CHINA FIELD TRIP May 10th –12th, 2011 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-citroen.com), under Regulated Information. th th China Field Trip - May 10 –12 , 2011 2 PSA in Asia – Market Forecast, PSA in China: ongoing successes and upsides Frédéric Saint-Geours Executive VP, Finance and Strategic Development Grégoire Olivier, Executive VP, Asia Table of contents Introduction China: the new auto superpower China: a global economic power The world’s largest automotive market The growth story is set to continue PSA in China China: a second home market for PSA 2 complementary JVs Key challenges in China and PSA differentiation factors A sustainable profitable growth Extending the Chinese Success ASEAN strategy Capturing the Indian opportunity th th China Field Trip - May 10 –12 , 2011 4 PSA – a global automotive player (1/2) > 39% of PSA’s 2010 sales are realized outside of Europe, of which 28% in Asia Russia & CIS Europe 30 * 59 500 2 195 300 Asia 391 800 Latin America ** CKD units RoW 294 300 477 000 184 300 Worldwide Sales 3 602 200 * Western + Central + Eastern Europe ** Argentina + Brazil + Chile + Mexico th th China Field Trip - May 10 –12 , 2011 5 PSA – a global automotive player (2/2) > PSA is on track to reach its objective of 50% of sales outside Europe by 2015 % Sales outside of Europe • PSA has become an increasingly 50% international group over the past decade 39% • In 2010, growth was driven by non- 32% 30% European countries 26% ► China: + 38% ► Russia: + 37% 9% ► Latin America: + 27% ► Europe: + 1.7% 2000 2007 2008 2009 2010 2015 target th th China Field Trip - May 10 –12 , 2011 6 Historical presence in China > PSA has been present in China for more than 20 years 1985 – 1996 1997 – 2004 2005 – 2009 Since 2010 First steps Initial production Stable development Acceleration and 2nd JV • 1985: Guangzhou Peugeot • 1997: Sale of PSA’s stake in • 2006: Launch of DPCAFC, auto • 2010: Strengthening of the Automobile JV (GPAC) GPAC financing JV, sponsored by partnership with DPCA Bank of China, Banque PSA 1992: Dongfeng Citroën • 2002: New cooperation • 2010: JV agreement between • Finance and DPCA Automobile Company agreement with Dongfeng Chang’An and PSA • 2007: China Business Unit is commercializes first Citroën ► DCAC become DPCA • 2010: Set up of the Asia created to manage operations ► Sells both Citroën and Department in Shanghai, vehicles in China in China; located in Beijing Peugeot brands headed by Grégoire Olivier, • 1996: New plant with annual • 2008: China Tech Center member of PSA’s Managing capacity of 150,000 vehicles • 2004: Capacity increased to 300,000 vehicles; PSA and opens in Shanghai Board DFM each own 50% of DPCA • 2009: Launch of the second • 2011: Unveiling of the DS5 at DPCA plan in Wuhan the Shanghai Motor Show PSA Sales in China (thousands of vehicles) 400 376 272 300 209 203 179 200 140 85 103 89 53 100 28 33 44 52 - 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 th th China Field Trip - May 10 –12 , 2011 7 Exposure to China > China represents more than one quarter of PSA’s non European sales China as a % of non European sales (Thousands of vehicles) China 18% 26% 27% 179k 272k 376k 2008 2009 2010 82% 74% 73% PSA ex-Europe 798k 757k 1 031k th th China Field Trip - May 10 –12 , 2011 8 PSA operations in China > China is PSA’s second market China: 2nd market of PSA Peugeot Citroen in the world Strong local footprint • 375 700 vehicles sold in 2010 (+38% VS 2009) • 17k employees with continuing growth • DPCA: 3 plants (o/w one dedicated to engines) • Market share of 3.4% and a fourth in construction in Wuhan • X2: Doubling of our sales in China • CAPSA: 2 manufacturing plants between 2008 and 2010 (o/w one dedicated to engines) • Renowned in the field of • China Tech Center: a R&D center designed Corporate Social Responsibility (CSR) for 1 000 engineers and designers th th China Field Trip - May 10 –12 , 2011 9 Key achievements > China represented 10% of PSA’s volumes in 2010 > 17 000 PSA employees in China out of which 11 000 DPCA employees PSA volumes sold in China (thousands) DPCA employees in China (thousands) x% Market share +27.1% 376 CAGR 10.9 11.0 272 3.5% 203 209 179 3.4% 9.5 140 3.3% 4.8% 3.9% 3.6% 89 4.4% 2004 2005 2006 2007 2008 2009 2010 2008 2009 2010 Share of Chinese operations in PSA 10% 20% China 376k €242m 2010 2010 Net income Volumes Group share 3 602k €1 134m Rest of the world 90% 80% th th China Field Trip - May 10 –12 , 2011 10 Complementary