Valeo : Sales growth accelerating to 13% in the second quarter

Jacques Aschenbroich, Valeo's Chairman and Chief Executive Officer, commented:

'Over the last few years we have built a new, more technologically focused, innovative, dynamic and profitable Valeo thanks to the commitment of all the Group's teams.
Our results for the first half of 2016, with the order intake up 20% to 12.8 billion euros, like-for-like sales up 11%, operating margin up 20% to 8% of sales and net income up 23%, bear testimony to our dynamism and to the merits of our strategy focused on innovation in CO2 emissions reduction and intuitive driving.
On the back of our strong sales growth and the significant outperformance of our original equipment sales on the world's main markets, we can confidently confirm our full-year 2016 objectives announced on publication of the 2015 annual results, despite the uncertainties that may affect the European automotive market following the recent Brexit decision by the United Kingdom.'

Second-quarter 2016:
• Consolidated sales of 4.2 billion euros, up 12% on a like-for-like basis (up 13% as reported)
• Successful integration of both peiker and Spheros

First-half 2016:
• Order intake(2) of 12.8 billion euros, up 20%, lifted by the increase in content per vehicle due to the growing value of our products
• Consolidated sales of 8.1 billion euros, up 11% like-for-like (up 11% as reported)
• Original equipment sales of 7.1 billion euros, up 11.5% like-for-like (up 13% as reported), outpacing global automotive production by 10 percentage points
• Operating margin(1) up 20% to 647 million euros, or 8.0% of sales
• Net attributable income up 23% to 422 million euros, or 5.2% of sales
• Free cash flow(2) of 339 million euros, up 11%

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.
Thanks to vigorous sales growth and the strong outperformance of our original equipment sales on the world's main markets, we can confidently confirm the full-year 2016 objectives that were announced on publication of our 2015 annual results, despite the uncertainties that may affect the European automotive market following the recent Brexit decision by the United Kingdom.

[1] Including share in net earnings of equity-accounted companies, see Financial Glossary, page 12.

[2] See Financial Glossary, page 12.

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