INVESTOR UPDATE December, 2010

Investor Relations James Palmer + 33 1 40 66 54 59 [email protected]

Investor update – November 2010 1 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--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 may be obtained on its Internet website (www.psa-peugeot-Citroën.com), under Regulated Information.

Investor update – November 2010 2 Key highlights YTD 2010

• Operating and financial performance restored ► Market trends better than expected ► Market share growth in , , Latin America and Russia ► Profitability restored in H1, Expectations raised for H2 & 2010 ► Solid financial structure and active optimisation of debt • Progressing on our ambitions ► Building blocks in place in high growth markets to reach 50% sales by 2015 ► Products to support market share and pricing power

► Pioneering technologies to reduce CO 2 emissions ► New cooperations to support growth and generate development synergies ► Performance plan delivering operational excellence

Investor update – November 2010 3 Q3 2010 REVENUES & PERFORMANCE UPDATE Q3 2010 key highlights

• Consolidated revenues up 10.3% vs Q32009 ( +4.3 % like for like)

• Automotive Division revenues up 2.3% ► Positive new positive pricing/mix of +4.3% ► Sound inventory rotation of 61 days

• Market share growth in Europe, Latin America and China

• Sustained recovery at , with revenue up 44.1 % (11.5 % like for like)

Investor update – November 2010 5 Q3 and 9 month revenues

Change like for Change like for In million euros Q3- 09 Q310 9M - 09 9M 10 10/09 like 10/09 10/09 like 10/09

Automotive 9 256 9 465 +2.3% - 27 914 30 639 +9.8% -

Faurecia 2 268 3 267 +44.1% +11.5% 6 648 10 093 +51.8% +21.6%

Gefco 701 794 +13.3% - 2 096 2 509 +19.7% -

Banque PSA Finance 458 464 +1.3% - 1 373 1 383 +0,7% -

Other businesses and intra-company (901) (997) - - (2 752) (3238) - eliminations

Total revenues 11 782 12 993 +10.3% +4.3% 35 279 41 386 +17.3% +11.8%

Investor update – November 2010 6 Market trends

Cars and light commercial vehicles – Market

9 M 2010 2.8% 9 M 2010 + 11.3% 9 M 2010 + 23.5%

Q1 2010 Q2 2010 Q3 2010 Q1 2010 Q2 2010 Q3 2010Q1 2010 Q2 2010 Q3 2010

+31.0% +22.9 % + 17.7 % + 15.1 % + 11.8% + 9.3 % +7.3 %

- 5.6 % - 11.4 %

Europe* Latin America China**

* Europe = EU + EFTA + Croatia ** Only

Investor update – November 2010 7 Market share growth in Europe

14.3%

13.8%

Market share 13.5% momentum in Europe 30

2008 2009 9M 2010

Investor update – November 2010 8 Automotive: Worldwide unit sales

Assembled vehicles and CKD units

Change Change In K units Q3 - 09 Q310 9M - 09 9M 10 10/09 10/09 Europe 518 462 -10.9% 1 583 1 668 +5.4% Russia 9 17 +82.9% 33 39 +18.6% Latin America 62 78 +26.3% 174 205 +17.7% Rest of the world 36 56 +60.7% 101 142 +39.8% Assembled vehicles 625 613 1.8% 1 891 2 054 +8.6% (excluding China)

China 69 86 +24.3% 188 263 +39.9%

Total assembled vehicles 694 699 +0.8% 2 079 2 317 +11.4%

Total CKD 94 109 +16.2% 295 347 +17.6%

Total assembled vehicles + 788 808 +2.6% 2 375 2 664 +12.2% CKD units

Investor update – November 2010 9 Market share growth outside Europe

Cars and light commercial vehicles – Market share

Q3 2009 Q3 2010Q3 2009 Q3 2010Q3 2009 Q3 2010

5.8 % 5.2 % 3.2 % 3.4 % 2.8 % 3.0 %

Russia Latin America China*

* Only cars

Investor update – November 2010 10 New model momentum

2009

PEUGEOT 3008 CITROËN C3 Picasso

New CITROËN C3

Investor update – November 2010 11 New model momentum

2010 End of 2010 2011

PEUGEOT RCZ CITROËN DS3 New CITROËN C4 et 508SW

PEUGEOT 408 CITROËN C5 China PEUGEOT i0n CITROËN DS4

PEUGEOT Hoggar CITROËN Aircross CITROËN C Zero Hy4

Investor update – November 2010 12 Solid financial structure

> Significant liquidity headroom > Low gearing of 12.5%

In million euros End 2009 End H1 2010 Cash and cash equivalents 7 843 9 084 Current & non current financial assets 1 185 1 271 Total 9 028 10 355

