H1-2012 ResultsJacques ASCHENBROICH – CEO

July 26, 2012

Jacques ASCHENBROICH – CEO

HighlightsH1-2012 results demonstrate the strength of Valeo’s growth model

� High quality order intake at a record 8 bn€

� Sales at 6 bn€, up 12.5% (+4% organic growth), in challengingmarkets in Europe and in South America�OE Sales, up 13.5% (+5% organic growth)�Overperformance in Europe and Asia (excl. Japan)�Asia now at 24% of OE sales (18% in H1-2011)

H1 2012 results

�Asia now at 24% of OE sales (18% in H1-2011)�Aftermarket sales weaker in South Europe

� Operating margin* of 370 M€, up 7.2%� 6.2% of sales

� Net income down 9% at 198 M€ mainly due to higher interestexpenses

July 26, 2012 I 2

* Adjusted EBIT

� Free cash flow up 10%, at 148 M€�After CAPEX increase of 117 M€ to sustain order intake (1)

HighlightsH1-2012 results demonstrate the strength of Valeo’s growth model

H1 2012 results

� FY-2012 operating margin* level (in M€) in the same magnitudeof FY-2011

July 26, 2012 I 3

* Adjusted EBIT

Key figuresH1-2011 H1-2012 ▲▲▲▲

Total sales (M€) 5,334 5,999 +12.5% +4%*

OE Sales (M€) 4,510 5,118 +13.5% +5%*

Gross margin (M€)% of sales

91617.2%

1,00616.8%

+10%-0.4pt

Operating margin(2) (Adj. EBIT) (M€)% of sales

3456.5%

3706.2%

+7%-0.3pt

Operating income (EBIT)(3) (M€)% of sales

3446.4%

3485.8%

+1%-0.6pt

Net income (M€)% of sales

2184.1%

1983.3%

-9%-0.8pt

H1 2012 results

Total earning per share (€) 2.89 2.63 -9%

Capital turnover 5.5 5.0 na

ROCE(3) 36% 31% -5pts

ROA (4) 22% 19% -3pts

EBITDA (5)

% of sales602

11.3%655

10.9%+9%-0.4pt

Free cash flow(6) (M€) 134 148 +10%

Net cash flow(7) (M€) (183) 31 na

Net financial debt(8) (M€) 452 485 +7.3%

Gearing ratio 25% 25% na

*At same perimeter and exchange rates

July 26, 2012 I 4

Outlook 2012

Based on the following market scenario for FY 2012:

�Automotive production:

� World: +5 to 6%

� Europe: -6 to -7%

�Raw materials prices at current levels

H1 2012 results

Guidance

�FY-2012 operating margin* level (in M€) in the same magnitude of FY-2011

July 26, 2012 I 5

* Adjusted EBIT

Sales at 6 bn€, up 12.5%+4% organic growth

H1 2012 results

+4% organic growth

July 26, 2012 I 6

OE sales growth higher than the marketin Asia & Europe

Innovation30%

6.0

7.2

Record order intake (1) at 8.0 bn€out of which 2.9 bn€ in Asia

In bn€

10.09.2

12.5

10.1

14.9

% of order intake

CAGR+11.6%

7.7

9.7

H1 2012 results

4.3 4.8 5.0 5.03.1

6.57.7 8.0

3.44.9 5.0 5.1

6.1

2005 2006 2007 2008 2009 2010 2011 2012

H2 H1

7.7

July 26, 2012 I 7

36% of order intake in Asia 19% of total order intake in China

Asia36%

North America

16%

China 53%

Other Asian

countries47%

H1 2012 results

SouthAmerica

8%

Europe 40%

Asia: 2.9 bn€World: 8 bn€

47%

July 26, 2012 I 8

H1-11 H1-12

Sales of 6 bn€, up 12.5% (+4% like-for-like)OE sales up 13.5% (+5% like-for-like)

