Didier HUET Group Supply Chain Director SDI – Supplier Digital Integration Eradication of material re-labelling at receiving Didier HUET Group Supply Chain Director March 2016

Origin of material labels* Few figures Every month, about 6.5 million of labels identifying the packages of components and raw materials: 54% of labels are printed and pasted on the packaging, on receipt of the goods at Valeo (re-labelling) 31% of labels are printed and pasted on the packaging by the supplier, not usable by Valeo (not known in our system) 15% of labels are printed and pasted on the packaging by the supplier from Valeo information received by EDI or Web-EDI, thus usable in internal and up-to-date Origin of material labels* The re-labelling activity covers about 80 FTE (*) Figures based on 117 sites answers and average lines

Eradication of material re-labelling at receiving The labeling process on receipt is required for: Identify each boxes or cardboard boxes when they are not identified by suppliers Add traceability information required by Valeo and/or customer (delivery note, production date, electronic, …) Define the storage location of materials into the plant (identification flat storage, lane number or point of consumption) Record the label digitally in Valeo Comp@ss system for later use (scanning, traceability ...) For eliminating the labelling process at receiving, it is necessary to: 1. Valeo has to send the necessary information of each component to suppliers 2. Suppliers must retrieve information, put them on the labels and stick them on each packaging Update the component database, including detailed data on packaging (type, quantity per box, weight, ...) Send messages and DELFOR DELJIT EDI or Web EDI with these parameters according to the standard Being able to receive the EDI message and incorporate it into their own ERP system Being able to print labels with the data sent by Valeo Being able to send Advance Shipping Notice (ASN / DESADV) full or rich, including detailed information on the packaging and labeling

Eradication of material re-labelling at receiving SDI Project Scope DESADV– Delivery Shipping Advice or ASN – Advanced Shipping Notice contains dispatch information from the supplier including: Product reference Consignment Quantity And « ASN Rich» contains additional information's such as : Packing information Labelling number DELINS DESADV/ASN Supplier Valeo SSC Finance Valeo Sites INVOICE SELF BILLING DELINS – Delivery Instructions Valeo Production Plan sent to the supplier Eradication of material re-labelling at receiving Billing information are sent electronically via message « INVOICE » Self-billing is when billing information is sent to the supplier on his behalf based on goods receipt information

2 main solutions Classical EDI Web EDI For which flow: Pre-requisites: Intra Valeo’s sites Mature and Tier 1 suppliers High material flows (volume) Pre-requisites: Integrated ERP and bar-coding system Printers For which flow: LCC suppliers Others suppliers Medium or low material flows Pre-requisites: Printers

Planning Follow up - Focus Wave 1

Planning Follow - Focus Wave 2