CHINA FIELD TRIP May 10Th –12Th, 2011
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CHINA FIELD TRIP May 10th –12th, 2011 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 (www.psa-peugeot-citroen.com). 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 (www.psa-peugeot-citroen.com), under Regulated Information. th th China Field Trip - May 10 –12 , 2011 2 DPCA Agenda for DPCA > Today 11.15am - 11.20am DPCA Introduction 11.20pm - 11.40am DFM speech 11.40pm - 12.40am DPCA Presentation 12.50am - 1.30pm Lunch 1.35pm - 2.35pm R&D Visit 3.00pm - 4.00pm Wuhan Plant 2 Visit 4.30pm - 5.30pm DF-Citroen Dealer Visit > Tomorrow 11.30am - 12.30am DF-Peugeot Dealer Visit th th China Field Trip - May 10 –12 , 2011 2 Speech of Mr Liu Weidong Liu Weidong DFM Deputy General Manager Introduction to DPCA Maxime PICAT General Manager Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A th th China Field Trip - May 10 –12 , 2011 5 DPCA Key Data • Daily production: 1 500 cars/day on 2 plants in March 2011 • Harbour Utilization rate: 118% in 2011 ytd vs 98% in 2010 • Headcount: 11 235 • Revenues: over RMB 35 billion in 2010, +55% vs 2009 • Total cars produced since 1992: over 1.9 million out of which 370 000 in 2010 (+38%) vs 2009 • Dealerships: 483 Main Dealers (Peugeot / Citroen) +22% vs 2009 th th China Field Trip - May 10 –12 , 2011 6 History of DPCA 1992~1996 1997~2000 2001~2006 2007~2010 2011~ Large scale Initial stage of Stage of Stage of stable development 373 000 A new Era infrastructure production and structural adjustment stage operation 2011 Oct. 2006 508 Launch / Plant 3 Plant II laid Construction Start the foundation 270 006 May, 1992 Nov. 2000 Jan, 2003 207 255 Nov. 2009 Jan.2010 DCAC was The project of New DPCA after 201 318 Dongfeng Citroen C5 Dongfeng established Phase I is accepted the cooperation rolled off the Peugeot 408 in Wuhan upon completion was enhanced 178 060 production line was released 140 399 Nov. 2009 Plant II was put September 1995 into production The first Citroen ZX 103 126 89 129 rolled off the 85 088 production line April, 2004 Dongfeng Peugeot 307 rolled off the production line 52 036 53 194 43 850 7 134 663 4 797 8 243 3 846 31 189 25 346 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 th th China Field Trip - May 10 –12 , 2011 7 Location > DPCA takes advantage of a Balanced Footprint Dongfeng Peugeot 北京 Beijing Dongfeng Citroen 上海 Shanghai 襄阳 XiangYang XiangYang Plant Headoffice 武汉 WUHAN Engine and mechanical gearbox Wuhan Plant 1 assembly plant Wuhan Plant 2 Wuhan Plant 3 (2013) th th China Field Trip - May 10 –12 , 2011 8 One company, two brands > Creative Technology > Motion & Emotion th th China Field Trip - May 10 –12 , 2011 9 Dongfeng Citroen > One launch in D Segment in 2010 • C5 • C-Triomphe • C4 (Hatch / Notchback) • New Elysee (Hatch / Notchback) • C2 CITROËN C5 CITROËN C2 CITROËN CITROËN C-Elysee C-Triomphe th th China Field Trip - May 10 –12 , 2011 10 Dongfeng Peugeot > One launch in D Segment in 2011 • 508 (H2 2011) • 408 • 307 (Hatch/Notchback) • 207 (Hatch/Notchback) th th China Field Trip - May 10 –12 , 2011 11 Technical research & development capabilities > Technical team of over 1 100 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 th th China Field Trip - May 10 –12 , 2011 12 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A th th China Field Trip - May 10 –12 , 2011 13 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 ► 1st Dividend on 2010 results: 589 MRMB paid on April 28th 2011 th th China Field Trip - May 10 –12 , 2011 14 Joint venture organisation (updated in 01/2011) 40 PSA Expatriates GM M. Maxime PICAT 40 DFM managers DG Executive Deputy GM M. QIU Xiandong 11 235 employees DGA Product DF CITROEN DF PEUGEOT R&D Purchasing Quality Strategy Logistic & WuHan 1 WuHan 2 Xiangyang Legal Affairs HR Finance IT Distribution Plant Plant Plant Audit Organization PR Industrial Entities Support Entities th