Valeo : Financial statement at June 30, 2022

4. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2022

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

Note 1	Accounting policies
Note 2	Significant events of the period
Note 3	Segment reporting
Note 4	Operating data
Note 5	Personnel expenses and employee benefits
Note 6	Intangible assets and property, plant and equipment
Note 7	Other provisions and contingent liabilities
Note 8	Financing and financial instruments
Note 9	Income taxes
Note 10	Stockholders' equity and earnings per share
Note 11	Breakdown of cash flows

Valeo - 2022 Half-year Financial Report

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4.1. Consolidated statement of income

	(in millions of euros)		Notes	First-half 2022		First-half 2021
	SALES		4.1		9,419		8,994
	Cost of sales	4.2		(7,830)		(7,408)
	Research and Development expenditure	4.3.1		(893)		(756)
	Selling expenses				(137)		(132)
	Administrative expenses				(301)		(283)
	OPERATING MARGIN				258		415
	as a % of sales				2.7%		4.6%
	Share in net earnings of equity-accounted companies	4.3.2		(76)		(119)
	OPERATING MARGIN INCLUDING SHARE IN NET EARNINGS OF		4.3		182		296
	EQUITY-ACCOUNTED COMPANIES
	as a % of sales				1.9%		3.3%
	Other income and expenses	4.4.2		(71)		(29)
	OPERATING INCOME INCLUDING SHARE IN	4.4.1		111		267
	NET EARNINGS OF EQUITY-ACCOUNTED COMPANIES
	Cost of net debt	8.4		(50)		(28)
	Other financial income and expenses	8.4		20		6
	INCOME BEFORE INCOME TAXES				81		245
	Income taxes	9	(97)		(114)
	NET INCOME (LOSS) FOR THE PERIOD				(16)		131
	Attributable to:
	■ Owners of the Company				(48)		90
	■ Non-controlling interests				32		41
	Attributable earnings per share:
	■ Basic earnings per share (in euros)	10.2		(0.20)		0.38
	■ Diluted earnings per share (in euros)	10.2		(0.20)		0.37

The Notes are an integral part of the condensed interim consolidated financial statements.

Valeo - 2022 Half-year Financial Report

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4.2. Consolidated statement of comprehensive income

(in millions of euros)

NET INCOME (LOSS) FOR THE PERIOD

Share of changes in comprehensive income from equity-accounted companies that may subsequently be recycled to income

o/w income taxes

Translation adjustment

Cash flow hedges:

• Gains (losses) taken to equity
• (Gains) losses transferred to income for the period

o/w income taxes

OTHER COMPREHENSIVE INCOME THAT MAY SUBSEQUENTLY BE RECYCLED TO INCOME

First-half 2022	First-half 2021
(16)	131
-	(2)
-	-
222	90
17	49
(11)	(36)
5	3
228	101

Share of changes in comprehensive income from equity-accounted companies that may not subsequently be recycled to income

o/w income taxes

Actuarial gains (losses) on defined benefit plans

o/w income taxes

Remeasurement of long-term investments

o/w income taxes

OTHER COMPREHENSIVE INCOME (LOSS) THAT MAY NOT SUBSEQUENTLY BE RECYCLED TO INCOME

-	-
-	-
246	(2)
(7)	(3)
(1)	(5)
-	-
245	(7)

	OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	473	94
	TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	457	225
	Attributable to:
	■ Owners of the Company	422	182
	■ Non-controlling interests	35	43

The Notes are an integral part of the condensed interim consolidated financial statements.

Valeo - 2022 Half-year Financial Report

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4.3. Consolidated statement of financial position

	(in millions of euros)	Notes	June 30, 2022(1)		December 31, 2021
	ASSETS
	Goodwill	6.1	2,564	2,552
	Other intangible assets		2,365	2,367
	Property, plant and equipment		4,910	4,962
	Investments in equity-accounted companies		103	110
	Other non-current financial assets		709	742
	Assets relating to pensions and other employee benefits	5.1	42	29
	Deferred tax assets		568	526
	NON-CURRENT ASSETS		11,261	11,288
	Inventories, net		2,067	1,990
	Accounts and notes receivable, net		2,792	2,377
	Other current assets		725	664
	Taxes receivable		35	27
	Other current financial assets		104	74
	Cash and cash equivalents	8.2.4	3,093	2,415
	CURRENT ASSETS		8,816	7,547
	TOTAL ASSETS		20,077		18,835
	EQUITY AND LIABILITIES
	Share capital		243	243
	Additional paid-in capital		1,560	1,560
	Translation adjustment		210	(14)
	Retained earnings		1,657	1,906
	STOCKHOLDERS' EQUITY		3,670	3,695
	Non-controlling interests		801	796
	STOCKHOLDERS' EQUITY INCLUDING NON-CONTROLLING		4,471	4,491
	INTERESTS

Provisions for pensions and other employee benefits - long-term portion Other provisions - long-term portion

Long-term portion of long-term debt

Other financial liabilities - long-term portion

Liabilities associated with put options granted to holders of non-controlling interests - long-term portion

Subsidies and grants - long-term portion Deferred tax liabilities

NON-CURRENT LIABILITIES

5.1	747	990
7.1		321
395
8.2.1		4,350
3,797
		25
	35
8.2.3		12
7
		99
	121
		63
	61
		5,860
	5,163

	Accounts and notes payable			5,118	4,633
	Provisions for pensions and other employee benefits - current portion	5.1		82	82
	Other provisions - current portion	7.1		394	341
	Subsidies and grants - current portion			18	23
	Taxes payable			126	148
	Other current liabilities			1,752	1,697
	Current portion of long-term debt	8.2.1		1,580	781
	Other financial liabilities - current portion			68	26
	Liabilities associated with put options granted to holders of	8.2.3		5	5
	non-controlling interests - current portion
	Short-term financing	8.2.2.5		1,299	748
	Bank overdrafts	8.2.2.5		1	-
	Liabilities held for sale			-	-
	CURRENT LIABILITIES			10,443	8,484
	TOTAL EQUITY AND LIABILITIES			20,077	18,835

1. The consolidated statement of financial position at June 30, 2022 takes into account the impacts of applying the amendments to IAS 37 - "Provisions, Contingent Liabilities and Contingent Assets" (see Note 1.1.1) and of applying IAS 29 - "Financial Reporting in Hyperinflationary Economies" to Turkish entities for the first time (see Note 2.3), as of January 1, 2022 without restatement of comparative periods.

The Notes are an integral part of the condensed interim consolidated financial statements.

Valeo - 2022 Half-year Financial Report

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