLANS

90.7

69

PERFORMANCE OF OUR INFLATION BALANCE

PERFORMANCEIN DEVELOPMENT

PERFORMANCE IN MANUFACTURING

SUSTAINED POSITIVE INFLATION BALANCE

70

PURCHASING PRICE EVOLUTION

SALARY INFLATION

SELLING PRICE

EVOLUTION

SUSTAINED POSITIVE INFLATION BALANCE

71

PURCHASING PRICE EVOLUTION

SALARY INFLATION

SELLING PRICE

EVOLUTION

PRICING POWER OF INNOVATIONS

SELECTIVITY OF ORDER INTAKE

STRICT FINANCIAL DISCIPLINE

PRICE INDEXATION

SUSTAINED POSITIVE INFLATION BALANCE

72

PURCHASING PRICE EVOLUTION

SALARY INFLATION

SELLING PRICE

EVOLUTION

HIGH ATTRACTIVENESS THANKS TOOUTPERFORMING GROWTH

AMONG THE TOP ELECTRONIC TIERS 1

73

PERFORMANCE OF OUR INFLATION BALANCE

PERFORMANCEIN DEVELOPMENT

PERFORMANCE IN MANUFACTURING

74

BECAUSE PLATFORMS HAVE BEEN DEVELOPED, WE CAN NOW REDUCE OUR GROSS R&D EXPENDITURE

Gross R&D expenditure(In percentage of sales)

2016 2017 2018 2019 2020 2021 2022 2023 2024

9.5%

10.8% 10.6%*

9.4%

*estimated 2019

75

EFFICIENCYTHROUGHPLATFORMS

COST COMPETITIVE FOOTPRINT

76

EFFICIENCYTHROUGHPLATFORMS

COST COMPETITIVE FOOTPRINT

WE HAVE INVESTED IN 12 NEW KEY TECHNOLOGICAL PLATFORMSTO CREATE AND COMPLETE A UNIQUE PRODUCT PORTFOLIO

IN ELECTRIFICATION AND ADAS

77

ADASELECTRIFICATION

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

INVESTMENTS HAVE BEEN MADEIN 12 NEW KEY TECHNOLOGICAL PLATFORMS

78

12NEW KEY

TECHNOLOGICALPLATFORMS

HIGHLY STANDARDIZED HARDWARE & SOFTWAREWORLDWIDEINCLUDING R&D AND INDUSTRIAL EXPERTISESUPPORTED BY STATE OFTHE ART PRODUCT LIFECYCLE MANAGEMENT

85% STANDARDIZED SOFTWARE

85%STANDARDIZEDHARDWARE

HIGHLY STANDARDIZED HARDWARE & SOFTWARE PLATFORMS CREATING HIGH BARRIER TO ENTRY

79

WE LEVERAGE THE 48V e-MACHINE & e-AXLE PLATFORM FOR EACH NEW PROJECT

80

0.

25.

50.

75.

100.

1 2 3 4 5 CUSTOMER PROJECT

AFTER SOP SOP 2020 SOP 2021

€7.5bnORDER INTAKE

GROSS R&DEXPENDITURE1ST PROJECT

BASE 100

AFTER SOP AFTER SOP

WE LEVERAGE THE FRONT CAMERA PLATFORM FOR EACH NEW PROJECT

81

0.

25.

50.

75.

100.

1 2 3 4 5 CUSTOMER PROJECT

GROSS R&DEXPENDITURE1ST PROJECT

BASE 100

AFTER SOP SOP 2020 SOP 2020 SOP 2021

>€4bnORDER INTAKE

AFTER SOP

WE LEVERAGE THE HIGH VOLTAGE INVERTER PLATFORM FOR EACH NEW PROJECT

82

0.

25.

50.

75.

100.

1 2 3 4 5 CUSTOMER PROJECT

SOP 2020 SOP 2020

€4.2bnORDER INTAKE

GROSS R&DEXPENDITURE1ST PROJECT

BASE 100

AFTER SOP AFTER SOP AFTER SOP

WE CREATED HIGH BARRIERS TO ENTRY AND WE LEVERAGE OUR 12 NEW KEY TECHNOLOGICAL PLATFORMS FOR EACH NEW PROJECT

83

CUSTOMER PROJECT

0.