product offering > With the CAPSA JV, PSA will be present in all automobile segments in China except low-end Premium DS: between premium and value Brands DPCA DPCA: value Brand Value to be maintained Passenger Vehicles Own brand: entry level Entry CAPSA own Brand PC Brand Low-end LCV: Chinese market Commercial Vehicles CAPSA own Brand LCV specificities th th China Field Trip - May 10 –12 , 2011 11 World class manufacturing capacities > PSA currently has 3 plants in China, and will add 3 more in the near future Existing Planned • Wuhan plants ► Plant 1: 300 000 vehicles Xiangfan Plant : Wuhan: ► Plant 2: 150 000 vehicles DPCA Motor and mechanical DPCA plant 1 ► Plant 3: 300 000 vehicles gearbox assembly DPCA plant 2 (start-up end 2013) DPCA plant 3 • Xiangfan engine plant ► Currently at 550 000 capacity ► Will be brought to 850 000 Guangdong: CAPSA vehicle plant • CAPSA Guangdong plants CAPSA engine plant ► 200 000 vehicles ► 200 000 engines th th China Field Trip - May 10 –12 , 2011 12 The PSA value proposition > A unique value proposition • At the forefront of both design and comfort, ambassador of the French savoir-faire in China ► Beautiful cars, comfortable interiors with state-of-the-art technology ► DS Line at the forefront of design since the 1950’s; recently re-launched by PSA ► Success of the DS5 unveiling at the Shanghai Motor Show • Reliable and safe driving experience ► One of the global leaders for vehicle safety ► High standards for the Chinese market ► Continuous safety improvement • Leader in clean vehicles ► Technological edge in low emission engines ► STT, Turbocharged Direct Injection engines, etc ► Hybrid vehicles • Two brands with distinctive image th th China Field Trip - May 10 –12 , 2011 13 Importance of brand differentiation > Brand is a key element for Chinese consumers • The car plays a major role in the Chinese society ► Vehicles in China have become a mass consumption market ► A fast growing market in every segment from low-end vehicles to luxury ones ► Most of PSA ’s clients are first time buyers: image plays an important role • Chinese automotive consumer: a very well informed customer who looks for a car corresponding to his needs ► Vehicles represent a sizeable investment for Chinese households, who gather a lot of information during the purchase process ► Importance of value for money ► Specific needs according to social level and generation • Brand image is linked to the country of origin ► Germany: reliable, durable and robust; South Korea: value for money ► French vehicles are recognized for their impressive and differentiate exterior design as well as their “romantic” image Chinese consumers are seeking cars with personality th th China Field Trip - May 10 –12 , 2011 14 PSA brands image > Peugeot and Citroën brands are well suited to the Chinese market • PSA offering in China ► Passenger vehicles in key segments of the Chinese market, from premium to value ► Entry in the LCV segment via CAPSA JV • Citroën positioning in China coherent with world brand strategy ► “Creative Technology” ► The Citroën brand values : boldness, creativity, high expectations ► Citroën Line up: modern and innovative cars, with a high level of technology ► Citroen DS Line up: distinctive cars with a high level of refinement, embodiment of luxury “à la française” • Peugeot to benefit from a new image positioning in line with the global brand identity ► “Motion and emotion”: going up market with a dynamic and differentiating design ► The Peugeot brand values : confidence, passion and inspiration ► Emotional vehicles focused on excellence and driving pleasure • Capsa own brand ► A Chinese brand with occidental and technological backing ► Carefully done with a good value and an optimized style th th China Field Trip - May 10 –12 , 2011 15 R&D China Tech Center (Shanghai) > The CTC will play a major role for PSA both in China and in other regions • A real contribution to PSA ► Royalties contribution from DPCA and from CAPSA to leverage PSA’s technology globally ► KD sales to JVs of common technological parts to amortize globally parts development ► Localization in China Tech Center (Shanghai) of gasoline hybrid development team to leverage local engineering skills and supplier base • Short term benefits ► Scale effects: R&D costs and CAPEX could decrease by €200 per car for a development that encompasses both Europe and China ► The 508 case : 65 000 units to be sold in China out of a total 200 000 units.