CHINA FIELD TRIP May 10 th 12 th, 2011

Transcription

1 CHINA FIELD TRIP May 10 th 12 th, 2011

2

3 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. China Field Trip - May 10 th 12 th,

4 DPCA

5 Agenda for DPCA > Today 11.15am am 11.20pm am 11.40pm am 12.50am pm 1.35pm pm 3.00pm pm 4.30pm pm DPCA Introduction DFM speech DPCA Presentation Lunch R&D Visit Wuhan Plant 2 Visit DF-Citroen Dealer Visit > Tomorrow 11.30am am DF-Peugeot Dealer Visit China Field Trip - May 10 th 12 th,

6 Speech of Mr Liu Weidong Liu Weidong DFM Deputy General Manager

7 Introduction to DPCA Maxime PICAT General Manager

8 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A China Field Trip - May 10 th 12 th,

9 DPCA Key Data Daily production: cars/day on 2 plants in March 2011 Harbour Utilization rate: 118% in 2011 ytd vs 98% in 2010 Headcount: Revenues: over RMB 35 billion in 2010, +55% vs 2009 Total cars produced since 1992: over 1.9 million out of which in 2010 (+38%) vs 2009 Dealerships: 483 Main Dealers (Peugeot / Citroen) +22% vs 2009 China Field Trip - May 10 th 12 th,

10 History of DPCA Large scale infrastructure stage Initial stage of production and operation Stage of structural adjustment Oct Plant II laid the foundation Stage of stable development A new Era Launch / Plant 3 Construction Start May, 1992 DCAC was established in Wuhan Nov The project of Phase I is accepted upon completion Jan, 2003 New DPCA after the cooperation was enhanced Nov Dongfeng Citroen C5 rolled off the production line Jan.2010 Dongfeng Peugeot 408 was released September 1995 The first Citroen ZX rolled off the production line April, 2004 Dongfeng Peugeot rolled off the production line Nov Plant II was put into production China Field Trip - May 10 th 12 th,

11 Location > DPCA takes advantage of a Balanced Footprint Dongfeng Peugeot Dongfeng Citroen XiangYang Plant Engine and mechanical gearbox assembly plant Headoffice Wuhan Plant 1 Wuhan Plant 2 Wuhan Plant 3 (2013) China Field Trip - May 10 th 12 th,

12 One company, two brands > Creative Technology > Motion & Emotion China Field Trip - May 10 th 12 th,

13 Dongfeng Citroen > One launch in D Segment in 2010 CITROËN C5 C5 C-Triomphe C4 (Hatch / Notchback) New Elysee (Hatch / Notchback) C2 CITROËN C2 CITROËN C-Elysee CITROËN C-Triomphe China Field Trip - May 10 th 12 th,

14 Dongfeng Peugeot > One launch in D Segment in (H2 2011) (Hatch/Notchback) 207 (Hatch/Notchback) China Field Trip - May 10 th 12 th,

15 Technical research & development capabilities > > Technical team of over people Current capabilities Project management Development of current car model year Development, testing and verification of parts Localization of automobile parts 100% of Inplant Industrialization China Field Trip - May 10 th 12 th,

16 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A China Field Trip - May 10 th 12 th,

17 Joint venture governance 50/50 joint-venture Three boards per year Management alternance every four years Last alternance in January 2011 Funding: 7 billions RMB paid-in capital Net cash position currently: 7 billion RMB Cash & 3.9 billion RMB L/T & S/T Debt Permits self-financing future expansion plans 1 st Dividend on 2010 results: 589 MRMB paid on April 28 th 2011 China Field Trip - May 10 th 12 th,

18 Joint venture organisation (updated in 01/2011) 40 PSA Expatriates 40 DFM managers employees DG DGA GM M. Maxime PICAT Executive Deputy GM M. QIU Xiandong DF CITROEN DF PEUGEOT R&D Purchasing Product Strategy Quality Logistic & Distribution WuHan 1 Plant WuHan 2 Plant Xiangyang Plant HR Finance Legal Affairs Audit PR IT Organization Industrial Entities Support Entities China Field Trip - May 10 th 12 th,

19 Characteristics of DPCA teams Junior college Bachelor Degree Master Degree and above 23% 24% 4% Education 49% Secondary specialized school, technical school and so on and above 10,6% 2,5% Age 33% 54% 30 and lower China Field Trip - May 10 th 12 th,

20 Productivity > From 2009 to Car production Target (+20%) Headcount Target (+17%) Annual car production / employee (average) (target) > Harbour % Harbour Days Shifts Hours/day Reference 100% YTD % Example 130% China Field Trip - May 10 th 12 th,

21 Fully implemented lean management In the 2 brands (network inclusive) In the 3 plants In our support departments increase sales and customer satisfaction increase productivity increase efficiency > New Milestone BSC (Balanced Scorecard) Management introduced in 2011 China Field Trip - May 10 th 12 th,

22 Energy-saving and environmental-friendly new plant with advanced technology and compact structure Implement visual management ANDON line stopping system Implement zero defect management Build global lean model plant of PSA China Field Trip - May 10 th 12 th,

23 Committed to Social responsibility and sustainable development DPCA was awarded among the Top 10 Automobile Enterprises with Most Social Responsibilities in China and Outstanding Contribution Enterprise for the Construction of Social Responsibility. The plant implements reclaimed water reuse project, realize zero discharge of the wastewater, materials for more than 90% of the total weight of the product can be recycled or duely treated. China Field Trip - May 10 th 12 th,