25.

50.

75.

100.

1 2 3 4 5

GROSS R&DEXPENDITURE1ST PROJECT

BASE 100

84

EFFICIENCYTHROUGHPLATFORMS

COST COMPETITIVE FOOTPRINT

AVERAGE R&D HOURLY RATE IS DECREASING THANKS TO COST COMPETITIVE FOOTPTRINT

85

2015 2016 2017 2018 2019 2020 2021 2022

COST COMPETITIVE RATIOIN % OF ENGINEERS’ HEADCOUNT

CAIRO & CHENNAI TAKE-OFFENGINEERS’ HEADCOUNT

350

4 600

8 000

2010 2019 2024

45%46%

48%49%

53%

57% 58%60%

WHILE THE TRANSFORMATION TOWARDS SOFTWAREIS SUCCESSFUL

86

2 000

7 0009 000

11 500

2013 2019 2022 2024

Series 1

44%

-%

% of total R&D HC

SOFTWARE HC EVOLUTION

31%

11%

STATE OF THE ART A-SPICE LEVEL

38%

87

PERFORMANCE OF OUR INFLATION BALANCE

PERFORMANCEIN DEVELOPMENT

PERFORMANCE IN MANUFACTURING

104AWARDS

OBSESSION FORCUSTOMER SATISFACTION

88

2.9PPM 0 KMIN 2018

+33%VS2016

STATE OF THE ART PROJECT MANAGEMENT

IN 2018

89

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEOFACTORY OF THE

NEAR FUTURE

CAPITAL EXPENDITURE AT

6% OF SALES

BECAUSE INVESTMENTS ARE NOW MARGINALIN MATURE PRODUCTS,

CAPITAL EXPENDITURE CAN BE OPTIMIZED

ADAPTATION TO NEW MARKET FORECASTSTRICT FINANCIAL DISCIPLINE IN ORDER INTAKEWORLDWIDE CAPACITY MANAGEMENTBUY VS MAKE

9090

2016 2017 2018 2019 2020 2021 2022 2023 2024

CAPITAL EXPENDITURE(In percentage of sales)

5.6%

5.9%*

7.1%

7.0%6.0%

*estimated 2019

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEO FACTORYOF THE NEAR FUTURE

CAPITAL EXPENDITURE AT 6% OF SALES

91

5 YEARS LATER, WE ARE PROUD OFVALEO FACTORY OF TODAY

AUTOMATION DIGITIZATION

IN 2015, WE LAUNCHEDVALEO FACTORY OF THE NEAR FUTURE

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEO FACTORYOF THE NEAR FUTURE

CAPITAL EXPENDITURE AT 6% OF SALES

VALEO FACTORY OF TODAYMAKES OUR PLANTS MORE EFFICIENT

ROBOTIC DENSITY: 3X AUTOMOTIVE INDUSTRY

2015 2017 2019

NUMBER OF ROBOTS

6 900

11 50013 300

AUTOMATION

92

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEO FACTORYOF THE NEAR FUTURE

CAPITAL EXPENDITURE AT 6% OF SALES

VALEO FACTORY OF TODAYMAKES OUR PLANTS MORE EFFICIENT

CUSTOMERSUPPLIER RECEIVING UPSTREAMPROCESS ASSEMBLY SHIPPING

e VISUAL RECORDER

e KANBAN e BUILT TO TRUCK e WORKSTATION

MANUFACTURING EXECUTION SYSTEM

e WORKSTATION

DIGITIZATION

93

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEO FACTORYOF THE NEAR FUTURE

CAPITAL EXPENDITURE AT 6% OF SALES

BIG DATA IN MANUFACTURING

BLOCKCHAIN

INTEGRATEDSUPPLY CHAININTEGRATED

SUPPLY CHAIN

CONNECTED WATCH

AND MORE TO COME…

QUICKERREACTION

IMPROVEDTRP

AND MORE TO COME...

