Sales up 14% to 14.5 billion euros

• Sales up 14% to 14.5 billion euros
• Operating margin(1) up 22% to 1,116 million euros, or 7.7% of sales
• Net income up 30% to 729 million euros, or 5.0% of sales
• Free cash flow(2) up 73% to 565 million euros
• Order intake(2) up 15% to 20.1 billion euros

Jacques Aschenbroich, Valeo’s Chief Executive Officer, commented:
“Valeo’s 2015 results reflect the excellent work carried out by our teams over the past few years to develop a more diverse customer portfolio, strengthen our products’ technological advantage and further align our businesses geographically. Sales accelerated throughout 2015 and outperformed the market in all world regions despite market volatility in some of our geographies, once again demonstrating the solidity of our growth model. This growth was accompanied by a 22% increase in our operating margin to 7.7% of sales, as well as a 30% increase in net income and a 73% increase in free cash flow. Our record order intake – which stands at 20.1 billion euros – reflects the commercial success of our technologies for CO? emissions reduction and intuitive driving. This strong momentum confirms that we are on course to meet our objectives for 2020, presented in London in March 2015.”

Fourth-quarter 2015

• Sales of 3,797 million euros, up 488 million euros or 15% year on year (9% on a like-for-like basis)

Second-half 2015

• Sales of 7,246 million euros, up 14% (8% on a like-for-like basis)
• Operating margin⁽¹⁾ up 21% to 578 million euros, or 8.0% of sales
• Net attributable income up 26% to 385 million euros, or 5.3% of sales
  Excluding non-recurring items, net income rose 46% to 468 million euros, or 6.5% of sales
• Free cash flow⁽²⁾ of 259 million euros, up 49% year on year

Full-year 2015

• Order intake⁽²⁾ of 20.1 billion euros, up 15% ·
• Sales of 14,544 million euros, up 14% (7% on a like-for-like basis)
• Original equipment sales of 12,600 million euros, up 16% (8% on a like-for-like basis) and outpacing global automotive production by 6 percentage points
• Operating margin⁽¹⁾ up 22% to 1,116 million euros, or 7.7% of sales
• Net attributable income up 30% to 729 million euros, or 5.0% of sales
  Excluding non-recurring items, net income rose 39% to 825 million euros, or 5.7% of sales
• Free cash flow⁽²⁾ of 565 million euros, up 73% year on year

2015 dividend
Proposed dividend payment up 36% to 3 euros per sha re, representing a payout ratio of 32%.

2016 outlook
Based on the following assumptions:

• an increase in global automotive production of around 2.5%, including:
  • around 2% in Europe,
  • around 5% in China,
  • around 2% in North America;
• raw material prices and exchange rates in line with current levels;

Valeo has set the following objectives for 2016:

• strong sales growth, outperforming the market in the main production regions, including China;
• a slight increase in the operating margin⁽¹⁾(as a percentage of sales), despite the increase in net R&D expenditure required for the Group’s future growth engines of CO? emissions reduction and intuitive driving.

…/….

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 CO? emissions and to the development of intuitive driving.
In 2014, the Group generated sales of 12.7 billion euros and invested over 10% of its original equipment sales in research and development. Valeo has 133 plants, 16 research centers, 34 development centers, 15 distribution platforms and employs 78,500 people in 29 countries worldwide.

Valeo is listed on the Paris Stock Exchange and is a member of the CAC 40 index.
For more information about the Valeo Group and its activities, please visit our website www.valeo.com

For more information, please contact:
Valeo Media Relations
Tel.: +33 (0)1 40 55 21 75/37 18
press-contact.mailbox@valeo.com