24 Market share development > > To 5% Market Share Target in 2015 Q market share consolidation vs Q ,4% 3,3% 3,3% ,60% 3,40% 3,20% 3,00% 2,80% 2,60% 2,40% 2,20% 2,00% Sales China Field Trip - May 10 th 12 th,

25 Planned rise in Nominal Capacity Wuhan Plant III and Xianyang Plant (Phase IV) Wuhan Plant I and Xianyang Plant (Phase I) cars motors Wuhan Plant I and Xianyang Plant (Phase II) cars motors Wuhan Plant II and Xianyang Plant (Phase III) cars motors cars motors 1995~ ~ ~ ~2013 China Field Trip - May 10 th 12 th,

26 WUHAN Plant 3: A new Milestone New plant, located 6 km west of the current plants: 2 phases, 2x veh/year (2 shifts) Phase 1 start of production workshops: stamping, welding, painting and final assembly Phase 2 start of production 2015 May 18 th : 1 st Stone Ceremony Phase 1: Rmb 2 billion First cars to be produced in 2013 State of the art technology and the best practices from both PSA and DPCA: Industrial: reduced surfaces, optimised flows and work organisation Environmental: reduced energy/fluids consumption, low emissions China Field Trip - May 10 th 12 th,

27 Quality : an extended and integrated system Based on 8 main indicators : Reactivity Ex-Work Quality Customer Defect Quality System Efficiency Project Quality Supplier Quality Service quality Cost of non-quality Deeply linked with customer interactions Sales Daily use After Sales Supported by Lean Management and BSC throughout the organization China Field Trip - May 10 th 12 th,

28 Product Quality Ambitions JD Power in top 5 Warranty Defect : -50% 100 Warranty defect (100 base in 2008) Warranty defect (100 base in 2008) JD POWER Ranking Auto groups China (1) China Field Trip - May 10 th 12 th,

29 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A China Field Trip - May 10 th 12 th,

30 DPCA results In million Sales (in K units) Revenues Recurring operating income (8) % of revenues -0.5% 5.6% 7.8% Income taxes 2 6 (22) Net Income Net income, Group share China Field Trip - May 10 th 12 th,

31 DPCA contribution to PSA profitability > 50% DPCA contribution : 154 M in ROC (+0.2 point of additional margin) In million PSA 50% DPCA Elim PSA Pro Forma PSA 50% DPCA Elim. PSA Pro Forma Revenues (134) (221) Recurring income operating (689) 64 (625) % of revenues -1.4% 5.5% -1.3% 3.2% 7.8% 3.4% China Field Trip - May 10 th 12 th,

32 First dividend payment by DPCA in 2011 Payment by DPCA of RMB589m paid on April 28 Future dividend in line with earnings growth Compatible with an ambitious product & industrial plan self financed China Field Trip - May 10 th 12 th,

33 A solid DPCA Balance sheet > > Net cash position due to strong cash flow generation Permits self-financing future expansion plans In million euros End 2009 End 2010 Net (debt) / cash (37) 226 Total equity Gearing 10.9% (37.4%) Strong support from large group of Chinese banks Currency financing: 25% in, 75% in US $ Competitive interest rates China Field Trip - May 10 th 12 th,

34 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A China Field Trip - May 10 th 12 th,

35 Ambitious Development plan from 2011 to 2015 > 3 objectives Product and service quality of first-class level in China 5% market share in 2015 with annual sales over with Wuhan 3 12 new models and 6 engines in 5 years China Field Trip - May 10 th 12 th,

36 5 actions #1 Products / Technologies Improve product plan, promote the rapid growth of market share 12 new models and 6 state of the art engines in 5 years Every year Citroen and Peugeot will launch 1-2 new models each Improve market coverage, develop new segments (C&D) 8 launches in C segment (4 today) and 3 in D segment (1 today) Develop plug-in hybrid (gazoline) within 2/3 years Expand Stop & Start and CNG offers Create 2 or 3 blockbusters with annual sales over According to the requirements of national policies, the development trend of the automobile industry and the development need, DPCA has started the study on an indigeneous brand which will be launched in due time China Field Trip - May 10 th 12 th,

37 5 actions #2 Production & R&D Enhance industrial capacity, ensure advanced technology and leading-edge quality Raise our nominal capacity to 750k with the 2 phases of our 3rd Plant Develop R&D capacities and skills Gain autonomy and competencies in new fields Set our 2 brands in the top 5 for service quality Be in the top 3 in breakdown Comply with demanding C-NCAP standards China Field Trip - May 10 th 12 th,

38 5 actions #3 Brand Values & Customer Satisfaction Improve the brand value, enhance customer satisfaction and market reputation Develop brand value : Creative Technology for Citroen Motion & Emotion for Peugeot Implement new image standard in 2011 Expand network coverage in 2 nd tier and 3 rd tier cities Enhance Marketing & Sales methods for all segments Further implement Lean Management to create value for our customers China Field Trip - May 10 th 12 th,

39 5 actions #4 Operationnal Excellence and Competitivness Improve the operational level, strengthen the comprehensive system-based competitiveness Fully introduce strategic performance management system (Balanced Scorecard System) Develop Talent s management in our teams Expand Corporate Culture at all levels Set-up strategic relationships with dealers, suppliers for sustainable growth and development China Field Trip - May 10 th 12 th,

