INVESTOR MEETING November, 2010 VP Investor Relations James Palmer + 33 1 40 66 54 59 [email protected] Head of Financing & Treasury Olivier Casanova + 33 1 40 66 36 08 [email protected] By attending the meeting where this presentation is made, or by reading this presentation slides, you agree to be bound by the following limitations and qualifications. • The contents of this presentation are to be kept confidential and may not be reproduced, redistributed or passed on, directly or indirectly, in any form, to any other person or published, in whole or in part, for any purpose. 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Any such recipient will also be deemed to have represented and agreed that it has not received this document on behalf of persons in the EEA other than Qualified Investors. PEUGEOT SA will rely upon the truth and accuracy of the foregoing representations and agreements. • Any securities mentioned in this presentation have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent such registration or an applicable exemption from the registration requirements of the Securities Act. Investor Meeting – November, 2010 2 GROUP OVERVIEW 3 PSA Peugeot Citroën key facts > 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 $10 bn • FY 2009 turnover of €48.4 bn (9M 2010: €41.4 bn , 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% • The company is an active bond issuer via two entities ► PSA rated Baa3 by Moody’s / BB+ by S&P ► Banque PSA Finance its financing arms rated Baa1 by Moody’s / BBB by S&P Investor Meeting – November, 2010 4 PSA Peugeot Citroën milestones 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 Meeting – November, 2010 5 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 Meeting – November, 2010 6 Market share growth in Europe 14.3% Market share 13.8% > Market share gains Market share 13.5% > Increased market coverage momentum > Success of new models in Europe 30 2008 2009 9M 2010 Peers comparison > Europe’s No. 2 vehicle manufacturer on 9M 2010 20.3% 14.3% 10.8% 8.6% 8.5% 8.2% 5.1% 4.7% 4.4% 4.1% 2.9% VAG PSA RENAULT FORD FIAT GM DAIMLER BMW TOYOTA HYUNDAI NISSAN Investor Meeting – November, 2010 7 The company has focused on cooperative ventures DIESEL ENGINES 16.5 million diesel engines produced since 1998 PETROL ENGINES More than 1.5 million units since 2006 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 Meeting – November, 2010 8 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 Meeting – November, 2010 9 KEY FINANCIAL HIGHLIGHTS 10 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 • 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 Meeting – November, 2010 11 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 of equity affiliates 137 Consolidated net income/(loss) (1 064) 737 Net income/(loss), Group share (962) 680 Earning per share (in euros) (4.24) 3.00 Investor Meeting – November, 2010 12 Group margin performance > Group: Strong recovery > Automotive: Return to positive margin Group and Automotive recurring operating margin % 4.4% Group 3.4% 4.0% 2.0% 3.0% 2.5% 3.3% 1.0% 0.5% 2.0% 1.9% Automotive 0.6% -3.5% -0.5% -1.8% -4.8% 2004 2005 2006 2007 2008 H1 2009 H2 2009 H1 2010 Investor Meeting – November, 2010 13 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 9M-09 9M-10 Investor Meeting – November, 2010 14 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 Meeting – November, 2010 15 Strong Liquidity Position > Significant