Stellantis N.v. · EURONEXT:STLAP
Stellantis — Groupe PSA — H1 2018 Earnings Presentation
52 slides from Stellantis's earnings presentation, Jul 24, 2018
Slide 1: 2018 H1 Results
Option 1 2018 H1 RESULTS 2017 H1 RESULTS 24 July 2018 24 July 2018
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
Slide 3: Push to Pass Targets
PUSH TO PASS TARGETS AUTO PCD RECURRING OPERATING MARGIN 8.5% 7.3% 5.0% 6.0% average >6% >4.5% 0.2% 2013 2014 2015 2016 2017 H1 2018 2018 2021 -2.8% Actualfigures Push to Pass CUMULATED GROUP REVENUE GROWTH* +25% +22.9% +10% +8.2% +2.4% 2016 H1 2017 H1 2018 H1 2018 2021 Actualfigures Push to Pass 3
Slide 4: Outstanding Results
OUTSTANDING RESULTS Recurring Operating Margin* Revenue** (in billion Euros) H1 2017 H1 2018 H1 2017 H1 2018 PCD 7.3% 8.5% +54% Auto 7.7% 19.9 30.7 OV - 5.0% H1 2017 H1 2018 H1 2017 H1 2018 Group +40% 7.4% 7.8% 27.6 38.6 * Recurring operating income related to Revenue 4 ** IFRS15 application with 20
Slide 5: It's All About People and Execution
GROUPE PSA’S HUMAN CAPITAL: ENABLER OF PERFORMANCE IT’S ALL ABOUT PEOPLE AND EXECUTION FOUNDATION OF CUSTOMER PERFORMANCE CENTRIC = CO-CONSTRUCTION TEAM SPIRIT AGILITY FOCUSED ON BUSINESS AND EFFICIENCY Picture : Groupe PSA’s Turbo PureTech petrol engine named International Engine of the Year for th
Slide 6: Financial Results
FINANCIAL RESULTS 6
Slide 7: Strong Profitable Growth
FINANCIAL RESULTS* STRONG PROFITABLE GROWTH In million Euros 2017 H1 2018 H1 Change Revenue 27,552 38,595 11,043 Recurring Operating Income 2,037 3,017 980 % of revenue 7.4% 7.8% Non–recurring operating income and (expenses) (112) (750) (638) Operating income 1,925 2,267 342 Net financial income (ex
Slide 8: Group Revenue: +40.1% Sharp Growth
GROUP REVENUE +40.1% : GROUP REVENUE SHARP GROWTH In million Euros Group* Automotive Division Automotive Division Faurecia* Peugeot Citroën DS Opel Vauxhall 38,595 27,552 22,149 +40.1% +22.9% 19,887 vs 6M 2015 +11.4% @ constant 9,946 8,545 8,991 exchange rates and perimeter +5.2% N/A H1 2017 H1 2018
Slide 9: PCD Automotive Revenue Analysis
PCD AUTOMOTIVE REVENUE ANALYSIS +11.4% : STRONG PCD AUTOMOTIVE REVENUE GROWTH In million Euros Volume & Product Sales to FX Price Others Country Mix Mix Partners* 22,149 -2.9 % +5.4 % +0.6 % +4.7 % +3.2 % +0.2 % 19,887 Variation: +11.4 % H1 2017 H1 2018 9 * Including sales to Opel Vauxhall
Slide 10: Consolidated Worldwide Sales at 2.18M Units
CONSOLIDATED WORLDWIDE SALES* +38.1% : GROUPE PSA SALES AT 2.18 M UNITS In thousands units* +38.1% +61.5% -18.6% +6.9% +1.7% +25.1% +18.1% +1.9% w/o OV +8.4% w/o OV -25.8% w/o OV +6.6% w/o OV +1.3% w/o OV +16.5% w/o OV 2,182 572 H1 2017 (PCD) 1,674 H1 2018 (PCD) 1,610 551 1,580 H1 2018 (OV) 1,036 1,
Slide 11: Group Recurring Operating Income and Margin
GROUP RECURRING OPERATING INCOME & MARGIN +48.1% : STRONG INCREASE IN ALL DIVISIONS In million Euros and as % of revenue Group* Automotive Division Automotive Division Faurecia** Peugeot Citroën DS Opel Vauxhall 3,017 1,873 2,037 +48.1% 1,442 +29.9% 7.8% 642 MARGIN* 7.4% 8.5% 583 MARGIN 7.3% MARGIN
Slide 12: PCD Automotive Recurring Operating Income Analysis
PCD AUTOMOTIVE RECURRING OPERATING INCOME ANALYSIS +29.9% : PCD ROI STEADY INCREASE In million Euros Market Input Forex Price Product Market Share Production & SG&A R&D* Others Demand Costs & Other & Product Mix Country Mix Procurement* Expenses Enrichment +182 (248) (220) +18 +377 +77 +175 +106 23
