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
207 255 May, 1992 Nov. 2000 Jan, 2003 201 318 Nov. 2009 Jan.2010 DCAC was The project of New DPCA after 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 52 036 53 194 rolled off the production line 43 850 7 134 663 4 7978 243 3 846 31 189 25 346
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20062007 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. Pro Forma Pro Forma
Revenues 48 417 1 149 (134) 49 432 56 061 1 968 (221) 57 808 Recurring operating (689) 64 (625) 1 796 154 1 951 income % of revenues -1.4% 5.5% -1.3% 3.2% 7.8% 3.4%
th th China Field Trip - May 10 –12 , 2011 28 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
th th China Field Trip - May 10 –12 , 2011 29 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 341 610
Gearing 10.9% (37.4%)
• Strong support from large group of Chinese banks • Currency financing: 25% in €, 75% in US $ • Competitive interest rates
th th China Field Trip - May 10 –12 , 2011 30 Agenda
Company profile
Main operating characteristics
Recent Performance
Strategy and Outlook
Q&A
th th China Field Trip - May 10 –12 , 2011 31 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 750 000 with Wuhan 3 • 12 new models and 6 engines in 5 years
th th China Field Trip - May 10 –12 , 2011 32 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 100 000
► 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
th th China Field Trip - May 10 –12 , 2011 33 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
th th China Field Trip - May 10 –12 , 2011 34 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 2nd tier and 3rd tier cities
► Enhance Marketing & Sales methods for all segments
► Further implement Lean Management to create value for our customers
th th China Field Trip - May 10 –12 , 2011 35 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
th th China Field Trip - May 10 –12 , 2011 36 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
th th China Field Trip - May 10 –12 , 2011 37 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 2011 • 12 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
th th China Field Trip - May 10 –12 , 2011 38 Q&A
th th China Field Trip - May 10 –12 , 2011 39 DPCA R&D Jean-Luc BRAME DPCA Deputy General Manager and Head of R&D Summary
DPCA R&D
DPCA Product plan
th th China Field Trip - May 10 –12 , 2011 2 R&D Key Data
• Employees: 1 146 • Validations facilities
► 104 main facilities • At least 2 new vehicles launched every year ► Total surface : 6 940m² ► A new testing building is planned : • 6 new engines from now to 2015 • Surface : +23 500m² • Investment : 164Mrmb in 2011, • 1 new plant Wuhan 3 in 2013 and 540 Mrmb to 2015
► 475 testing cars in use • 2 new engine workshops in Xiangyang in 2014 ► Over 1.7Mkm runned for Peugeot 508
th th China Field Trip - May 10 –12 , 2011 3 R&D: at the heart of our organisation
DPCA R&D is in charge of the engineering of the vehicles, powertrains and the associated General processes. Manager DPCA R&D is deeply linked with, and widely supported by the PSA R&D worldwide system.
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 4 Advanced R&D capacity
R&D
Vehicle Engineering Powertrain & Chassis Vehicle Projects Transverse Support Engineering Vehicle testing, Powertrain, chassis Technical homologation engineering Project #1 Documentation Body and process engineering Process engineering Project #2 Investment
Electronics Powertrain Projects Project... Cost management
Building construction Quality projects
Lab
1 146 employees
th th China Field Trip - May 10 –12 , 2011 5 PSA and DPCA: deeply interlinked R&D organisation for maximum efficiency
• Styling / Architecture • Calculations and simulations • Localization • Detailed design • Process engineering • Tests inc. homologation procedures • Mass production preparation
Development processes for major new projects like 508 or new powertrains
• Styling • Detailed design, localization • Calculations • Process engineering • Tests inc. homologation procedures • Mass production preparation
On vehicle restyling projects or improved powertrains, DPCA leads on engineering with PSA assistance
th th China Field Trip - May 10 –12 , 2011 6 Skills development via the “Kungpeng” plan
DPCA is improving • To meet the ambitious program and targets of the company its R&D skills • To develop products in tune with Chinese customer expectations
Training program • Aimed at furnishing DPCA R&D employees with requisite skills set up with PSA R&D to fulfill the tasks defined in the R&D organisation with PSA to reinforce and • PSA Experts integrated in DPCA team to manage the training accelerate this program development: The KUNPENG plan
th th China Field Trip - May 10 –12 , 2011 7 Summary
DPCA R&D
DPCA Product plan
th th China Field Trip - May 10 –12 , 2011 8 Projects under development
At least two new vehicles launched each year…
Launch in C Upper 408 508
April 2010 2011 2012 2013… Jan.
