INVESTOR PRESENTATION

Transcription

1 PEUGEOT - UG-FR INVESTOR PRESENTATION December, 2010 Investor Relations James Palmer James.palmer@mpsa.com

2 This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company s annual report available on its Internet website ( These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements. More comprehensive information about PSA Peugeot Citroën may be obtained on its Internet website ( under Regulated Information. Investor update December

3 GROUP OVERVIEW

4 PSA Peugeot Citroën > Two powerful, distinct and complementary brands The company is listed on the Paris NYSE Euronext and employs employees worldwide. Market cap. approximately of 6bn FY 2009 turnover of 48.4bn (9M 2010: 41.4bn, change 10/09: +17.3%) vehicles sold worldwide in 2009 ( vehicles in 9M 2010, change 10/09: +12.2%) Europe s No. 2 vehicle manufacturer with market share of 13.8% in 2009 (14,3% in 9M 2010) and a worldwide market share of 5.1% Investor update December

5 Group worldwide sales WORLDWIDE SALES +12.2% 9M = WESTERN EUROPE +5.4% M = RUSSIA +18.6% M = M M M 2010 CHINA LATIN AMERICA % % 9M = M = M M 2010 Investor update December

6 PSA Peugeot Citroën 200 years of history Creation of Peugeot-Frères. The Peugeot brothers convert a grain mill into a steel foundry The Peugeot Citroën group is created by the merger of Citroën SA and Peugeot SA, in which Peugeot takes over Citroën Creation of CREDIPAR; French finance subsidiary of PSA DCAC joint venture set up with Dongfeng Motors to assemble Citroën ZX models in China. Porto Real production plant inaugurated in Brazil Joint venture DPCA created with Dongfeng Motors to expand cooperative production of Peugeot and Citroën models in China Joint PSA Peugeot Citroën- Toyota production plant inaugurated in Kolin, Czech Republic Appointment of Philippe Varin as Chairman of the Managing Board New Production plant inaugurated in Trnava, Slovakia Armand Peugeot founds the company "Automobiles Peugeot" to continue to produce cars and trucks PSA Peugeot Citroën acquires Chrysler Europe ECIA completes a friendly acquisition of equipment manufacturer Bertrand Faure. The new company, named Faurecia, is more than 50% owned by PSA Peugeot Citroën. The cornerstone is laid for the Kaluga plant in Russia and an agreement is signed with Mitsubishi Motors Corporation Investor update December

7 The company has well established valuable cooperation DIESEL ENGINES 16.5 million diesel engines produced since 1998 PETROL ENGINES HYBRID COMPONENTS SUVs AND ELECTRIC VEHICLES More than 1.5 million units since 2006 Development of hybrid components for front-wheeldrive vehicles SUVs since 2005 and now electric vehicles Peugeot and Citroën SUVs produced PETROL ENGINES Engines and mechanical sub-assemblies since 1966 COMPACT CITY CARS LIGHT COMMERCIAL VEHICLES AND MPVs 1.5 million compact city cars produced since 2005 Light commercial vehicles and MPVs 6.3 million vehicles produced since 1978 Investor update December

8 Non-automotive activities FINANCING & SERVICES TRANSPORT AND LOGISTICS 23.7% of H Group s recurring operating income 10.7% of H Group s recurring operating income AUTOMOTIVE EQUIPMENT Listed at Paris in the NYSE Euronext stock exchange 19% of H Group s recurring operating income Investor update December

9 Ambitions and performance objectives OUR AMBITIONS 3.3bn PERFORMANCE PLAN A step ahead in pioneering vehicles & services 30% Sales & Marketing A global player 15% High growth markets An industry benchmark for operational efficiency 55% Production, Development & SG&A Investor update December

10 CURRENT HIGHLIGHTS

11 Key highlights YTD 2010 Operating and financial performance restored Market trends better than expected Market share growth in Europe, Latin America and China Profitability restored in H1, Expectations raised for H2 & 2010 Solid financial structure and active optimisation of debt Progressing on our ambitions Building blocks in place in high growth markets to reach 50% sales by 2015 Products to support market share and pricing power Pioneering technologies to reduce CO 2 emissions New co-operations to support growth and generate development synergies Performance plan delivering operational excellence Investor update December

