Press release – Q3 2024 Sales

• Sales of 5.0 billion euros, down 2% on a like-for-like basis (LFL)
• Original equipment sales outperform automotive production by 3 percentage points (down 2% LFL). Outperformance across all Divisions versus automotive production
• Aftermarket sales up 3% LFL
• 2024 objectives: Valeo is maintaining its margin and free cash flow guidance with margins significantly higher in the second half of the year versus the first half thanks to the rigorous management of its activities and the implementation of cost adjustment measures amid adverse market conditions. Valeo is adjusting its sales objective to around 21.3 billion euros
• 2025 objectives: given the worsening economic environment and the significant uncertainty surrounding automotive production volumes, Valeo will publish guidance adapted to these new market conditions when it publishes its 2024 results. For 2025, Valeo remains fully focused on generating free cash flow and reducing its debt. The year 2025 therefore represents a further step in which Valeo aims to deliver an original equipment sales outperformance versus automotive production and significantly improve its profitability and cash generation (in absolute terms) compared with 2024

“In the third quarter, Valeo outperformed automotive production by 3 percentage points, representing an improvement on the first half of 2024. The BRAIN Division outperformed the market (5 percentage points), thanks in particular to the strong momentum of its Interior Experience (displays, Phone-as-a-Key and telematics) business. In the LIGHT Division, a significant number of production launches in the Division’s main regions across the world contributed to this improved outperformance (4 percentage points). The POWER Division continues to contend with an unfavorable environment, in particular due to much lower than expected volumes in high-voltage electrification. Thanks to the sound performance of its traditional activities, the Division outperformed automotive production by 1 percentage point over the quarter.

Given the worsening market environment, we are adjusting our sales objectives for full-year 2024 to around 21.3 billion euros¹. We remain fully focused on continuing to improve our financial performance in line with the margin and cash generation objectives we set ourselves for 2024. The significant improvement in our earnings in the second half of the year compared with the first half will enable us to achieve these objectives. This performance is driven by the remarkable commitment of Valeo’s teams in rigorously managing our activities and implementing significant cost adjustment measures.

Given the worsening economic environment and the significant uncertainty surrounding automotive production volumes, we will publish new 2025 guidance adapted to these new market conditions when we publish our 2024 results. We remain focused on cash generation and confirm our aim of taking a further step in significantly improving our profitability and reducing our debt in 2025.“

Christophe Périllat, Valeo’s Chief Executive Officer

¹ Previous guidance for full-year 2024 sales of around 22 billion euros.

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