July 25 juillet 25 th, 2012 1
This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, PEUGEOT SA ( Company ) shares. 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 registration document filed with the French Autorité des Marchés Financiers (AMF). 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 group website (www.psa-peugeot-citroen.com), under Regulated Information. 2
Agenda H1 2012 Financial results Jean-Baptiste de Chatillon Rebound 2015 Philippe Varin Outlook Philippe Varin 3
H1 2012 Financial Results Jean-Baptiste de Chatillon CFO and Member of the Managing Board 4
Group results H1 2012 Recurring operating income of 4m Negative net income, Group share In million euros H1 2011 H1 2012 Revenues 31,135 29,553 Recurring operating income 1,157 4 % of revenues 3.7% 0.0% Non recurring operating income and (expenses) (30) (420) Operating income 1,127 (416) Net financial income (expenses) (132) (264) Income taxes (208) (110) Share in net earnings of companies at equity 117 47 Consolidated net income/(loss) 904 (745) Net income, Group share 806 (819) Earnings per share (in euros) 3.55 (2.73) 5
Recurring operating income by division Automotive division, H1 shows similar trend to H2 2011 In million euros H1 2011 % margin H1 2012 % margin Automotive 405 1.8% (662) -3.3% Faurecia 340 4.2% 303 3.5% Gefco 143 7.1% 63 3.3% Banque PSA Finance 274-271 - Others businesses and eliminations (5) - 29 - PSA Peugeot Citroën 1,157 3.7% 4 0.0% 6
Automotive: worldwide unit sales 39% in sales volume outside Europe in H1 2012 Delivery of CKDs to Iran suspended from February In thousands units H1 2011 H1 2012 Europe 1,154 980-15.2% Russia 35 41 +14.7% Latin America 154 122-21.1% Rest of the world 113 124 +9.7% Assembled vehicles (excluding China) 1,457 1,267-13.1% China 195 209 +7.5% Total assembled vehicles 1,652 1,476-10.7% Total CKD 208 143-31.1% Total assembled vehicles + CKD units 1,860 1,619-13.0% 7
Market trends vs. previous year Cars and light commercial vehicles Market evolution H1 2011 H2 2011 H1 2012 Europe 30-1% 0% -7% Italy -12% -8% -21% France +2% -5% -13% Spain -25% -4% -10% UK -4% 0% +1% Germany +11% +8% +1% China* +10% -2% +7% Latin America** +13% +3% +2% Russia +57% +25% +14% * Passengers Vehicles ** Brazil, Argentina, Chile, Mexico 8
Automotive: european market share - 1 point drop, mainly due to unfavourable country and segment mix Market share in Europe 30* 13.9% 12.7% 12.9% Peugeot 208 Launch from March 29 th, full launch in September with EB engines LCVs: European leader with 20.8% market share H1 2011 H2 2011 H1 2012 * PC - LCV 9
Successful launch of the Peugeot 208 Initial launch on March 29 th 72,200 orders at end June Mix: 42% on the 2 highest levels, above objectives Leader in France in Diesel Residual value up 5 points above Peugeot 207 Technological breakthrough with new aesthetic codes 110kg lighter on average vs. Peugeot 207-34g/km in CO 2 vs. Peugeot 207 Large multi-function touch screen Launch well on going Covering 60% of the market before the new 3-cylinder petrol EB engines launch International launch to continue 10
Automotive: market share outside Europe Cars and light commercial vehicles Market share 5.9% 5.1% 3.3% 3.4% 2.7% 2.8% H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 China* Latin America Russia * Passengers vehicles on invoices market w/o imports 11
Automotive: new car revenue analysis In million euros 16,968 Volumes -13% Price -1.6% Country mix Product mix FX Others* -0.3% +3.5% +0.4% -1.9% 14,778 New car revenues -12.9% New car revenues H1 2011 H1 2012 * CKD, accounting treatment of buy back commitment, short term rental 12
Automotive: recurring operating income In million euros 405 Market demand (444) Input costs o.w. (124) Raw Mat. Exceptional and fx (294) +150 Product mix +155 Price & product enrichment (734) Market share Production & procurement Cost reduction plan +503 Fixed & marketing cost +170 R&D Warranty & others +27 +12 (662) (415) +306 H1 2011 H1 2012 Operating environment (588) Performance (479) 13
Gefco New contract with PSA effective since January 2012 Agreement in logistics with GM Europe on July 2 nd In million euros H1 2011 H1 2012 Revenues 2,017 1,881-6.7% PSA Peugeot Citroën 1,274 1,109-13% Third parties 743 772 +4% Recurring operating income 143 63-55.9% % of revenues 7.1% 3.3% 14