+12.5%

In M€

OE salesIn M€

Perimeter +6.0%Currencies +2.8%

Like-for-like +4,7%

+13.5%

4,846

275

4,510

5,118

316

5,999

H1 2012 results

H1-11 H1-12

5,334

Perimeter +5.9%

Currencies +2.6%

Sales* +4.0%

* At same perimeter & exchange rates

H1-11 H1-12

Perimeter +4.7%Currencies +1.4%

Like-for-like -4.3%

5,683

AftermarketIn M€

698719

+1.8%+1.8% 34732

July 26, 2012 I 9

EuropeValeo OE sales** -1%

Production -5%

North AmericaValeo OE sales** +18%

Production +22%Of which Detroit 3 +9%

53% of Valeo sales17% of Valeo sales

Performance higher than the market in Asia and Euro peWorld performance higher than the market excluding Japanese OEMs

Underperf.-4pts*

Outperf.+4pts*

WorldOE sales +5%

Production +9%

Underperf.-4pts*

World (w/o Japanese)OE sales +2%

Production +1%Outperf.

+1pt*

H1 2012 results

AsiaValeo OE sales** +20%

Production +15%South AmericaValeo OE sales** -11%

Production -8%

24% of Valeo sales6% of Valeo sales

Outperf.+5pts*

*At same perimeter and exchange rates** Valeo sales by destination

Underperf.-3pts*

July 26, 2012 I 10

AsiaValeo OE sales** +20%

Production +15%

24% of Valeo salesJapan

OE sales** +26%Production +54%

31% of Asian salesKorea

Outperf.+5pts*

Outperf.+12pts*

Underperf.-28pts*

Performance higher than production in AsiaAbove-market growth in China, India & Korea, more than offsetting below market growth in Japan

H1 2012 results

OE sales** +15%Production +3%

20% of Asian sales

IndiaOE sales** +15%Production +9%

4% of Asian sales

ChinaOE sales** +25%Production +7%

39% of Asian sales

Outperf.+6pts*

Outperf.+18pts*

*At same perimeter and exchange rates** Valeo sales by destination

July 26, 2012 I 11

OE sales performance impacted by strong Japanese re covery A temporary consequence of 2011 earthquake

+7

+1+2

+5

+10

+13

+8

+7

0

JapaneseOEMs

downturn

H1 2012 resultsJuly 26, 2012 I 12

-4 -4-2

-11

-4-3 -3

0

-10

Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

Valeo OE sales on a like-for-like basis vs light vehicle production (in pts)

JapaneseOEMsrecovery

Strong development in Asiathrough organic & external growth

+100

-35

+144

Perimeter +227

Perimeter +56

Geographical contribution to sales evolution(in €M)

Perimeter +4

H1 2012 results

H1-11 Europe Asia NA SA Currencies H1-12

5,334

5,999

-41

+190Perimeter +20

Perimeter Organic

July 26, 2012 I 13

Positioning in Asia & emerging countries at 53% of O E sales Strong improvement in Asia

Western Europe

39%

Asia26%

53% in Asia& emerging

OE sales by production region

Western Europe

47%

Mexico7%

Asia18%

47% in Asia& emerging

H1 2012 results

H1-2012

US8%SA

5%

Eastern

Europe

& Africa

14%

Mexico8%

countries47%

US6%

SA7%

Eastern

Europe

& Africa

15%

& emergingcountries

H1-2011

July 26, 2012 I 14

German 28%

American 18%

Others6%

Asian & German customers at 29% & 28% respectivelyvs 21% & 29% in H1-2011

German 29%

American18%

Others 9%

(in % of OE sales)

H1 2012 results

Asian** 29%

French* 19%

H1-2012

Asian** 21%

French* 23%

H1-2011

* Excluding Nissan** Including Nissan

July 26, 2012 I 15

Operating margin(2)

(adj. EBIT) up 7.2%,

H1 2012 results

(adj. EBIT) up 7.2%,at 370 M€ or 6.2% of sales

July 26, 2012 I 16

+0,4pt -0,3pt-0.2pt

-0,1pt -0,2pt

Gross margin at 1,006 M € or 16.8% of sales mainly impacted by aftermarket, exchange rates & new production sites startup costs

H1 2012 results

17.2%16.8%

H1-2011 H1-2012OEM/Aftermarket

mix

Currencies(Real+Rupee)

