Valeo Presents New Strategic Plan and Medium-Term Financial Objectives

Paris, March 10, 2010 (ots/PRNewswire) - During an investor day
organized today in Paris, Valeo presented its new strategic plan
focused on CO2 emissions reduction and its medium-term financial
objectives:

- organic growth higher than that of automotive production in each region
thanks to innovation and accelerated development in emerging markets;
- determination to be a major player in the consolidation of the sector;
- implementation of a new Group organization centered around 4 Business
Groups to speed up growth and improve efficiency;
- return on capital employed (ROCE[1]) objective of around 30% in 2013,
among the best in the industry.

Jacques Aschenbroich, the Group's Chief Executive Officer,
declared: "Two major trends should drive growth in the automotive
market in the next few years: CO2 emissions reduction and high growth
in emerging markets. By focusing our investments in these two areas,
I am convinced that Valeo will be able to return to organic growth
and play an active role in the consolidation of the sector."

A new strategic orientation to drive growth

In the field of CO2 emissions reduction, Valeo already offers
many technological solutions for downsized internal combustion
engines and for hybrid and electric vehicles. The Group plans to
devote two-thirds of its advanced research investment to these
innovations. Another key focus point is reduced component weight and
energy consumption. Valeo expects to double its sales for
technologies linked to CO2 emissions reduction by 2013, to 1 billion
euros, and over 5 billion euros in 2020.

Valeo plans to devote 60% of its investments to emerging
countries in order to reinforce its historical positions, notably in
China, India, Brazil, Thailand and Turkey, and progressively develop
its presence in Russia. The Group's sales in China and India should
amount to 1 billion euros in 2013 and 3 billion euros in 2020.

Valeo forecasts organic growth higher than that of global
automotive output in each region of production, thereby achieving
sales of 10 billion euros in 2013 and 15 billion euros in 2020.

At the same time, Valeo will investigate external growth
opportunities, particularly in areas related to CO2 emissions
reduction. Should there be a further consolidation of the sector, the
Group intends to position itself as an active player in this
consolidation.

Valeo will constantly review its business portfolio, based in
particular on two criteria:

- position as one of the top three players worldwide;
- return on capital employed exceeding 20%, to achieve the Group
objective of 30%.

A new organization

To respond to the new demands of the automotive industry and the
growing globalization of its markets and its customers, Valeo will
put in place its new organization centered around 4 Business Groups
and a strengthened role for the national directorates. The goal of
this new organization is to accelerate growth and improve efficiency.
A dossier has been presented to the European Works Council.

Return on capital employed of around 30% by 2013

Valeo's objective is to achieve by 2013 one of the best
performances in its sector in terms of return on capital employed
(ROCE). With sales of around 10 billion euros in 2013 and an
operating margin level of 6 to 7%, the Group's ROCE[2] should be
close to 30%.

In addition to the lowering of its break-even point to around 7
billion euros in sales and its negative working capital, Valeo has
three other levers which will contribute to improving its operating
margin by 3 points as of 2013:

- reduced administrative expenses from around the end of the first half
2011;
- investment limited to 80% of depreciation in 2010 and 2011;
- return to Group-average profitability for the Visibility Systems
Business Group.

Valeo is an independent industrial Group fully focused on the
design, production and sale of components, integrated systems and
modules for the automotive industry, mainly for CO2 emissions
reduction. Valeo ranks among the world's top automotive suppliers.
The Group has 120 plants, 21 Research centers, 40 Development
centers, 10 distribution platforms and employs 52,200 people in 27
countries worldwide.

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[1] before restructuring, taxes and goodwill
[2] before restructuring, taxes and goodwill

For more information about the Valeo Group and its activities,
please visit our web site http://www.valeo.com.

ots Originaltext: Valeo
Im Internet recherchierbar: http://www.presseportal.de

Contact:
CONTACT: For additional information, please contact: Kate Philipps,
ValeoGroup Communications Director, Tel.: +33-1-40-55-20-65; Thierry
Lacorre,Valeo Group Investor Relations Director, Tel.:
+33-1-40-55-20-39