40 5 actions #5 Environmental Strategy Enhance green strategy, resource conservation and environmental protection Carbon emission of all products reduced by 20% by 2015 To comply with Euro V and Euro VI policies Push further ahead the ISO14001 environmental management system Reduce gas emission and need Implement Energy saving technologies Maintain zero discharge on used water China Field Trip - May 10 th 12 th,

41 To sum up With C5 in 2010 and 508 in 2011, DPCA enters high margin segments Next new segment : SUV Market share: 5% in 2015 A new plant in 2013 for a new platform A forecast productivity increase over 45% between 2009 and 2015 A 100% renovated network at the end of new models and 6 state of the art engines in five years Lean management at all levels to insure sustainable growth Funding: self-financed Dividends: First payment in 2011: 589 MRMB Future dividends in line with growing earnings China Field Trip - May 10 th 12 th,

42 Q&A China Field Trip - May 10 th 12 th,

43 DPCA R&D Jean-Luc BRAME DPCA Deputy General Manager and Head of R&D

44 Summary DPCA R&D DPCA Product plan China Field Trip - May 10 th 12 th,

45 R&D Key Data Employees: At least 2 new vehicles launched every year 6 new engines from now to new plant Wuhan 3 in new engine workshops in Xiangyang in 2014 Validations facilities 104 main facilities Total surface : 6 940m² A new testing building is planned : Surface : m² Investment : 164Mrmb in 2011, and 540 Mrmb to testing cars in use Over 1.7Mkm runned for Peugeot 508 China Field Trip - May 10 th 12 th,

46 R&D: at the heart of our organisation DPCA R&D is in charge of the engineering of the vehicles, powertrains and the associated processes. DPCA R&D is deeply linked with, and widely supported by the PSA R&D worldwide system. General Manager DF CITROEN DF PEUGEOT R&D Purchasing Product Strategy Quality Logistic & Distribution WuHan 1 Plant WuHan 2 Plant Xiangyang Plant HR Finance Legal Affairs Audit PR IT Organization Industrial Entities Support Entities China Field Trip - May 10 th 12 th,

47 Advanced R&D capacity R&D Vehicle Engineering Powertrain & Chassis Engineering Vehicle Projects Transverse Support Vehicle testing, homologation Powertrain, chassis engineering Project #1 Technical Documentation Body and process engineering Process engineering Project #2 Investment Electronics Powertrain Projects Project... Cost management Quality Building construction projects Lab employees China Field Trip - May 10 th 12 th,

48 PSA and DPCA: deeply interlinked R&D organisation for maximum efficiency Styling / Architecture Calculations and simulations Detailed design Localization Process engineering Tests inc. homologation procedures Mass production preparation Development processes for major new projects like 508 or new powertrains Styling Calculations Detailed design, localization Process engineering Tests inc. homologation procedures Mass production preparation On vehicle restyling projects or improved powertrains, DPCA leads on engineering with PSA assistance China Field Trip - May 10 th 12 th,

49 Skills development via the Kungpeng plan DPCA is improving its R&D skills To meet the ambitious program and targets of the company To develop products in tune with Chinese customer expectations Training program set up with PSA R&D to reinforce and accelerate this development: The KUNPENG plan Aimed at furnishing DPCA R&D employees with requisite skills to fulfill the tasks defined in the R&D organisation with PSA PSA Experts integrated in DPCA team to manage the training program China Field Trip - May 10 th 12 th,

50 Summary DPCA R&D DPCA Product plan China Field Trip - May 10 th 12 th,

51 Projects under development At least two new vehicles launched each year Launch in C Upper Jan. C5 April Launch in C Upper 2.3 VVT 1.6 VVT Improved efficiency 1.8 VVT China Field Trip - May 10 th 12 th,

52 DongFeng Peugeot 508 project April Jan. C Product (D Upper) Some styling adaptations from the 508 Europe to meet Chinese customer expectations Exclusive rear seat system with electrically adjustable backrest Two powertrains 2.0 and 2.3 VVT with a 6 speed automatic gearbox Production: / year Planning The 508 will be commercially launched in China 6 months after its European launch China Field Trip - May 10 th 12 th,

53 The China 508 give to the rear passagers more confort China Field Trip - May 10 th 12 th,

54 Rear face A specific design of the rear bumper and trunk cover to give more confidence in a strong resistance against crash China Field Trip - May 10 th 12 th,

55 Powertrain projects New regulations in CHINA based on the CAFC concept Corporate Average Fuel Consumption will come into force in 2015 The average consumption of all DPCA vehicles will have to be under a CAFC value between 5.9 and 6.1 l/100 km (16.4 to 17 km/l or 38.6 to 39.9 mpg) PSA and DPCA s strategy to fully meet these requirements is based on improving the current powertrains and introducing the latest technologies such as: 6 new engines Highly efficient automatic gearboxes Gasoline Plug-in Hybrid systems in 2/3 years China Field Trip - May 10 th 12 th,

56 Step 1 EC range VVT Improved efficiency New EC range: 1.6 VVT and 1.8 VVT Adaptation of variable valve timing system (VVT) Fuel efficiency improved by 5 to 10%, Meets China 5 emissions standards Launched in 2012, and will equip most of DPCA vehicles 1.8 VVT A STOP & START version will be launched in 2013 and by 2014, we will see a full deployment of this Stop & Start technology across the DPCA range It will offer an additional 5% reduction of fuel consumption China Field Trip - May 10 th 12 th,