Slide 13: Banque PSA Finance
BANQUE PSA FINANCE* +63.5% : ROI INCREASE In million Euros Recurring Penetration Rate Cost of Risk** Operating Income 100% basis 29.3% 510 0.25% 27.0% 312 -2.3 pt +63.5% 0.12% -0.13 pt H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 * Including Opel Bank 13 ** In % average loans
Slide 14: Faurecia
FAURECIA +10.1% : STRONG ROI PERFORMANCE In million Euros and as % of Revenue Revenue* Recurring Operating Income 8,991 8,545 642 +5.2% 583 7.1% +10.1% MARGIN 6.8% MARGIN H1 2017 H1 2018 H1 2017 H1 2018 14 * excluding monoliths
Slide 15: Group Cash Flow and Net Financial Position Analysis
GROUP CASH FLOW & NET FINANCIAL POSITION ANALYSIS (1) +€3,191 M : STRONG OPERATIONAL FREE CASH FLOW In million Euros Net Operational free cash flow (2): +€3,191 M Financial Position Net o/w OV +€1,157 M Financial Position +8,257 o/w +6,194 Auto: +8,922 o/w Faurecia: (665) Auto: +6,840 Faurecia: (646
Slide 16: Inventories
INVENTORIES PCD INVENTORIES IN LINE WITH SALES In thousands of new vehicles* Peugeot Citroën DS inventories Opel Vauxhall inventories 412 374 Group inventory 134 (PCD) 119 Group inventory (OV) 216 135 Independent dealers Independent dealers 76 inventory (PCD) 255 278 inventory (OV) 129 140 N/A H1 20
Slide 17: Market and Operational Outlook
OUTLOOK MARKET AND OPERATIONAL OUTLOOK 2018 Market Outlook Operational Outlook Deliver over 4.5% Automotive Recurring EUROPE CHINA Operating Margin (1) on average PSA in 2016-2018, and target over 6% by 2021 excl. OV stable +2% Deliver 10% Group Revenue growth by 2018 vs 2015 (2) , and target additi
Slide 18: Push to Pass Highlights
PUSH TO PASS HIGHLIGHTS 18
Slide 19: Groupe PSA 2021
GROUPE PSA 2021 FROM TURNAROUND TO PROFITABLE SUSTAINABLE GROWTH A CUSTOMER DRIVEN TRANSFORMATION A GREAT CAR MAKER A MOBILITY PROVIDER With cutting edge efficiency For a lifetime customer relationship DIGITAL BOOSTER A COMPETITIVE TEAM TO CHALLENGE BENCHMARKS 19
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
Slide 21: Priority to Customer Satisfaction: Quality
QUALITY FROM DESIGN TO AFTER-SALES, PRIORITY TO CUSTOMER SATISFACTION Product quality Service quality 2013 H1 2018 Target 2021 2013 H1 2018 Target 2021 -12 -7 Industrial Right-First Time- Aftersales customer -23 Through vs benchmark (1) -18 recommendation vs benchmark (2) Quality performance by regi
Slide 22: C-SUV Worldwide Offensive, Starting with Peugeot
CORE MODEL STRATEGY C-SUV WORLDWIDE OFFENSIVE, STARTING WITH PEUGEOT 221 149 +48% Eurasia Europe +238% (2) +51% (2) Kazakhstan Consolidated sales ('000) H1 2017 Uzbekistan China & H1 2018 SE Asia +2% (2) Peugeot C-SUV (1) MEA Algeria +102% (2) EURASIA Vietnam Segment Share CHINA & SE ASIA Ethiopia 2
Slide 23: Efficient Roadmap Towards Cutting-Edge Technologies
CORE TECHNO STRATEGY EFFICIENT ROADMAP TOWARDS CUTTING-EDGE TECHNOLOGIES Leveraging in-house … combined with … for customer-valued assets & expertise … smart partnerships… technologies 2015 Clean ICE Electrification blitz from 2019 100% electrified 2016 technologies 2017 2018 core models by 2025 2
Slide 24: On Track to Reach Push to Pass Targets
