Stellantis N.v. · EURONEXT:STLAP

Stellantis — Groupe PSA — FY2019 Earnings Presentation

53 slides from Stellantis's earnings presentation, Feb 26, 2020

  1. Slide 1: 2019 FY Results

    2019 FY RESULTS 26 February 2020

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, PEUGEOT SA (“Company”) shares. This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company’s results or any other p

  3. Slide 3: New Profitability Record in 2019

    PUSH TO PASS NEW PROFITABILITY RECORD IN 2019 PCD 8.4% 7.3% 6.0% Automotive Adjusted Operating Margin* 5.0% 7.6% 8.5% 0.2% 5.9% >4.5% 2013 2014 2015 2016 2017 2018 average -2.8% 4.7% 2017 2018 2019 2021 -2.5% OV Actual figures Push to Pass 2017 2018 Targets * Adjusted Operating Income related to rev

  4. Slide 4: Committed to Tackle Climate Change

    A RESPONSIBLE COMPANY COMMITTED TO TACKLE CLIMATE CHANGE Targets approved by SBTi (1) as consistent Real Estate streamlining (2) with the Paris Climate Agreement -5.2% CO2 (-23,000 tonnes) -6% m2 (-800,000 m2) 2018 2019 Steering a clean, safe and affordable mobility CDP (3) « A-List » since 2016: Gr

  5. Slide 5: Shared Values

    POWER IS INSIDE SHARED VALUES Win together Agility Efficiency 45 TREMERY – e-Powertrain line

  6. Slide 6: Financial Results

    FINANCIAL RESULTS

  7. Slide 7: Record Net Income Group Share

    FINANCIAL RESULTS RECORD NET INCOME GROUP SHARE In million Euros 2018 2019 Change Revenue 74,027 74,731 704 Adjusted Operating Income 5,689 6,324 635 % of revenue 7.7% 8.5% Restructuring costs (1,051) (1,531) (480) Other operating income & expenses (238) (125) 113 Operating income 4,400 4,668 268 Ne

  8. Slide 8: +1.0%: Group Revenue

    REVENUE +1.0%: GROUP REVENUE In million Euros Group Automotive division Faurecia 74,027 74,731 58,943 58,553 +1.0% +0.7% 17,525 17,768 +1.4% 2018 2019 2018 2019 2018 2019 8

  9. Slide 9: Strong Product Mix

    AUTOMOTIVE REVENUE ANALYSIS STRONG PRODUCT MIX In million Euros Volume & Product Sales to FX Price Others Country Mix Mix Partners -0.5 % -2.4 % +1.2 % +4.3 % -1.7 % -0.2 % 58,943 58,553 Variation: +0.7% 2018 2019 9

  10. Slide 10: Groupe PSA Sales at 3.5 M Units

    CONSOLIDATED WORLDWIDE SALES (1) GROUPE PSA SALES AT 3.5 M UNITS In thousands units -10.3% -2.8% -43.7% -55.4% -22.5% +0.6% +2.3% -6.8% w/o Iran +11.0% w/o Iran 3,878 3,479 3,106 3,020 2018 2019 292 164 263 117 175 136 26 27 15 16 Total Consolidated Europe Middle-East China & Latin India & Eurasia W

  11. Slide 11: +11.2%: Robust Growth

    GROUP ADJUSTED OPERATING INCOME & MARGIN +11.2%: ROBUST GROWTH In million Euros and as % of revenue Group* Automotive Division Faurecia 6,324 5,689 5,037 8.5% 4,466 +11.2% MARGIN* 8.5% +12.8% MARGIN 7.7% 7.6% MARGIN MARGIN 1,263 1,227 7.2% -2.9% 6.9% MARGIN MARGIN 2018 2019 2018 2019 2018 2019 * Bre

  12. Slide 12: +12.8%: Strong Performance

    AUTOMOTIVE ADJUSTED OPERATING INCOME +12.8%: STRONG PERFORMANCE In million Euros Price Market Production Market Input Forex & Product Product Share & SG&A Others & R&D Demand Costs & Other Enrichment Mix Country Expenses Procurement Mix (42) (201) (243) +102 +818 (253) +352 +188 (159) +9 5,037 4,466