Volume Startup ofnew production

sites

Others

July 26, 2012 I 17

4000

5000

6000

7000

8000

9000

10000

11000

1500

1700

1900

2100

2300

2500

2700

2900 Copper€/T

Aluminum€/T

Stable raw material pricesRare earth action plan on track

H1-2011 H1-2012 H1-2011 H1-2012

H1 2012 results

*of which copper 51%, aluminum 43% and zinc 6%** Rare earth rates increase by +100% mitigated by consumption reduction

H1-2012 % of consumption

Impact ▲ %

H1-2012 / H1-2011

39% LME* -6%

35% Steel +3%

23% Plastic +6%

3% Rare earth +10%**

100% Total 0%

July 26, 2012 I 18

EBITDA by Business GroupPowertrain action plan on track, Visibility impacted by aftermarket

8%

10%

12%

14%H1-2012

Powertrainas % of sales 9.2 %

Thermalas % of sales 12.0%

Visibilityas % of sales 9.3%

Comfort & Driving Assistance11.9 %

H1 2012 results

4%

6%

H1-08 H2-08 H1-09 H2-09 H1-10 H2-10 H1-11 H2-11 H1-12

Comfort and Driving Assistance Systems Powertrain SystemsThermal Systems Visibility SystemsGroup

Comfort & Driving Assistanceas % of sales 11.9 %

TOTAL 10.9 %

July 26, 2012 I 19

+0.1pt 0.0pt-0.4pt

Operating margin (Adj. EBIT ) up 7.2% at 370M€ or 6.2% of sales

+0.6pt

H1 2012 results

6.5% 6.2%

H1-11 Gross margin R&D SG&A H1-12

July 26, 2012 I 20

285313

+10%

In M€& % of sales

Net R&D at 313 M €, up 10%to sustain order intake growth

3.16.5 7.7 8.0

6.1

6.07.2

2009 2010 2011 2012

S1 S2

Order intakeIn bn€

9.2

12.5

14.9

H1 2012 results

H1-11 H1-12

5.3% 5.2%

July 26, 2012 I 21

H1-11 H1-12

SG&A under strict controlStable at 5.4% of sales

5.4% 5.4%

% of sales

286

323+13%

In M€

SellingExpenses

88

SellingExpenses

98

Admin.Expenses

198

Admin.Expenses

225

H1 2012 results

3.7% 3.8%

1.7% 1.6%

H1-11 H1-12

July 26, 2012 I 22

88%

91%

95%

79%

Break even point% sales

Higher break even point due to investment in Asia

H1 2012 results

79%76%

78%

75%

2007 2008 2009 2010 2011 H1-2012 2015In line withstrategic plan

July 26 th, 2012 I 23

Flexibility assured thanks to high level of temporary contracts

Net income of 198 M €, mainly impacted by cost of debt

H1-11 H1-12 ▲

Total sales (M€) 5,334 5,999 +12.5%

Operating margin (adj. EBIT) (M€)% of sales

3456.5%

3706.2%

+7%-0.3pt

Other income & expenses (M€)% of sales

(1)0.0%

(22)0.4%

na+0.4pt

Operating income (EBIT) (M€)% of sales

3446.4%

3485.8%

+1%+0.6pt

Cost of net debt (M€)Other financial expenses (M€)

(29)(17)

(50)(16)

+72%-6%

H1 2012 results

Other financial expenses (M€)Associates (M€)

(17)4

(16)11

-6%Na

Income before taxes (M€) 302 293 -3%

Taxes (M€)Effective tax rateNon strategic activities (M€)Minority interest and others(M€)

(77)26%

0(7)

(78)28%(2)

(15)

+1%+2ptsnana

Net income (M€)% of sales

2184.1%

1983.3%

-9%-0.8pt

Earning per share (€) 2.89 2.63 -9%

July 26, 2012 I 24

Free cash flow up 10%, at 148 M€after CAPEX increase of 117 M€

H1 2012 results

Free cash flow up 10%, at 148 M€after CAPEX increase of 117 M€

July 26, 2012 I 25

224

310

307

426

4.2%5.2%

H1-11 H1-12

Capex excl. capitalized R&D

Capex excl. capitalized R&D(% of sales)

