Group Presentation

September 2009
The Group

Valeo is an independent global

industrial group fully focused
on the design, production
and sale of components,
integrated systems and
modules for cars and
trucks, in both the OEM
and aftermarket segments

August 2009 I 2
Mission

To deliver to our OEM and aftermarket customers around

the globe

added value through innovative, total quality, cost effective

solutions and services,

responding to the automotive challenges of zero accidents,

zero emissions and zero stress.

Enabling a better automotive world

August 2009 I 3
Key figures

€ 8.8 billion 121 sites

sales

21 Research centers
50,100 people
39 Development centers

27 countries 10 distribution
platforms

* figures at 30 June 2009, except sales at end 2008

August 2009 I 4
Sales breakdown

Asia &
Middle East Aftermarket
South America 19%
15% 7%

North
America
12%

OE Market
Europe
81%
66%

In % of sales, at end 2008

August 2009 I 5
Sales by Business Group

2008 sales - In million euros

Comfort & Powertrain Thermal Visibility

Detection Systems Systems Systems
Systems
Interior Engine & Electrical Climate Lighting
Controls Systems Control Systems
892 1,251 1,349 1,154
Security Transmissions Engine Wiper
Systems Cooling Systems
647 739 1,128 924
Compressors
388
1,539 1,990 2,865 2,078

August 2009 I 6
An organization by Business Group focused on
growth and profitability
Jacques
Aschenbroich
CEO

Luc Blériot
Chief Operating
Officer Valeo Service
Activity

Powertrain Systems Visibility Systems

Engine
and Lighting Wiper
Transmissions
Electrical Systems Systems
Systems

Thermal Systems
Comfort & Detection Systems

Security Interior Climate Engine

Compressors
Systems Controls Control Cooling

August 2009 I 7
Key Success Factors

Diversified customer base

Global footprint

Outstanding quality levels

Innovations meeting automotive

challenges

August 2009 I 8
A diversified customer base

1600

1400 Sales by customer in 2008

In millions of euros
1200

1000

800

600

400

200

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Global footprint close to customers

Western Europe
North America
52 Production sites
11 Production sites 18 Research centers
1 Research center 15 Development centers
5 Development centers 5 Distribution centers
3,760 employees 24,170 employees
Eastern Europe
13 Production sites
4 Development centers
3 Distribution centers
8,640 employees

Asia
Africa 31 Production sites
South America 2 Research centers
3 Production sites 9 Development centers
11 Production sites 1 Development center 1 Distribution center
5 Development centers 1,200 employees 8,300 employees
1 Distribution center
4,030 employees

Figures (consolidated sites) at 30 June 2009

August 2009 I 10
World class Quality levels

74% of sites single

CUSTOMER RETURNS digit ppm
in defective parts per million
Including
22% of sites
185 at 0 ppm
H1 2009
H1-09

53
32
15 10 14 8

2003 2004 2005 2006 2007 2008 2009

end
June

August 2009 I 11
Innovation success

Innovations represent 32% of 2008 order intake

4 consecutive PACE Awards (lane departure warning,

StARS micro-hybrid, blind spot detection, Park4U)

21 Research centers and 39 development centers

Over 6,000 R&D engineers and technicians

Around 550 patents filed worldwide each year;

fourth leading patent filer in France

Net R&D expenses represent 5.5% of sales

August 2009 I 12
Business Groups responding to key automotive
challenges

y
n om
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fo
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e

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Sa
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Powertrain Systems

Thermal Systems

Comfort and
Detection Systems
Visibility Systems

August 2009 I 13
Innovations for fuel economy

Double Dry Clutch i-StARS µ-Hybrid StARS+X µ/mild-Hybrid

Powertrain Systems

Eco-Starter U-Caps Powerpack

Battery/Network Management E – Valve/Camless

E-Clutch

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Innovation focus – full range of hybrid solutions
Valeo first to market with stop-start
function

