PEUGEOT - UG-FR
INVESTOR PRESENTATION December, 2010
Investor Relations James Palmer + 33 1 40 66 54 59 [email protected] 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 Citroën.com), under Regulated Information.
Investor update – December 2010 2 GROUP OVERVIEW PSA Peugeot Citroën
> Two powerful, distinct and complementary brands
• The company is listed on the Paris NYSE Euronext and employs 196 000 employees worldwide. Market cap. approximately of €6bn • FY 2009 turnover of €48.4bn (9M 2010: €41.4bn , change 10/09: +17.3% ) • 3 188 000 vehicles sold worldwide in 2009 (2 664 000 vehicles in 9M 2010, change 10/09: +12.2% ) • Europe’s No. 2 vehicle manufacturer with market share of 13.8% in 2009 (14,3% in 9M 2010) and a worldwide market share of 5.1%
Investor update – December 2010 4 Group worldwide sales
WESTERN RUSSIA EUROPE WORLDWIDE +18.6% SALES 2 159 000 +5.4% 41 000 3 188 000 +12.2% 39 000 9M = 1 583 000 1 668 000 9M = 33 000 9M = 2 375 000 2 664 000 2009 9M 2010 2009 9M 2010 2009 9M 2010
CHINA
272 000 +39.9% LATIN AMERICA 232 000 263 000 +17.7% 9M = 188 000
205 000 9M = 174 000 2009 9M 2010
2009 9M 2010
Investor update – December 2010 5 PSA Peugeot Citroën – 200 years of history
DCAC joint venture set up Joint venture DPCA created with Dongfeng Motors to with Dongfeng Motors to expand assemble Citroën ZX cooperative production of Peugeot models in China. and Citroën models in China Creation of “Peugeot Frères”. The Peugeot Citroën group The Peugeot is created by the merger of Creation of Joint PSA Peugeot Citroën Appointment of brothers convert Citroën SA and Peugeot SA, CREDIPAR; French Toyota production plant Philippe Varin as a grain mill into in which Peugeot takes over finance subsidiary of Porto Real production inaugurated in Kolin, Czech Chairman of the a steel foundry Citroën PSA plant inaugurated in Brazil Republic Managing Board
New Production plant inaugurated in Trnava, Slovakia
1810 1896 1976 1978 1979 1992 1998 2001 2002 2005 2006 2008 2009
Armand Peugeot PSA Peugeot ECIA completes a friendly The cornerstone is founds the company Citroën acquires acquisition of equipment laid for the Kaluga "Automobiles Peugeot" Chrysler Europe manufacturer Bertrand Faure. plant in Russia and an to continue to produce The new company, named agreement is signed cars and trucks Faurecia, is more than 50% with Mitsubishi Motors owned by PSA Peugeot Citroën. Corporation
Investor update – December 2010 6 The company has well established valuable cooperation
DIESEL ENGINES 16.5 million diesel engines produced since 1998
PETROL ENGINES More than 1.5 million units since 2006
Development of hybrid components for front wheel HYBRID COMPONENTS drive vehicles
SUVs AND SUVs since 2005 and now electric vehicles ELECTRIC VEHICLES 75 000 Peugeot and Citroën SUVs produced
PETROL ENGINES Engines and mechanical sub assemblies since 1966
COMPACT CITY CARS 1.5 million compact city cars produced since 2005
LIGHT COMMERCIAL Light commercial vehicles and MPVs VEHICLES AND MPVs 6.3 million vehicles produced since 1978
Investor update – December 2010 7 Non automotive activities
FINANCING & SERVICES TRANSPORT AND LOGISTICS
23.7% of H1 2010 Group’s recurring operating income 10.7% of H1 2010 Group’s recurring operating income
AUTOMOTIVE EQUIPMENT
Listed at Paris in the NYSE Euronext stock exchange
19% of H1 2010 Group’s recurring operating income
Investor update – December 2010 8 Ambitions and performance objectives
€3.3bn PERFORMANCE OUR AMBITIONS PLAN 2010 2012
A step ahead in pioneering vehicles & services 30% Sales & Marketing
A global player 15% High growth markets
An industry benchmark 55% Production, for operational efficiency Development & SG&A
Investor update – December 2010 9 CURRENT HIGHLIGHTS Key highlights YTD 2010
• Operating and financial performance restored
► Market trends better than expected
