Sales up 15% to 7.3 billion euros

• Sales up 15% to 7.3 billion euros
• Operating margin(1) up 23% to 7.4% of sales
• Net income up 34% to 4.7% of sales
• Free cash flow of 306 million euros
• Order intake(2) up 18% to 10.7 billion euros
• Full-year 2015 guidance raised

Jacques Aschenbroich, Valeo’s Chief Executive Officer, commented: “Valeo’s results for the first half of 2015 reflect the hard 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 the Group’s businesses geographically. Furthermore, the figures demonstrate the strength of Valeo’s growth model in any market conditions.
Our record order intake – which stands at 10.7 billion euros – and the 15% growth in sales reflect the commercial success of technologies developed by the Group for CO? emissions reduction and intuitive driving. This growth was accompanied by a 23% increase in our operating margin, a 34% increase in net income and a doubling of free cash flow. These first-half results put Valeo ahead of schedule in terms of the medium-term plan presented at our Investor Day in London on March 16, 2015.”

First-half 2015

• Order intake of 10.7 billion euros, up 18% (13% like-for-like)
• Consolidated sales of 7,298 million euros, up 15% (6% like-for-like)
• Original equipment sales of 6,316 million euros, up 16% (7% like-for-like) outpacing global automotive production by 6 percentage points:
  • Europe: up 10%(3), 8 percentage points higher than automotive production
  • Asia: up 6%(3), 4 percentage points higher than automotive production
    • of which China: up 10%(3), 5 percentage points higher than automotive production
  • North America: up 4%(3), 1 percentage point higher than automotive production
  • South America: down 13%(3), 3 percentage points higher than automotive production
• Aftermarket sales up 8% (up 2% like-for-like)
• Operating margin⁽¹⁾ up 23% to 538 million euros, or 7.4% of sales
• Net attributable income up 34% to 344 million euros, or 4.7% of sales
• Free cash flow⁽²⁾ of 306 million euros, double the figure for first-half 2014

2015 outlook

Based on the following assumptions:

• an increase in global automotive production(4) of between 2% and 3%, including:
  – between 4% and 5% in Europe excluding Russia
  – between 4% and 5% in China
• raw material prices and exchange rates in line with current levels;

Valeo raises its full-year 2015 guidance, as follows:

• sales growth outperformance in the main production regions, including China;
• operating margin(1) (as a % of sales) higher than in 2014, with a slight increase in operating margin (as a % of sales) in the second half of 2015 as compared to the first half.

¹ Including share in net earnings of equity-accounted companies, see Financial Glossary, page 8.
² See Financial Glossary, page 8.
³ Constant Group structure and exchange rates.
⁴ In line with LMC estimates

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