12 Market trends Cars and light commercial vehicles Market 2010 FY Expectations - 5% 2010 FY Expectations + c. 10% 2010 FY Expectations + c. 20% Q Q M 2010 Q M M 2010 Q Q Q % +22.9% % + 9.3% % +7.3% % - 5.6% - 3.9% Europe* Latin America China** * Europe = EU + EFTA + Croatia ** Only cars Investor update December

13 Market share growth Worldwide M 2010 > Increased market coverage > Success of new models Europe 30 Q Q Q Q Q Q % 5.2% 2.8% 3.2% 3.0% 3.4% Russia Latin America China* * Only cars Investor update December

14 Group results In million euros H H Variation Revenues % Recurring operating income/(loss) (826) % of revenues -3.5% 4.0% Non recurring operating income and (expenses) (506) (69) Operating income/(loss) (1 332) Net financial income (expenses) (226) (241) Income taxes 470 (227) Share in net earnings of equity affiliates Consolidated net income/(loss) (1 064) 737 Net income/(loss), Group share (962) 680 Earning per share (in euros) (4.24) 3.00 Automotive recurring operating income: break even in H2 Group recurring operating income: > 1.5bn for the full year 2010 Investor update December

15 Strong Liquidity Position > > Significant liquidity headroom Low gearing of 12.5% In million euros End 2009 End H Cash and cash equivalents Current & non current financial assets Total Back-up facility (undrawn) Total liquidity available Net debt position Total shareholders equity Gearing ratio 16,0% 12,5% Net debt position at 31 st December expected at similar level Investor update December

16 Solid financial structure > Weighted average remaining maturity: 5.3 years Gross debt pro forma at excluding BPF, undrawn credit-line, short term liabilities & other adjustments In million euros Renewed 2.4bn undrawn credit line maturing July Current ratings: Moody s: Baa3/Negative/P3 Standard and Poor s: BB+/Stable/B Investor update December

17 NEW MODEL MOMENTUM

18 New model momentum 2009 PEUGEOT 3008 CITROËN C3 Picasso New CITROËN C3 PEUGEOT 5008 Investor update December

19 New model momentum 2010 End of PEUGEOT RCZ CITROËN DS3 New CITROËN C4 PEUGEOT 508 et 508SW PEUGEOT 408 CITROËN C5 China PEUGEOT i0n CITROËN DS4 PEUGEOT Hoggar CITROËN Aircross CITROËN C Zero PEUGEOT 3008 Hy4 Investor update December

20 STRATEGY UPDATE

21 Progress on our ambitions A global player 50% of vehicle sales in high growth markets by 2015 A step ahead Design, emissions, services Operational excellence 3.3bn Performance Plan Investor update December

22 CHINA

23 China Passenger car equipment rate 800 Number of PC on the roads Canada Switzerland Australia Austria Sweden Spain Belgium Netherlands Greece Poland Czech Rep Portugal UK Italy France Germany Japan USA PC PC 300 Malaysia Sth Korea Romania Mexico Argentina South Africa TurkeyIran Indonesia Russia India Brazil CHINA 2009 Passenger car market Investor update December

24 INDIA JAPAN GERMANY UK ITALIA FRANCE SPAIN IRAN KOREA MEXICO CANADA UKRAIN AUSTRALIA MALAYSIA BELUX ARGENTINA China Passenger cars in 2020 In thousands Investor update December CHINA USA RUSSIA BRASIL Source: PMT 29/10/2009

25 China CHINESE EUROPEAN First time buyers 80% 13% Male ratio 83% 67% 2 person households 17% 52% Average number of persons per household car per household 75% 38% Manager or above 53% 19% Average age 35 yrs 49 yrs Urban driver 89% 63% Investor update December