► Market share growth in Europe, Latin America and China
► 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 co operations to support growth and generate development synergies
► Performance plan delivering operational excellence
Investor update – December 2010 11 Market trends
Cars and light commercial vehicles – Market
2010 FY Expectations 5% 2010 FY Expectations + c. 10% 2010 FY Expectations + c. 20%
Q1 2010 Q2 2010 10M 2010 Q1 2010 Q2 201010M 2010 Q1 2010 Q2 2010 10M 2010
+31.0% + 26.8% +22.9% + 15.1% + 10.9% + 9.3% +7.3%
- 5.6% - 3.9% Europe* Latin America China**
* Europe = EU + EFTA + Croatia ** Only cars
Investor update – December 2010 12 Market share growth Worldwide
2008 2009 10M 2010
> Increased market coverage > Success of new models
Europe 30
Q3 2009 Q3 2010 Q3 2009 Q3 2010 Q3 2009 Q3 2010 5.8% 5.2%
3.2% 3.4% 2.8% 3.0%
Russia Latin America China*
* Only cars
Investor update – December 2010 13 Group results
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 and (expenses) (506) (69) Operating income/(loss) (1 332) 1 068 Net financial income (expenses) (226) (241) Income taxes 470 (227) Share in net earnings of equity affiliates 24 137 Consolidated net income/(loss) (1 064) 737 Net income/(loss), Group share (962) 680 Earning per share (in euros) (4.24) 3.00
Automotive recurring operating income: break even in H2 Group recurring operating income: > €1.5bn for the full year 2010
Investor update – December 2010 14 Strong Liquidity Position
> 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
Back up 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%
Net debt position at 31 st December expected at similar level
Investor update – December 2010 15 Solid financial structure
> 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 3 066 €2.4bn undrawn credit line maturing July 2013 1 735 1 551 1 075 Current ratings: 777 435 600 Moody’s: Baa3/Negative/P3 Standard and Poor’s: BB+/Stable/B
2011 2012 2013 2014 2015 2016 2033
Investor update – December 2010 16 NEW MODEL MOMENTUM New model momentum
2009
PEUGEOT 3008 CITROËN C3 Picasso
New CITROËN C3 PEUGEOT 5008
Investor update – December 2010 18 New model momentum
2010 End of 2010 2011
PEUGEOT RCZ CITROËN DS3 New CITROËN C4 PEUGEOT 508 et 508SW
PEUGEOT 408 CITROËN C5 China PEUGEOT i0n CITROËN DS4
PEUGEOT Hoggar CITROËN Aircross CITROËN C Zero PEUGEOT 3008 Hy4
Investor update – December 2010 19 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 – December 2010 21 CHINA China
Passenger car equipment rate
800
Number of PC on the roads 700 135 000 000 PC
Italy 25 000 000 PC 600 Canada Switzerland Australia UK Austria Germany 500 Spain France Sweden Belgium Netherlands Greece Japan USA Poland 400 Czech Rep Portugal
300 Malaysia
Sth Korea Russia 200 Romania Mexico Argentina Brazil South Africa 100 Turkey Iran CHINA Indonesia India 0 0 1 000 000 2 000 000 3 000 000 4 000 000 5 000 000 6 000 000 7 000 000 8 000 000 2009 Passenger car market
Investor update – December 2010 23 China
Passenger cars in 2020 In thousands 30 000
25 000
20 000
15 000
10 000
5 000
0 A SIL UK N USA A INDIA IRAN CHINA JAPAN MANY ITALIA SPAIN RALIA BELUX RUSSIA BR R KOREA MEXICO UKRAIN T FRANCE CANADA S GENTI GE U MALAYSIA R A A
Source: PMT 29/10/2009
Investor update – December 2010 24 China
CHINESE EUROPEAN First time buyers 80% 13% Male ratio 83% 67% 2 person households 17% 52% Average number of persons per household 3.3 2.7 1 car per household 75% 38% Manager or above 53% 19% Average age 35 yrs 49 yrs Urban driver 89% 63%
Investor update – December 2010 25 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 – December 2010 26 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 PEUGEOT 408 • Capacity increased to 450 000 units with opening of Wuhan 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 – December 2010 27 PSA Peugeot Citroën in China Locally produced Peugeot Cars