C5 Launch in C Upper
1.6 VVT 2.3 VVT Improved 1.8 VVT efficiency
th th China Field Trip - May 10 –12 , 2011 9 DongFeng Peugeot 508 project
408 508 April 2010 2011 Jan. C5
• 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: 65 000 / year • Planning ► The 508 will be commercially launched in China 6 months after its European launch
th th China Field Trip - May 10 –12 , 2011 10 The China 508 give to the rear passagers more confort
th th China Field Trip - May 10 –12 , 2011 11 Rear face
• A specific design of the rear bumper and trunk cover to give more confidence in a strong resistance against crash
th th China Field Trip - May 10 –12 , 2011 12 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
th th China Field Trip - May 10 –12 , 2011 13 Step 1 EC range
2011 2012
1.6 VVT 1.8 Improved VVT 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
• 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
th th China Field Trip - May 10 –12 , 2011 14 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 1.6 16V
4 cylinder EP range Equipped with Stop&Start technology,
and high efficiency automatic gearboxes • Both engines and associated gearboxes will be locally produced in a new factory in XiangYang from 2014
th th China Field Trip - May 10 –12 , 2011 15 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
th th China Field Trip - May 10 –12 , 2011 16 Now let me show you the cars: Peugeot 508 and …..
th th China Field Trip - May 10 –12 , 2011 17 DONGFENG CITROËN Arnaud de LAMOTHE Deputy General Manager Agenda
Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A
th th China Field Trip - May 10 –12 , 2011 2 2010 Key data
• Sales: 224 000 vehicles (historical record) (+39.9% vs 2009) • Market Share: 2% • 5 car product families • Best seller car: C-Quatre 106 500 sales • C5 sales: Biggest sales for Citroën in the world (35 000 units) • Dongfeng Citroën: 310 employees • Network: 273 Main Dealers (12/10) +19% vs 2009 ► 22 new cities covered ► 43 new dealers
th th China Field Trip - May 10 –12 , 2011 3 Innovation drives breakthrough
• Record annual sales in 2010 with 224 000 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)
250 000 2 D
200 000 2C 150 000 1B 100 000
50 000
0
2008 2009 2010
th th China Field Trip - May 10 –12 , 2011 4 Agenda
Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A
th th China Field Trip - May 10 –12 , 2011 5 5 product families (1B, 2C, 2D)
2010 Sales Total: 224 000 8 100 B 48 000 since 2006 C2 (10 2006)
71 700 964 000 since 1994 C C Elysée HB (03 2009) C Elysée NB (04 2008) 106 500 247 000 since 2008 C Quatre HB (09 2008) C Quatre NB (06 2009)
2 700 72 000 since 2006 D C Triomphe (05 2006) 35 000 44 000 since 2010 C5 (01 2010)
th th China Field Trip - May 10 –12 , 2011 6 Our range covers the mainstream markets
In terms of segments In terms of price
298 900
100% SUV
16.6% MPV 75% 20.5% 16.1% 16.0% H
50% 46.9% M2 42.9% 45.9% 44.0% 149 800 M1
25% B2 149 800 15.1% 15.9% 14.1% 13.5% B1 0% 73 800 2008 2009 2010 2011（1-2） 71 800 73 800 1B 2C 2D
th th China Field Trip - May 10 –12 , 2011 7 Agenda
Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A
th th China Field Trip - May 10 –12 , 2011 8 Brand image and recognition Actions and events • Sponsorship of Badminton National Team 2010 - 2013 (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 Q3 2011 ► 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
th th China Field Trip - May 10 –12 , 2011 9 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
th th China Field Trip - May 10 –12 , 2011 10 Shanghai Motorshow
• 1 525 m2, 700 000 visitors expected, 11 Citroën cars presented + 8 specific cars (concept car Survolt, C4 WRC…) • Our themes: Legend, Experience and Creative for future
