2013 Results
February 20, 2014 I 1
February 20, 2014
Jacques ASCHENBROICH – CEO
HighlightsAcceleration in Q4 & H2 2013
� In Q4 � Total sales up 13% like-for-like
� Acceleration in OEM sales up 17% like-for-like (10pt outperformance)
� Aftermarket sales up 11% like-for-like
� In H2
February 20, 2014 I 2
� In H2 � Total sales up 12% on a like-for-like basis
� Operating margin(2) up 16% reached 6.9% of sales
� Net income up 40%
� Free cash flow(7) of €202m
HighlightsFY 2013
� Order intake(1) of €14.8bn
� Sales of €12.1bn, up 9% like-for-like (3% on a reported basis)� OEM sales, up 10% like-for-like, 6pt outperformance
� Aftermarket sales, up 8% like-for-like
� Operating margin, up 10% to reach €795m or 6.6% of sales
February 20, 2014 I 3
� Net income, up 18%� Tax rate of 20.5%, down 7pts
� Free cash flow of €315m
� Dividend of €1.70 per share, up 13% to be proposed at the next Shareholders’ meeting
2014 outlook
Based on the following key assumptions for FY 2014:
� Automotive production:� World: +2% to +3%
� Europe: +1% to +2%
� Raw material prices and currencies in line with current levels
February 20, 2014 I 4
Valeo has set the following objectives for 2014:
� Sales growth outperformance in the main production regions
� A slight increase in operating margin (as a % of sales) compared to 2013
In Q4, total sales up 13%
February 20, 2014 I 5
total sales up 13% like-for-like
Acceleration in OEM sales, up 17% like-for-like
(10pt outperformance)
Aftermarket sales up 11% like-for-like
Acceleration of sales growth throughout 2013With strong performance of OEM (+17%*) and aftermarket (+11%*) sales in Q4
OEM salesIn M€
-1%**
2,575 2,6752,461 2,564
Q1 13 Q2 13 Q3 13 Q4 13
+6%** +3%**
0%* +12%* +13%*
+7%**
+17%*
+1%* +10%* +12%* +13%**Like-for-likegrowth
Total sales€m
February 20, 2014 I 6
AftermarketIn M€
382 383 368 384
Q1 13 Q2 13 Q3 13 Q4 13
+4%* +8%* +10%* +11%*
+4%** +6%** -3%** +5%**
3,039 3,1272,905 3,039
Q1 13 Q2 13 Q3 13 Q4 13
0%****Year-on-yearchange
+5%** +2%** +4%**
Europe**OEM sales*** +14%Production**** +5%
North AmericaOEM sales*** +13%Production**** +5%
49% of Valeo sales18% of Valeo sales
Outperf.+8pts*
Outperf.+9pts*
WorldOEM sales*** +17%Production**** +7%
Outperf.+10pts*
OEM sales growth outpaced the global market by 10ptsOutperformance in all regions
Q3Q4
February 20, 2014 I 7
Asia** excl. ChinaOEM sales*** +7%Production**** +2%South America
OEM sales*** -1%Production**** -7%
16% of Valeo sales
4% of Valeo sales
Outperf.+5pts*
*At same perimeter and exchange rates** Europe including Africa,
Asia including Middle East*** Valeo OEM sales by destination**** LMC estimates – light vehicle production
Outperf.+6pts*
13% of Valeo sales
Outperf.+34pts*
ChinaOEM sales*** +55%Production**** 21%
OEM sales growth like-for-like
Q1 Q2 Q3 Q4
-3% +10% +18%
Double-digit OEM sales growth in all the Business GroupsWith strong performance of Visibility and Comfort & Driving Assistance
+20%CDA
Powertrain +13%
February 20, 2014 I 8
-2% +7% +6%
-3% +8% +10%
+10% +26% +23%Visibility
Thermal +13%
Powertrain +13%
+22%
Full year 2013 data
February 20, 2014 I 9
Full year 2013 data
Order intake of €14.8bn
February 20, 2014 I 10
Order intake of €14.8bnconfirming growth potential
6.67.4 7.5
8.9* 9.4* 9.6*8.8*
11.9*
14.0*15.1* 14.8*
€bn
% of order intake
Innovation fueling future organic growthHigh-quality order intake at €14.8bn
Innovation 30%*
CAGR+14%