57 Step 2 EP and EB Range: Introduction of the latest technologies Introduction in China of the latest engines developed by PSA in Europe: Direct Fuel Injection Downsized and turbocharged Engines 4 cylinder EP range: developed jointly by PSA and BMW = 20% reduction of fuel consumption vs current 2.3 VVT 3 cylinder EB range: currently under development by PSA = 20% to 25% reduction of fuel consumption vs current V Equipped with Stop&Start technology, and high efficiency automatic gearboxes 4 cylinder EP range Both engines and associated gearboxes will be locally produced in a new factory in XiangYang from 2014 China Field Trip - May 10 th 12 th,

58 To Sum Up An efficient R&D organisation Deeply Linked with PSA R&D in France and in China High investment on testing facilities and skills via an ambitious training program At least two new vehicle projects every year Aimed at covering all the market segments in China Introducing the latest technologies Specifically designed to meet Chinese customer s expectations Introduction of the latest powertrains To meet the requirements of fuel consumption and emissions regulations Combined with efficient automatic gearboxes and hybrid solutions China Field Trip - May 10 th 12 th,

59 Now let me show you the cars: Peugeot 508 and.. China Field Trip - May 10 th 12 th,

60 DONGFENG CITROËN Arnaud de LAMOTHE Deputy General Manager

61 Agenda Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A China Field Trip - May 10 th 12 th,

62 2010 Key data Sales: vehicles (historical record) (+39.9% vs 2009) Market Share: 2% 5 car product families Best seller car: C-Quatre sales C5 sales: Biggest sales for Citroën in the world ( units) Dongfeng Citroën: 310 employees Network: 273 Main Dealers (12/10) +19% vs new cities covered 43 new dealers China Field Trip - May 10 th 12 th,

63 Innovation drives breakthrough Record annual sales in 2010 with vehicles Dongfeng Citroën yoy sales up 57% in 2009 and 40% in 2010 Sales in 2010 X 2 from 2008, with a market share of 2% in 2010 (vs 1.9% in 2009) D 2C 1B China Field Trip - May 10 th 12 th,

64 Agenda Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A China Field Trip - May 10 th 12 th,

65 5 product families (1B, 2C, 2D) 2010 Sales Total: B C2 ( ) since 2006 C C Elysée HB ( ) C Quatre HB ( ) C Elysée NB ( ) C Quatre NB ( ) since since 2008 D C Triomphe ( ) C5 ( ) since since 2010 China Field Trip - May 10 th 12 th,

66 Our range covers the mainstream markets In terms of segments In terms of price % SUV 75% 20.5% 16.6% 16.1% 16.0% MPV H 50% 42.9% 46.9% 45.9% 44.0% M2 M % 0% 15.1% 15.9% 14.1% 13.5% B2 B B 2C 2D China Field Trip - May 10 th 12 th,

67 Agenda Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A China Field Trip - May 10 th 12 th,

68 Brand image and recognition Actions and events Sponsorship of Badminton National Team (one of the most popular sports in China) Partnership with players (Lin Dan, No1 male player in the world, to be spokesman for C-Quatre) Limited edition car (C-Quatre badminton) Promotional activity with customers, advertising TV spot Brand Image in process. On air from Q Band on key brand elements Products & technology Special event 80 years of Croisiere Jaune : The Asian Trip National road show in 23 cities With press and network 90 days long period China Field Trip - May 10 th 12 th,

69 Brand image and recognition Actions and events C5 New TV spot La vie en rose (model year 2011) Local regional events with dealers in main cities (theater show) Uncontournable to strongly improve the brand image of a brand Pay off Creative technologie Is in tune with Chinese expectations Stop& start, hybrid plus in are opportunities Expressed by technological items around our products or events (ipad, 4D Cinema ) Survolt exhibited at Shanghai Autoshow. Shanghai Motorshow China Field Trip - May 10 th 12 th,

70 Shanghai Motorshow m 2, visitors expected, 11 Citroën cars presented + 8 specific cars (concept car Survolt, C4 WRC ) Our themes: Legend, Experience and Creative for future China Field Trip - May 10 th 12 th,

71 Agenda Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A China Field Trip - May 10 th 12 th,

72 Our network > 2010: 597 dealers and agents covering 56% of main cities Dealers number Agents number Covered cities x3 China Field Trip - May 10 th 12 th,

73 Network development strategy Priority on network quality: professionalize the network, improve dealers internal quality and customer satisfaction Support new dealers ( Financial support, training, coaching ) Action plan for dealers in difficulty Increase existing network in main cities and cities with high potential: Develop network in sectors with open points Cities with more than Sales all brands included Multiple dealers possible Cities from Sales all brands included : Install at least one dealer 2015 target: cover 90% of 315 cities China Field Trip - May 10 th 12 th,

74 An exceptional achievement in terms of renovation & new brand image China Field Trip - May 10 th 12 th,

75 Expansion of our network > Our challenges for 2011 Cover the strategic markets in towns where Dongfeng Citroën is not well represented Guangdong region where Japanese brands are well implanted North East of China (7% of the total market) where German brands are well implanted Develop our network in short and mid terms in regions with a strong growth Western China (3 regions) Center of China (6 regions) China Field Trip - May 10 th 12 th,

76 Upgraded brand image in Network in 2011 > Our challenges for 2011 New brand image from 85% end 2010 to 100% by the end of 2011 Development of the secondary network: from 324 end 2010 to 500 end 2011 Development of the used car activity: from 145 authorized end 2010 to 210 end % +54% 45% China Field Trip - May 10 th 12 th,