26 China > Strengthening of Dongfeng Peugeot Citroën Automobile > Second JV with Chang an to expand Chinese footprint > Develop China Tech Center in Shanghai > Managing Board member based in Shanghai Investor update December

27 China > > Record performance in H at DPCA 5% market share in 2015 Vehicle sales up 50% to Net income, Group share of 97m* vs 9m H1 09 One new vehicle launch per year, per brand STT Hybrid vehicles from 2011 Capacity increased to units with opening of Wuhan 2 in November 2009 Third plant to come on stream in 2013 PEUGEOT 408 CITROËN C5 * PSA 50% share of net profit consolidated as equity affiliate Investor update December

28 PSA Peugeot Citroën in China Locally produced Peugeot Cars PEUGEOT 207 Hatchback PEUGEOT 207 Sedan PEUGEOT 307 Hatchback PEUGEOT 307 Sedan PEUGEOT 408 PEUGEOT 508 H Investor update December

29 PSA Peugeot Citroën in China Locally produced Citroën Cars CITROËN C2 Hatchback CITROËN Elysée Hatchback CITROËN Elysée Sedan CITROËN Xsara Picasso CITROËN Quatre Hatchback CITROËN Quatre Sedan CITROËN Triomphe CITROËN C Investor update December

30 PSA Peugeot Citroën in China Imported cars CITROËN C4 Coupé PEUGEOT 207 CC PEUGEOT 308 CC CITROËN C4 Picasso PEUGEOT 407 SW PEUGEOT 308 SW CITROËN C6 PEUGEOT 407 Coupé PEUGEOT 407 Investor update December

31 A global player: China > Second JV with Chang an to expand Chinese footprint JV, capitalised at RMB 4bn Development of LCVs Launch of Citroën DS line Production capacity of 200k p.a. at Shenzhen Final authorization expected early 2011 Investor update December

32 China > Develop China Tech Center in Shanghai CITROËN Metropolis New product growth momentum Develop environmental leadership > Managing Board member based in Shangai PEUGEOT 3008 Hybrid4 Investor update December

33 OTHER STRATEGIC DEVELOPMENTS

34 Latin America and Russia > Latin American development New model momentum: Peugeot Hoggar, Citroën Aircross 3yrs investment programme for product development and plant capacity: Brazil: 530m Argentina: 170m PEUGEOT Hoggar CITROËN Aircross > Russian production underway Assembly started at Kaluga plant with the Peugeot 308, Citroën C4 since April 2010 Production of SUVs since September 2010 PEUGEOT 308 Investor update December

35 Core range models for high growth markets Vehicles: Peugeot 408 Production: Wuhan, China Palomar, Argentina Mid-size sedan Global small vehicle Vigo, Spain China & Latin America to follow Under consideration PEUGEOT 408 Investor update December

36 A STEP AHEAD

37 Progress on our ambitions A global player 50% of vehicle sales in high growth markets by 2015 A step ahead Design, emissions, services Operational excellence 3.3bn Performance Plan Investor update December

38 Design PEUGEOT RCZ CITROËN DS3 PEUGEOT 508 CITROËN DS4 Investor update December

39 Emissions > 1 million vehicles 120g CO 2 /km by 2012 vs in 2009 Diesel 207, C3 & DS3 99g CO 2 /km Stop & Start up to -15% CO 2 /km Gasoline 1l. 3 cyl 99g CO 2 /km 85% Gasoline and diesel 2009 Electric vehicle Full hybrid diesel «HYbrid4 diesel» Hybrid Plug-in < 50g CO 2 /km 15% Electric and hybrid Investor update December

40 Electric cars & scooters PEUGEOT ion CITROËN C-Zero PEUGEOT E-vivacity Scooter CITROËN Berlingo Electric Investor update December

41 Hybrid technologies PEUGEOT 3008 Hy4 PEUGEOT 508 CITROËN DS5 Hy4 Investor update December

42 Customer services and mobility Customer services Insurance, maintenance, emergency call Fleet management system Launched in 26 European cities by year end active clients in France No membership required Instant mobility Travel service Investor update December