February 20, 2014 I 11
4.3 4.3 4.8 4.73.0
6.3 7.4 7.7 7.3
2.84.6 4.6 4.9
5.8
5.67.1*
8.9* 9.4* 8.8*
2005 2006 2007 2008 2009 2010 2011 2012 2013
H2H1
*Products or technologies sold by less than 3 years
*Excluding Access Mechanisms business
SA5% Asia
excl. China13%
China
NA19%
SA5%
Asia excl. China13%
NA22%
China and North America fueling future organic growthAcceleration in China (24% of OI, 13% of OEM sales) and NA (22% of OI, 19% of OEM sales)
% of 2013 order intake*
Asia37%**
% of 2013 OEM sales*
Asia26%
February 20, 2014 I 12
China13%
Europe 50%
China24%
Europe36%
Order intake**: €14.8bn(of which Asia**: €5.5bn)
* By destination ** Excluding Access Mechanisms business
OEM sales: €10.3bn
Sales of €12.1bn, up 9% or 3%
February 20, 2014 I 13
Sales of €12.1bn, up 9% like-for-like or 3% reported
OEM sales, up 10% like-for like, 6pt outperformance
Aftermarket sales up 8% like-for-like
+9%* +6%*
€m
*Like-for-like growth + %*+12%*
2013 sales totaled €12.1bn, up 9% like-for-like Up 3% on a reported basis after disposal of Access Mechanisms (April 30, 2013)
+ %*+13%*
February 20, 2014 I 14
12,110
6,166 5,944
3,039
FY 13 H1 13 H2 13 Q4 13
Year-on-year +3%
Exchange rates -3.1%
Perimeter -2.8%
Year-on-year +3%
Exchange rates -1.7%
Perimeter -1.3%
Year-on-year +3%
Exchange rates -4.7%
Perimeter -4.4%
Year-on-year +4%
Exchange rates -4.3%
Perimeter -4.4%
OEM sales€m
10,275
Aftermarket€m
+4%**
1,517765 752 384
FY 13 H1 13 H2 13 Q4 13
+5%** +4%**
+10%* +6%* +15%**Like-for-likegrowth
+8%* +6%* +11%*
+17%*
+5%**
+11%*
Strong & balanced growth between OEM (+10%) and aftermarket (+8%)Gradual entry into production of high order intake (OEM business)
February 20, 2014 I 15
10,275
5,250 5,0252,564
FY 13 H1 13 H2 13 Q4 13
Miscellaneous€m
318
151 16791
FY 13 H1 13 H2 13 Q4 13
+4%**
Exchange rates -3.3%
Perimeter -3.1%
+3%**
Exchange rates -1.8%
Perimeter -1.3%
+5%**
Exchange rates -4.9%
Perimeter -5.1%
-17%* +5%* -30%* -39%*
**Year-on-yearchange
-19%** +1%** -32%** -41%**
+7%**
Exchange rates -4.6%
Perimeter -5.1%
Europe**North America
World
Acceleration of the outperformance in H2 vs H1H2 OEM sales outpaced the global market by 9pts vs 5pts in H1
Q3
Outperformance H1 Outperformance H2
H1 H2+10pts* +14pts*
H1 H2+6pts* +8pts*
H1 H2+0pt* +5pts*
H1 H2+5pts* +9pts*
February 20, 2014 I 16
Asia** excl. China
South America
*At same perimeter and exchange rates** Europe including Africa,
Asia including Middle East
China
H1 H2-5pts* +9pts*
+0pt* +5pts*
H1 H2+9pts* +23pts*
Europe**OEM sales*** +7%
North AmericaOEM sales*** +17% 50% of Valeo sales
19% of Valeo sales
Outperf.+12pts*
Outperf.+7pts*
Outperf.+3pts*
WorldOEM sales*** +10%
Outperf.+6pts*
FY
2013 OEM sales outpaced the global market by 6ptsOutperformance in all production regions, improvement in SA
February 20, 2014 I 17
Asia** excl. ChinaOEM sales*** -1%
South AmericaOEM sales*** +8%
13% of Valeo sales
5% of Valeo sales
Outperf.+3pts*
*At same perimeter and exchange rates** Europe including Africa,
Asia including Middle East*** Valeo OEM sales by destination
13% of Valeo sales
Outperf.+16pts*
ChinaOEM sales*** +31%
OEM sales produced in Asia & emerging countries at 54% (37% in 2007) Geographic repositioning of Valeo’s businesses
50%*
2011
37%*
2013
OEM sales by production region
54%*
Eastern Europe &
February 20, 2014 I 18
37%*
2007
*Share of Valeo total OEM production made In Asia & emerging countries