Banque PSA Finance Net banking revenue up +3.4% Cost of risk increasing with provisions on Southern Europe In million euros H1 2011 H1 2012 Revenues 942 979 +3.9% Net banking revenue 524 542 +3.4% Cost of risk (in % of average loans) 0.45% 0.65% Recurring operating income 274 271-1.1% Penetration rate 26.4% 28.1% +1,7pt Number of new contracts (lease and financing) 443,740 413,531-6.8% Total outstanding loans* 24.3bn 24.7bn +1.8% * End of period 15
Faurecia Sales +7,5% supported by North America and Asia Capital spending to accelerate development outside Europe In million euros H1 2011 H1 2012 Revenues 8,150 8,765 +7.5% Recurring operating income 340 303-10.9% % of revenues 4.2% 3.5% Non recurring operating income and (expenses) (33) (37) Operating income 307 266-13.4% Net financial income (expenses) (55) (89) Consolidated net income for the period 207 141-31.9% % of revenues 2.5% 1.6% Free Cash Flow (42) (205) Net financial position* (1,286) (1,643) * End of period 16
Inventories Return to 2010 inventories levels achieved in June and confirmed for December In thousands of new vehicles* 72 days 76 days 72 days 482 545 468 278 269 259 308 327 225 210 213 212 237 221 243 31.03 30.06.10 31.03 30.06.11 * World figures, based on forward 3 months delivery expectations, excluding China 31.03 30.06.12 Group inventory Independant dealership inventory 17
Cash flow analysis In million euros Change in working capital: (317) (3,359) +1,184 Industrial & Commercial net debt 31.12.2011 o/w Faurecia (1,391) Cash Flow Inventories (79) Trade receivables Trade payables (1,109) +356 Other change in WCR +515 Capex & Capitalized R&D (1,994) o/w Faurecia (415) Financial investments (CAPSA ) (195) Net dividends received* +533 Real Estate +340 CITER +448 Capital increase +1,056 Others (141) (2,445) Industrial & Commercial net debt 30.06.2012 o/w Faurecia (1,643) Free Cash Flow (449) * From Group companies 18
Financial security Solid level of financial security PSA back-up facilities extended for 1 year for 93% of total amount In million euros End 2010 End 2011 H1 2012 Cash and cash equivalents 9,278 5,190 7,560 Current & non current financial assets 1,102 1,300 1,391 Total 10,380 6,490 8,951 Back-up facility (undrawn) excluding Faurecia 2,400 2,400 2,400 Back-up facility (undrawn) Faurecia 505 660 730 Total financial security 13,285 9,550 12,081 Net debt position 1,236 3,359 2,445 Total equity 14,303 14,494 14,796 Gearing 9% 23% 16.5% * Proforma after Rental car activity disposal 19
Financial structure Minimal repayment in 2012 Average maturity of 4.5 years end of June Solid financial structure to underpin restructuring efforts Gross debt* in nominal value at end 30.06.2012 In million euros 532 Faurecia Others 20 175 23 1,462 491 1,187 220 761 1,961 787 270 356 S2 2012 2013 2014 2015 2016 2017 2018-26 63 600 2033 * Excluding BPF, undrawn credit-line, short term liabilities & other adjustments 20
REBOUND 2015 Philippe VARIN Chairman of the Managing Board 21
2012 Cash action plan on track FY 2012 H1 2012 Cost reduction 1bn 503m New organisation for commercial operations and brands Cost synergies Operational control enhanced Back office merger in Europe completed Investments prioritisation Automotive Capex and R&D to be reduced Automotive Capex and R&D: Projects on hold or postponed Asset disposals Total asset disposals: ca. 1.5bn GEFCO: opening of the capital in H2 CITER: 448m Real estate: 340m Inventories Back to 2010 levels 72 days = 2010 level First Half Results 2012 July 25 July th, 2012 25 th, 2012 22
Millions Durable drop in European markets 23% decline between 2007/2012, -8% forecast for 2012 15% gap vs. Global Insight forecast in 2009 19 18 17 16 15-23% -15% 14 2007 2008 2009 2010 2011 2012 pre Eur 30 Market PC+LCV 2009 Forecast Global Insight 23
European market share under pressure A decrease in 2011 after scrappage incentives period, reflecting country mix exposure % 14.2 13.6 13.6 13.8 13.3 12.9 2007 2008 2009 2010 2011 2012 (H1) Group market share Eur. 30 (PC + LCV) 24