PEUGEOT 207 Hatchback PEUGEOT 207 Sedan
PEUGEOT 307 Hatchback PEUGEOT 307 Sedan
PEUGEOT 408 PEUGEOT 508 H2 2011
Investor update – December 2010 28 PSA Peugeot Citroën in China Locally produced Citroën Cars
CITROËN C2 Hatchback 1 0 2006 CITROËN Elysée Hatchback 03 2009 CITROËN Elysée Sedan 04 2008
CITROËN Xsara Picasso 04 2007 CITROËN Quatre Hatchback 09 2008 CITROËN Quatre Sedan 06 2009
CITROËN Triomphe 09 2006 CITROËN C5 11 2009
Investor update – December 2010 29 PSA Peugeot Citroën in China Imported cars
CITROËN C4 Coupé PEUGEOT 207 CC PEUGEOT 308 CC
CITROËN C4 Picasso PEUGEOT 407 SW PEUGEOT 308 SW
CITROËN C6 PEUGEOT 407 Coupé PEUGEOT 407
Investor update – December 2010 30 A global player: China
> Second JV with Chang’an to expand Chinese footprint
• 50 50 JV, capitalised at RMB 4bn • Development of LCVs • Launch of Citroën DS line • Production capacity of 200k p.a. at Shenzhen • Final authorization expected early 2011
Investor update – December 2010 31 China
Develop China Tech Center > in Shanghai CITROËN Metropolis
•New product growth momentum •Develop environmental leadership
PEUGEOT 3008 Hybrid4 Managing Board member > based in Shangai
Investor update – December 2010 32 OTHER STRATEGIC DEVELOPMENTS Latin America and Russia
> Latin American development
• New model momentum: Peugeot Hoggar, Citroën Aircross PEUGEOT Hoggar • 3yrs investment programme for product development and plant capacity: ► Brazil: €530m ► Argentina: €170m
CITROËN Aircross > Russian production underway
• Assembly started at Kaluga plant with the Peugeot 308, Citroën C4 since April 2010 • Production of SUVs since September 2010 PEUGEOT 308
Investor update – December 2010 34 Core range models for high growth markets
Vehicles: Production: • Peugeot 408 Wuhan, China Palomar, Argentina
• Mid size sedan Vigo, Spain PEUGEOT 408 China & Latin America to follow
• “Global small” vehicle Under consideration
Investor update – December 2010 35 A STEP AHEAD 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 – December 2010 37 Design
PEUGEOT RCZ CITROËN DS3
PEUGEOT 508 CITROËN DS4
Investor update – December 2010 38 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 – December 2010 39 Electric cars & scooters
PEUGEOT iOn CITROËN C Zero
PEUGEOT E vivacity Scooter CITROËN Berlingo Electric
Investor update – December 2010 40 Hybrid technologies
PEUGEOT 3008 Hy4
PEUGEOT 508 CITROËN DS5 Hy4
Investor update – December 2010 41 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 France
• No membership required • Instant mobility • Travel service
Investor update – December 2010 42 OPERATIONAL EXCELLENCE 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 – December 2010 44 Performance Plan delivery
> €3.3bn Performance Plan 2010 2012
€1.1bn 30% Sales & Marketing €854m at 30.06.10
15% High growth markets
Production, 55% Development & SG&A 2010 2011 2012
Investor update – December 2010 45 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 – December 2010 46 APPENDIX I INDUSTRIAL STRATEGY Plant locations
Automobile manufacturing plants Mechanical component plants and foundries * Joint ventures
Paris region Douvrin * Valenciennes Hordain (Selvenord *)
Charleville Mézières Saint Ouen Trémery Russia Caen Aulnay Metz Czech Kaluga * sous Bois Vesoul Poissy Rennes Mulhouse Republic Sochaux Sept Fons Kolin * Trnava Slovakia Vigo Bursa China Madrid Val di Sangro Xiangfan * (Selvelsud *) Wuhan * Mangualde
Brazil
Porto Real Jeppener Buenos Aires Argentina
Investor update – December 2010 48 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 – December 2010 49 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 – December 2010 50 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 – December 2010 51 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 – December 2010 52 Surface downsizing
Square meters 3.9 millions