US9% Mexico
9%
SA4%
Asia27%
Europe &Africa14% Western
Europe37%
French* 16%
Other6%
German & Asian customers representing 57% of OEM salesCustomer portfolio remained firm and diversified
French*18%
Other 7%
% of OEM sales
German29%
German30%
February 20, 2014 I 19
Asian**26%
American21%
FY 13
Asian** 29%
American 18%
FY 12
* Excluding Nissan** Including Nissan
Asian**28%
Asian**27%
Total sales (like-for-like growth)
OEM sales (like-for-like growth)
FY FY H1 H2 Q4
+10%
CDA 18%
PTS28%
THS28%
VIS26%
Group€12.1bn
Above-market growth in all Business GroupsVisibility & Comfort & Driving Assistance especially dynamic
% 2013 sales
+20%
February 20, 2014 I 20
+9% +3% +19%
+6% +2% +10%
+6% +3% +12%
+17% +18% +23%Visibility
Thermal
+10%
+7%
CDA
Powertrain +6%
+20%
+20%
+13%
+13%
+22%
H2 operating margin up 16%to 6.9% of salesNet income up 40%
February 20, 2014 I 21
Net income up 40%
FY operating margin up 10%to 6.6% of salesNet income up 18%
16.4%17.4%
+100bp0bp
+30bp-30bp
942
H2 gross margin up 10% to €1,036m or 17.4% of sales FY gross margin up 6% to €2,073m or 17.1% of sales
2,073
+10%
€m & % of sales
1,036
H2
February 20, 2014 I 22
H2 12 Volume inflation
Emerging countries
exchange rates
Startupof new plants
Others H2 13
16.6%17.1%
+70bp +20bp-30bp
-10bp
FY 12 Volume inflation
Emerging countries
exchange rates
Startupof new plants
Others FY 13
1,948
2,073+6%
FY
H2 operating marginup 16% to €411m or 6.9% of salesFY operating margin up 10% to €795m or 6.6% of sales
795
6.2% 6.9%
+100bp
0bp-30bp
355411+16%
€m & % of sales
H2
February 20, 2014 I 23
6.2% 6.6%
+50bp+10bp-20bp
FY 12 Grossmargin
Net R&D SG&A FY 13
725
795+10%
H2 12 Grossmargin
Net R&D SG&A H2 13
FY
598643
+7.5%
Net R&D€m & % of sales
Net R&D expenditure at 5.3% of sales, up 20bp Strong R&D effort to sustain high order intake
Capitalised developmentexpenditure€m & % of sales
72 65 79 76
H1 12 H2 12 H1 13 H2 13
Amortisation of capitalisedDevelopment expenditure€m & % of sales
116 128145 145
1.2% 1.1% 1.3% 1.3%
February 20, 2014 I 24
FY 12 FY 13
5.1% 5.3%+20bp
PatentsIn units
722786
FY 12 FY 13
+9%
116 128
H1 12 H2 12 H1 13 H2 13
1.9% 2.2% 2.4% 2.4%
Sound management of SG&A expenses, down 10bpG&A expenses stable at 3.6% of sales
625 635
+1.6%
€m & % of sales
Sellingexpenses
196
Sellingexpenses
196
February 20, 2014 I 25
FY 12 FY 13
196
Admin.expenses
429
196
Admin.expenses
439
5.3% 5.2%
-10bp
Breakeven pointIn % sales
Breakeven point improvement to 76% of salesBreakeven point significantly lower than pre-crisis level
88%
91%
95%
February 20, 2014 I 26
79%
76%78%
76%
75%
2007 2008 2009 2010 2011 2012 2013 MT objective
H2 12* H2 13 Change FY 12* FY 13 Change
5,760 5,944 +3% Total sales (€m) 11,759 12,110 +3%
3556.2%
4116.9%
+16%+70bp
Operating margin (€m)% of sales
7256.2%
7956.6%
+10%+40bp
(31)-0.5%
(26)-0.4%
n/a+10bp
Other income & expenses (€m)% of sales
(53)-0.5%
(67)-0.6%
n/a-10bp
3245.6%
3856.5%
+19%+90bp
Operating income (€m)% of sales
6725.7%
7286.0%
+8%+30bp
(53)(18)
(50)(25)
-6%+39%
Cost of net debt (€m)Other financial expenses (€m)
(103)(39)
(100)(47)
-3%+21%
Net income up 18% to €439mEffective tax rate of 20.5%
February 20, 2014 I 27
(18)3
(25)3
+39%n/a
Other financial expenses (€m)Associates (€m)
(39)14
(47)7
+21%-50%
256 313 +22% Income before taxes (€m) 544 588 +8%
(68)27%
0(10)
(48)16%
0(16)
-29%-11pts
n/an/a
Taxes (€m)Effective tax rateNon strategic activities (€m)Non-controlling interests and others (€m)