  13. Slide 13: Record Contribution of Banque PSA

    BANQUE PSA FINANCE RECORD CONTRIBUTION OF BANQUE PSA In million Euros Adjusted Penetration Rate Cost of Risk* Operating Income 100% basis 1,012 939 29.7% +7.8% 29.1% 0.21% 0.13% +0.6 pt +0.08 pt 2018 2019 2018 2019 2018 2019 * In % average loans 13

  14. Slide 14: +€3,265M Auto Free Cash Flow

    AUTO NET FINANCIAL POSITION (1) +€3,265M AUTO FREE CASH FLOW In million Euros Auto Auto Auto Net Financial Net Financial Net Financial Position Position Position after IFRS16 +10,606 +9,643 +8,871 -772 IFRS16 effect Change Capex & Exceptional Cash Flow Restructuring in WCR Capex BPF dividends Other

  15. Slide 15: Improving NFP Including Clarion Acquisition

    GROUP NET FINANCIAL POSITION (NFP) (1) IMPROVING NFP INCLUDING CLARION ACQUISITION In million Euros Group Group Group Net Financial Net Financial Net Financial Position Position Position after IFRS16 +9,098 +7,914 +7,600 -1,498 IFRS16 effect Change Capex & Exceptional Cash Flow Restructuring BPF div

  16. Slide 16: Inventories at Target Level

    INVENTORIES AT TARGET LEVEL In thousands of new vehicles (1) Automotive division inventories 680 606 Group inventory 164 112 Independent dealers inventory (2) 516 494 2018 2019 (1) World figures excluding JV (China and Iran) 16 (2) Including Peugeot importers inventory outside Europe

  17. Slide 17: Outlook

    OUTLOOK 2020 Market Outlook (1) Operational Outlook EUROPE CHINA -3% ? Deliver over 4.5% Automotive Adjusted Operating Margin (2) on average in 2019-2021 LATIN AMERICA RUSSIA stable -2% (1) Market forecasts based on internal sources (PC+LCV) ; for China, passenger cars only and excluding imports ; L

  18. Slide 18: Push to Pass Highlights

    PUSH TO PASS HIGHLIGHTS

  19. Slide 19: Groupe PSA 2021

    GROUPE PSA 2021 FROM TURNAROUND TO PROFITABLE LE GROWTH A CUSTOMER DRIVEN TRA ATION pach SUSTAINAB| NSFORM A MOBILITY PROVIDER For a lifetime customer relationship DIGITAL BOOSTER A GREAT CAR MAKER With cutting edge efficiency A COMPETITIVE TEAM TO CHALLENGE BENCHMARKS

  20. Slide 20: A Great Car Maker

    A GREAT CAR MAKER CUTTING EDGE EFFICIENCY CORE MODEL QUALITY BRAND CORE NEW & TECHNO FIRST POWER EFFICIENCY FRONTIERS STRATEGY 20

  21. Slide 21: Target No. 1 in Customer Satisfaction

    QUALITY FIRST ALWAYS TARGET Nº 1 IN CUSTOMER SATISFACTION Product manufacturing Sales customer satisfaction Aftersales customer satisfaction -3 -4 benchmark -7 benchmark -10 benchmark -14 -13 2018 2019 2021 2018 2019 2021 2018 2019 2021 Gap Industrial Direct run ratio Gap Sales customer recommendati

  22. Slide 22: CO2 Driven Company as a Competitive Edge

    CO2 EUROPE REGULATION CO2 DRIVEN COMPANY AS A COMPETITIVE EDGE ICE vehicles CO2 emissions* CO2 2020 Compliance from Day 1* PC = -11.3 g/km LCV = -5.7 g/km Passenger Cars • ICE CO2: on track • LEV mix: on track 141.9 g Light Commercial Vehicles 136.2 g 55 116.9 g 105.6 g • Achieved 1 year in advance