th th China Field Trip - May 10 –12 , 2011 11 Agenda
Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A
th th China Field Trip - May 10 –12 , 2011 12 Our network
> 2010: 597 dealers and agents covering 56% of main cities
x3
2009 2010 2011 2015
Dealers number 230 273 350 620
Agents number 208 324 500 700
Covered cities 180 196 240 315
th th China Field Trip - May 10 –12 , 2011 13 2011-2015 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 10 000 Sales all brands included – Multiple dealers possible
► Cities from 5 000 Sales all brands included : Install at least one dealer
2015 target: cover 90% of 315 cities
th th China Field Trip - May 10 –12 , 2011 14 An exceptional achievement in terms of renovation & new brand image
th th China Field Trip - May 10 –12 , 2011 15 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)
th th China Field Trip - May 10 –12 , 2011 16 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 +100% • Development of the secondary network: ► from 324 end 2010 to 500 end 2011 +54% • Development of the used car activity: ► from 145 authorized end 2010 to 210 end 2011 45%
th th China Field Trip - May 10 –12 , 2011 17 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
th th China Field Trip - May 10 –12 , 2011 18 Add value for the customer while creating benefits for the dealer
Train with LEAN Improve dealer management and 1 approach 3 business control
Creation of visual animation LEAN for daily meetings training Improve after sales 4 productivity
Improve dealer management Improve sales and 6 and business control 5 after sales process
Standardization Weekly meeting with of process Use of Hoshin and MIFA dealer managers to improve after sales capacity
th th China Field Trip - May 10 –12 , 2011 19 Improvement in service quality
80 > % of customers totally satisfied* 75
70
65 Sales and delivery 7060 + 13 points in 2 years 6555
60
55 After sales 50 + 14 points in 2 years
45 2009 2010 2011
Project 2011 objectives
Customer Sales Absolutely Satisfied 74.5% satisfaction survey After-sales Absolutely Satisfied 64.5%
(*) Totally unsatisfied:<2% in sales & deliveries;<2% in after sales Sources: EQC Survey
th th China Field Trip - May 10 –12 , 2011 20 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
th th China Field Trip - May 10 –12 , 2011 21 Agenda
Background and Key datas Citroën Range Brand Image Dealer network & Lean management & Customer satisfaction Summary and outlook Q&A
th th China Field Trip - May 10 –12 , 2011 22 Summary and outlook
> Dongfeng Citroën, 2011 and after
• Keeps on increasing sales and market share
► 2011-2015: 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
th th China Field Trip - May 10 –12 , 2011 23 Q&A
th th China Field Trip - May 10 –12 , 2011 24 DONGFENG PEUGEOT CITROËN AUTO FINANCE CO. (DPCAFC), LTD Once upon a time DPCAFC …
• May 2003: Creation of a financing platform at Dongfeng October 2004 (LOI) Peugeot Citroën Automotive (DPCA). • October 2004: Signature of a Letter of Intent (LOI) with Bank DPCA of China (BOC) at the People’s hall of China by M. FOLZ 25% during the presidential visit. 50% BOC ► Objective: provide competitive DPCA dealer car stocking financing, retail car financing to customers and business 25% –related value– added services. PFN (BPF) • May 2006: Approbation of the China Banking Regulatory PFN: PSA Finance Nederland Commission (CBRC). 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 DPCA in March 2007, and formally launched the Retail business 25% from September 2008. • February 2010: New joint venture agreement signed between 75% PFN (BPF) DPCA and Banque PSA Finance (following BOC withdrawal).