77 Lean Management Dealer Network Approach launched at the end of 2008 Dongfeng Citroën is leader on the Lean management commercial approach in the world 2009: 28 LEAN dealers implemented 2010: 34 LEAN dealers implemented Increase of sales +33% compared to the national average Sustainable approach Total commitment from network and brand China Field Trip - May 10 th 12 th,

78 Add value for the customer while creating benefits for the dealer 1 Train with LEAN approach Improve dealer management and 3 business control LEAN training Creation of visual animation for daily meetings Improve after sales 4 productivity Improve dealer management 6 and business control Improve sales and 5 after sales process Weekly meeting with dealer managers Standardization of process Use of Hoshin and MIFA to improve after sales capacity China Field Trip - May 10 th 12 th,

79 Improvement in service quality > % of customers totally satisfied* Sales and delivery + 13 points in 2 years After sales + 14 points in 2 years Project Customer satisfaction survey 2011 objectives Sales Absolutely Satisfied 74.5% After-sales Absolutely Satisfied 64.5% (*) Totally unsatisfied:<2% in sales & deliveries;<2% in after sales Sources: EQC Survey China Field Trip - May 10 th 12 th,

80 Ongoing focus on customer satisfaction Sales and after sales: monthly internal enquiries and annual external enquiry Financial animation of the network Dedicated quality zone manager Specific action deployed in our network: Lean Management with written mandats from the points of view China Field Trip - May 10 th 12 th,

81 Agenda Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A China Field Trip - May 10 th 12 th,

82 Summary and outlook > Dongfeng Citroën, 2011 and after Keeps on increasing sales and market share : at least one new product per year Keeps on extending and renovating its network with new brand image 2011: +80 new dealers 100 % of dealers at the new brand image 2015: +346 new dearlerships (South West + 55 / Central Chine +73 /South +24 North East +35) Wants to be part of the 5 best brands on service quality by 2013 (JD Power Survey) Keeps on investing and developing the image branding s recognition With new products, methods, animations made for the Chinese market and its customers China Field Trip - May 10 th 12 th,

83 Q&A China Field Trip - May 10 th 12 th,

84 DONGFENG PEUGEOT CITROËN AUTO FINANCE CO. (DPCAFC), LTD

85 Once upon a time DPCAFC May 2003: Creation of a financing platform at Dongfeng Peugeot Citroën Automotive (DPCA). October 2004: Signature of a Letter of Intent (LOI) with Bank of China (BOC) at the People s hall of China by M. FOLZ during the presidential visit. Objective: provide competitive DPCA dealer car stocking financing, retail car financing to customers and business related value added services. May 2006: Approbation of the China Banking Regulatory Commission (CBRC). DPCA PFN (BPF) October 2004 (LOI) 25% 25% 50% BOC PFN: PSA Finance Nederland BPF: Banque PSA Finance Start up of the business with the launch of Wholesale activity February 2010 March 2007: DPCAFC tested the Retail activity in Beijing in March 2007, and formally launched the Retail business from September February 2010: New joint venture agreement signed between DPCA and Banque PSA Finance (following BOC withdrawal). DPCA 25% 75% PFN (BPF) China Field Trip - May 10 th 12 th,

86 The dedicated finance partner to DPCA and Peugeot & Citroën import vehicles Close and exclusive partnership with DongFeng Peugeot (DP), DongFeng Citroën (DC), Peugeot and Citroën import vehicles Broad range of financing products for both brands' commercial network Comprehensive, structured and differentiated offer to final customers: Marketed in collaboration with both brands Valued support for brands as financing increases loyalty Car dealers customer relationships structured by combined marketing approach Continuous geographic expansion to support DPCA and AP & AC (import vehicles) growth on arm s length terms Autonomous operational management Asset quality management Wholesale credit management, retail acceptance policy, recovery methods Own credit scoring with different, internally-developed score cards for new and used cars, consumer and commercial customers, credit loans Price setting Marketing strategy (market studies, product plan conception) Incentivization of dealers network China Field Trip - May 10 th 12 th,

87 A growing asset base > Wholesale (WHS) Loan > Retail (RTL) Loan DPCAFC provides Peugeot and Citroën dealers network with financing for new and used vehicles and in the near future replacement part inventories DPCAFC offers Peugeot and Citroën final and fleet customers a diversified range of financing solutions and related services (under development) MRMB Average Net Receivable (ANRS) MRMB Outstanding % % % 87.8% 97.9% 87.8% 20.7% 2.1% 12.2% % 97.9% 87.8% RTL WHS RTL WHS China Field Trip - May 10 th 12 th,

88 A Wholesale global coverage and continuous conquest Number of Dealers (including import) Penetration Dealer network Financed dealers All China covered with the exception of Tibet province 30 provinces and 139 cities were covered till end of 2010 Conquest of new dealers, impacted by fierce competition with banks and cash buyers China Field Trip - May 10 th 12 th,

89 Increase in Wholesale loan book Constant increase in penetration rate: + 2 points against 2009 Good control over inventory level with more stable rotation rate (stock rotation 2010: 31 days) Brands invoicing (in thousand of units) Number of car financed (in thousand of units) Penetration 60.7% 52.2% % Doubling of Average Net Receivables (ANR) between 2009 and 2010 ANR (MRMB) Outstanding (MRMB) China Field Trip - May 10 th 12 th,

90 With a strong control of Wholesale risks > WHS - Provision for Risks & Number of dealers under surveillance Only five dealers (accumulated since 2006) out of 312 in 2010 with major issues MRMB NB dealers Dec.08 Dec.09 Dec.10 Provision Nber of dealers under surveillance Loss China Field Trip - May 10 th 12 th,

