Interim results June 30, 2003

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Interim results June 30, 2003 2

In units W orldwide sales at June 30 (cars and light commercial vehicles) > Worldwide sales at June 30, 2003: 1,689,200 cars and light commercial vehicles, versus 1,656,900 at June 30, 2002 (up 1.9%) Peugeot: 963,400 (down 3.7%) 1,656,900 1,313,400 343,500 2002 up 1.9% up 1.0% up 5.4% 1,689,200 Total 1,327,000 Europe 362,200 Outside Europe 2003 Citroën: 725,800 (up 10.6%) 3

In millions of euros S ales June 30, 2002 June 30, 2003 % Change Automobile Division 22,081 22,396 1.4% Finance Companies 846 860 1.7% Transportation and Logistics 1,330 1,405 5.6% Automotive Equipment 4,958 5,242 5.7% Other businesses 496 483-2.6% Intra-company eliminations (2,340) (2,623) N/M > Consolidated sales: 27.8 billion, up 1.4% > Automobile Division sales: 22.4 billion, up 1.4%, in line with unit sales > Finance Companies (Banque PSA Finance) sales: 0.9 billion, up 1.7% > Transportation and Logistics (Gefco) sales: 1.4 billion, up 5.6% > Automotive Equipment (Faurecia) sales: 5.2 billion, up 5.7% Excluding changes in exchange rates and the price impact of precious metals used in catalytic converters, sales rose 12% during the period Total PSA Peugeot Citroën 27,371 27,763 1.4% 4

In millions of euros O perating margin > Consolidated operating margin: 4.6% of consolidated sales, versus 5.6% at June 30, 2002 > Automobile Division operating margin: June 30, 2002 June 30, 2003 % change 3.7% of Division sales, versus 5.2% at June 30, 2002 Automobile Division 1,151 835-27.4% Finance Companies 159 198 24.5% Transportation and Logistics 69 74 7.2% Automotive Equipment 129 161 24.8% Other businesses and eliminations 16 10 N/M Total PSA Peugeot Citroën 1,524 1,278-16.1% 5

In millions of euros C hange in Automobile Division operating margin at June 30 > Automobile Division operating margin: down 316 million compared with first-half 2002 > Currency effect: A negative 292 million, of which 168 million from the British pound and 39 million from Eastern European currencies Change in average rates 1H-02 to 1H-03: 2003 / 2002 Currency effect - 292 Volume and mix - 31 Price effect + 4 Production cost savings + 305 Increase in personnel costs - 113 Increase in R&D budget - 110 Depreciation - 68 GBP / EUR: down 9.3% PLN / EUR: down 14.1% > Changes in volumes, product mix and country mix: Aggregate negative impact of 31 million, of which country mix a negative 58 million (primarily due to the weaker French market) > Positive price impact: 4 million. Prices were raised in almost all markets, offsetting higher marketing costs > Production cost savings: Gross gain of 308 million, in line with the announced cost reduction programs. Slightly reduced by the 3 million increase in raw materials prices > Increase in personnel costs: 113 million Amounts allocated under profit-sharing programs reduced by 16 million due to the decline in operating margin 6

O ther divisions BPF Loan outstandings: up 9.8%, to 19.5 billion Operating margin: up 24.5%, to 198 million Gefco Operating margin: up 7.2%, to 74 million Faurecia Operating margin: up 24.8%, to 161 million > Banque PSA Finance: Operating margin: 2.1% of average outstandings, versus 1.8% in first-half 2002 > Gefco: > Faurecia: Operating costs under control Improved financial margin on new business Operating margin: 5.3% of Division sales, versus 5.2% in first-half 2002 Market share gains, driven by network expansion Improved sales mix and increased sales of value-added services Efficient control over operating costs Operating margin: 3.1% of Division sales, versus 2.6% in first-half 2002 7