th China Field Trip - May 10 –12 , 2011 15 Characteristics of DPCA teams Master Degree 50 and above and above 2,5% 4% 40-50 Junior 10,6% college 23% Secondary Education 49% specialized school, Age technical school 30-40 33% 54% 30 and lower and so on Bachelor 24% Degree th th China Field Trip - May 10 –12 , 2011 16 Productivity > From 2009 to 2015 Car production Target 450 000 (+20%) 2011 Headcount Target 12 700 (+17%) Annual car production / employee 2006-2008 (average) 2009 2010 2015 (target) 21 29 34 42 +45% > Harbour 2011 Harbour Days Shifts Hours/day Reference 100% 235 2 8 YTD 2011 118% 260 2 8.5 Example 130% 270 2 9 th th China Field Trip - May 10 –12 , 2011 17 Fully implemented lean management In the 2 brands (network inclusive) increase sales and customer satisfaction In the 3 plants increase productivity In our support departments increase efficiency > New Milestone BSC (Balanced Scorecard) Management introduced in 2011 th th China Field Trip - May 10 –12 , 2011 18 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 th th China Field Trip - May 10 –12 , 2011 19 Committed to Social responsibility and sustainable development • DPCA was awarded among the • The plant implements reclaimed water “Top 10 Automobile Enterprises reuse project, realize zero discharge with Most Social Responsibilities of the wastewater, materials for more in China” and “Outstanding Contribution than 90% of the total weight of the Enterprise for the Construction of Social product can be recycled or duely treated. Responsibility”. th th China Field Trip - May 10 –12 , 2011 20 Market share development > To 5% Market Share Target in 2015 > Q1 2011 market share consolidation vs Q1 2010 3,4% 3,60% 3,3% 3,3% 3,40% 3,20% 3,00% 375 700 2,80% 272 200 2,60% 179 100 2,40% 2,20% 2,00% 2008 2009 2010 Sales th th China Field Trip - May 10 –12 , 2011 21 Planned rise in Nominal Capacity Wuhan Plant III and Xianyang Plant (Phase IV) Wuhan Plant II and Xianyang Plant (Phase III) 750 000 cars Wuhan Plant I 850 000 motors and Xianyang Plant (Phase II) 450 000 cars Wuhan Plant I 550 000 motors and Xianyang Plant (Phase I) 300 000 cars 400 000 motors 150 000 cars 200 000 motors 1995~2000.11 2004.1~2008.3 2007.1~2009.11 2011.3~2013 th th China Field Trip - May 10 –12 , 2011 22 WUHAN Plant 3: A new Milestone • New plant, located 6 km west of the current plants: ► 2 phases, 2x150 000 veh/year (2 shifts) ► Phase 1 start of production 2013 ► 4 workshops: stamping, welding, painting and final assembly ► Phase 2 start of production 2015 ► May 18th : 1st 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 th th China Field Trip - May 10 –12 , 2011 23 Quality : an extended and integrated system • Based on 8 main indicators : ► Reactivity ►Project Quality ► Ex-Work Quality ►Supplier Quality ► Customer Defect ►Service quality ► Quality System Efficiency ►Cost of non-quality • Deeply linked with customer interactions ► Sales ► Daily use ► After Sales • Supported by Lean Management and BSC throughout the organization th th China Field Trip - May 10 –12 , 2011 24 Product Quality JD Power in top 5 Ambitions Warranty Defect : -50% Warranty defect (100 base in 2008) 100 Warranty defect (100 base in 2008) JD POWER Ranking Auto groups China (1) 13 75 9 8 7 50 2008 2009 2010 2011 th th China Field Trip - May 10 –12 , 2011 25 Agenda Company profile Main operating characteristics Recent Performance Strategy and Outlook Q&A th th China Field Trip - May 10 –12 , 2011 26 DPCA results In million € 2008 2009 2010 Sales (in K units) 179 272 376 Revenues 1 501 2 299 3 936 Recurring operating income (8) 129 309 % of revenues -0.5% 5.6% 7.8% Income taxes 2 6 (22) Net Income 16 113 320 Net income, Group share 8 57 159 th th China Field Trip - May 10 –12 , 2011 27 DPCA contribution to PSA profitability > 50% DPCA contribution : 154 M€ in ROC (+0.2 point of additional margin) 2009 2010 In million € PSA PSA PSA 50% DPCA Elim. PSA 50% DPCA Elim.