CORE EFFICIENCY ON TRACK TO REACH PUSH TO PASS TARGETS PCD Production cost savings in Europe Wages to revenue ratio €/veh. over 2015 - 2018, including Euro6, raw mat (Auto division excluding own dealer network) Target confirmed PCD OV PCD+OV 700 2018 2018 649 2013 2017 Reference forecast forecast Be
Slide 25: Peugeot – The Best High End Generalist Brand
PEUGEOT – THE BEST HIGH END GENERALIST BRAND MOVE UP MARKET STRATEGY ON TRACK CONVERGING TOWARDS TARGET 2015 2016 2017 2018 H1 2018-2021 +0.7% +1.0% -0.1% -1.0% -1.7% -2.4% Actual Push to Pass target PRICING POWER EUROPE VS BENCHMARK NEW PEUGEOT 508 SW 25
Slide 26: Citroën – The People Minded Brand
CITROËN – THE PEOPLE MINDED BRAND PRODUCT OFFENSIVE LAUNCHED PRICING POWER AT THE RIGHT LEVEL +5.5% +5.2% New Citroën C5 Aircross SUV +4.4% +5.0% +3.0% +3.0% 2015 2016 2017 2018-2021 Pricing Power Europe vs Benchmark Actual 26 Push to Pass target New Citroën C3 Aircross SUV New Citroën C4 Cactus New
Slide 27: DS – French Avant-Garde Exclusive Experience
DS – FRENCH AVANT-GARDE EXCLUSIVE EXPERIENCE DS 7 CROSSBACK SUCCESSFUL LAUNCH PRICING POWER AT THE RIGHT LEVEL before competitors’ new model launches 2015 2016 2017 H1 2018 2018 - 2021 +1.2% -2.0% -2.5% -3.9% -4.0% Pricing Power Europe vs Benchmark -7.9% Actual Push to Pass target DS 7 CROSSBACK 27
Slide 28: Europe: Outstanding Profitability and Growth
EUROPE OUTSTANDING PROFITABILITY AND GROWTH 1,123 PERFORMANCE BOOSTED BY SUV AND LCV 1,036 11.6% Record ROI 11.2% Market share up sharply: +0.5 pt. (2) - all brands contribute Success of all new models with a growing share of SUV Peugeot n°1 of SUV segment Consolidated sales ('000) Market Sh
Slide 29: Eurasia: Hampered Performance
EURASIA HAMPERED PERFORMANCE ONGOING SALES GROWTH ROI down (2) but break-even confirmed for 2018 FY Revenue up +50% (2) 8 7 0.8% 0.8% Sales volumes up +16% (2) Growth driven by 3008 and locally produced Expert & Jumpy Consolidated sales ('000) Market Share (1) ROI Market share increase in
Slide 30: China – South-East Asia
CHINA – SOUTH-EAST ASIA RESTORE FOUNDATIONS IN CHINA AND ACCELERATE IN ASEAN CHINA Sales volume stabilized, with improved mix 162 Sales & Marketing re-engineering (incl. network) in progress 152 1.1% 1.1% New business initiatives, as Leasing JV offers, to support sales Acquisition of JianXin
Slide 31: Middle East & Africa
MIDDLE EAST & AFRICA KENITRA PLANT READY TO DELIVER IRAN WIND DOWN FROM MAY (-64 k units (2)) 278 206 11.0% RESILIENCE IN A DIFFICULT MARKET CONTEXT 8.5% Take-off in Egypt (sales x5 (2)) with new local partner Peugeot improved market share in Tunisia, Turkey, Israel, and is (1) leader in French
Slide 32: Latin America: On Track Despite FX Headwinds
LATIN AMERICA ON TRACK DESPITE FX HEADWINDS PROFITABLE GROWTH Market share stable 96 98 Negative impact of currencies (ARS, BRL) 3.9% 3.9% Volumes up by 1% (2) o/w outside Mercosur: +19% (2) Market Share (1) Consolidated sales ('000) ROI H1 2017 H1 2018 PRODUCT OFFENSIVE Successful LCV off
Slide 33: India Pacific: Profitable Growth
INDIA PACIFIC PROFITABLE GROWTH STRONG GROWTH Sales up +25% (2) Automotive revenues up +25% (2) 11 13 0.2% 0.2% Profitability at a good level despite impact of currency (1) Consolidated sales ('000) Market Share ROI H1 2017 H1 2018 PRODUCT OFFENSIVE Success of Peugeot 3008 and 5008 throughou
Slide 34: LCV: Overall Outperformance
