Jean-Martial Breuil Vice President, Operations Central Brand Management Investor Presentation London - December 4, 2009
INVESTOR RELATIONS James Palmer: + 33 6 74 94 49 66 [email protected] Jean-Hugues Duban: + 33 6 07 67 78 20 [email protected]
Goldman Sachs – London – December 4, 2009 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 registration document 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.
Goldman Sachs – London – December 4, 2009 2 Performance plan Profitability gap
>> €3.3bn€3.3bn PerformancePerformance planplan toto catchcatch upup withwith TopTop 55 peerspeers
Recurring operating margin %
10% Top 5 Average* 8%
6% PSA 4%
2% 6% 0% performance 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1 2009 gap -2%
-4%
-6%
* Average Top 5 each year – 2008: VW, Honda, Hyundai, Daimler, Fiat
Goldman Sachs – London – December 4, 2009 4 €3.3bn Performance plan 2010-2012
Our ambitions . A step ahead in pioneering 30% Sales & Marketing vehicles & services
High growth 15% . A global player markets
. An industry benchmark Production, 55% Development for operational efficiency & SG&A
Solid financial structure
Responsible Development
Goldman Sachs – London – December 4, 2009 5 Market recovery and success of new models
Cars and light commercial vehicles – Market 10M 2009 -8.7% 10M 2009 -9.4% 10M 2009 +38.6%
Q1 09 Q2 09 Q3 09 Oct 09 Q1 09 Q2 09 Q3 09 Oct 09 Q1 09 Q2 09 Q3 09 Oct 09
+6.6% +4.6% +67.6%
-0.4% +30.4% -9.0% -8.1% -11.9% +26.8% -13.5% +17.4% -19.5%
Europe* Latin America China* Cars and light commercial vehicles – PSA Market Share 12.9% 13.4%
5.3% 5.1% 2.9% 3.1%
Q3 2008 Q3 09 Q3 2008 Q3 09 Q3 2008 Q3 09 Europe* Latin America China**
* Europe = EU + EFTA + Croatia ** Only cars Goldman Sachs – London – December 4, 2009 6 Market share momentum in Europe
Sales & Marketing 30%
. Distinctive new models
Average age . Mainstream of the 2010-2012 > Continuity model range: > New products 3.1 years > Electric vehicles . Entry level vehicles
Goldman Sachs – London – December 4, 2009 7 206 + - B segment 1st Half 2009
2010 2011 2012
Goldman Sachs – London – December 4, 2009 8 Peugeot 3008 - C Segment 1st Half 2009
2010 2011 2012
Goldman Sachs – London – December 4, 2009 9 Peugeot 5008 - C Segment 2nd Half 2009
2010 2011 2012
Goldman Sachs – London – December 4, 2009 10 Citroën C3 - B Segment 2nd Half 2009
2010 2011 2012
Goldman Sachs – London – December 4, 2009 11 Citroën DS3 - B Segment 1st Half 2010
2010 2011 2012
Goldman Sachs – London – December 4, 2009 12 Peugeot RCZ - C Segment 1st Half 2010
2010 2011 2012
Goldman Sachs – London – December 4, 2009 13 Market share momentum in Europe
Sales & Marketing 30%
Polyvalent Urban & Diesel Stop & Gasoline Peri-urban 207, C3 & Start 1l. 3 cyl Urban DS3 99g up to -15% ≤99g
1 million vehicles CO2/km CO2/km CO2/km
sold in Europe < 120g CO /km Full hybrid HYbrid 2 Electric diesel Plug-in
in 2012 Vehicle HYbrid4 < 50g diesel CO2/km 2009
2010 CO 2011 2 2012 Emission
Market share up to 20% for Electric and Hybrid Vehicles in 2020
Goldman Sachs – London – December 4, 2009 14 Electric Vehicles: first to market in 2010
Partner iOn E-Vivacity
1st half 2010 2nd half 2010
Berlingo C-ZERO
>> YouYou cancan pre-orderpre-order anan iOniOn andand aa C-ZEROC-ZERO rightright now!now! OverOver 100100 000000 vehiclesvehicles inin thethe nextnext 55 yearsyears
Goldman Sachs – London – December 4, 2009 15 LCV Peugeot and Citroën range in Europe 2008
NEMO / BIPPER
BERLINGO FIRST / PARTNER ORIGIN BERLINGO / PARTNER
JUMPY / EXPERT JUMPER / BOXER
Goldman Sachs – London – December 4, 2009 16 Leadership in customer services
Sales & Marketing 30%
Increase contracts . Broaden maintenance sold in Europe from contracts, insurance 300 000 to 500 000 in 2012 & financial services
. Develop Mu by Peugeot
Goldman Sachs – London – December 4, 2009 17 Services for tomorrow
Sales & Marketing 30%
Grow Fleet management system . Emergency Call system
contracts . Vehicle park management from 500,000 to 1,000,000 . Roll out across Europe by 2012
Goldman Sachs – London – December 4, 2009 18 Mu by Peugeot: first for mobility!
