***Valeo - 2024 results***

Core Insights - Valeo achieved its profitability and cash generation objectives in 2024, with a focus on improving financial performance in 2025 through attractive offerings and cost management [1][2][5] - The company aims for structurally higher profitability and cash generation in 2025, targeting sales between €21.5 billion and €22.5 billion, an EBITDA margin of 13.5% to 14.5%, and free cash flow of €700 million to €800 million before one-off restructuring costs [4][60] Financial Performance - In 2024, Valeo reported sales of €21,492 million, a decrease of 0.5% on a like-for-like basis compared to 2023 [4][11] - EBITDA increased by 8% to €2,863 million, representing 13.3% of sales, which is an improvement of 1.3 percentage points year-on-year [4][40] - Operating margin rose by 9.7% to €919 million, accounting for 4.3% of sales, up 0.5 percentage points from the previous year [4][40] - Free cash flow before one-off restructuring costs was €551 million, exceeding guidance, while after one-off costs, it stood at €481 million [4][49] Debt and Dividend - Net debt decreased by €215 million to €3,813 million, with a leverage ratio of 1.3x EBITDA [4][50] - A dividend of €0.42 per share is proposed, reflecting a 5% increase compared to 2023 [4][54] Market Dynamics - Original equipment sales fell by 2% on a like-for-like basis in 2024, significantly impacted by lower production levels in certain European electric vehicle platforms [19][26] - Aftermarket sales increased by 4% on a like-for-like basis, driven by an aging vehicle fleet and enhanced product offerings [15][19] - New orders for 2024 totaled €17.8 billion, down from previous years due to postponements and cancellations by automaker customers [55][59] Strategic Initiatives - Valeo's Move Up strategic plan is set to conclude in 2025, with a focus on cost reduction and improved profitability [6] - The company is pursuing a divestment strategy for non-strategic assets, aiming to dispose of assets worth €500 million [51][52] - Valeo's commitment to sustainability is reflected in its first sustainability report, integrating sustainability into its strategy and operations [3]