th th China Field Trip - May 10 –12 , 2011 2 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
th th China Field Trip - May 10 –12 , 2011 3 A growing asset base
> Wholesale (WHS) Loan > Retail (RTL) Loan
DPCAFC provides Peugeot and Citroën dealers DPCAFC offers Peugeot and Citroën final and fleet network with financing for new and used vehicles customers a diversified range of financing solutions and in the near future replacement part inventories and related services (under development)
Average Net Receivable (ANRS) Outstanding MRMB MRMB 2 428 2 500 2 500 2 117 2 000 2 000 79.3% 1 500 1 500 79.3% 1 235 1 237 1 122 1 115 1 000 1 000 97.9% 87.8% 87.8% 97.9% 87.8% 97.9% 87.8% 500 500 20.7% 2.1% 0 12.2% 0 2008 2009 2010 2008 2009 2010
RTL WHS RTL WHS
th th China Field Trip - May 10 –12 , 2011 4 A Wholesale global coverage and continuous conquest
Number of Dealers (including import) Penetration 600
517 500
412 400 363
312 300 274
211 200
100
0 2008 2009 2010 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”
th th China Field Trip - May 10 –12 , 2011 5 Increase in Wholesale loan book
• Constant increase Brands invoicing (in thousand of units) Number of car financed (in thousand of units) 376 62.7% in penetration rate: Penetration 60.7% + 2 points against 2009 52.2% 272 • Good control over inventory 236 level with more stable rotation 178 165 rate (stock rotation 2010: 31 days) 93
2008 2009 2010
• Doubling of Average Net ANR (MRMB) 1 925 Receivables (ANR) between Outstanding (MRMB) 2009 and 2010 1 208 1 199 1 056 1 086 793
2008 2009 2010
th th China Field Trip - May 10 –12 , 2011 6 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
10.0 9 9.0 8 8.0 7 6.7 7.0 6 6.0 5 5 5.0 4.8 4 4.0 3.3 3 3.0 3 2.0 2 1 1.0 1 0 0 0.0 0 0 Dec.08 Dec.09 Dec.10 Provision Nber of dealers under surveillance Loss
th th China Field Trip - May 10 –12 , 2011 7 A continuous Retail business geographic expansion: an important growth driver
Covered provinces end of 2008 Covered provinces in 2009 Heilongjiang
Covered provinces in 2010 2010 Jilin
lia go on Liaoning M er 2009 Inn Xinjiang ★ Beijing
● Tianjin Hebei
G Shanxi a n Shandong s Ningxia u Qinghai
Shaanxi Henan Jiangsu Xizang Anhui ● Shanghai
g Hubei gqin Zhejiang Sichuan hon ● C Jiangxi
Hunan Fujian Guizhou
Guang Taiwan Yunnan Guangxi Dong
HK
Hainan
Covered provinces 23 Covered cities 111
18 5 53 58
0 5 10 15 20 25 0 20 40 60 80 100 120 2009 2010 2009 2010
th th China Field Trip - May 10 –12 , 2011 8 … with the most appropriate Retail organization in relation with the business development
2009 Heilongjiang 2010 Jilin
lia go on Liaoning M er Inn Xinjiang ★ Beijing ● Tianjin Hebei
G Shanxi a n Shandon s Ningxia u g Qinghai
2009 2010 Shaanx Henan Jiangsu i Business Zone Xizang Anhui 2 (N & S) 3 (N, S, W) ● Shanghai
g Hubei gqin Zhejiang Sichuan hon Brand local ● C network 395 483 (+19%) Jiangxi Hunan Fujian Guizhou Financed Guang Taiwan dealers 196 320 (+63%) Yunnan Guangxi Dong
HK RFM ( * ) 22 29 (+7)
Hainan Financed dealers / RFM 9 11
( * ) Regional Field Manager (RFM) North (N) South (S) West (W) Uncovered Zone
th th China Field Trip - May 10 –12 , 2011 9 Continuous increase in Retail penetration rate: + 1.5 pts (against 2009)
9%9%
8%8%
7%7% 6.30%6.30%
6%6% 5.40%5.40% 4.80%4.80% 4.80% 4.80% 4.70%4.70% 5%5% 4.50%4.50% 4.15%4.15% 4% 4% 3.20%3.20% 3.30%3.30% 3.00%3.00% 2.90% 2.70%2.70% 2.90% 2.59% 3%3% 2.40%2.40% 2.59%
2%2% 0.81%0.81% 1%1%
0%0% JanJan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec YTD YTD
20082008 NationwideNationwide 20092009 NationwideNationwide 20102010 NationwideNationwide