91 A continuous Retail business geographic expansion: an important growth driver Covered provinces end of 2008 Covered provinces in 2009 Covered provinces in Heilongjiang Jilin 2009 Xinjiang Inner Mongolia Beijing Liaoning Hebei Tianjin Gansu Ningxia Shanxi Shandong Qinghai Xizang Shaanxi Henan Anhui Jiangsu Shanghai Sichuan Chongqing Hubei Jiangxi Zhejiang Guizhou Hunan Fujian Yunnan Guangxi Guang Dong Taiwan HK Covered provinces 23 Covered cities 111 Hainan China Field Trip - May 10 th 12 th,

92 with the most appropriate Retail organization in relation with the business development Heilongjiang Jilin Xinjiang Inner Mongolia Beijing Liaoning Hebei Tianjin Business Zone (N & S) (N, S, W) Xizang Qinghai Gansu Ningxia Shaanx i Shanxi Henan Shandon g Anhui Jiangsu Shanghai Brand local network (+19%) Sichuan Chongqing Guizhou Hubei Hunan Jiangxi Fujian Zhejiang Financed dealers (+63%) Yunnan Guangxi Guang Dong Taiwan RFM ( * ) (+7) HK Hainan Financed dealers / RFM 9 11 ( * ) Regional Field Manager (RFM) North (N) South (S) West (W) Uncovered Zone China Field Trip - May 10 th 12 th,

93 Continuous increase in Retail penetration rate: pts (against 2009) 9% 8% 7% 6.30% 6% 5.40% 5% 4.80% 4.80% 4.70% 4.50% 4.15% 4% 3% 2.70% 3.00% 2.90% 3.20% 2.40% 3.30% 2.59% 2% 1% 0.81% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2008 Nationwide 2009 Nationwide 2010 Nationwide China Field Trip - May 10 th 12 th,

94 Increase in Retail loan book Volumes of cars financed expanding rapidly with a portfolio at the end of 2010 of against 2009 at contracts Financed Contracts Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Average duration of 26 months per contract in 2010 (23 months in 2009) ANR (MRMB) Outstanding (MRMB) China Field Trip - May 10 th 12 th,

95 Outstanding Retail Operational Efficiency Risk Strategy Internally-developed score cards for new and used cars for consumer credit loans Continuous evolutions of credit risk management process based on internal risk committee recommendations and detailed risk analysis Highly efficient credit risk management China Field Trip - May 10 th 12 th,

96 A perfect collection curve Almost no arrear at month end and a collection curve reaching quickly 100% mainly because: Only one due date for all customers (on the 10 th ) SMS sent to remember the customer of his installment 101% 100% 99% 98% 97% 96% 95% November December 11 th 12 th 13 th 14 th 15 th 16 th 17 th 18 th 19 th 20 th 21 th 22 th 23 th 24 th 25 th 26 th 27 th 28 th 29 th 30 th Minor default payments but vigilance must always prevail taking into account the growth of our portfolio and experience from other AFCs as at December 2010 only 3 arrears more than 30 days China Field Trip - May 10 th 12 th,

97 Increasingly diversified funding sources after BOC withdrawal Equity CAS (560 MRMB) BOC MRMB 74% Total MRMB 26% Equity (CAS) 530 MRMB Industrial Bank (100 MRMB) CEB (100 MRMB) CMB (100 MRMB) SG (200 MRMB) 3% 3%3% 6% 16% Total MRMB of which MRMB from banks 38% BOC (1 300 MRMB) % 15% ICBC (550 MRMB) ABC (500 MRMB) BOC MRMB 79% Total MRMB 21% Equity (CAS) 533 MRMB 2011 Medium Term Opportunities Use of dealers deposit Access to inter-bank market Assets transfer (and buy-back) Increase of capital Syndicated Loan Securitization Bond Market China Field Trip - May 10 th 12 th,

98 High leverage of RTL activity on the net banking income growth > Net Banking Income 98 MRMB /2008: Decrease of the financed dealers stock rotation (from 41 to 27 days) and increase of the cost of fund from Bank of China 2010/2009: Retail portfolio effect & increase of Wholesale cars financed with more stable rotation rate (31 days) China Field Trip - May 10 th 12 th,

99 Strategy > 5 main axes Wholesale Conquer new dealers and increase the penetration on cars financed Keep a Step ahead on the products offer (spare part, dealers equipment, etc ) Retail Implement a new business organization to strengthen our business coverage and relationship with Brands (3 to 5 zones to cover all China except Tibet) Gain + 2 pts penetration in 2011 Develop training, coaching and incentive programs for Regional Field Manager (RFM), dealer Finance and Insurance (F&I) and salesmen to reinforce their competences and motivation Funding Securitize the re-financing Optimize the cash management to avoid costly excess of treasury in a context of potential continuous PBOC reference rates increase Resources Reinforce the fidelity of our staff by providing a competitive salary policy and being more proactive in term of HR management and policy OPEX Keep decreasing the OPEX ratio in % of ANR assuming an increase of IT projects and expenses China Field Trip - May 10 th 12 th,

100 Faurecia in China Jean-Michel VALLIN Jingcheng LI

101 Asia Strategy > Accelerate Asian development Accelerate growth in China with new entry points and regional partnerships Build-on strengths at Nissan and Hyundai 9.8% of Faurecia product revenues in Asia Asian 2014 target: 15% China Field Trip - May 10 th 12 th,