In millions of euros G roup income June 30, 2002 June 30, 2003 Operating margin (EBIT) 1,524 1,278 Restructuring costs (44) (26) Interest income (expense), net (2) 12 Other income and expense, net 29 30 Income before tax of fully-consolidated companies 1,507 1,294 Income taxes (443) (388) Net income of fully-consolidated companies 1,064 906 > Net earnings of companies at equity: sustained growth in earnings from Dongfeng Peugeot Citroën Automobile. For the first five months of 2003: Sales up 72% Operating margin: CNY 802 million (18.3% of sales) Net income: CNY 556 million (versus a CNY 3 million loss in the first five months of 2002) > Earnings per share: 3.54 versus 3.83 Net earnings of companies at equity 6 44 Amortization of goodwill (64) (65) Net income before minority interests 1,006 885 Net income 985 869 8

In millions of euros 1,985 48 Working capital provided by operations Change in WCR C ash generated by manufacturing and sales companies at June 30 1,427 2003 1,598 Total investment 435 Gross capital expenditure Free cash flow > Working capital provided by operations: 1,985 million, versus 2,221 million in first-half 2002, down 10.6% > Working capital requirement declined by 48 million, despite higher Group new vehicle inventory (excluding Group owned dealers) June 30, 2002: 229,000 vehicles December 31, 2002: 216,500 vehicles June 30, 2003: 287,000 vehicles > Gross capital expenditure: 1,427 million, versus 1,586 million in first-half 2002 > Other investments: Dongfeng Peugeot Citroën Automobile: 73 million Toyota Peugeot Citroën Automobile: 118 million 9

In millions of euros N et financial position of the manufacturing and sales companies > Dividends: 325 million > Share buybacks at June 30, 2003: 116 million, corresponding to the net purchase of 3,080,007 shares at an average price of 37.53 per share 594 571 > 18,288,716 shares held in treasury at June 30, 2003, or 7.06% of issued capital December 31, 2002 June 30, 2003 10

Second Half 2003: Strengths and Challenges 11

In thousand of units 1,337.8 R egistrations in Western Europe at June 30 up 0.4% 1,343.2 (cars and light commercial vehicles) > Western European market down 2.8% at June 30, 2003 > Growth in registrations was led by gains in the following geographic markets: Italy: up 21.1% (market down 3.0%) Germany: up 10.3% (market down 1.3%) Spain: up 1.1% (market up 0.4%) France: down 5.5% (market down 7.8%) United-Kingdom: down 6.2% (market up 1.3%) Others: up 1.7% (market down 5.2%) 2002 2003 12

In % M arket share at June 30 (cars and light commercial vehicles) > Market share gains in every Western European country except the UK > Market share exceeds the targeted 10% in 13 of the 17 Western European countries 33.6 34.4 2002 2003 > Compared with December 31, 2002, market share exceeded the targeted 10% in three additional countries: Italy: 11.4%, versus 9.7% 15.4 15.9 22.3 22.5 13.4 12.5 9.2 11.4 14.5 15.6 Sweden: 11.5%, versus 9.7% Switzerland: 10.5%, versus 9.0% > Germany: 6.0% market share, in line with the 6.5% targeted for 2004 5.4 6.0 Europe France Spain United- Italy Germany Others Kingdom 13

In thousands of units S ales outside Western Europe at June 30 (assembled vehicles and CKD components) up 5.4% 362.2 343.5 > Sales of assembled vehicles and CKD components outside Western Europe: 362,200 units (up 5.4%) > 21.4% of total Group sales > Central and Eastern Europe and Turkey: 101,600 units (up 29.1%) Market share in Central Europe: 13.6% versus 12.5% in first-half 2002 Market share in Turkey: 12.4% versus 9.5% in first-half 2002 > Latin America: 51,800 units (down 6.9%) > China: 52,700 units (up 64.5%) 2002 2003 14