(146)27.5%
(2)(25)
(119)20.5%
0(30)
-19%-7ptsn/an/a
1783.1%
2494.2%
+40%+90bp
Net income (€m)% of sales
3713.2%
4393.6%
+18%+40bp
2013.5%
2714.6%
+35%+90bp
Net income excl. non-recurring items (3) (€m)% of sales
4113.5%
5014.1%
+22%+60bp
*The amounts of other financial income and expenses shown for half-year and full-year 2012 differ from the amounts published in July 2012 and February 2013 since they have been to reflect changes in the expected return on plan assets resulting from the retrospective application of the amended IAS 19, effective as of January 1, 2013.
ROCE(4) back to 30%
FY 12 FY 13
Total sales €11.8bn €12.1bn
Operating margin 6.2% 6.6%
Capital turnover 4.5* 4.6*
February 20, 2014 I 28
*Proforma excluding Access Mechanisms business
Capital turnover 4.5* 4.6*
ROCE 28%* 30%*
ROA(5) 17% 19%
Free cash flow generation of
February 20, 2014 I 29
€202m in H2,€315m over the FY
11.8%12.1%
11.3%11.0%
10.9%
10.5%
10.8%11.6%
In M€ & % of sales
H1 2013 H2 2013 FY 2013
Powertrain% of sales 10.3% 10.3% 10.3%
Thermal% of sales 11.2% 12.0% 11.6%
Visibility% of sales 8.8% 9.9% 9.4%
Comfort & DrivingAssistance
% of sales 12.5% 13.7% 13.1%
TOTAL 10.8% 11.6% 11.2%
2013 EBITDA(6) margin improvement at 11.2%H2 EBITDA margin at 11.6%
February 20, 2014 I 30
564 586 602 610655
605
669 687
H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13
5%
7%
9%
11%
13%
2008 2009 2010 2011 2012 2013
Comfort and Driving Assistance Systems Powertrain Systems
Thermal Systems Visibility Systems
Group
FY 12 FY 13
EBITDA (€m) 1,260 1,356
Operating working capital (€m) (49) 118
Restructuring & employee-related costs (€m) (37) (43)
Other operating items (inc. taxes) (€m)Of which :TaxesPensions
(236)
(186)(60)
(207)
(151)(42)
Cash from operating activities (€m) 938 1,224*
Generation of free cash flow totaling €315m in 2013after working capital improvement of €118m & investment flows of €909m (7.5% of sales)
February 20, 2014 I 31
Cash from operating activities (€m)
Capex (inc. capitalised R&D) (€m) (857) (909)
Free cash flow (€m)(before interest payments)
81 315*
Interest (€m) (66) (102)
Other financial items (€m) (195) 192
Net cash flow(8) (€m) (180) 405
Net debt(9) (€m) 763 366
Of which €170m in proceeds from the disposal of the Access Mechanisms business and Dividend (€115m) paid in H2 2013
*excluding sale of trade receivables
2.1% 2.4%
5.4% 5.4%
FY 12 FY 13
635649
879939
Capex*
(% of sales)
+7%€m
Investments of €939mSupporting growth in the most dynamic markets (Asia, Eastern Europe & NA)
Capex*
Capital.R&D
7.5% 7.8%
February 20, 2014 I 32
244 290
635649
FY 12 FY 13
Capex*
Capitalised R&D
* excluding capitalised R&D
Industrial developmentover the period
2011-2013
11 new plants (incl. 7 in China)31 extensions
320,000 sq.m added
February 20, 2014 I 33
Strong balance sheet
763
1,260 1,274 1,356
Shareholders’ equity (€m)excluding non-controlling interests
Net debt (€m)
Net debt (€m) EBITDA 12 months rolling (€m)
Net debt over EBITDA
763
457 366
2,052 2,1332,380
Strong balance sheetLeverage & gearing ratios at 0.3x and 15% respectively
Net debt over shareholders’ equity
February 20, 2014 I 34
457366
Dec 2012 June 30, 2013 Dec 2013
Gearing
37%
Gearing
21%
Leverage
0.6x
Leverage
0.4x
Gearing
15%
Leverage
0.3x
Dec 2012 June 30, 2013 Dec 2013
LT Outlook ST
Moody’s Baa3 Stable Prime-3
S&P BBB Stable A-2
2750
in M€