  23. Slide 23: A Customer Centric Approach

    e-MOBILITY A CUSTOMER CENTRIC APPROACH Active Car Casual Big Mileage Commuter Pool car Metropolitan Dependant Traveller User B2B B2C B2C B2B B2C B2C Maximum Range needs Low Medium High Main usage City & Country Side Highway Powertrain compatibility BEV PHEV ICE Proposing the right offer according to

  24. Slide 24: In Control of an Electrified Future

    e-MOBILITY IN CONTROL OF AN ELECTRIFIED FUTURE Vertical integration from e-components to battery of the future e-Motor e-Transmission Reduction gear Battery pack Battery cells NIDEC – PSA PUNCH POWERTRAIN - PSA SAFT – PSA / OPEL e-motors JV e-transmissions JV ACC* Project Design & Manufacturing Desi

  25. Slide 25: Targeting to Be the Most Efficient Carmaker

    CORE EFFICIENCY TARGETING TO BE THE MOST EFFICIENT CARMAKER Production cost savings in Europe Wages to revenue ratio €/veh. over 2019 - 2021, including Euro 6, raw mat and air freight (Auto division excluding own dealer network) 700€ 2018 2019 2021 11.1% 10.5% 10.0% 111€ 2019 Target 2019-21 Reducing

  26. Slide 26: Peugeot – The Best High-End Generalist Brand

    PEUGEOT – THE BEST HIGH-END GENERALIST BRAND # UNBORING THE FUTURE Pricing Power vs benchmark 2019-2021 +0.1% +1% 2015 2018 2019 -1% -1.2% Push to Pass target -2.4% Pricing power in Europe: Peugeot has reached a further stage Record profitability Market share: -0.1pt. Strong rebound targeted in 2020

  27. Slide 27: Citroën – The People Minded Brand

    CITROËN – THE PEOPLE MINDED BRAND INSPIRËD BY YOU ALL Pricing Power vs benchmark +7.2% 2019-2021 +4.7% +5% +3% +3% Push to Pass target 2015 2018 2019 Strongest growth of the Top 12 brands in Europe with a gain of 0.2 pt market share* New C5 Aircross SUV: more than 100,000 sales in 2019 Electrificati

  28. Slide 28: DS – French Avant-Garde Exclusive Experience

    DS – FRENCH AVANT-GARDE EXCLUSIVE EXPERIENCE SCALING UP Pricing Power vs benchmark 2019-2021 +2.3% +1.9% 2015 +1% 2018 2019 -1% Push to Pass target -7.9% DS is growing: consolidated world sales +16% Premium level profitability per unit Brand awareness* varying from 68% to 96% across Europe among Pre

  29. Slide 29: Opel – Bringing German Engineering to the People

    OPEL – BRINGING GERMAN ENGINEERING, INNOVATION & DESIGN TO THE PEOPLE SINCE 1899 PACE! 2026 TARGET ACHIEVED IN 2019 Pricing power gap vs benchmark 2017 (1) 2018 2019 2021 0% -3% -3.7% Push to Pass target -6.0% -8.2% Historic record adjusted operating profit of €1.1bn and 6.5% adjusted operating marg

  30. Slide 30: Europe: Steering a Profitable CO2 Transition

    EUROPE STEERING A PROFITABLE CO2 TRANSITION Consolidated sales (‘000) Market share (1) 3,106 3,020 17.1% 16.8% 2018 2019 2018 2019 Focus on profitability coupled with upfront preparation to CO2 compliance Growing revenues & earnings with market share +0.1 pt for PCD & -0.4 pt for OV (2) OV CO2: 20 g

  31. Slide 31: Middle East & Africa

    MIDDLE EAST & AFRICA LEVERAGING INVESTMENTS FOR PROFITABLE GROWTH Consolidated sales (‘000) (1) Market share (1) 164 148 5.1% 4.7% 2018 2019 2018 2019 Volumes growth despite difficult market conditions (Turkish market -23%) Market share up in Turkey (+2.1pts), Algeria (+2.4pts), Morocco (+2.1pts), E

  32. Slide 32: China & South-East Asia

    CHINA & SOUTH-EAST ASIA RESHAPING THE BUSINESS MODEL Consolidated sales (‘000) Market share (1) 263 117 0.9% 0.4% 2018 2019 2018 2019 ‘Yuan’ plan launched: reducing breakeven point underway & downsizing of industrial footprint IAM parts distribution revenues +91% (2) with Jian Xin, LongXinda and UAP