Backup facility (undrawn) 2 400 2 400

Total liquidity available 11 428 12 755

Net debt position 1 993 1 732 Total shareholders’ equity 12 447 13 845 Gearing ratio 16.0% 12.5%

Investor update – November 2010 13 Gross debt maturity profile

> Weighted average remaining maturity: 5.3 years

Gross debt pro forma at 25.10.10 excluding BPF, undrawn credit-line, short term liabilities & other adjustments In million euros Renewed €2.4bn undrawn credit line maturing July 2013

3 066

1 735 1 551 1 075 777 600 435

2011 2012 2013 2014 2015 2016 2033

Investor update – November 2010 14 Looking ahead for Q4

• Order books remain solid

• Benefits expected from model launches

• Further new model momentum

• Electric vehicle launches in Q4

PEUGEOT i0n CITROËN C-Zéro • Benefits of performance plan feeding through

Investor update – November 2010 15 Outlook

> Market assumptions • Europe: down 5% • China: up c.20 % • Latin America: up c.10 %

> Objectives for 2010 • Automotive recurring operating income: break even in H2 • Group recurring operating income: > €1.5bn for the full year 2010 • Net debt position: at a similar level to the end of June 2010

Investor update – November 2010 16 STRATEGY UPDATE Progress on our ambitions

50% of vehicle sales in high growth A global player markets by 2015

A step ahead Design, emissions, services

Operational excellence €3.3bn Performance Plan

Investor update – November 2010 18 China

> Strengthening of Dongfeng Peugeot Citroën Automobile

> Second JV with Chang’an to expand Chinese footprint

> Develop China Tech Center in Shanghai

> Managing Board member based in Shanghai

Investor update – November 2010 19 China

> Record performance in H1 2010 at DPCA

> 5% market share in 2015

• Vehicle sales up 50% to 176 000 • Net income, Group share of €97m* vs €9m H1 09 • One new vehicle launch per year, per brand

• STT Hybrid vehicles from 2011 • Capacity increased to 450 000 units with opening of 2 in November 2009

• Third plant to come on stream in 2013 CITROËN C5

* PSA 50% share of net profit consolidated as equity affiliate

Investor update – November 2010 20 China

> Second JV with Chang’an to expand Chinese footprint • Citroën DS line with first vehicle launched in 2012 • Development of LCVs • Production capacity of 200k p.a. at

> Develop China Tech Center in Shanghai

• New product growth momentum • Develop environmental leadership

> Managing Board member based in Shangai

Investor update – November 2010 21 Latin America and Russia

> Latin American development

• New model momentum: Peugeot Hoggar, Citroën Aircross PEUGEOT Hoggar • 3yr investment programme for product development and plant capacity: ► : €530m ► Argentina: €170m

CITROËN Aircross > Russian production underway

• Assembly started at plant with the , Citroën C4 since April 2010 • Production of SUVs since September 2010 PEUGEOT 308

Investor update – November 2010 22 Core range models for high growth markets

Vehicles: Production: • Peugeot 408 Wuhan, China Palomar, Argentina

• Mid-size Vigo, PEUGEOT 408 China & Latin America to follow

• “Global small” vehicle Under consideration

Investor update – November 2010 23 Progress on our ambitions

50% of vehicle sales in high growth A global player markets by 2015

A step ahead Design, emissions, services

Operational excellence €3.3bn Performance Plan

Investor update – November 2010 24 Design

PEUGEOT RCZ CITROËN DS3

PEUGEOT 508 CITROËN DS4

Investor update – November 2010 25 Emissions

> 1 million vehicles ≤120g CO 2/km by 2012 vs 750 000 in 2009

Diesel Stop & Start Gasoline 207, C3 & up to 1l. 3 cyl DS3 -15% ≤99g ≈ 85%

99g CO 2/km CO 2/km CO 2/km Gasoline and diesel

Full hybrid Hybrid Electric diesel Plug-in vehicle «HYbrid4 < 50g ≈ 15% diesel» CO 2/km 2009 Electric and hybrid

2010 2011 2012 2020

Investor update – November 2010 26 Electric cars & scooters

PEUGEOT iOn CITROËN C-Zero

PEUGEOT E-vivacity Scooter CITROËN Berlingo Electric

Investor update – November 2010 27 Hybrid technologies

PEUGEOT 3008 Hy4

PEUGEOT 508 CITROËN DS5 Hy4

Investor update – November 2010 28 Customer services and mobility

Customer services • Insurance, maintenance, emergency call • Fleet management system