Debt:
Maturity Amount Coupon
Syndicated Loan June 2016 €250m3M Euribor
+ 1.3%
BEI financingAug 2016 (redeemable in 4 equal
annual payments as of 2013)€225m
6M Euribor+ 2.46%
EMTN January 2017 €500m 5.75%
EMTN May 2018 €500m 4.875%
BEI financingNov 2018 (redeemable in 4 equal
annual payments as of 2015)$103m
6M Libor USD +1.9%
Debt profile as of December 31, 2013
Liquidity :
Cash & cash equivalents: €1.5bn
Undrawn credit lines: €1.1bn
Average maturity of credit lines : 3 years
February 20, 2014 I 35
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2750
2014 2015 2016 2017 2018 ,,, ,,, 2024
EMTN BEI financing Syndicated loanUndrawn credit linesCash & cash equivalents
annual payments as of 2015) USD +1.9%
Weighted average maturity of debt: 3.5 years
2750
in M€
Liquidity :
Cash & cash equivalents: €1.5bn
Undrawn credit lines: €1.1bn
Average maturity of credit lines : 3 years
Debt:
MaturityOutstanding
amountCoupon
Syndicated Loan June 2016 €250m3M Euribor
+ 1.3%
BEI financingAug 2016 (redeemable in 4 equal
annual payments as of 2013)€225m
6M Euribor+ 2.46%
EMTN January 2017 €146m 5.75%
EMTN May 2018 €273m 4.875%
BEI financingNov 2018 (redeemable in 4 equal
annual payments as of 2015)$103m
6M Libor USD +1.9%
New €700m bond (10-year maturity) + repurchase of €581m in bonds (maturing in 2017 & 2018)
Improved debt maturity profile (6 years average maturity vs 3.5 years previously)
February 20, 2014 I 36
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2750
2014 2015 2016 2017 2018 …. …. 2024
Cash & cash equivalents Undrawn credit lines EMTN BEI financing Syndicated loan
EMTN January 2024 €700m 3.25%
Weighted average maturity of debt: 6 years
Dividend & 2014 outlook
February 20, 2014 I 37
Dividend & 2014 outlook
Proposed dividend of €1.70/share, Stable dividend policy with a payout ratio of 30%
2013 dividend of €1.70/share to be proposed at the next Shareholders’ Meeting
February 20, 2014 I 38
2010 2011 2012 2013
EPS 4.86 5.68 5.03 5.71
EPS excl. non recurring items
4.86 5.68 5.56 6.52
Dividend 1.20 1.40 1.50 1.70
Payout ratio 25% 25% 30% 30%
2014 outlook
Based on the following key assumptions for FY 2014:
� Automotive production:� World: +2% to +3%
� Europe: +1% to +2%
� Raw material prices and currencies in line with current levels
February 20, 2014 I 39
Valeo has set the following objectives for 2014:
� Sales growth outperformance in the main production regions
� A slight increase in operating margin (as a % of sales) compared to 2013
Contact
Investor Relations
Thierry Lacorre
43, rue BayenF-75848 Paris Cedex 17France
February 20, 2014 I 40
Tel.: +33 (0) 1.40.55.37.93Fax: +33 (0) 1.40.55.20.40
E-mail: [email protected] site: www.valeo.com
Share Information
FR FPVLOF.PAFR 00013033879,462,540
Share Data
� Bloomberg Ticker� Reuters Ticker� ISIN Number� Shares outstanding as of December 31, 2013
February 20, 2014 I 41
ADR Data
� Ticker/trading symbol� CUSIP Number� Exchange� Ratio (ADR: ord)� Depositary Bank� Contact at J.P. Morgan – ADR
broker relationship desk
VLEEY919134304OTC1:2J.P. MorganJim Reeves+1 212-622-2710
Glossary
1) Order intake corresponds to business awarded by automakers (less any cancellations) during the period, based on Valeo's best and reasonable estimates in terms of volumes, sale prices and project lifespans. Order intake for the Access Mechanisms business was not included in order intake data for since 2005.
