ENTRETIEN CROISÉ “At the end of the Elevate 2028 plan, Valeo will be financially stronger and even better positioned to take advantage of the current transformation of our sector.” CHRISTOPHE PÉRILLAT Valeo’s Chief Executive Officer How would you describe Valeo’s performance in 2025? What are the key elements of the Elevate 2028 plan? JOINT INTERVIEW How would you describe Valeo’s performance in 2025? Christophe Périllat In 2025, we continued Valeo’s trajectory of profitability improvement, ongoing since 2022. We achieved our financial targets, improved our operating margin and generated a record level of free cash flow before interest and restructuring costs. Our three divisions, Power, Brain and Light, also booked solid orders around the world, particularly in China. Finally, we succeeded in reducing our R&D expenditure by 200 million euros compared with the previous year, and our SG&A costs by 100 million euros over two years, demonstrating increased operating efficiency. Gilles Michel The Group met its financial targets in a difficult market, and generated record levels (1) of free cash flow, managing to turn what might have been a weakness into a real strength. This performance proves the strength of the operational improvements that have been implemented. Valeo has demonstrated its ability to adapt and deliver concrete results in line with market expectations. With Elevate 2028, the Group also presented its vision for the next three years. We are aware that investor confidence will be forged over the long term, by confirming the Group’s ability to consistently deliver higher levels of profitability and cash flow, and by a return to sales growth. (1) Before exceptional restructuring costs and interest. What are the key elements of the Elevate 2028 plan? Christophe Périllat Elevate 2028 aims to mark a new milestone in the Group’s financial improvement trajectory. In 2028, Valeo expects sales of 22-24 billion euros, an operating margin of 6%-7%, and free cash flow after interest of more than 500 million euros. This ambition is based on three key engines: continued improvement in our gross margin, underway since 2022; increased cash generation thanks to the transformation of our business model to structurally generate more cash – which was visible as early as 2025; and a return to growth by 2027, driven by the gradual conversion into sales of our substantial backlog of orders booked since 2022. At the end of this plan, Valeo will be financially stronger and even better positioned to take advantage of the current transformation of our sector.