VALEO FACTORY OF TODAYMAKES OUR PLANTS MORE EFFICIENT

94

DIGITIZATION

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

VALEO FACTORYOF THE NEAR FUTURE

CAPITAL EXPENDITURE AT 6% OF SALES

A COST COMPETITIVE FOOTPRINT

COST COMPETITIVE RATIO% OF HC DIRECT LABOR

65%66%

68%

70%

2019 2020 2021 2022

95

SG&AOPTIMIZATION

COST COMPETITIVEFOOTPRINT

CAPITAL EXPENDITURE AT 6% OF SALES

VALEO FACTORYOF THE NEAR FUTURE

SG&A ARE OPTIMIZED

TOTAL SG&A COSTS(%OF SALES)

4.8%4.7%

4.6%4.5%

4.4%

2018 2019 2020 2021 2022

96

4.7%*

4.4%

4.8%

*estimated 2019

CAPITAL EXPENDITURE AT 6% OF SALES

VALEO FACTORYOF THE NEAR FUTURE

COST COMPETITIVEFOOTPRINT

SG&AOPTIMIZATION

THANKS TO OUR VERY COMMITTED TEAM

97

CERTIFIED“TOP EMPLOYERS”

PROMOTINGDIVERSITY

PROMOTINGEMPLOYEE

SHAREHOLDING

CORPORATESOCIAL

RESPONSIBILITY

GENERATIONAL DIVERSITY

DISABILITYRECRUITMENT & PROMOTION

GENDER DIVERSITY

2.4% OF VALEO SHARE CAPITAL OWNED BY VALEO’S

EMPLOYEES

45% OF OUR WW EMPLOYEES ARE SHAREHOLDERS

75% OF PLANTSRUN BY A LOCAL DIRECTOR

82% OF OUR SITES ARE PARTNERING WITH LOCAL

ACADEMICS

100% OF VALEO’ SITES ORGANIZE INITIATIVES FOR LOCAL COMMUNITIES5TH

YEARRUNNING

FOCUSON PROFIT& CASH GENERATION

ROBERT CHARVIERCHIEF FINANCIAL OFFICER

VALEO 2019 INVESTOR DAY

101

ALL DATA RELATED TO 2019 - 2022 ARE BASED ON ON THE CURRENT PERIMETER*

VALEO SIEMENS E-AUTOMOTIVEIS CONSOLIDATED AT EQUITY

* After withdrawal of top column module segment

A CHALLENGING ENVIRONMENT

102

SHARP DROP OF THE AUTOMOTIVE PRODUCTION SINCE 2018…

-1.5% IN 2018 (-5% IN H2 2018)

-6.0% IN 2019

…LEADING TO A COMPLETE CHANGE OF THE AUTOMOTIVE ENVIRONMENT VERSUS OUR ASSUMPTIONS RELEASED DURING OUR VALEO INVESTOR DAY 2017

INVESTOR DAY 2017

96.0

ESTIMATEDLANDING

85.1

DELTA

-11.4%

WORLDWIDE AUTOMOTIVE PRODUCTION (IN MILLION VEHICLES)

VOLUME 2019

WHICH HAS TRANSLATED IN LOWER OE SALES IN 2019

DURING THIS PERIOD WE HAVE HEAVILY INVESTED IN R&D TO DRIVE VALEO’S TRANSFORMATION

103

2016 2019

Gross Research and Development expenditure(€bn)

+21%

(same perimeter)

Cumulated FCF 2017-2019 Excluding VSeA (€bn)

-0.5

Traditional products

Key technologicalplatforms

Valeo

Share of net income of VSeA 2017-2019(€mio)

Financing granted to VSeA by Valeo 2017- 2019(€mio)

~ €-430VSeA*

~ €540

VSeA*

1.6

1.9

1.20.7

* estimated 2019

MARKET ASSUMPTIONS

104

PESSIMISTIC SCENARIOCAGR 2019-2022: +1%

BASE SCENARIO (IHS MARKIT)CAGR 2019-2022: +2%

WORLDWIDEAUTOMOTIVE PRODUCTION (M vehicles)IHS Markit November 2019Excluding LCV China