+39%M€

Capex increase to sustain order intake

H1 2012 results

83 116

224

H1-11 H1-12

capitalized R&D

Capitalized R&D

1.6%1.9%

H1-11 H1-12

Capitalized R&D(% of sales)

Increase of capitalized R&D drivenby higher profitability of order intake

July 26, 2012 I 26

H1-11 H1-12

EBITDA(M€) 602 655

Operating working capital (M€) (11) 59

Restructuring & social costs (M€) (27) (22)

Other operational items (inc. taxes) (M€) (123) (120)

Capex (inc. capitalized R&D) (M€) (307) (424)

Free cash flow up 10%, at 148 M €Due to strong EBITDA and favourable working capital

Taxes: (93) m€

Pensions: (13) m€

H1 2012 results

Capex (inc. capitalized R&D) (M€) (307) (424)

Free cash flow(M€)(before interest payments)

134 148

Interest (M€) (42) (56)

Other financial items (M€) (275) (61)

Net cash flow (M€) (183) 31

Net financial debt(M€) 452 485

July 26, 2012 I 27

Strong financial structure

H1 2012 results

Strong financial structure

July 26, 2012 I 28

Shareholders’ equity (M€)excluding minority interests

Net debt (M€)

Shareholders’ equity and net debt

1,956

485

1,784

452

1,936

523

Net financial debt over EBITDA

Strong financial structureKeeping our “investment grade” status as a high priority

Net debt (M€) EBITDA 12 months rolling according to bank definition(M€)

1,172 1,216 1,265

H1 2012 results

December 30, 2011

Gearing

25%

Gearing

27%

June 30, 2011

Gearing

25%

Covenant net financial debt / EBITDA of 3.25

June 30, 2011

June 30, 2012

June 30, 2012

December, 312011

July 26, 2012 I 29

452 523 485

Leverage

0.4x

Leverage

0.4x

Leverage

0.4x

2000

2250

2500

2750 in M€

Strong cash position to cope with challenging environme ntDebt profile as of June 30, 2012

Liquidity secured by

Cash and cash equivalents: 1,4 Bn€

Undrawn credit lines: 1,2 bn€Weighted Average Maturity: 3,8years

New bond issue500 M€ - January 2017

Long – term debt management

Weighted average Financing Rate: 4.9 %

Repurchase EMTN 2013: 89 M€Reimbursement syndicated loan : 225M€

H1 2012 results

0

250

500

750

1000

1250

1500

1750

2000

cash and cash equivalents (30/06/2012)

Undrawn credit lines (30/06/2012)

short term debt 2013 2014 2015 2016 2017 2018

311 M€June 2013 56 M€/year 2013 / 2014

76M€ 2015 / 2016 20M€ 2017 / 2018

500M€May 2018

250M€June 2016Swap in JPY

500M€Jan. 2017

EMTN BEI financing Syndicated loan

July 26, 2012 I 30

Valeo Access Mechanisms

H1 2012 results

Valeo Access Mechanisms planned disposal

July 26, 2012 I 31

Valeo Access Mechanisms Planned disposal

Key figures � Part of Comfort & Driving Assistance Business Group

� Sales: 620 m€ in 2011

� 90% of sales in Europe and South America

� Main exposure to European customers

� Operating margin (Adj. EBIT) slightly lower than the Group

� Employees: 4,400 (end of June 2012)

H1 2012 results

Employees: 4,400 (end of June 2012)

� Industrial footprint: 12 manufacturing sites out of which 10 sites located in Europe and Latin America

Product portfolio, primarily mechanical based

Latches Locksets HandlesClosuresystems

Steeringcolumn locks

July 26, 2012 I 32

Rationale

� In line with Valeo strategy focused on CO2 emission reduction, Asia & emerging countries

� Expected to be accretive to earnings

� EBITDA multiple in line with the average of multiples observed in similar transactions in the industry in 2011

Valeo Access MechanismsPlanned disposal

H1 2012 results

Status

� Submitted to employee representatives for consultation

� Subject to approval by the competition authorities

July 26, 2012 I 33

Geographical fit

U-Shin + Valeo Access Mechanismsa leader with diversified geography and customer base

