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DAY 2016

Intelligent technologies for plug-in vehicles INNOVATION DAY 2016

Carlos Tavares Chairman of the Managing board A STRATEGY CENTERED ON CUSTOMERS THROUGHOUT THE WORLD

A GLOBAL STRATEGY

• Focused on high potential profit pools • Improving market coverage • Focused on core models

A CORE MODEL STRATEGY A CORE TECHNOLOGY STRATEGY

ICE range fully optimized Agile “fast tech” with best in class development emission control

A robust ADAS Roadmap Electrification ready for Programs autonomous driving

3 HIGHER EFFICIENCY OF EACH € INVESTED

OPTIMIZING DIVERSITY • A Core Model Strategy based on a program organization • A Core Technology Strategy developed on 2 modular multi-energy platforms

ENHANCING R&D EFFICIENCY

• €1,500 M savings between 2014-2018 • 5% productivity per year between 2019 and 2021

SHARING R&D • Shared techno (CMP, e-CMP, Diesel…) • Shared programs (LCVs, A-Sgmt Cars…)

4 A GLOBAL PORTOFOLIO OF TECHNOLOGY FOR SUSTAINABLE MOBILITY

PERFORMANT ICE & ALTERNATIVE POWERTRAIN OFFERS

3 CYL PURETECH ENGINES DIESEL BLUE HDI ENGINES PLUG-IN HYBRID ELECTRIC VEHICLE OPTIMIZATION OPTIMIZATION (SCR TECHNOLOGY) ON EMP2 ON CMP

REACH 2020 CO2/KM TARGET & REDUCE POLLUTANTS EMISSIONS

CO2 regulations Pollutants regulations

5 AN INGENIOUS PLATFORM STRATEGY TO DIVERSIFY OUR OFFER

Plug-in hybrid 60km of range SEGMENT D EMP2 7 models by 2021

SEGMENT C

New-generation of electric vehicles 450km of range CMP SEGMENT B 4 models by 2021

6 INNOVATION DAY 2016

Research and Development Strategy Gilles Le Borgne A RICH PRODUCT & TECHNOLOGY PLANNING

NEEDS OF REGIONS TO ADDRESS CUSTOMERS REQUIREMENTS

 121 PRODUCT LAUNCHES  A RICH AND SHARP TECHNOLOGY ROADMAP

A PRODUCT BLITZ & TECHNOLOGY PUSH

8 REDUCING R&D EXPENSES PROLIFERATION

OPTIMIZED DIVERSITY AND INCREASED CARRY-OVER

Illustration C-CUV program : 1 platform, 5 vehicles, 2 regions of industrialization Core model strategy

Core models  26 passenger cars + 8 LCV

Program organization  Global B-C, Global C, Global C-CUV, New Slightly modified Global D, Global D-SUV EMP2 Carry Over

Core technology strategy Illustration – Electrified Powertrains : PHEV on EMP and BEV on CMP 2 multi-energy modular platforms  EMP2 and CMP 2 global developments Worldwide powertrain strategy for a worldwide offer of electrified vehicles ADAS and connectivity deployment

9 DEPLOYING A BREAKTHOUGH R&D PRODUCTIVITY PLAN

CORE EFFICIENCY IN R&D DNA

DRIVE 1.5 B€ savings confirmed (2014-2018)

. EFFICIENT AND GROWING R&D OUTSOURCING . DIGITAL BOOST  PLM  Toward developments without prototype Today Number of validation vehicles A new version of an engine divided / 2 family without prototypes

REDUCED PROTOTYPES AND VALIDATION COSTS . OPTIMIZED STAFFING STRUCTURE

334 M€ R&D efficiency in 2015 : equivalent of the cost of a major silhouette project SHARING R&D COSTS

Shared Technologies

CMP & eCMP with DONGFENG

Diesel engine with FORD

Shared Programs & Cars

C-SUV, B-SUV and B-LCV with GENERAL MOTORS

Electric urban vehicles with MITSUBISHI

A-segment cars with TOYOTA

LCV with FIAT and TOYOTA

And other collaborations are being explored…

11 Thank you for your attention

YOUR QUESTIONS ARE WELCOME

12 Driving automation strategy

May 25th, 2016 Vincent Abadie Expert Leader Advanced Driver Assistance Systems and Autonomous vehicle

ADAS offers large opportunities

Save time Simple life Road Safety

Simplify user XP ADAS is all about safety

Customer Trust

Functional Safety

Responsibility

Regulation Reassure clients with HMI*

Avoid HMI complexity Allow Customer activities Manage Driver’s reactions

Tests Feedbacks in real conditions with Experts, Final customers

 Solid HMI* is key for customer confidence *HMI: Human Machine interface Functionnal safety driven by the system

Safety managed by the system (driver out of the loop)

- Surrounding detection & analysis => 100% reliable • in all weather conditions • independently of infrastructure quality

- Decision making and actions => 100% adapted • capacity to decide in case of unexpected situation • behave like a human driver (Artificial intelligence)

 Safety means decision 100% reliable Responsibility is taken by OEMs and customers

In case of accident, who is responsible ?