~88

2016 2017 2018 2019 2020 2021 2022

88.6

91.090.3

85.1 85.5

90.7

2019 20222019 2022

SALES ARE INCREASING IN ALL OUR MARKETS

105

Valeo OEM sales (€bn)

CAGR LIKE FOR LIKE:~+7%

Valeo aftermarket sales (€bn)

Valeo Other sales(€bn)

CAGR LIKE FOR LIKE:+4%

CAGR:+4%

2019 2022

Series 1

>18.3~16.3 ~1.9

>2.1

~1.1>1.2

Valeo Total sales(€bn)

CAGR:+4%

2019 2022

Series 1

>21.5~19.3

+>12%

+>12%

OUTPERFORMING THE MARKET BY ~5 POINTS / BY YEAR

106

Valeo OEM sales(In €bn)

Valeo OEM sales (In €bn)

SECURED GROWTH: 84% OF OUR 2022 OEM SALES ARE BOOKED

CAGR LIKE FOR LIKE:~+7%

INCLUDING• ADAS: +18% • 48V: +59%

2019 2022

>18.3~16.3

+>12%

15.4

2022

>18.3

84%

BookedBusiness

OEM MARKET SHARE & PORTFOLIO INCREASE

GEOGRAPHICAL EXPANSION IN ASIA AND AMERICA

IAM ACTORS CONSOLIDATION WITH RISKS & OPPORTUNITIES

ACCIDENT RATE DECREASE AND HIGHER PRODUCT RELIABILITY

EUROPEAN AFTERMARKET IS DECREASING

WE ARE GAINING MARKET SHARE IN AFTERMARKETIN AN EVOLVING ECOSYSTEM

107

Valeo aftermarket sales(€bn)

CAGR LIKE FOR LIKE:+4%

2019 2022

~1.9 >2.1

PROFITABILITY WILL IMPROVE BY ~150BPS BETWEEN 2019 AND 2022

108

Total Sales(€bn)

CAGR +4% by year

2019 2022

Series 1

+11%

~19.3

>21.5

Operating margin Before JV & AssociatesIn % of sales

2019 Vol-mix Plant efficiency R&D exp+SG&A Contingencies Subtotal

5.5%*0.8%

0.6%0.4% -0.3%

~7.0%

2022

* after one off effect linked to october 2019 GM strike in North America - Estimated 2019

PROFITABILITY STRESS TEST IN CASE OF A PESSIMISTIC SCENARIO

109

INCREASE RESTRUCTURING PLANS

MAINTAIN PERSONAL COST/SALES CONSTANT

2022 TARGET OF OPERATING MARGIN WOULD RANGE [6.7% - 7%]

R&D EFFICIENCY AND PLATFORM ORGANIZATION WILL OFFSETTHE INCREASE OF DEPRECIATION

110

Depreciationof capitalized R&D

Standardization from platformsCost competitive footprint

R&D expenses2019*

Capitalization Depreciation R&D expenses2022

~100bps

~10bps ~100bps7.8%7.9%

* estimated 2019

In % of sales

Efficiency

2016 2017 2018 2019 2020 2021 2022 2023 2024

CAPITAL EXPENDITUREOPTIMIZED AT 6%

111

CAPITAL EXPENDITURE(In percentage of sales)

ADAPTATION TO NEW MARKET FORECASTSTRICT FINANCIAL DISCIPLINE IN ORDER INTAKEWORLDWIDE CAPACITY MANAGEMENTBUY VS MAKE

5.6%

5.9%*

7.1%

7.0%6.0%

* estimated 2019

PROFITABILITY WILL IMPROVE BY ~150BPS BETWEEN 2019 AND 2022

112

Total Sales(€bn)

2019 2022

Series 1

~19.3

>21.5

12.8%

>15%

2019*

2022

CAGR+4% by year

EBITDA (in % of sales)