Customer fit

� Valeo Access Mechanisms: strong position with European customers

� U-Shin: strong position with Asian customers

H1 2012 results

� 90% of Valeo Access Mechanisms sales in Europe and South America

� 90% of U-Shin sales in Asia

Valeo Access Mechanisms + U-Shin would become :� leader in Asia, Europe and South America� a strong player in North America with huge growth opportunities

July 26, 2012 I 34

2012 outlook

H1 2012 results

2012 outlook

July 26, 2012 I 35

Outlook 2012

Based on the following market scenario for FY 2012:

�Automotive production:

� World: +5 to 6%

� Europe: -6 to -7%

�Raw materials prices at current levels

H1 2012 results

Guidance

�FY-2012 operating margin* level (in M€) in the same magnitude of FY-2011

July 26, 2012 I 36

* Adjusted EBIT

Contact

Investor Relations

Thierry Lacorre43, rue BayenF-75848 Paris Cedex 17FranceTel.: +33 (0) 1.40.55.37.93

H1 2012 results

Tel.: +33 (0) 1.40.55.37.93Fax: +33 (0) 1.40.55.20.40E-mail: thierry.lacorre@valeo.comWeb site: www.valeo.com

July 26, 2012 I 37

Share Information

FR FPVLOF.PAFR 00013033879,311,067

Share Data

� Bloomberg Ticker� Reuters Ticker� ISIN Number� Shares outstanding as per 30.06.2012

H1 2012 results

ADR Data

� Ticker/trading symbol� CUSIP Number� Exchange� Ratio (ADR: ord)� Depositary Bank� Contact at J.P. Morgan – ADR

broker relationship desk

VLEEY919134304OTC1:2J.P. MorganJim Reeves+1 212-622-2710

July 26, 2012 I 38

Glossary

(1) Order intake : Order intake corresponds to business awarded by automakers (less any cancellations) during the period, based on Valeo's best and reasonable estimates in terms of volumes, sale prices and project lifespans.

(2) Operating margin (adj. EBIT) corresponds to operating income (EBIT) less other income and expenses

(3) ROCE corresponds to operating margin (adj. EBIT) /capital employed less goodwill calculated over the last 12 months

(4) ROA corresponds to operating margin (adj. EBIT) / committed capital plus goodwill

H1 2012 results

(5) EBITDA corresponds to operating income (EBIT) before amortization of tangible and intangible assets and depreciation.

(6) Free cash flow corresponds to net operating cash flow less net disbursements on tangible/intangible assets.

(7) Net cash flow corresponds to free cash flow less financial expenses and after taking into account the payment of dividends and financial flows relating to mergers and acquisitions.

(8) Net financial debt includes all long-term financial debts, short-term credits and bank overdrafts, less loans and other long-term financial assets, cash and cash equivalents

July 26, 2012 I 39

Back-up

H1 2012 resultsJuly 26, 2012 I 40

Quarterly informationin M€

Sales by segmentsQ1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

Comfort & DrivingAssistance

408 440 418 438 481 489 567 620 657 634

Powertrain Systems 636 708 625 714 767 782 743 834 855 826

Thermal Systems 693 754 735 751 783 776 777 804 864 855

Visibility Systems 591 595 547 621 664 640 597 648 685 672

Total sales 2,309 2,478 2,342 2,503 2,669 2,665 2,662 2,872 3,033 2,966

H1 2012 results

Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12

OE Sales 1,898 2,059 1,929 2,066 2,263 2,247 2,262 2,435 2,602 2,516

Aftermarket 351 371 360 363 361 358 336 357 369 363

Miscellaneous 60 48 53 74 45 60 64 80 62 87

Total sales 2,309 2,478 2,342 2,503 2,669 2,665 2,662 2,872 3,033 2,966

OE & aftermarket sales

Total sales 2,309 2,478 2,342 2,503 2,669 2,665 2,662 2,872 3,033 2,966

July 26, 2012 I 41

2009 2010 2011 2012

(in € million) H1 H2 H1 H2 H1 H2 H1

Total sales 3,472 4,027 4,787 4,845 5,334 5,534 5,999

Gross margin 453 685 856 879 916 927 1,006

as % of sales 13.0% 17.0% 17.9% 18.1% 17.2% 16.8% 16.8%

R&D expenditures (234) (239) (267) (270) (285) (276) (313)