• Launched in 26 European cities by year end • 4 000 active clients in

• No membership required • Instant mobility • Travel service

Investor update – November 2010 29 Progress on our ambitions

50% of vehicle sales in high growth A global player markets by 2015

A step ahead Design, emissions, services

Operational excellence €3.3bn Performance Plan

Investor update – November 2010 30 Performance Plan delivery

> €3.3bn Performance Plan 20102012

€1.1bn 30% Sales & Marketing €854m at 30.06.10

15% High growth markets

Production, 55% Development & SG&A 2010 2011 2012

Investor update – November 2010 31 To sum up

Building blocks in place in high growth markets > to reach 50% sales by 2015

> Products to support market share and pricing power

> Pioneering technologies to reduce CO 2 emissions

> Underpinned by operational excellence

Investor update – November 2010 32 APPENDIX I Q3 2010 REVENUES ANALYSIS New car revenue analysis

In million euros

Volumes Price Product Country FX Others mix mix

+ 3.5% 5.5% 0.3% 6 881 1.8% + 5.8% 6 898 1.5%

+ 0.2%

New car New car revenues revenues

Q309 Q310

Investor update – November 2010 34 New car revenue analysis

Volumes Price Product Country FX Others mix mix + 2.7% 4.7% + 5.1% 0.0% In million euros 22 718 + 8.6% 1.8%

20 678

+ 9.9%

New car New car revenues revenues

9M09 9M10

Investor update – November 2010 35 Inventory

In thousands of new vehicles

92 days

Inventory rotation 628 61 days 62 days Total 53 days

367 468 440 401 270 Group inventory 213 234 Independent dealership 261 inventory 188 206 198

31.12.08 30.09.09 31.12.09 30.09.2010

Investor update – November 2010 36 APPENDIX II 2010 FIRST HALF RESULTS Highlights of the 2010 first half results

• Revenues up 20.8% to €28.4bn • Strong recovery in Group recurring operating income: €1,137m (margin of 4%) versus loss of €826m in H1 2009 • Significant turnaround in automotive profitability: recurring operating income of €525m (margin of 2.5%) , versus loss of €904m in H1 2009, on the back of market share gains and the Performance Plan • Market share rises to 14.5% from 13.7% in Europe, driven by successful new models • Net Income, Group share of €680m , versus loss of €962m in H1 2009 • Free Cash Flow of €341m , net debt of €1,732m versus €1,993m at the end of 2009

Investor update – November 2010 38 Group results > Strong recovery in recurring operating income > Recurring operating margin of 4%

In million euros H1 2009 H1 2010 Variation Revenues 23 497 28 394 +20.8% Recurring operating income/(loss) (826) 1 137 % of revenues -3.5% 4.0% Non–recurring operating income (506) (69) and (expenses) Operating income/(loss) (1 332) 1 068 Net financial income (expenses) (226) (241) Income taxes 470 (227) Share in net earnings 24 137 of equity affiliates Consolidated net income/(loss) (1 064) 737 Net income/(loss), Group share (962) 680 Earning per share (in euros) (4.24) 3.00

Investor update – November 2010 39 Shareholder’s Equity & Gearing

> Increased shareholder’s equity of €1.4bn > Low gearing of 12.5%

In million euros 31.12.09 30.06.10

Net debt position 1 993 1 732

Total shareholder’s equity 12 447 13 845

Gearing ratio 16.0% 12.5%

Investor update – November 2010 40 Performance Plan delivery

> Sales & marketing (30%)

FY 2012 H1 2009 H1 2010 Target

Market share in Europe 13.7% 14.5% -

B2B Market share in Europe 14.4% 15.1% 18%

≤ CO 2/km: vehicles 120g/km 379 000 435 000 1 000 000

Service contracts (N°) 157 000 225 000 500 000

Mu by Peugeot (N°of outlets) 4 pilots 20 250

Investor update – November 2010 41 Performance Plan delivery

> High growth markets (15%)

FY 2012 H1 2009 H1 2010 Target

China market coverage 33% 34% 40%

Latin America market 41% 47% 57% coverage

Russia market coverage 44% 51% 77%

Investor update – November 2010 42 Performance Plan delivery

> Production, development & SG&A (55%)

FY 2012 H1 2009 H1 2010 Target Capacity utilisation in Europe 66% 89% 105%

Hours per vehicle (2009 base 100) - -4% -20%

Development productivity (2009 base - -10% -20% 100) Repeat components 30% 39% 50%

Procurement by key suppliers 25% 35% 50%

Investor update – November 2010 43 APPENDIX III INDUSTRIAL STRATEGY Plant locations

Automobile manufacturing plants Mechanical component plants and foundries * Joint-ventures

Paris region Douvrin * Valenciennes Hordain (Selvenord *)

CharlevilleMézières SaintOuen Trémery Russia Caen Aulnay Czech Kaluga * sousBois Vesoul Rennes Mulhouse Republic Sochaux SeptFons Kolin * Trnava Vigo Bursa China Val di Sangro Xiangfan * (Selvelsud *) Wuhan * Mangualde