102 Faurecia today has a solid base and strong customer portfolio in China 2010 Key figures Total sales OEM portfolio 1 038m Sales +60% Changan Ford Mazda Dongfeng Nissan 25 Plants +43% Dongfeng PSA 16% 15% 12% 10% Shanghai GM R&D 4 centers 600 engineers Total plants 40% 6% Others Hyundai 1% employees Shanghai VW FAW-VW China Field Trip - May 10 th 12 th,

103 Our4corebusinesses are now deployedin China FECT First operation 1994: Wuhan Sales m 9 plants FAS First operation 2001 : Changchun (Structures) 2002 : Wuhan (Complete seat) 2003 : Wuxi (Mechanism) Sales m 10 plants FIS First operation 2003: Changchun Sales m 5 plants FAE First operation 2011: Changchun 1 plant 2200 employees employees employees 700 employees China Field Trip - May 10 th 12 th,

104 with a strong footprint in key regions North East Region Changchun Changchun Changchun 2010 Shenyang 2010 Changchun 2011 Changchun West Region 2003 Chongqing 2006 Chongqing 2010 Chengdu East Region Shanghai Wuxi Yantai Shanghai Shanghai Shanghai 2007 Nanjing 2007 Qingdao 2011 Shanghai (in construction) South Region 2010 Huadu 2010 Huadu Central Region Wuhan Wuhan Wuhan Wuhan Wuhan China Headquarter Interior Exhaust Exterior R&D centers Seats China Field Trip - May 10 th 12 th,

105 Faurecia China Strategy > Strategy Focus > Implementation Progress Business Development Focus Global programs Customer portfolio diversification Regional partnership 2.8bn new bis award since 2 years Global programs VW, Ford, Nissan, PSA JVs with Xuyang, Geely, Guangneng Operation Excellence Focus Quality & Safety Best in Class Plant & Program efficiency Vertical integration Excellent Group FES audit scores OEM s Best Supplier & Quality awards Reinforced added value control Engineering and Management skills Strong local management team World-Class R&D centers Regional presence Multi-cultural team in place FECT R&D Center opening April 2011 FAS / FIS / FAE new R&D center 2012 China Field Trip - May 10 th 12 th,

106 Faurecia China R&D Centers are a major and fully owned asset R&D Footprint with 600 engineers Emissions Control (Shanghai) Seating Complete Seat & Structures (Shanghai) Mechanisms (Wuxi) Interior Systems (Shanghai) Exterior Systems (Shanghai) R&D Strategy Cost competitiveness with focus on hourly rate reduction Local deployment of Global Platforms and off-shoring focus Localization of components and tooling Interior style as differentiation factor versus competition Global World Center of Excellence for Entry Level Components China Field Trip - May 10 th 12 th,

107 2010 Faurecia China Partnership Development > Faurecia - Geely-Volvo in specialized JVs between > Faurecia and Xuyang Group Total sales in M st FIS JV with Geely Limin signed on 2 nd July 2010 Total sales in M 150 Faurecia Geely global strategic cooperation agreement signed with Geely on 1 st Dec * * Current biz for Volvo S40 and S80 in China No sales with Geely in 2010 CEOs meetings in Paris and China Complete seats and seat structures Interior systems Acoustic modules and interior trim China Field Trip - May 10 th 12 th,

108 Target: 2.5 bn sales in 2015 A major supplier in China > Sales, M > Faurecia Market Share Objectives % Complete Seat 10% Structures 20% 10% % China Field Trip - May 10 th 12 th,

109 China Field Trip - May 10 th 12 th,

110 DONGFENG PEUGEOT Timothy Zimmerman Deputy General Manager

111 Agenda Overview New car sales Marketing, Brand image Network and quality management Summary and outlook China Field Trip - May 10 th 12 th,

112 Dongfeng Peugeot overview Dongfeng Peugeot: created in 2004 (JV Automobiles Peugeot-Guangzhou: 1985->1997) DPAD: Dongfeng Peugeot Citroen Automobiles JV commercial division 241 persons (including 5 sent by PSA and 5 sent by DFM) A network composed of 210 main dealers and 152 agents end 2010 (+27% dealers and +15% agents vs end 2009) cars sold since 2004 (04/2011), produced in Wuhan under the brand Dongfeng Peugeot Dongfeng Peugeot = 23 rd Brand, DPCA = 12 th manufacturer (3,36% market share) in China in sales (+ 32% vs 2009) = 1.35% sales market share in 2010 China Field Trip - May 10 th 12 th,

113 Agenda Overview New car sales Marketing, Brand image Network and quality management Summary and outlook China Field Trip - May 10 th 12 th,

114 Car sales product categories 1 st sem Product range 2010 Sales Total: B 207 Chine HB 207 Chine NB since 2006 (206/207) C since HB 307 NB C from launch in April China Field Trip - May 10 th 12 th,

115 New car sales DPAD commercialization period vehicles in 2010, up 32% vs % sales market share in 2010 (vs 1.33% in 2009) Segment Data: invoices China Field Trip - May 10 th 12 th,

116 2011 Product Range Prices per segment B DPAD products, 2011 catalogue price C D Segment competition range price Average price/product in 2010 = RMB vs RMB in 2009 China Field Trip - May 10 th 12 th,

117 New car sales Launches (upper D) 2 nd semester 2011 World launch for Peugeot First Half 2011 Launch in 2 nd semester 2011 in China Brand new sedan Brand new segment for DPAD: upper medium Chinese version: Chinese customer needs incorporated in world version Specific Chinese needs in local version New Sedan (C) End of year 2011 Brand new car replacing existing medium segment sedan Shanghai design China Field Trip - May 10 th 12 th,