“Peugeot reinvents mobility” . A new pre-paid mobility offer > A pre-paid card > A “Pay per Use” mode of consumption > Tailor made services offer
Always Occasional For a week-end Half a day ride available need
Goldman Sachs – London – December 4, 2009 19 Mu by Peugeot: first for mobility!
Our customers Urban drivers with active lifestyles, including owners of other brands and even non-owners
Our ambitions . European roll out in 2010 > Paris > Berlin > Other major European cities
. Ongoing enhancement of our mobility offer > New services built on our current developments in the field of electric products: cars, bicycles, scooters
Goldman Sachs – London – December 4, 2009 20 Market share momentum in Europe
Sales & Marketing 30%
. Broaden our offer with electric vehicles, LCVs, connectivity Grow B2B market share . A reinforced organisation from 14% to 18% by 2012 . 400 new business centres
. Grow international corporate contracts from 30 to over 200
Goldman Sachs – London – December 4, 2009 21 Market share momentum in Europe
Sales & Marketing 30%
. Reduce Total Cost of Ownership Increase residual of future vehicles values . Professionalise management of used car flows
Goldman Sachs – London – December 4, 2009 22 Market share momentum in Europe
Sales & Marketing 30%
. Clear & distinct used car brand identities Used car . Develop efficient & coordinated operations operational management . Establish operational standards
Goldman Sachs – London – December 4, 2009 23 China
High growth markets 15%
. Launch of new sedan models
Increase market nd coverage from . Opening of 2 Wuhan plant
30% to 40% . Extend engine & automatic transmission offer
Goldman Sachs – London – December 4, 2009 24 Latin America
High growth markets 15%
. Launch of new vehicles Increase market . Argentina: focus coverage from 40% to 57% on profitability . Brazil: build market share
Goldman Sachs – London – December 4, 2009 25 Russia
High growth markets 15%
. Start up of new JV production facility with MMC in Q1 2010 Increase market coverage from . Ramp up production 48% to 77% of C Segment cars with full capacity of 125,000 vehicles in 2012
Goldman Sachs – London – December 4, 2009 26 Brand management
Sales & Marketing 30%
. Already top level JD Power rating: for new product quality 1st quartile for vehicles built in 2012 . Improve performance in customer services
CRÉATIVE TECHNOLOGIE . Clear and distinct brand January 2010 identities
Goldman Sachs – London – December 4, 2009 27 Brand management
Sales & Marketing 30%
. Improve network professionalism and Increase service quality satisfaction . Establish sales and delivery standards and loyalty
. Share best practices across the network
Goldman Sachs – London – December 4, 2009 28 SG&A
Production, Development, SG&A 55%
. Own retail network Reduce SG&A costs . G&A expenses by €400m by 2012
. Sales organisation efficiency
Goldman Sachs – London – December 4, 2009 29 Our roadmap to profitability and growth
. Clear ambitions and adapted moyens
. Robust performance improvement
. Management team to deliver
. Solid financials
Goldman Sachs – London – December 4, 2009 30 Appendix I
Goldman Sachs – London – December 4, 2009 31 Capacity utilisation
Production, Development, SG&A 55%
Increase capacity . Half from downsizing utilization in Europe (Aulnay, Rennes) from 81% in 2008 to 105% by 2012* . Half from volume throughput
* Hourly capacity x 16 hours x 235 days
Goldman Sachs – London – December 4, 2009 32 Manufacturing productivity
Production, Development, SG&A 55%
. 50% reduction in vehicle technical diversity
Reduce production . Optimize plant occupation hours per vehicle eg: Poissy, Mulhouse -20% by 20% . Roll-out "PSA Excellence System" based on lean . Volume contribution
Goldman Sachs – London – December 4, 2009 33 Development productivity
Production, Development, SG&A 55%
. Increase number of repeat components from 30% to 50% . Develop platform load Improve & modules development . Increase procurement productivity by 20% of vehicle functions from our top strategic suppliers from 25% to 50% . Extend co-operations
Goldman Sachs – London – December 4, 2009 34 SG&A
Production, Development, SG&A 55%
. Own retail network Reduce SG&A costs . G&A expenses by €400m by 2012
. Brand economic efficiency
Goldman Sachs – London – December 4, 2009 35 Appendix II
Goldman Sachs – London – December 4, 2009 36 Citroën C-Quatre Sedan China C Segment 1st Half 2009 2010 2011 2012
Goldman Sachs – London – December 4, 2009 37 Citroën C5 Sedan China - D Segment 1st Half 2010
2010 2011 2012
Goldman Sachs – London – December 4, 2009 38