th th China Field Trip - May 10 –12 , 2011 10 Increase in Retail loan book 18.000 16.000 3.500 2010 Financed Contracts 3.002 15.338 2009 14.000 3.000 2008 2.457 12.000 2.500 • Volumes of cars financed 10.000 2.000 1.609 expanding rapidly with a portfolio 8.000 1.320 1.332 1.517 7.235 at the end of 2010 of 19 700 1. 5 0 0 1.127 1.006 6.000 782 826 against 2009 at 8 450 contracts 1.000 713 891 637 746 4.000 527 703 642 606 627 411 398 500 240 248 606 341 1.445 2.000 165 460 79 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
918
• Average duration of 26 months per contract
in 2010 (23 months in 2009) 503 ANR (MRMB) Outstanding (MRMB) 322
151
26 66
2008 2009 2010
th th China Field Trip - May 10 –12 , 2011 11 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
th th China Field Trip - May 10 –12 , 2011 12 A perfect collection curve
• Almost no arrear at month end and a collection curve reaching quickly 100% mainly because: th ►Only one due date for all customers (on the 10 ) ►SMS sent to remember the customer of his installment
101% 100% November 99% December 98% 97% 96% 95% 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21th 22th 23th 24th 25th 26th 27th 28th 29th 30th
• 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
th th China Field Trip - May 10 –12 , 2011 13 Increasingly diversified funding sources after BOC withdrawal 2008 2010 Equity CAS (560 MRMB) Industrial Bank (100 MRMB) 16% BOC Total Equity (CAS) 74% 26% BOC 2 030 MRMB 3% (1 300 MRMB) 1 500 MRMB 530 MRMB CEB (100 MRMB) 3% Total 38% CMB (100 MRMB) 3% 3 410 MRMB 6% of which 2 850 SG (200 MRMB) MRMB from banks
16% 2009 15% ICBC (550 MRMB) ABC (500 MRMB) 2011 Medium Term Opportunities BOC Total Equity (CAS) 79% 2 533 MRMB 21% ► Use of dealers deposit ► Increase of capital 2 000 MRMB 533 MRMB ► Access to inter-bank market ► Syndicated Loan
► Assets transfer (and buy-back) ► Securitization
► Bond Market
th th China Field Trip - May 10 –12 , 2011 14 High leverage of RTL activity on the net banking income growth
> Net Banking Income
98
MRMB 58 55
2008 2009 2010
• 2009/2008: 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)
th th China Field Trip - May 10 –12 , 2011 15 2011 - 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
th th China Field Trip - May 10 –12 , 2011 16 Faurecia in China Jean-Michel VALLIN Jingcheng LI 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 Asian 2014 target: 15% revenues in Asia
th th China Field Trip - May 10 –12 , 2011 2 Faurecia today has a solid base and strong customer portfolio in China
2010 Key figures Total sales OEM portfolio
€1 038m Sales Changan Ford Dongfeng +60% Mazda Nissan +43% 15% 12% 648 1 038 25 Plants 452 Dongfeng Shanghai PSA GM 2008 2009 2010 16% 10% R&D 6% Others 4 centers Total plants Hyundai 1% 600 engineers 40%
Shanghai VW 6 000 employees 25 30 17 FAW-VW 2009 2010 2011
th th China Field Trip - May 10 –12 , 2011 3 Our4corebusinessesare nowdeployedin China…
FAS FIS FAE FECT First operation First operation 2001 : Changchun (Structures) First operation First operation 1994: Wuhan 2002 : Wuhan (Complete seat) 2003: Changchun 2011: Changchun 2003 : Wuxi (Mechanism) Sales 2010 Sales 2010 Sales 2010 €499m €423m €116 m 9 plants 10 plants 5 plants 1 plant 2200 employees 2 000 employees 1 100 employees 700 employees
th th China Field Trip - May 10 –12 , 2011 4 … with a strong footprint in key regions
North East Region East Region
1996 Changchun 2001 Changchun 2000 Shanghai 2003 Changchun 2003 Wuxi 2010 Shenyang 2004 Yantai 2010 Changchun 2005 ★ Shanghai 2011 Changchun Shanghai Shanghai 2007 Nanjing 2007 Qingdao ★ 2011 Shanghai (in construction)
West Region South Region 2010 Huadu 2003 Chongqing 2010 Huadu 2006 Chongqing 2010 Chengdu
Central Region ★ China Headquarter 1994 Wuhan 2002 Wuhan Interior Exterior Seats 2005 Wuhan Exhaust R&D centers 2007 Wuhan 2010 Wuhan
th th China Field Trip - May 10 –12 , 2011 5 Faurecia China Strategy
> Strategy Focus > Implementation Progress