  33. Slide 33: Latin America

    LATIN AMERICA PREPARING FOR REBOUND IN 2020 Consolidated sales (‘000) Market share (1) 175 3.4% 136 2.7% 2018 2019 2018 2019 Sales volumes -23% with a strong hit from Argentinean market (-43%) (2) Sales volumes +2% (2) in Brazil thanks to the success of SUV C4 Cactus and LCV offering Opel regional e

  34. Slide 34: India Pacific

    INDIA PACIFIC STARTING PRODUCTION IN INDIA Consolidated sales (‘000) Market share (1) 26 27 0.2% 0.2% 2018 2019 2018 2019 Strong success in Japan: sales +20% (2) ahead of Opel launch in 2021 LEV offensive in 2020 in Japan & Korea: Peugeot e-208 and e-2008 & DS E-TENSE models India: engine & componen

  35. Slide 35: Eurasia

    EURASIA LEVERAGING OPEL BRAND POTENTIAL IN RUSSIA Consolidated sales (‘000) Market share (1) 15 16 0.8% 0.8% 2018 2019 2018 2019 Return to profitability in 2019 Commercial success of locally manufactured vans (Expert/Traveller/Jumpy) Volume growth in Ukraine twice faster than the market (+33% vs +13

  36. Slide 36: LCV: Successful Vans in a Growing European Market

    LCV SUCCESSFUL VANS IN A GROWING EUROPEAN MARKET Consolidated sales in Europe* (‘000) LCV market share in Europe* 25.1% 688 24.7% 669 175 180 494 383 508 2018 2019 2018 2019 LCV Transport & Family LCV Transport & Family vans vans Opel Vauxhall: a gain of 0.6 pt market share in Europe* Extended coope

  37. Slide 37: A Mobility Provider

    A GARMOBILITY E A T C APROVIDER R MAKER FOR A LIFETIME CUSTOMER RELATIONSHIP CUSTOMER MULTI-BRAND USED CARS CONNECTED HASSLE FREE NORTH INSIDE AFTERMARKET NEW AND MOBILITY MOBILITY AMERICA CUSTOMERS SERVICES 10 YEAR PROJECT ENLARGE OUR CUSTOMER BASE 37

  38. Slide 38: Accelerating Aftermarket Growth

    MULTIBRAND AFTERMARKET ACCELERATING AFTERMARKET GROWTH IAM spare parts revenue growth (1) IAM spare parts revenue growth outside of Europe (1) +35% +70% 2018 2019 2018 2019 Focus on profitable growth in and outside Europe Significant gains achieved thanks to PCDOV shared supply chain synergies (-6%

  39. Slide 39: Used Cars, New Customers

    USED CARS, NEW CUSTOMERS CONTINUAL STRONG DEVELOPMENT Used cars revenue growth* Used car sales and transactions (‘000) +6% 786 742 2018 2019 2018 2019 Strong increase of profitability Aramis Group +27% turnover* Stepping up international expansion: transactions +37% in Latin America, 27 k profession

  40. Slide 40: Hassle Free Mobility Thanks to Financial Services

    HASSLE FREE MOBILITY THANKS TO FINANCIAL SERVICES NEW RECORD YEAR Net Banking Revenue Number of cars financed (in million euros) (1) to end users (‘000) 1,663 1,495 1,150 1,088 2018 2019 2018 2019 Record Net Banking Revenue +11% (1) 5th year growth in a row: Net Contributive Result x4 since 2014 Rec

  41. Slide 41: Free2Move Is Taking Off

    MOBILITY & CONNECTED SERVICES FREE2MOVE IS TAKING OFF Worldwide revenues (in million euros) Number of active B2C Customers (‘000) +43% x2.4 177 1,200 124 500 2018 2019 2018 2019 One single brand, a full range of B2C and B2B offers. Up to 19% of aided awareness. Fleet Management: 550 k contracts Free