2) Operating margin corresponds to operating income before other income and expenses.
3) Net attributable income excluding non-recurring items corresponds to net attributable income adjusted for "other income and expenses" net of tax.
4) ROCE, or return on capital employed, corresponds to operating margin/capital employed excluding goodwill.
5) ROA, or return on assets, corresponds to operating income/capital employed including goodwill.
February 20, 2014 I 42
6) EBITDA corresponds to operating income before depreciation, amortization, impairment losses (included in the operating margin) and other income and expenses.
7) Free cash flow corresponds to net cash from operating activities (excluding factoring) after taking into account acquisitions and disposals of property, plant and equipment and intangible assets.
8) Net cash flow corresponds to free cash flow less (i) cash flows in respect of investing activities, relating to acquisitions and disposals of investments with a change in control and to changes in certain items shown in non-current financial assets, and (ii) cash flows in respect of financing activities, relating to dividends paid, treasury share purchases and sales, interest paid and received, and acquisitions of equity interests without a change in control.
9) Net debt comprises all long-term debt, short-term debt and bank overdrafts, less loans and other non-current financial assets, cash and cash equivalents.
Back-up
February 20, 2014 I 43
Back-up
Europe**OEM sales*** +12%Production**** +4%
Asia** excl. China
North AmericaOEM sales*** +19%Production**** +5%
49% of Valeo sales
19% of Valeo sales
Outperf.+14pts*
Outperf.+8pts*
Outperf.+5pts*
WorldOEM sales*** +15%Production**** +6%
Outperf.+9pts*Q3
H2
H2 OEM sales outpaced the global market by 9ptsOutperformance in all production regions, improvement in SA
February 20, 2014 I 44
Asia** excl. ChinaOEM sales*** +6%Production**** +1%
South AmericaOEM sales*** +6%Production**** -3%
14% of Valeo sales
4% of Valeo sales
*At same perimeter and exchange rates** Europe including Africa,
Asia including Middle East*** Valeo OEM sales by destination**** LMC estimates – light vehicle production
Outperf.+9pts*
14% of Valeo sales
Outperf.+23pts*
ChinaOEM sales*** +40%Production**** +17%
2011 2012* 2013
In M€ H1 H2 H1 H2 H1 H2
� Total sales 5,334 5,534 5,999 5,760 6,166 5,944
� Gross margin 916 927 1,006 942 1,037 1,036
as % of sales 17.2% 16.8% 16.8% 16.4% 16.8% 17.4%
R&D expenditure, net (285) (276) (313) (285) (332) (311)
Selling & administrative expenses (286) (292) (323) (302) (321) (314)
Other income & expenses (1) 1 (22) (31) (41) (26)
� Operating income 344 360 348 324 343 385
Half year P&L
February 20, 2014 I 45
� Operating income 344 360 348 324 343 385
as % of sales 6.4% 6.5% 5.8% 5.6% 5.6% 6.5%
Cost of net debt (29) (42) (50) (53) (50) (50)
Other financial income and expenses (17) (18) (21) (18) (22) (25)
Share in net earnings of associates 4 (2) 11 3 4 3
� Income before income taxes 302 298 288 256 275 313
Income taxes (77) (71) (78) (68) (71) (48)
� Income from continuing operations 225 227 210 188 204 265
Non-strategic activities 0 (1) (2) -- 0 0
� Net income for the period 225 226 208 188 204 265
Non-controlling interests (7) (17) (15) (10) (14) (16)
� Net income 218 209 193 178 190 249
*The amount of other financial income and expenses shown for first-half 2012 differs from the amount published in July 2012 since it has been adjusted to reflect changes in the expected return on plan assets resulting from the retrospective application of the amended IAS 19, effective as of January 1, 2013
Segment information
FY 2012