• Business Development Focus • 2.8bn€ new bis award since 2 years ► Global programs Global programs VW, Ford, Nissan, PSA ► • Customer portfolio diversification ► • JVs with Xuyang, Geely, Guangneng Regional partnership
• Operation Excellence Focus • Excellent Group FES audit scores ► Quality & Safety Best in Class
► • OEM’s Best Supplier & Quality awards Plant & Program efficiency ► • Reinforced added value control Vertical integration
• Engineering and Management skills • Multi-cultural team in place ► Strong local management team
► • FECT R&D Center opening April 2011 World-Class R&D centers ► • FAS / FIS / FAE new R&D center 2012 Regional presence
th th China Field Trip - May 10 –12 , 2011 6 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
th th China Field Trip - May 10 –12 , 2011 7 2010 Faurecia China Partnership Development
> Faurecia - Geely-Volvo in 2010 3 specialized JVs between > Faurecia and Xuyang Group
Total sales in € M Total sales in € M
150 1st FIS JV with Geely Limin 150 signed on 2nd July 2010
Faurecia Geely global 100 strategic cooperation agreement signed with 66 61 Geely on 1st Dec. 2010 50
9* CEOs’ meetings in Paris 19 and China
2010 2015 2010 2015 2010 2015 2010 2015 Complete seats Interior Acoustic modules * Current biz for Volvo S40 and S80 in China and seat structures systems and interior trim No sales with Geely in 2010
th th China Field Trip - May 10 –12 , 2011 8 Target: €2.5 bn sales in 2015 A major supplier in China
> Sales, €M > Faurecia Market Share Objectives
2 500 25%
1 700 Complete Seat 10%
Structures 20% 1 023
10%
5% 2010 2013 2015
th th China Field Trip - May 10 –12 , 2011 9 th th China Field Trip - May 10 –12 , 2011 10 DONGFENG PEUGEOT Timothy Zimmerman Deputy General Manager Agenda
Overview
New car sales
Marketing, Brand image
Network and quality management
Summary and outlook
th th China Field Trip - May 10 –12 , 2011 2 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)
• 615 000 cars sold since 2004 (04/2011), produced in Wuhan under the brand “Dongfeng Peugeot”
• Dongfeng Peugeot = 23rd Brand, DPCA = 12th manufacturer (3,36% market share) in China in 2010
• 149 400 sales (+ 32% vs 2009) = 1.35% sales market share in 2010
th th China Field Trip - May 10 –12 , 2011 3 Agenda
Overview
New car sales
Marketing, Brand image
Network and quality management
Summary and outlook
th th China Field Trip - May 10 –12 , 2011 4 Car sales product categories 1st sem. 2011-Product range
2010 Sales
Total: 149 200
41 900 B 157 700 since 2006 (206/207) 207 Chine HB 207 Chine NB
65 300 C 361 300 since 2004 307 HB 307 NB
42 000 from launch in April C+ 408
th th China Field Trip - May 10 –12 , 2011 5 New car sales 2009-2015 DPAD commercialization period • 150 000 vehicles in 2010, up 32% vs 2009 • 1.35% sales market share in 2010 (vs 1.33% in 2009)
200 000
150 000 Segment
100 000
50 000
0
Data: invoices
th th China Field Trip - May 10 –12 , 2011 6 2011 Product Range Prices per segment
365 800
169 900 176 900 153 800
99 800 103 800 71 800 B C D
DPAD products, Segment competition 2011 catalogue price range price
Average price/product in 2010 = 113 000 RMB vs 105 000 RMB in 2009
th th China Field Trip - May 10 –12 , 2011 7 New car sales Launches 2011
508 (upper D) • World launch for Peugeot First Half 2011 2nd semester 2011 • Launch in 2nd 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) • Brand new car replacing existing End of year 2011 medium segment sedan • Shanghai design
th th China Field Trip - May 10 –12 , 2011 8 Agenda
Overview
New car sales
Marketing, Brand image
Network and quality management
Summary and outlook
th th China Field Trip - May 10 –12 , 2011 9 Brand Image and Notoriety Goals
Jan. 2010 Spring 2010 Fall 2010 2011 2015 Rank* Note Rank* Note Rank* Note Note Goals