43 OPERATIONAL EXCELLENCE

44 Progress on our ambitions A global player 50% of vehicle sales in high growth markets by 2015 A step ahead Design, emissions, services Operational excellence 3.3bn Performance Plan Investor update December

45 Performance Plan delivery > 3.3bn Performance Plan % 15% Sales & Marketing High growth markets 1.1bn 854m at % Production, Development & SG&A Investor update December

46 To sum up > Building blocks in place in high growth markets to reach 50% sales by 2015 > Products to support market share and pricing power > Pioneering technologies to reduce CO 2 emissions > Underpinned by operational excellence Investor update December

47 APPENDIX I INDUSTRIAL STRATEGY

48 Plant locations Automobile manufacturing plants Mechanical component plants and foundries * Joint-ventures Paris region Douvrin * Valenciennes Hordain (Selvenord *) Poissy Saint-Ouen Aulnay sous-bois Vigo Charleville-Mézières Trémery Caen Metz Vesoul Rennes Mulhouse Sochaux Sept-Fons Mangualde Madrid Val di Sangro (Selvelsud *) Czech Republic Kolin * Trnava Slovakia Russia Kaluga * Bursa China Xiangfan * Wuhan * Brazil Porto Real Jeppener Buenos Aires Argentina Investor update December

49 Efficiency improvement to date > Surface downsizing > European capacity Square meters Million % % Investor update December

50 Efficiency improvement to date in Europe > Non producing workforce > Hours per vehicle Base White collar headcount at end of the year % % Investor update December

51 Capacity utilisation, manufacturing productivity Performance Plan: operational KPI Increase capacity utilisation in Europe from 81% in 2008 to 105% by 2012* Reduce production hours per vehicle by 20% * Hourly capacity x 16 hours x 235 days Investor update December

52 Increase capacity utilisation in Europe > Capacity utilisation, Harbour index* 105% Est. 89% 81% * Hourly capacity x 16 hours x 235 days Investor update December

53 Surface downsizing Square meters 3.9 millions -7% 3.6 millions Investor update December

54 Industrial process lead time optimisation Base % Investor update December

55 Energy reduction Base % Investor update December

56 Industrial quality improvement Right first time Base % Investor update December

57 Safety performance Lost time incident frequency rate (LTIF) 5 4, ,5 3 Divided by 3 2,5 2 1, , Investor update December

58 Workforce flexibility and Industrial relations Well-established workforce flexibility New enhanced agreement in September 2010 Flexible night shift Manpower planning Upgrading competence & skills Investor update December

59 Reducing HPV Hours per vehicle Base % Investor update December

60 APPENDIX II POISSY PLANT CASE STUDY

61 History of Poissy Production Construction of the 1 st Poissy Plant by FORD Poissy joins PSA Peugeot Citroën Group Industrial surfaces downsizing started Launching of the new «Great Poissy Plant» by Simca (including stamping, welding and mechanical workshops) Complete renewal of production process Investor update December

62 Poissy «mother plant» for «B-segment» > 2010 Poissy is one of the 8* PSA Peugeot Citroën s plants dedicated to the production of «B-segment» models PEUGEOT 207 SW PEUGEOT 207 CITROËN DS3 CITROËN New C3 > vehicles/day (2 shifts on each production line) > employees > apprentices and temporary workers * Aulnay, Buenos Aires, Madrid, Mulhouse, Porto Real, Trnava, Wuhan Investor update December

63 Poissy s process key facts > Stamping shop > Welding shop > Paint shop > Assembly lines One of the five stamping shops of the Group Daily production: parts of which 60% shipped to others PSA plants Laser geometrical quality control after each stage (platform, bodyshell, body in white) 100% of welding points are performed by robots Using water based colours. The 1 st compact process among PSA Group (without priming) European benchmark for solvents emissions Production of two tone vehicles Quality guaranteed by autocontrol alert system available for each operator (Andon) Final quality checking line (1 500 controls points within 45 minutes) Investor update December

