Valeo : 2021 Half-year report

Contents

1. GROUP PROFILE AND CORPORATE GOVERNANCE
2. KEY FIGURES
3. INTERIM MANAGEMENT REPORT

1. Business review
2. Earnings
3. Segment reporting
4. Cash flow and financial position
5. Order intake
6. 2021 outlook confirmed
7. Reconciliation of Valeo and TCM business data
8. Highlights
9. Subsequent events
10. Stock market data
11. Risk factors and related party transactions

1. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2021

1. Consolidated statement of income
2. Consolidated statement of comprehensive income
3. Consolidated statement of financial position
4. Consolidated statement of cash flows
5. Consolidated statement of changes in stockholders' equity
6. Notes to the condensed interim consolidated financial statements

1. STATUTORY AUDITORS' REVIEW REPORT ON THE 2021 INTERIM FINANCIAL INFORMATION

1. Conclusion on the financial statements
2. Specific verification

1. STATEMENT BY THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT
2. FINANCIAL GLOSSARY
3. SAFE HARBOR STATEMENT

Valeo - 2021 Half-year Financial Report

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1. GROUP PROFILE AND CORPORATE GOVERNANCE

Valeo is an automotive supplier, partner to all automakers worldwide. As a technology company, Valeo proposes innovative products and systems that contribute to the reduction of CO2 emissions and to the development of intuitive driving.

In the first half of 2021, the Group generated sales of 9.0 billion euros and invested 9.5% of its sales in Research and Development. At June 30, 2021, Valeo had 184 plants, 20 research centers, 42 development centers and 15 distribution platforms, and employed 104,000 people in 33 countries worldwide.

Valeo is listed on the Paris Stock Exchange.

Board of Directors at June 30, 2021

• Jacques Aschenbroich

	Chairman and Chief Executive Officer
■	Gilles Michel	■ Fonds Stratégique de Participations,
	Lead Director		represented by Julie Avrane-Chopard
■	Éric Poton	■	Mari-NoëlleJégo-Laveissière
	Director representing employees	■	Thierry Moulonguet
■	Grzegorz Szelag	■	Christophe Périllat
	Director representing employees	■	Olivier Piou*
■	Bruno Bézard	■	Patrick Sayer
■	Bpifrance Participations,	■	Ulrike Steinhorst
	represented by Stéphanie Frachet	■	Véronique Weill

• C. Maury Devine

Committees at June 30, 2021

Audit & Risks Committee	Governance, Appointments &
		Corporate Social Responsibility
■	Thierry Moulonguet	Committee
	Chairman
■	Bpifrance Participations,	■	Gilles Michel
	represented by Stéphanie Frachet		Chairman
■	Bruno Bézard	■	Bpifrance Participations,
■ Fonds Stratégique de Participations,		represented by Stéphanie Frachet
	represented by Julie Avrane-Chopard	■	C. Maury Devine
■	Mari-NoëlleJégo-Laveissière	■	Patrick Sayer
■	Olivier Piou*	■ Ulrike Steinhorst, in charge of CSR issues
■	Véronique Weill	■	Véronique Weill
Compensation Committee	Strategy Committee
■	Gilles Michel	■	Patrick Sayer
	Chairman		Chairman
■	Bpifrance Participations,	■	Ulrike Steinhorst
	represented by Stéphanie Frachet	■	Thierry Moulonguet
■	C. Maury Devine	■	Olivier Piou*

• Patrick Sayer
• Ulrike Steinhorst
• Véronique Weill

• Olivier Piou stepped down from his position as director on June 30, 2021.

Valeo - 2021 Half-year Financial Report

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2.KEY FIGURES

Financial performance

ORDER INTAKE(1)	SALES
In billions of euros	Breakdown by type
	In millions of euros

ORIGINAL EQUIPMENT SALES:

GROWTH, OUTPERFORMANCE* AND BREAKDOWN BY DESTINATION REGION

Like for like(1).

* Versus the automotive market, based on IHS automotive production estimates released on July 16, 2021/CPCA estimates for China.

1 See financial glossary, page 53.

Valeo - 2021 Half-year Financial Report

NORTH AMERICA

18% of Group sales

Original equipment sales vs. H1 2019: down 9%

SOUTH AMERICA 2% of Group sales

Original equipment sales vs. H1 2019: up 4%

EUROPE (including Africa)

48% of Group sales

Original equipment sales vs. H1 2019: down 10%

CHINA

14% of Group sales

Original equipment sales vs. H1 2019: up 19%

ASIA (including the Middle East) 32% of Group sales

Original equipment sales vs. H1 2019: up 3%

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TOTAL EBITDA(1) AND EBITDA BY BUSINESS GROUP	GROSS RESEARCH AND DEVELOPMENT
In millions of euros and as a % of each Business Group's sales	EXPENDITURE
	In millions of euros and as a % of sales

* Excluding the TCM business.

OPERATING MARGIN	NET ATTRIBUTABLE INCOME (LOSS)
Excluding share in net earnings of equity-accounted companies	In millions of euros and as a % of sales
In millions of euros and as a % of sales

FREE CASH FLOW(1)	ROCE(1)	ROA(1)
In millions of euros	(RETURN ON CAPITAL EMPLOYED)	(RETURN ON ASSETS)

1 See financial glossary, page 53.

Valeo - 2021 Half-year Financial Report

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