(€m)Powertrain
SystemsThermal Systems
Comfort & Driving
Assistance Systems
VisibilitySystems Others Total
Sales:
● segment (excluding Group) 3,237 3,313 2,487 2,698 24 11,759
● intersegment (Group) 29 27 23 36 (115) -EBITDA 331 385 300 222 22 1,260Research & Development expenditure, net (145) (147) (169) (129) (8) (598)Investments in property, plant & equipment & intangibleasset
262 148 214 234 21 879
Segment assets 1,467 1,074 1,113 1,234 39 4,927
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FY 2013
(€m)Powertrain
SystemsThermal Systems
Comfort & Driving
Assistance Systems
VisibilitySystems Others Total
Sales:
● segment (excluding Group) 3,358 3,366 2,229 3,129 28 12,110
● intersegment (Group) 42 32 21 54 (149) -EBITDA 351 394 294 298 19 1,356Research & Development expenditure, net (165) (152) (169) (148) (9) (643)Investments in property, plant & equipment & intangibleasset
261 178 232 252 16 939
Segment assets 1,510 1,115 1,142 1,314 46 5,127
Quarterly informationIn M€
� Sales by segment
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13
Comfort & DrivingAssistance 481 489 567 620 657 634 616 603 629 570 521 530
PowertrainSystems 767 782 743 834 855 826 784 802 833 877 810 881
Thermal Systems 783 776 777 804 864 855 808 813 824 892 838 844
Visibility Systems 664 640 597 648 685 672 656 721 782 818 769 814
2,669 2,665 2,662 2,872 3,033 2,966 2,842 2,918 3,039 3,127 2,905 3,039
February 20, 2014 I 47
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13
OE sales 2,263 2,247 2,262 2,435 2,602 2,516 2,393 2,399 2,5 75 2,675 2,461 2,564
Aftermarket 361 358 336 357 369 363 357 365 382 383 368 384
Miscellaneous 45 60 64 80 62 87 92 154 82 69 76 91
Total sales 2,669 2,665 2,662 2,872 3,033 2,966 2,842 2,918 3,039 3,127 2,905 3,039
� OE & aftermarket sales
Total sales 2,669 2,665 2,662 2,872 3,033 2,966 2,842 2,918 3,039 3,127 2,905 3,039
Safe Harbor Statement
Statements contained in this report, which are not historical fact, constitute “Forward-LookingStatements”. Even though Valeo’s management feels that the Forward-Looking Statements arereasonable, investors are put on notice that actual results may differ materially due to numerous importantfactors, risks and uncertainties to which Valeo is exposed. Such factors include, among others, thecompany’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually orcompetitively required price reductions. The risks and uncertainties to which Valeo is exposed are mainlythe risks resulting from the investigations currently being carried out by the antitrust authorities as theyhave been identified in the Registration Document and any legal actions which could arise as a result ofthese investigations, operational risks which relate to being a supplier in the automotive industry and to the
February 20, 2014 I 48
development of new products and risks due to certain global and regional economic conditions. Alsoincluded are environmental and industrial risks as well as risks and uncertainties described or identified inthe public documents submitted by Valeo to the French “Autorité des marchés financiers” (AMF), includingthose set out in the “Risk Factors” section of Valeo’s Registration Document registered at the AMF onMarch 28, 2013 (ref. no. D.13-0246).
The company assumes no responsibility for any estimates made by analysts and any other informationprepared by third parties which may be used in this report. Valeo does not intend to, or assume anyobligation to, review or to confirm the estimates of analysts or to update any Forward-Looking Statementsto reflect events or circumstances which occur after the date of this report.
February 20, 2014 I 49