Technological breakdown No technological breakdown

Driver’s misuse Third part fault Cyber criminality … then no doubt, 1/ If not 1/Infrastructure reasonably administrator (if Hacker responsibility predictable normalization) (If « State of the 2/ If clear 2/ Other road user art » protection in instructions of (If fault vehicle) use unpredictable)

 Responsibility supported by OEM / the driver / 3rd part Regulation evolution

Current regulations doesn’t allow autonomous vehicles - The Vienna convention has to evolve: a first step has been adopted in march 2016 to allow driver assistance systems but not autonomous vehicles (not before 2019) - The Countries traffic rules have to evolve to allow the driver to do other task than driving - Technical automotive regulations have also to evolve especially ECE79 for steering systems (full steering control is not currently allowed above 10 kph)

 Several years needed to allow autonomous vehicle… but how many ? Technical answers Global system Architecture: decision modules designed by PSA / OEM

Surrounding sensors Driver vehicles sensors Designed by… (cameras, radars…) monitoring (tyre under inflation…)

Geo-localization Other data Suppliers (maps, GPS…) (infrastructure, other cars…) Integrated by OEM

Data fusion

Decision Module Driver HMI PSA / OEM

STRATEGY Trajectory controls

Electric power Connectivity Powertrain Braking Suppliers & OEM (engine, gearbox…) Steering (e-call…) Integrated by OEM

Airbags pre-conditioning Other car’s functions (audio…) Perception : a big portfolio of various technologies

• Several sensor technologies developped by suppliers

(…)

Caméra StereoVision Radar OneBox One Box LASER Body UltraSonic Radar+Caméra Lidar+Caméra Cameras sensors

Different configurations are possible depending on functions specification and constraints

• Example : PSA orientation for 2020 based on Caméra + Radar + Laser (for TJC function)

 OEM choose components depending on his strategy for perception Data fusion and decision making

Core System intelligence

or

Data fusion Sensors Decision Actuators

Feedback safety control Driver HMI

 PSA develops its own artificial intelligence system What’s new in the car ?

Autonomous vehicle will mainly use existing features already available in our vehicles for standard ADAS (ACC, Emergency braking or parking assistance) - Front radar, Front caméra, Body cameras, Ultrasonic sensors - Steering, braking, engine and Gearbox are already electronically controlable

Some complementary developments will be necessary especially on architectures to guarantee system safety

 Integrated in the development of the new PSA electronic architecture 2020

PSA Group road map An Ecosystem built with partners

« Nouvelle Industrielle » project, VEDECOM & System-X :

Research Chaire with Berkeley, EPFL, JiaoTong and Mines Paristech

Joint LAB PSA-SAFRAN-VALEO

HMI partnership with CTAG

OpenLabs, worldwide laboratory network

 A strong international partnership

PSA Group ready by 2020

• PSA has obtained “autonomous” licences to perform test on open roads

• Tests on open roads since july 2015 : in France, and Netherlands (UK planned in may).

• In 2016, PSA will launch vehicles with high ADAS equipment level (esp. new 3008)

• In 2020 70% of models will be equipped with driving assistances

 Autonomous vehicle in the center of core technology strategy !

ADAS Roadmap : towards autonomous vehicle

WAVE 1

Level : Autonomous Braking, Driving Assistance 1 1 2 à HANDS ON

WAVE 2

Level Full Automatic City Park, Full Driving Assistance

: 2 2 3 : à HANDS OFF

WAVE 3 Remote Maneuver, Autonomous vehicle

EYES OFF

2015 2016 2017 201828 2019 2020 … Key messages

• ADAS is all about safety

• PSA designs the core system intelligence

• Adaptation of regulation needed Thank you for your attention

YOUR QUESTIONS ARE WELCOME

30 The connected car : at the heart of PSA Group’s strategy Creating value for both customers and carmaker Gael Colin A forerunner and leader in the connected car market

1. Emergency call player since 2003 : ahead of EC 2018 regulations

2. Connected fleet in ,1.1 M cars

3. 17.000+ emergency situations addressed

 Value generation : Enhancing driver safety

32 Widening Car Connectivity : from e-Call to IoT* & Big Data, already on the road

2003 2014 2016 By 2021 e-Call & b-Call

Emergency-call IoT for B2B

Connected Fleet IoT for B2C A new •A major asset in driver safety Management Big Data ecosystem •Enabling a wide Connected range of services Aftersales & Leads for services •12K+ cars Data Business •See more •A competitive edge in Fleet sales •Bring customers to •Partnerships with dealerships. - City management Fleet Management - Insurance specialists •Launch in France, to •See more be widenned to Europe •See more

 Value generation : leveraging on our mastery of reliable and safe car data. *IoT : Internet of Things

33 Introducing the new services ecosystem allowed by the connected car

Smart services • Live Traffic Data services • Smart Parking & Gas Mobility • Leads • Car sharing • Smarter cities enabling • Insurance • Fleet Management

A new ecosystem for OEM Connection services

 Connecting the car allows the convergence between Data processing, Onboard services and Mobility

34 Examples of values for main services

Category Service Value for Business Model Revenue customer for PSA Group

Data Aftersales leads Time saving Activated by default on new Aftersales business services cars Enhanced leads Satisfaction Leads bought by dealers Sale of leads improvement Aftersales business Smarter Cities Enhanced Partnering with IBM to supply Revenue sharing infrastructures anonymized traffic data

Smart Car Locator Convenience Subscription Additionnal turnover services Stolen vehicle tracking & Security Live traffic, Time saving Subscription Additionnal turnover speedcam info & Security (1st 3 years included)

Mobility Fleet Management Reducing Total Additionnal contract to fleet Competitive edge Cost of Ownership sales Additionnal turnover

35 Services relying on secure data collection, transmission and handling

Onboard Onboard Over-the-air Partner Data storage Hardware software transmission interfaces

In-house, In-house Secured, Secure APIs OEM-graded, factory- industrial-grade automotive-grade end-to-end Partnership with startup fitted electronics. datawarehousing and SW developments communications incubators anonymizing

 PSA Group, offering reliable and secure connected services for onboard & offboard use.

36 Mobility & Connected Services within the « Push to Pass » plan Thank you for your attention

YOUR QUESTIONS ARE WELCOME

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