Brazil

Porto Real Jeppener Buenos Aires Argentina

Investor update – November 2010 45 Efficiency improvement to date

> Surface downsizing > European capacity

Square meters Million

4 500 000 4 400 000 4 300 000 12% 4 200 000 2.8 10% 4 100 000 2.6 4 000 000 3 900 000 2.4 3 800 000

3 700 000 2.2 3 600 000 3 500 000 2007 2008 2009 2010 2007 2008 2009 2010

Investor update – November 2010 46 Efficiency improvement to date in Europe

> Non producing workforce > Hours per vehicle

Base 100

25 000 White collar headcount 110 at end of the year 108

21 000 106 21 000 34% 8% 104 18 800 102 17 000 16 400 100 14 500 13 900 98

13 000 96 2007 2008 2009 2010 2007 2008 2009 2010

Investor update – November 2010 47 Capacity utilisation, manufacturing productivity

Performance Plan: operational KPI

Increase capacity utilisation in Europe from 81% in 2008 to 105% by 2012*

Reduce production hours per vehicle by 20%

* Hourly capacity x 16 hours x 235 days

Investor update – November 2010 48 Increase capacity utilisation in Europe

> Capacity utilisation, Harbour index*

105%

Est. 89%

81%

2009 2010 2011 2012

* Hourly capacity x 16 hours x 235 days

Investor update – November 2010 49 Surface downsizing

Square meters 3.9 millions

7% 3.6 millions

2010 2012

Investor update – November 2010 50 Industrial process lead time optimisation

Base 100 100

10% 90

xx

2010 2012

Investor update – November 2010 51 Energy reduction

Base 100

100

22% 78

2009 2012

Investor update – November 2010 52 Industrial quality improvement

“Right first time”

Base 100

125

100 +25%

2009 2012

Investor update – November 2010 53 Safety performance

Lost time incident frequency rate (LTIF)

5 4.6 4,5

4

3,5

3 Divided by 3

2,5

2 1.5 1,5

1

0,5

0 2009 2012

Investor update – November 2010 54 Workforce flexibility and Industrial relations

• Well-established workforce flexibility

► New enhanced agreement in September 2010

► Flexible night shift

• Manpower planning

• Upgrading competence & skills

Investor update – November 2010 55 Reducing HPV

Hours per vehicle

Base 100 100

20% 80

2009 2012

Investor update – November 2010 56 APPENDIX IV POISSY PLANT CASE STUDY History of Poissy Production

Construction of the Poissy joins Industrial surfaces 1st Poissy Plant PSA Peugeot downsizing started by FORD Citroën Group

1938 1958 1978 1996  2004 2008

Launching of the new « Great Poissy Plant » Complete renewal of by (including stamping, production process welding and mechanical workshops)

Investor update – November 2010 58 Poissy « mother plant » for « B-segment »

> 2010 Poissy is one of the 8* PSA Peugeot Citroën’s plants dedicated to the production of « B-segment » models

PEUGEOT 207 CITROËN DS3

PEUGEOT 207 SW CITROËN New C3 > 1 220 vehicles/day (2 shifts on each production line) > 4 500 employees > 1 500 apprentices and temporary workers

* Aulnay, Buenos Aires, Madrid, Mulhouse, Porto Real, Trnava, Wuhan

Investor update – November 2010 59 Poissy’s process key facts

> Stamping shop > Welding shop > Paint shop > Assembly lines • One of the five • Laser geometrical • Using water based • Quality guaranteed stamping shops quality control after colours. The 1 st by autocontrol alert of the Group each stage (platform, compact process system available bodyshell, body among PSA Group for each operator • Daily production: in white) (without priming) (Andon) 121 000 parts of which 60% shipped • 100% of welding • European • Final quality to others PSA plants points are performed benchmark for checking line by robots solvents emissions (1 500 controls points within • Production of two 45 minutes) tone vehicles

Investor update – November 2010 60 Description of the downsizing process of the industrial surfaces

JANUARY 2009 LLooggiissttiicc ssemmbbllyy lliinneess bly lliinneess AAsse hop AAsssseemmbly SSttaammppiinngg sshop

5 3 2 1 Paintt sshhoopp op Pain WWeellddiinngg sshhop 6

4

Investor update – November 2010 61 Description of the downsizing process of the industrial surfaces

2013 ssemmbbllyy lliinneess bly lliinneess AAsse hop AAsssseemmbly SSttaammppiinngg sshop

3 2 1 Paintt sshhoopp op Pain WWeellddiinngg sshhop

4

ALL THE PRODUCTION PROCESS CONCENTRATED INTO 4 BUILDINGS

Investor update – November 2010 62 Benefits of downsizing

2010 2013

Process surfaces (sqm) 600 000 500 000

Lead time (in hours) 25 20

Energy (in kWh/vehicles) 1 250 1 000 Cost improvement of 207 successor vs. actual 207 (base 100 75 100)

Investor update – November 2010 63