118 Agenda Overview New car sales Marketing, Brand image Network and quality management Summary and outlook China Field Trip - May 10 th 12 th,

119 Brand Image and Notoriety Goals Jan Spring 2010 Fall Rank* Note Rank* Note Rank* Note Note Goals Notoriety 13 25% 12 24% 8 28% 30% 40% Image * Rank excluding luxury brands Source: Brand Monitoring survey, 2010 China Field Trip - May 10 th 12 th,

120 strategy Donfeng Peugeot Brand signature Tongxin Tongxing Biaoxin Zhiyuan Shared emotion, Shared Mobility; A new reference, towards future Peugeot Brand signature: Motion & Emotion USP: A unique combination of Exigency and Emotion Values: Confidence, Emotion, Inspiration China Field Trip - May 10 th 12 th,

121 2010: A year of progress in Brand Image January Media & Network Convention 408 April July / August October November December New identity Convention of Peugeot Brand in China Beijing Motorshow BB1 display at Shanghai World Expo France Pavilion Exhibition about Peugeot 200 years anniversary & EX1 display at Yishu8 908 Victory at Zhuhai 1 000Kms, Intercontinental Le Mans Cup EX1 new acceleration records on Chengdu military airport 3008 launch at Guangzhou China Field Trip - May 10 th 12 th,

122 2011 Product focus Marketing Plan 307: communication plan (Viral communication creating a buzz on Internet networks) 207: communication plan, including Kung Fu Panda co-operation ATL (video, print and PR advertising make use of Panda copyright with 207 elements), Incentive for test drive booking, Incentive for 207 purchase 408: First full year after its launch. Communication plan including China s Got Talent Ad / Media, PR Communication, Internet Communication, Dealers Activities 508 launch: new flagship first time for the brand in the Upper D segment. Peugeot legitimate Worldwide on this segment PR Communication (TV, NP, Internet, OOH, Lift, Magazine, Cinema), Internet Communication, CRM, DLR supports New Sedan C launch end 2011 in the biggest segment of the market China Field Trip - May 10 th 12 th,

123 Shanghai Motorshow April 21-28, 2011 China Field Trip - May 10 th 12 th,

124 Shanghai Motorshow Shanghai Motor Show booth theme: Innovation and Future Our booth : square meters booth 15 vehicles exposed visitors expected Highlights SXC (World premiere) 508 (China premiere) RCZ, New 908 China Field Trip - May 10 th 12 th,

125 Agenda Overview New car sales Marketing, Brand image Network and quality management Summary and outlook China Field Trip - May 10 th 12 th,

126 Network development strategy Priority on network quality: professionalize the network, improve dealers internal quality and customer satisfaction Support new dealers (Financial support, training, coaching - ) Action plan for dealers in difficulty Increase existing network in main cities and cities with high potential: Beijing / Wuhan / Nanjing / Xiamen / Dongguan / Chengdu Develop network in sectors with open points Cities with more than Sales all brands included Multiple dealers possible Cities from Sales all brands included : Install at least one dealer 2015 target: cover 90% of cities (315) China Field Trip - May 10 th 12 th,

127 Network cover > Triple the dealers and double the cities covered in 2015 vs 2009 Dealers (4S) Agents Dealers number Agents number Covered cities x3 China Field Trip - May 10 th 12 th,

128 Dealership Image Dealer Network 100% Bluebox 2010 New Peugeot Corporate Identity launched worldwide Adapted for DongFeng Peugeot China Field Trip - May 10 th 12 th,

129 Dealerships New Outside Identity New frontage norm Examples New Dealerships Existing Dealerships renovated China Field Trip - May 10 th 12 th,

130 New brand Identity Dealership deployed OBJECTIVE % of Dealerships with the new Outside Brand Identity First country worldwide China Field Trip - May 10 th 12 th,

131 Sales and after-sales service quality improvement Lean management , , , , , Sales satisfaction After Sales satisfaction Sales dissatisfaction After-Sales dissatisfaction Project Customer satisfaction survey 2011 objectives Sales Absolutely Satisfied 74.5% After-sales Absolutely Satisfied 69% Source: PSA Customer Satisfaction Survey EQC China Field Trip - May 10 th 12 th,

132 Podium 2012 Objectives and ambitions Method Product excellence Podium 2012 Project scope Operational excellence Exemplary nature of behaviours Objective Customer satisfaction Gains Market shares Profitability Objective Accelerate the point of sale service quality progression Be in the Top 5 concerning Service Quality by 2013 China Field Trip - May 10 th 12 th,

133 Agenda Overview New car sales Marketing, Brand image Network and quality management Summary and outlook China Field Trip - May 10 th 12 th,

134 Summary and outlook Dongfeng Peugeot competitive advantages to keep on increasing sales and market share Powerful shareholders with shared goals and targets Rapidly expanding and improving product range Young and professional network Dynamic market with room for growth JV with industrial capacity to grow strongly Dongfeng Peugeot objectives Align with the global Brand Identity in terms of products, services, messages. Improve Image in China while maintaining a Chinese touch Improve market coverage by: Successfully launching new products in new segments Increasing numbers and geographical coverage of dealers Continue to improve service quality to reach top 5 in 2013 Dongfeng Peugeot 2011 goals Network: 280/300 dealers at end /40% vs 2010 China Field Trip - May 10 th 12 th,

135 Q&A China Field Trip - May 10 th 12 th,