Full range of scalable solutions

from micro hybrid to electric
vehicles

From 2010 mass production of

i-StARS on PSA Peugeot Citroën
vehicles

All micro-hybrid solutions from

StARS offered on Citroën C2/C3, ReStart (reinforced alternator) to
smart gasoline-engine models,
Mercedes-Benz A and B Class StARS + X will be in production
shortly

August 2009 I 15
Innovations for more comfortable and energy
efficient driving

Alternate a/c System UltimateCoolingTM Air Intake Module

Thermal Systems

Air Quality Systems

THEMISTM Valve

Cooled EGR Thermal storage

Evaporator Low consumption
a/c compressor

August 2009 I 16
 Powertrain and Thermal systems - fuel economy
solutions portfolio
Power on Low consumption
Demand A/C compressor
- 3%

UltimateCooling™ -3-5%
Thermal
Management - 40% Feasible
THEMIS™ - 4%

Transmission DUAL CLUTCH

Automation -4-6%
transmission

Air Systems Cooled EGR system -5-7%

Hybridization MICRO HYBRID -6-15%

(from Stop-Start to Regenerative braking)

Engine
Operation CAMLESS System -15-20%

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Visibility Systems - Key
Innovations for safer driving

Microoptics Full AFS LED Headlights BeamAticTM Progressive Beam

Visibility Systems

LED Daytime Running Lights Adaptive LED Rearlights

AquabladeTM OptiveoTM Heated Wash

Reversible Wiper motor

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Innovation focus

Beamatic® Premium

Automated high beam activation

Maximises light in all directions except in
zone occuped by other vehicles

High beam visibility for driver without
dazzling other roadusers

Camera detects vehicle and mobile shield
adapts beam

Aquablade®

Washer fluid distributed evenly
along the length of Blade

Fluid immediately wiped away so
improving visibility

Fluid consumption halved also
reducing weight

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Comfort & Detection Systems - Cameras, radars
and ultrasonic sensors for 360° vision

Park4UTM : Equips VW, Audi, Ford and Lancia

18 models to be equipped by 2010
Next generation available for smaller slots and
perpendicular parking

Blind Spot Detection : Equips GM Buick & Cadillac, Jaguar XF

27 models equipped by 2010
Best-in-class multi-beam radar system
Same radars used for Cross Traffic Alert

Multicamera system with 5 cameras

Being launched on 3 Land Rover Models and BMW 5 Series
Gran Turismo
4 more models in 2010

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Innovation examples for more convenience and
ergonomy

Smart Car Key Power Closure Systems

Passive Entry system

1 2 3 4 5 6 7 8

SOS

Comfort and detection

°C °C

MAX OFF REST

AC AUTO

SOURCE
BAND
MODE
MENU
TP
TPY PANEL

systems
P 4U

Smart Opening/Closing
Multifunction center console

Tactile controls Dome Control Module Top column module

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Innovation focus - Smart car key

Vehicle status
Pre-ventilation
Home/car data transfer

August 2009 I 22
Culture & Values
Quality Culture

To ensure Customer Satisfaction

in terms of cost, quality and delivery,
Valeo has developed,
and implements rigorously
in all sites, its 5 Axes
which are driven by continuous
improvement and founded upon
the principle of right first time.

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Quality Culture

TOWARDS 0 PPB (PARTS BER BILLION)

August 2009 I 25
Supported by 5 values

Ethics

Transparency

Empowerment

Professionalism

Teamwork

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Social and Environmental Responsibility

Valeo implements its profitable growth strategy

within a framework of sustainable development

Long-term Human
Resources policies

Management
development

Internal mobility

Training

Industrial relations

Code of Ethics

Sustainable Development Charter

FTSE4Good Index

Adhere to UN Global Compact

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Social and Environmental Responsibility

Environment

Global approach to risks

Continuous improvement of environmental performance

of Valeo products and processes

Environmental culture in all Valeo sites

Voluntary and stringent process of certification

Strict performance monitoring

88% of sites certified ISO 14001

76% of sites certified OHSAS 18001

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