Selling & administrative expenses (270) (262) (297) (284) (286) (292) (323)

Other income & expenses (37) (12) (31) 4 (1) 1 (22)

Operating income (EBIT) (88) 172 261 329 344 360 348

as % of sales -2.5% 4.3% 5.5% 6.8% 6.4% 6.5% 5.8%

Half year P&L

H1 2012 results

as % of sales -2.5% 4.3% 5.5% 6.8% 6.4% 6.5% 5.8%

Cost of net debt (21) (39) (32) (35) (29) (42) (50)

Other financial income and expenses (37) (20) (14) (18) (17) (18) (16)

Equity in net earnings of associates (40) 6 11 (12) 4 (2) 11

Income before income taxes (186) 119 226 264 302 298 293

Income taxes (26) (53) (47) (57) (77) (71) (78)

Income from continuing operations (212) 66 179 207 225 227 215

Non-strategic activities 1 (1) (2) 0 0 (1) (2)

Net income for the period (211) 65 177 207 225 226 213

Minority interest (2) (5) (9) (10) (7) (17) (15)

Net income (213) 60 168 197 218 209 198

July 26, 2012 I 42

Half year segment informationH1-11 and H1-12

Net sales

• segment (excluding Group) 956 1 537 1 545 1 284 12 5 334

• intersegment (Group) 14 12 14 20 (60) -

EBITDA 107 164 173 140 18 602

Research & Development expenditure, net (72) (71) (79) (65) 2 (285)

88 97 56 66 1 308

Segment assets 897 1 186 997 907 22 4 009

Investments in property, plant and equipment and intangible assets

Comfort and Driving

Assistance Systems

(in €m) Powertrain Systems

Thermal Systems

Visibility Systems

Others TOTAL

First-half 2011

H1 2012 results

(in €m)

Net sales

• segment (excluding Group) 1,278 1,667 1,704 1,337 13 5,999

• intersegment (Group) 13 14 15 20 (62) -

EBITDA 154 155 206 126 14 655

Research & Development expenditure, net (88) (82) (78) (65) - (313)

107 125 67 113 14 426

Segment assets 1,402 1,427 1,094 1,079 36 5,038

Investments in property, plant and equipment and intangible assets

Comfort and Driving

Assistance Systems

Powertrain Systems

Thermal Systems

Visibility Systems Others TOTAL

First-half 2012

July 26, 2012 I 43

Safe Harbor Statement

Statements contained in this report, which are not historical fact, constitute « Forward-LookingStatements. » Even though Valeo’s management feels that the Forward-Looking Statements arereasonable, investors are put on notice that actual results may differ materially due to numerous importantfactors, risks and uncertainties to which Valeo is exposed. Such factors include, among others, thecompany’s ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually orcompetitively required price reductions. The risks and uncertainties to which Valeo is exposed are mainlycomprised of the risks resulting from the investigations currently being carried out by the antitrustauthorities as they have been identified in the Registration Document, operational risks which relate tobeing a supplier in the automotive industry, to the marketing and sales of the types of vehicles produced

H1 2012 results

and to the development of new products and risks due to certain global and regional economic conditions.Also included are environmental and industrial risks as well as risks and uncertainties described oridentified in the public documents submitted by Valeo to the French “Autorité des Marchés Financiers”(AMF), including those set out in the “Risk Factors” section of Valeo’s Registration Document registered atthe AMF on March 29, 2012 (ref. no. D.12-0237).

The company assumes no responsibility for any estimates made by analysts and any other informationprepared by third parties which may be used in this report. Valeo does not intend or assume any obligationto review or to confirm the estimates of analysts or to update any Forward-Looking Statements to reflectevents or circumstances which occur after the date of this report.

July 26, 2012 I 44

H1 2012 results