64 Description of the downsizing process of the industrial surfaces JANUARY 2009 Stamping shop Stamping shop Assembly lines Assembly lines Assembly lines Assembly lines Logistic Logistic Welding shop Welding shop Paint shop Paint shop 4 Investor update December

65 Description of the downsizing process of the industrial surfaces 2013 Stamping shop Stamping shop Assembly lines Assembly lines Assembly lines Assembly lines Welding shop Welding shop Paint shop Paint shop 4 ALL THE PRODUCTION PROCESS CONCENTRATED INTO 4 BUILDINGS Investor update December

66 Benefits of downsizing Process surfaces (sqm) Lead time (in hours) Energy (in kwh/vehicles) Cost improvement of 207 successor vs. actual 207 (base 100) Investor update December

67 APPENDIX III Q REVENUES ANALYSIS

68 Q key highlights Consolidated revenues up 10.3% vs Q (+4.3% like for like) Automotive Division revenues up 2.3% Positive new car positive pricing/mix of +4.3% Sound inventory rotation of 61 days Market share growth in Europe, Latin America and China Sustained recovery at Faurecia, with revenue up 44.1% (11.5% like for like) Investor update December

69 Q3 and 9 month revenues In million euros Q3-09 Q3-10 Change 10/09 like for like 10/09 9M M -10 Change 10/09 like for like 10/09 Automotive % % - Faurecia % +11.5% % +21.6% Gefco % % - Banque PSA Finance % ,7% - Other businesses and intra-company eliminations (901) (997) - - (2 752) (3238) - Total revenues % +4.3% % +11.8% Investor update December

70 Automotive: Worldwide unit sales Assembled vehicles and CKD units In K units Q3-09 Q3-10 Change 10/09 9M M - 10 Change 10/09 Europe % % Russia % % Latin America % % Rest of the world % % Assembled vehicles (excluding China) % % China % % Total assembled vehicles % % Total CKD % % Total assembled vehicles + CKD units % % Investor update December

71 New car revenue analysis In million euros Volumes Price Product mix Country mix FX Others % - 1.5% + 5.8% - 0.3% + 3.5% - 5.5% % New car revenues New car revenues Q3-09 Q3-10 Investor update December

72 New car revenue analysis In million euros Volumes + 8.6% Price - 1.8% Product mix Country mix + 5.1% 0.0% FX + 2.7% Others - 4.7% % New car revenues New car revenues 9M-09 9M-10 Investor update December

73 Inventory In thousands of new vehicles 92 days Inventory rotation 53 days 62 days 61 days Total Group inventory Independent dealership inventory Investor update December

74 APPENDIX IV 2010 FIRST HALF RESULTS

75 Highlights of the 2010 first half results Revenues up 20.8% to 28.4bn Strong recovery in Group recurring operating income: 1 137m (margin of 4%) versus loss of 826m in H Significant turnaround in automotive profitability: recurring operating income of 525m (margin of 2.5%), versus loss of 904m in H1 2009, on the back of market share gains and the Performance Plan Market share rises to 14.5% from 13.7% in Europe, driven by successful new models Net Income, Group share of 680m, versus loss of 962m in H Free Cash Flow of 341m, net debt of 1 732m versus 1,993m at the end of 2009 Investor update December

76 Group margin performance > > Group: Strong recovery Automotive: Return to positive margin Group and Automotive recurring operating margin % 4.4% 3.3% 3.4% 2.0% 2.0% 0.6% 3.0% 1.9% 1.0% -0.5% -3.5% 0.5% -1.8% Group 4.0% 2.5% Automotive -4.8% H H H Investor update December

77 Automotive recurring operating income > Delivery on Performance Plan in line with 1.1bn target for 2010 In million euros Production & procurement R&D Others (1) H Volume market demand* Country & product mix Input costs (62) +90 Currency +101 Net price effect +54 Market share +204 Warranty, SG&A, fixed costs, own network H (904) * Including stock variations +446 Operating environment +575 Performance +854 Investor update December