Notoriety 13 25% 12 24% 8 28% 30% 40%
Image 8 6.9 6 6.8 6 7 7 7.1
* Rank excluding luxury brands Source: Brand Monitoring survey, 2010
th th China Field Trip - May 10 –12 , 2011 10 2011-2015 strategy
Donfeng Peugeot Brand signature 同心同行标新致远 “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
th th China Field Trip - May 10 –12 , 2011 11 2010: A year of progress in Brand Image
January Media & Network Convention 408 New identity Convention of Peugeot Brand in China April Beijing Motorshow
July / August BB1 display at Shanghai World Expo France Pavilion
Exhibition about Peugeot 200 years anniversary October & EX1 display at Yishu8 908 Victory at Zhuhai 1 000Kms, Intercontinental November Le Mans Cup EX1 new acceleration records on Chengdu military December airport 3008 launch at Guangzhou
th th China Field Trip - May 10 –12 , 2011 12 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
th th China Field Trip - May 10 –12 , 2011 13 Shanghai Motorshow
April 21-28, 2011
th th China Field Trip - May 10 –12 , 2011 14 Shanghai Motorshow
Shanghai Motor Show booth theme: Innovation and Future
• Our booth : 1 525 square meters booth
• 15 vehicles exposed
• 800 000 visitors expected
Highlights • SXC (World premiere)
• 508 (China premiere)
• RCZ, New 908
th th China Field Trip - May 10 –12 , 2011 15 Agenda
Overview
New car sales
Marketing, Brand image
Network and quality management
Summary and outlook
th th China Field Trip - May 10 –12 , 2011 16 2011-2015 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 10 000 Sales all brands included – Multiple dealers possible
► Cities from 5 000 Sales all brands included : Install at least one dealer
2015 target: cover 90% of cities (315)
th th China Field Trip - May 10 –12 , 2011 17 Network cover
> Triple the dealers and double the cities covered in 2015 vs 2009
Dealers (4S)
Agents
x3
2009 2010 2011 2015
Dealers number 165 210 280-300 540
Agents number 132 152 220 450
Covered cities 150 177 200 315
th th China Field Trip - May 10 –12 , 2011 18 Dealership Image
• Dealer Network 100% “Bluebox” • 2010 – New Peugeot Corporate Identity launched worldwide • Adapted for DongFeng Peugeot
th th China Field Trip - May 10 –12 , 2011 19 Dealerships New Outside Identity
New frontage norm
Examples
New Dealerships Existing Dealerships renovated
th th China Field Trip - May 10 –12 , 2011 20 New brand Identity Dealership deployed
OBJECTIVE 2011 100% of Dealerships with the new Outside Brand Identity First country worldwide
th th China Field Trip - May 10 –12 , 2011 21 Sales and after-sales service quality improvement
80 71.2 70.2 72.6 70 58.4 60 68 63.3 50 58.2 42.5 48.4 40 41.1 30 Lean management
20 5.9 10 4 3.9 3.5 3 2.5 1.2 0.9 0.9 2.3 0 2005,5 2006 2006,5 2007 2007,5 2008 2008,5 2009 2009,5 2010 Sales satisfaction After Sales satisfaction Sales dissatisfaction After-Sales dissatisfaction
Project 2011 objectives
Customer Sales Absolutely Satisfied 74.5% satisfaction survey After-sales Absolutely Satisfied 69%
Source: PSA Customer Satisfaction Survey “EQC”
th th China Field Trip - May 10 –12 , 2011 22 Podium 2012 Objectives and ambitions
Podium 2012 Project scope Product Operational Exemplary nature Method excellence excellence of behaviours
Objective Customer satisfaction
Gains Market shares Profitability
Accelerate the point Be in the Top 5 Objective of sale service quality concerning Service progression Quality by 2013
th th China Field Trip - May 10 –12 , 2011 23 Agenda
Overview
New car sales
Marketing, Brand image
Network and quality management
Summary and outlook
th th China Field Trip - May 10 –12 , 2011 24 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 2011 +30/40% vs 2010
th th China Field Trip - May 10 –12 , 2011 25 Q&A
th th China Field Trip - May 10 –12 , 2011 26