Production : more than 400.000 vehicles less in 2011 vs 2007 A significant reduction in our forecast of production in Europe 2,740 2,476-16% 2,369 2,301 2,146 2007 2008 2009 2010 2011 2012(H1) Group European productions in kunits Aulnay, Mulhouse, Poissy, Rennes, Sochaux, Vigo, Mangualde, Madrid, Trnava, Kolin, Sevel Nord et Sud, Graz 25
Decline in the European utilization rate H1 2012 : 76% vs. 105% forecast in 2009 2009 H1 2011 H1 2012 Utilization rate* 80% 91% 76% o/w A&B 87% 85% 74% * : 100% = 2 shifts working 8 hours / day, 235 days / year 26
REBOUND 2015: Restore Automotive profitability in Europe Restructuring project CAPEX Product costs including GM Alliance Total + + = 1.5bn additional ca. 600m ca. 550m ca. 350m in 2015 Break even in Group operational free cash flow by end 2014 27
Set of underlying assumptions 2012-2015 - Europe European market and pricing environment: stabilized at 2012 levels Market share in Europe maintained at 13% unchanged, supported by new launches Input costs inflation = Production & Procurement recurring improvement 28
Structural projects in France Fixed costs Structural adjustment on all sites: 3,600 positions Aulnay, end of production by 2014: 3,000 positions Industrial footprint adjustment Rennes, headcount adjustment: 1,400 positions 29
Our commitment (1/2): limiting the social impact 8,000 positions concerned in France 1,900 internal reclassification o/w 1,500 for Aulnay and 400 for Rennes 3,600 voluntary departures in corporate overheads 2,500 external reclassification through revitilizing of Aulnay and Rennes 30
Our commitment (2/2): industrial revitalization at Aulnay and Rennes Promote the multiple skills of our employees Assist the creation of industrial activity Maintain an open and ongoing dialogue with local authorities Accompany our suppliers and sub-contractors 31
Group Capex and capitalized R&D: A peak in 2011-2012 In million euros Russia Latin America EB Engines 4000 3,713 3500 3000 2,784 2,804 2500 2000 1500 1000 CAPEX & R&D AUTO 2,621 CAPEX & R&D AUTO 2,464 CAPEX & R&D AUTO 2,901 2008 500 0 2 009 2 010 2 011 2 012 2 013 2 014 2 015 32
Product cost optimization 350m net savings on top of continuous improvement Acceleration of platform and modular strategies 100bn combined annual purchasing base Engineering savings Technical benchmarking with GM Unit prod. cost Alliance purch. synergies Joint purchasing organization designed and best practices exchanged 33
European market share supported by strong momentum of new products (1/2) 2012 Hybrid4: 1 st Diesel Hybrid 3,8l/100km for 99g CO ², significant order book Peugeot 508 (Hy4, RXH): >10% and 3008: 8% DS5 : >20% of mix in H1 Peugeot 4008 Citroën C4 Aircross Peugeot 301 Peugeot 208 Citroën C-Elysée Launch end of 2012 Presented in Paris 34
European market share supported by strong momentum of new products (2/2) 2013 2014 8 new launches High-potential products in high volume segment in Europe Strong image value products: 208 GTI, DS line extension 4 new launches average age* of the range = 3.3 years average age of the range = 3.3 years * PC, vs. 3.5 in 2012 estimated 35
Global Alliance with GM on track Logistics GM Europe and Russia Logistics to be transferred to Gefco Additional annual revenues Joint Purchasing organisation Organization ready to operate Antitrust authorization processes underway in H2 Operational in Q4 Joint projects Project working groups ongoing Decisions due in H2 36
OUTLOOK Philippe VARIN Chairman of the Managing Board 37
Outlook Market assumptions Europe: c. -8% (vs. -5% in February 2012) China: c. +7% Latin America: c. +2% (vs. +6% in February 2012) Russia: c. +9% (vs. +5% in February 2012) 2012 Group objective Stabilization of Net Debt around June 2012 level, driven by 1bn cost reduction plan, inventories back to 2010 level, asset disposals and opening of GEFCO capital 2013 Group objective Operational cash consumption rate reduced by half 38 38
APPENDIX 39