78 Faurecia > Turnaround confirmed with margin of 3.2% vs 1.9% in H In million euros H H Variation Revenues % Recurring operating income/(loss) (187) 217 % of revenues -4.3% 3.2% Non recurring operating income and (expenses) (69) (2) Operating income/(loss) (256) 215 Net financial income (expenses) (97) (62) Consolidated income/(loss) for the period (361) 112 % of revenues -8.2% 1.6% Free Cash Flow (149) 257 Net financial position June 30, 2010 (1 467) (1 363) Investor update December

79 GEFCO > > Strong pick-up in activity Solid margin of 7.1% In million euros H H Variation Revenues % PSA Peugeot Citroën % Third parties % Recurring operating income % of revenues 0.5% 7.1% Non-recurring operating income and (expenses) (15) 1 Operating income/(loss) (8) 123 Investor update December

80 Banque PSA Finance > > > Increase in net banking revenues Benchmark cost of risk continues downward trend More than 2.7bn of funding raised year to date In million euros H H Variation Net banking revenue % Revenues % Cost of risk (in % of average loans) 0.53% 0.47% Recurring operating income % Number of new contracts (lease and financing) % Total outstanding loans June 30, bn 23.4bn +1.3% Banque PSA Finance rated Baa1 by Moody s / BBB by S&P Investor update December

81 Performance Plan delivery > Sales & marketing (30%) H H FY 2012 Target Market share in Europe 13.7% 14.5% - B2B Market share in Europe 14.4% 15.1% 18% CO 2 /km: vehicles 120g/km Service contracts (N ) Mu by Peugeot (N of outlets) 4 pilots Investor update December

82 Performance Plan delivery > High growth markets (15%) H H FY 2012 Target China market coverage 33% 34% 40% Latin America market coverage 41% 47% 57% Russia market coverage 44% 51% 77% Investor update December

83 Performance Plan delivery > Production, development & SG&A (55%) H H FY 2012 Target Capacity utilisation in Europe 66% 89% 105% Hours per vehicle (2009 base 100) - -4% -20% Development productivity (2009 base 100) - -10% -20% Repeat components 30% 39% 50% Procurement by key suppliers 25% 35% 50% Investor update December

84 APPENDIX V BANQUE PSA FINANCE

85 BANQUE PSA FINANCE Wholly-owned subsidiary of PSA Peugeot Citroën, established in 1982; building on a long experience of car financing since 1919 Banking status in France since 1995 Specialist auto finance company, comprehensive range of financial services: financing, insurance, warranty extension, maintenance contracts Loan book : 23.4bn with 80% retail (incl. fleets) and 20% wholesale Continuous high profitability: net banking revenue : 944m, recurring operating income of 498m in 2009 and a benchmark cost of risk of 0.47% High quality balance sheet with Basel II ratio of 13.8% as of December 2009 Rated Baa1/BBB (negative/stable) or two notches above Peugeot S.A. Highly successful track record in the Eurobond market Investor update December

86 Financing policy 1/2 Matching of maturities between assets and liabilities Policy to secure a minimum 6 months of activity through cash and undrawn back-up facilities At June 30, 2010: 9.2bn of available liquidity Strict independence from the Industrial and Commercial activities of PSA Peugeot Citroën Diversification of funding sources Bank facilities and long-term capital markets issued in H Benelux 3.8% Nordic countries 4.1% Switzerland 7.4% Spain & Portugal 9.2% Asia 1.3% USA 0.5% Others 0.3% Germany & Austria 23.5% Italy 13.6% France 22.6% UK & Ireland 13.7% Investor update December

87 Financing policy 2/2 Diversification of funding sources Sources of refinancing In m (except non-drawn confirmed bank credit lines) June 09 Dec. 09 June 10 Capital markets In m June 09 Dec. 09 June 10 Total assets o/w external refinancing Long-term capital markets Short-term capital markets Total Stockholder s equity + subordinated Other liabilities Bank facilities Others* financing Capital markets Securitization CD CP Bonds + BMTN EMTN * Including SFEF and ECB refinancing External refinancing June 09 Dec. 09 June 10 Short-term Long-term Investor update December