O ur product strengths (1) > Peugeot 206: 405,100 units sold at June 30, 2003 (down 6.9%) Firm resistance thanks to new versions (206 RC introduced in June 2003) > Citroën Xsara Picasso: 123,000 units sold at June 30, 2003 (down 10%) Share of the compact MPV segment in Europe increased to 19% from 17.9% in first-half 2002 > Peugeot 307: 291,600 units sold at June 30, 2003 (up 14.7%) 2003 objective confirmed (600,000 units) > Citroën C3: 188,000 units sold at June 30, 2003 2003 objective confirmed (300,000 units) 15

O ur product strengths (2) > Peugeot 807 and Citroën C8: 32,000 units sold at June 30, 2003 versus 7,900 in first-half 2002 (including Peugeot 806 and Citroën Synergie) > New Citroën Berlingo and Peugeot Partner: 162,500 units sold at June 30, 2003 (up 12.5%) Completely revitalized range of "ludospaces" 16

M arketing flexibility > Trends in currency rates weighed heavily on Automobile Division operating margin: a negative impact of 292 million, of which 168 million from the British pound > United-Kingdom: GBP / EUR - 9.3% BRL / EUR - 38.4% Change in average rate, 1H-02 to 1H-03 Market share: 12.5% at June 30, 2003 versus 13.4% at June 30, 2002 > Brazil: More selective approach to market segments (fleets, motability, car rentals) Short term response: sales deliberately limited Market share: 4.3% at June 30, 2003 versus 4.5% in 2002 Higher percentage of production costs in local currency: 2002: 35% 2004 objective: Initial plan: 41% New plan: 50% 17

P roduction flexibility > Inventories: At June 30, 2003: 1.3 months of production Objective: return to 1 month of production > Production adjusted: Adjustments in working organization in the assembly plants: Sochaux Poissy Rennes Ryton Porto Real Decision to reduce output by 57,000 vehicles in 3Q-03 and by 16,000 vehicles in 4Q-03 > Work organization adjusted: Sochaux: cancellation of the weekend shift as of August 31 Poissy: cancellation of the third shift as of October 13 Rennes: cancellation of the third shift as of July 31 Ryton: voluntary reduction in the working hours, with salary adjustments Porto Real: cancellation of some work sessions throughout 2003 > Cost impact: Elimination of the highest-cost shifts Non-renewal of temporary contracts Use of time-savings accounts 18

O ur new products > On-going launch of the C3 Pluriel: Market introduction in May 2003 More than 15,000 units ordered Full-year objective: 75,000 units sold > Launch of the Peugeot 307 CC: Market introduction in September 2003 Fully automatic retractable roof, based on the 206 CC concept Full-year objective: more than 50,000 units sold > Launch of the Citroën C2 3-door compact sedan Introduction scheduled for 4Q-03 Extends the range of Citroën compacts, alongside the C3 and the C3 Pluriel Full-year objective: 190,000 units sold 19

2 003 worldwide sales > Despite a persistently lackluster economic environment and an European automobile market that is significantly weaker than in 2002, the 2003 unit sales objective has been confirmed 3,350,000 units > > > > > > Objective confirmed 20

2 003 financial objectives > Automobile Division operating margin: Sustained, assertive reduction in production costs Continued positive price effect Automobile Division operating margin as a % of sales: 2003 objective: maintain or improve Division operating margin (as a % of sales) compared with the first-half, barring any further deterioration in the currency environment > > > > > > Maintain or improve compared with the first half Consolidated operating margin as a % of sales: > Consolidated operating margin: Banque PSA Finance: improved results led by higher loan margins and tight control over both net charges to allowances for credit losses and general operating expenses. > > > > > > Maintain or improve compared with the first half Faurecia: over-market sales growth and gradual improvement in operating margin 2003 objective: maintain or improve consolidated operating margin (as a % of sales) compared with the first-half, barring any further deterioration in the currency environment > Improved net financial position of the manufacturing and sales companies: Lower inventory Higher free cash flow in the second half 21