Worldwide unit sales IN THOUSAND OF UNITS* 6 MONTH 2011 6 MONTH 2012 CHANGE Europe** AP AC Total PSA 615,000 539,000 1,154,000 525,000 455,000 980,000-14.7% -15.8% -15.2% Russia AP AC Total PSA 22,000 13,000 35,000 23,000 18,000 41,000 +4.4% +31.7% +14.7% Latam AP AC Total PSA 90,000 65,000 154,000 76,000 45,000 122,000-14.8% -29.9% -21.1% China AP AC Total PSA 81,000 114,000 195,000 104,000 106,000 209,000 +28.0% -7.1% +7.5% Rest of the world AP AC Total PSA 76,000 37,000 113,000 84,000 40,000 124,000 +13.5% +8.1% +11.7% Total Assembled vehicles AP AC Total PSA 883,000 769,000 1,652,000 812,000 664,000 1,476,000-8.1% -13.6% -10.7% CKD AP AC Total PSA 208,000 0 208,000 143,000 0 143,000-31.1% - -31.1% Total Assembled vehicles + CKD units AP AC Total PSA 1,091,000 769,000 1,860,000 955,000 664,000 1,619,000-12.5% -13.6% -13.0% * Assembled vehicles, CKD units ** Europe = EU + EFTA + Albania + Bosnia + Croatia + Kosovo + Macedonia + Montenegro + Serbia 40
PEUGEOT 308 PEUGEOT 508 Group results by division AUTOMOTIVE FAURECIA GEFCO BANQUE PSA FINANCE OTHERS BUSINESSES & ELIMINATIONS TOTAL In million euros H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 Revenues 22,585 20,203 8,150 8,765 2,017 1,881 942 979 (2,559) (2,275) 31,135 29,553 Recurring operating income / (loss) 405 (662) 340 303 143 63 274 271 (5) 29 1,157 4 % of revenues 1.8% -3.3% 4.2% 3.5% 7.1% 3.3% 29.1% 27.7% - - 3.7% 0.0% Non-recurring operating income (and expenses) 14 (616) (33) (37) (15) (1) 0 0 5 234 (30) -420 Operating income 418 (1,278) 307 266 128 62 274 271 0 263 1,127 (416) 41
Automotive: recurring operating income Focus on DPCA Auto ROI Proforma including 50% DPCA H1 2011 H1 2012 DPCA recurring operating income 88 68 Auto Recurring operating income / (loss) 493 (594) % of revenues 2.1% -2.9% Dividend received (in million RMB) 589 776 42
Globalisation: focus on China Successes in China : DPCA: 2 launches in 2012 CAPSA: DS Line launched Citroën C4 L and 1 SUV for Peugeot to be launched in 2012 Citroën C-Elysée to be produced in 2013 Success of the Peugeot 308 Dividend: RMB 776m in 2012, up by 32% DS Line starting June 28 th : DS5, DS4, DS3 coming in H2 Localized DS5 mid 2013 in Shenzhen Dealers: 24 DS stores, Nanjing already opened, 80 DS Stores by end of 2013 in 55 cities and 200 by 2015 43
Globalisation New milestones : Russia : Start of full scale production LatAm: New capacities and product momentum CKD launch of the Peugeot 408 in July New capacities fully operational Total capacity of 125,000 cars/year +61% for LCV in H1, market share +3pts Success of the launch of the Peugeot 308 in March in Brazil New Citroën C3 launch in August Full First year Half results Results 2011 2012 February July 25 th 15, 2012 th, 2012 44
Enhancing brand image and pricing power Strong increase in product mix and successes of new launches Upward Residual Values* for all new products building up pricing power Launch Previous models New models At launch Current Peugeot 3008 Q1 2010-44% 44% Peugeot 3008 HY4 Q4 2011-46% - Peugeot RCZ Q2 2010-43% 46% Peugeot 508 Q1 2011 35% 44% 42% Citroën DS3 Q2 2010-42% 44% Citroën DS4 Q1 2011-40% 40% Citroën DS5 Q4 2011-44% 44% New Citroën C4 Q3 2010 34% 41% 40% * Residual Values (36 months, 90,000km) Source DAT, Q4 2011 (Germany) Full First year Half results Results 2011 2012 February July 25 th 15, 2012 th, 2012 45
Brand upscaling New products above estimates, increasing Brand value Units sold, H1 2012 PEUGEOT 508 & 508 SW PEUGEOT RCZ PEUGEOT 3008 CITROËN DS3 CITROËN DS4 CITROËN DS5 Success of new launches 68,900 6,900 62,000 8% in GT 48% conquest 55% conquest customers customers 38,000 65% conquest customers 20,000 55% conquest customers 13,500 20% Hybrid4 Higher average price* 32,800 vs 27,600 (407) 32,300 29,400 vs 23,700 (308bl) 22,100 vs 17,900 (C3) 26,200 vs 23,700 (C4) 35,400 vs 31,200 (C5) * Average price in France Full First year Half results Results 2011 2012 February July 25 th 15, 2012 th, 2012 46
Brand upscaling / Step ahead Innovation and CO 2 new technologies Average fleet CO 2 /km 130g 120g 110g 95g Diesel 207, DS3 & C3 HDI 99g CO 2 /km 135g New Stop & Start EV i0n & C-Zero 132g JV BMW Peugeot Citroën 3008 Hy4 1 st to market Diesel Hybrid European sales 120g CO 2 /km: 811,000 in 2011, in line with 1,000,000 target in 2012 128g Gasoline 1L 3 cyl 99g CO 2 /km 508 Hy4 508 RXH DS5 Hy4 125g 2009 2010 2011 Q1 2012 Hybrid plug-in < 50g CO 2 /km European reglementation 130g in 2015 95g in 2020 2020 Full First year Half results Results 2011 2012 February July 25 th 15, 2012 th, 2012 47