+11%

EVERY BUSINESS GROUP WILL POSITIVELY CONTRIBUTE TO PROFITABILITY INCREASE

* estimated 2019

DOUBLING OUR FREE CASH FLOW GENERATION

113

INCREASING EBITDA

OPTIMIZED RECORDED CAPEX

WORKING CAPITALREQUIREMENT INCREASE

[1.3-1.5]

CUMULATED2017-2019*

CUMULATED2020-2022

CASH CONVERSION RATE (in % of EBITDA)

FREE CASH FLOW (in €bn)

>15%

2019*

2022

* estimated 2019

>0.7

~11.8%

DOUBLING OUR FREE CASH FLOW GENERATION

114

CUMULATEDFREE CASH FLOW

2020-2022

MAINTAIN DIVIDEND POLICY

SUPPORT VSeA DEVELOPMENT

DELEVERAGE OUR BALANCE SHEET

€[1.3-1.5]bn

DEBT MATURITY PROFILE

115

31/12/2019 2020 2021 2022 2023 2024 2025 2026

credit lines cash and cash equivalents EMTN convertible bond Schuldschein

Undrawn credit lines1.1 Mds euros3.0 yearmaturity

Average maturity: 4.0 years

~1.8%AVERAGE EFFECTIVE INTEREST RATE 0.93 ~0.7 49% ~40%

2018 2022 2018 2022

LEVERAGE RATIO GEARING RATIO

470m€ 600m€ 500m€ 700m€

600m€

336m€

600m€ 600m€

212m€

VALEO SIEMENS e-AUTOMOTIVETHE EMERGENCE OF A LEADER

116

2 MAJOR CONTRACTS IN PRODUCTION END OF 2019 AND S1 2021

STRONG DECREASE OF R&D AS OF 2021 (R&D FOOTPRINT + TECHNOLOGICAL PLATFORM ORGANIZATION)

ONGOING NEGOTIATION ON NEW PROJECTS AND RENEWALS

2019 2022 2024

VSeA SALES(€bn) >2.0

>1.4

>0.3

EBITDA 2022

EBITDA 2024

8%

12%~450M€FINANCING BY VALEO OVER 2020 - 2021

FREE CASH FLOWBREAKEVEN2022

2022 FINANCIAL TARGETS

117

SALES (€bn)

EBITDA

OPERATING MARGIN BEFORE JV

CASH CONVERSION RATE (% EBITDA)

FREE CASH FLOW 2020-2022

~ 19.3 >21.5

~ 12.8% >15%

~ 5.5%** ~ 7%

>15%

€ [1.3-1.5]bn

2019* 2022

* estimated 2019** after one off effect linked to october 2019 GM strike in North America

11.8%

SAFE HARBOR STATEMENT

Statements contained in this document, which are not historical fact, constitute “forward-looking statements”.These statements include projections and estimates and their underlying assumptions, statements regarding projects, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Even though Valeo’s Management feels that the forward-looking statements are reasonable as at the date of this document, investors are put on notice that the forward-looking statements are subject to numerous factors, risks and uncertainties that are difficult to predict and generally beyond Valeo’s control, which could cause actual results and events to differ materially from those expressed or projected in the forward-looking statements. Such factors include, among others, the Company’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions. The risks and uncertainties to whichValeo is exposed mainly comprise the risks resulting from the investigations currently being carried out by the antitrust authorities asidentified in the Registration Document, risks which relate to being a supplier in the automotive industry and to the development of newproducts and risks due to certain global and regional economic conditions. Also included are environmental and industrial risks as well asrisks and uncertainties described or identified in the public documents submitted by Valeo to the French financial markets authority (Autoritécdes marchés financiers – AMF), including those set out in the “Risk Factors” section of the 2018 Registration Document registered with the AMF on March 29, 2019 (under number D.19-0224).

The Company assumes no responsibility for any analyses issued by analysts and any other information prepared by third parties which maybe used in this document. Valeo does not intend or assume any obligation to review or to confirm the estimates of analysts or to update anyforward-looking statements to reflect events or circumstances which occur subsequent to the date of this document.