Claude LEICHLE

Powertrain Systems Business Group President

Electric machines

#1 Worldwide

#2 Worldwide

Electric machines

Transmissions

Electric machines

Transmissions

Air loop & engine management

Electric Supercharger

1st to Market

Electric machines

Transmissions

Air loop & engine management

Power electronics

Power electronics

needed for all

applications

Electric machines

Transmissions

Air loop & engine management

Power electronics

Powertrain well positioned to

catch all market opportunities

Growth +5% compare to 2013*

Total sales

3.3Bn €

* OEM sales growth on a like-for-like basis

+1.8pt compare to 2013

EBITDA

12.3% of sales Production sites 37

Employees 18,400

Countries 18

Research & Development centers

21

11% Turnover

12% Headcount

North America

47% Turnover

48% Headcount

Europe

11% Turnover

13% Headcount

China

3% Turnover

4% Headcount

South America

28% Turnover

23% Headcount

Asia excl. China

Today

16 Production sites

7 R&D centers

Production site

R&D center

Michel FORISSIER

Powertrain Systems R&D and Product Marketing Director

CO2 regulations

Pollutants regulations

109

95 105 117

Europe

Japan

China

USA g CO2/km

Regulatory boards are paving the

next 20 years

End users value

Fuel efficiency

#1...

…but they want

fun to drive! 2016 Audi RS5 TDi - 386 HP

2015 Ford F150 - 411 HP 2014 Mercedes PU106A Hybrid - 740 HP

2015 Dodge SRT - 707 HP

More Power No pollutants More Fuel Efficiency

Courtesy Mazda, VW-Audi, Honda

Super Efficient Engines

Super Efficient Transmissions

Hybrid / Electric Systems

Super Efficient Engines

Downsizing with turbochargers

Direct injection

Variable valve timing

Thermal management

New combustion techniques

Torque assist via electric motors

Super Efficient Engines

Downsizing with turbochargers

Direct injection

Variable valve timing

Thermal management

New combustion techniques

Torque assist via electric motors

Turbos

Supercharger

6% +++

9%

8%

27%

21%

30%

Market CAGR 14-24

Super Efficient Transmissions More speeds : 6, 7, 8, 9 10!

Automatic Manual Transmissions

Dual Clutch Transmissions

Continuous Variable Transmissions

Integration of electric motors

Electric clutch

Electric clutch

More speeds : 6, 7, 8, 9 10!

Automatic Manual Transmissions

Dual Clutch Transmissions

Continuous Variable Transmissions

Integration of electric motors

13%

8%

8 - 12%

12%

4%

17% Overall market CAGR 14-24: 4%

Market CAGR 14-24 Super Efficient Transmissions

Hybrid / Electric Systems

Significant growth potential on top of current powertrain

technologies

Hybrid / Electric Systems Stop & Start

Mild Hybrid

Plug-In Hybrid

Electric Vehicle

Electric Vehicle with range extender

Full Hybrid

Hybrid / Electric Systems Stop & Start

Mild Hybrid

Plug-In Hybrid

Electric Vehicle

Electric Vehicle with range extender

Full Hybrid

Overall market CAGR 14-24: 4%

11%

36%

17%

33%

18%

15%

Market CAGR 14-24

15,0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Every year, new technologies emerge and take significant penetration rates:

Valeo is addressing all of those

new technologies

41 Mu

14 Mu

3.2 Mu

Dampers Dual clutch Electric Supercharger

Launch of Valeo double dry clutch

Launch of Valeo pendulum technology

Launch @ premium OEM of electric supercharger

Launch of Valeo double wet clutch for several OE

Mass production of electric supercharger

Every year, new technologies emerge and take significant penetration rates:

Valeo is addressing all of those

new technologies

20,0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

51 Mu

6.5 Mu

1.5 Mu

2.5 Mu

7 Mu

Stop & Start 12+12V 48V PHEV Battery EVs FCEV

2004…

Launch of Valeo

12V StARS microhybrid

Electric Vehicles > 1 M/year with battery costdown

Fuel Cell emergence

12+12V massive application @ Premium OEMs

Plug-In Hybrids

incentives in EU, China & US

Mass production of 48V systems in EU, US & China

Standard SR motor

Common electronics 12 or 48V

Standard housing

with adaptations

One technology, several applications,

1st SOP early 2016

CAGR 14-24 +++

60% M/S in 2024

Tailored compressor

A breakthrough in engine dynamics and efficiency

Electric Supercharger:

Instantaneous response

Better fuel economy

Improved performance

Dry technology

for fuel economy

In production in China and Korea since 2014

We master both technologies

CAGR 14-24 12%

18% M/S in 2024

Wet technology for

high torque / high demand

In production in Europe 2016

CAGR 14-24 +++

30% M/S in 2024

Same DNA Same structure Same assembly

Same Capex

25 million machines produced

in 2014

12V

Alternator

High efficiency

generator

Micro-Hybrid

iStARS

CAGR 14-24 11%

Mild-Hybrid

iBSG

48V

Regenerative braking

Torque assistance and boost

Sales 2014

3.3Bn €

EBITDA 2014

12.3% of sales

~13,5pt

+~11% CAGR

2020

Powertrain growth 11% CAGR*

Powertrain market growth

7% CAGR

*OEM Sales

Electric supercharger Dual clutch transmission Pendulum damper

Growth above market, thanks

to powertrain innovations

4 000

2 000

0

2013 2019

Growth engines

Business as usual