  42. Slide 42: Groupe PSA Ready to Face New Challenges

    GROUPE PSA READY TO FACE NEW CHALLENGES  Strong profitability and Free Cash Flow generation  CO2 as a competitive edge  Flawless execution based on a successful business model and strong values 42

  43. Slide 43: Q&A

    Q&A

  44. Slide 44: Attachments

    ATTACHMENTS

  45. Slide 45: Consolidated Worldwide Sales

    ATTACHMENT CONSOLIDATED WORLDWIDE SALES Units (1) 2018 2019 Change Peugeot 1,231,327 1,195,939 -2,9% Citroën 824,623 831,599 +0,8% Total consolidated worldwide sales Europe (2) DS 46,013 55,870 +21,4% Opel Vauxhall 1,004,197 936,321 -6,8% (AV+CKD): Total PSA 3,106,160 3,019,729 -2,8% Peugeot 223,838

  46. Slide 46: Group Revenue by Division

    ATTACHMENT GROUP REVENUE BY DIVISION 2018 2019 Change Automotive 58,553 58,943 390 Faurecia 17,525 17,768 243 Other businesses and eliminations (2,051) (1,980) 71 Group Revenue 74,027 74,731 704 46

  47. Slide 47: Group Adjusted Operating Income by Division

    ATTACHMENT GROUP ADJUSTED OPERATING INCOME BY DIVISION 2018 2019 Change Automotive 4,466 5,037 571 Faurecia 1,263 1,227 (36) Other businesses and eliminations (40) 60 100 Group Adjusted Operating Income 5,689 6,324 635 47

  48. Slide 48: Banque PSA Finance

    ATTACHMENT BANQUE PSA FINANCE 2018 2019 Change Revenue 1,989 2,163 174 Cost of risk (in % of average loans) 0.13% 0.21% +0.08 pts Adjusted operating Income 939 1,012 73 Penetration rate 29.1% 29.7% +0.6 pts Number of new contracts (lease and financing) 1,088,212 1,150,132 + 61,920 48

  49. Slide 49: Faurecia

    ATTACHMENT FAURECIA 2018 2019 Change Revenue 17,525 17,768 243 Adjusted Operating Income 1,263 1,227 (36) % of revenue 7.2% 6.9% Consolidated net income 793 665 (128) Free Cash Flow (1) 403 (520) (923) Net Financial Position (2) (545) (2,692) (2,147) (1) Including the acquisition of Clarion in 2019

  50. Slide 50: Partnerships Contribution to Net Result

    ATTACHMENT PARTNERSHIPS CONTRIBUTION TO NET RESULT 2018 2019 Change 50% Dong Feng Motor company Partnership (234) (383) (149) 50% Changan Partnership (68) (50) 18 25% Chinese Financial JV 13 16 3 50% Banque PSA Finance JVs with Santander 241 280 39 50% Banque PSA Finance JV with BNP Paribas 106 76 (

  51. Slide 51: IFRS 16 First Application Impact

    ATTACHMENT IFRS 16 FIRST APPLICATION IMPACT 1) on consolidated income statement of 2019: (in million euros) 31/12/2019 Adjusted Operating Income (depreciation expenses instead of lease charges) 16 Net Financial income (expenses) (62) 2) on consolidated balance sheet as of 1st January 2019: (in milli

  52. Slide 52: Financial Security

    ATTACHMENT FINANCIAL SECURITY 31 December 31 December Change 2018 2019 Cash and Cash Equivalents 14,961 17,379 2,418 Financial Investments 50 50 - Current & non current financial assets 1,410 1,776 366 TOTAL Cash & Financial assets 16,421 19,205 2,784 Lines of Credit (undrawn) – excluding Faurecia 3

  53. Slide 53: Debt Maturity Profile

    ATTACHMENT DEBT MATURITY PROFILE Gross debt* in nominal value - End of December 2019 PSA : In million Euros €522m Schuldscheindarlehen with 4.5, 7 and 8 years maturity, priced on April 2019. €600m 10 years 1.125% bond, priced on Sept 2019. Faurecia : 213 786 €500m 7 years 3.125% bond, priced on Marc

Groupe PSA — FY2019 Earnings Presentation on 6ix