LCV* OVERALL LCV OUTPERFORMANCE 263 25.3% REINFORCED LEADERSHIP IN EUROPE 195 Market share +5 pts at 25.3% o/w +1 pt for PCD 20.3% Both volume and market share growth in the 3 main segments 9 pts gap with #2 competitor, increased by 4.9 pts** Market share in Europe ROI OVERSEAS GROWTH Consolid
Slide 35: Opel Vauxhall: PACE! Relentless Execution
OPEL VAUXHALL PACE! RELENTLESS EXECUTION PACE! NOV. DEC. JANUARY FEBRUARY MARCH APRIL MAY JUNE reveal (timing is only indicative) Social framework Joint PCD+OV Voluntary leave CA* UK plants & Dealer contracts NSC synergies From NSC to RIGHTSIZING warehouse program warehouse re-negotiation PCD+OV imp
Slide 36: Opel Vauxhall: Moving Fast Towards Sustainable Performance
OPEL VAUXHALL MOVING FAST TOWARDS SUSTAINABLE PERFORMANCE Recurring Operating Margin* All levers activated 100% 72% Fixed costs Aug – Dec 5.0% 2017 reduction Reference H1 2018 status -2.5% H1 2018 700 € Production H1 2018 cost savings €/veh. vs 2017, 2017 2018 2019 2020 incl Euro6, raw mat reference
Slide 37: Groupe PSA 2021
GROUPE PSA 2021 FROM TURNAROUND TO PROFITABLE SUSTAINABLE GROWTH A CUSTOMER DRIVEN TRANSFORMATION A GREAT CAR MAKER A MOBILITY PROVIDER With cutting edge efficiency For a lifetime customer relationship DIGITAL BOOSTER A COMPETITIVE TEAM TO CHALLENGE BENCHMARKS 37
Slide 38: A Mobility Provider
A GARMOBILITY E A T C APROVIDER R MAKER FOR A LIFETIME CUSTOMER RELATIONSHIP CONNECTED NORTH CUSTOMER USED CARS AND HASSLE AMERICA MULTI-BRAND INSIDE NEW MOBILITY FREE 10 YEAR AFTERMARKET CUSTOMERS SERVICES MOBILITY PROJECT ENLARGE OUR CUSTOMER BASE 38
Slide 39: Multibrand Aftermarket
MULTIBRAND AFTERMARKET BUILDING PROFITABLE GROWTH IN ALL REGIONS EUROPE : 130 operational hubs CHINA : JianXin Distributor ROI acquisition (2018) Targeting 25% sales increase by 2021* BRAZIL & ARGENTINA : Joint-ventures * Versus 2015 Multibrand Repair Network Multibrand spare parts E-Commerce deploy
Slide 40: Used Cars, New Customers
USED CARS, NEW CUSTOMERS BECOMING A MULTI-BRAND OPERATOR IN ALL REGIONS c.537,000 used cars sold ROI in 2017 (PCD+OV) B2C Multi-Brand international expansion: - Aramisauto +20% Turnover in 2017 (vs 2016) - Acquisition of Clicars in 2017 - Acquisition of Cardoen in 2018* International growth in
Slide 41: Mobility & Connected Service
MOBILITY & CONNECTED SERVICE WORLDWIDE PROFITABLE GROWTH* X 2 : ON TRACK > 1 Million 180,000 200,000 B2C App users customers Carsharing customers 130,000 B2B Carsharing & Fleet management subscriptions CONNECTED AFTERSALES CONNECTED NAVIGATION Smart Services 270,000 subscriptions 1 Million contracts
Slide 42: Focused on Execution to Make the Difference
Sharing FOCUSED Market ON EXECUTIONDivergence TO MAKE THE DIFFERENCE Autonomous IN A CHAOTIC WORLD Digitalization Customer Behavior 42
Slide 43: Q&A
&A «2 PUSHEASs
Slide 44: Attachments
ATTACHMENTS 44
Slide 45: Consolidated Worldwide Sales
ATTACHMENT CONSOLIDATED WOLDWIDE SALES Units* 2017 H1 2018 H1 Change Peugeot 599,846 650,104 +8.4% Citroën 413,595 444,295 +7.4% Europe** DS 22,649 28,326 +25.1% Opel Vauxhall NA 550,956 NA Total PSA 1,036,090 1,673,681 +61.5% Peugeot Citroën 248,398 28,661 185,691 19,963 -25.2% -30.3% Total consoli
Slide 46: Group Revenue by Division
ATTACHMENT GROUP REVENUE BY DIVISION* In million Euros 2017 H1 2018 H1 Change Automotive PCD 19,887 22,149 2,262 Automotive OV - 9,946 9,946 Faurecia 8,545 8,991 446 Other businesses and eliminations (880) (2,491) (1,611) Group Revenue 27,552 38,595 11,043 46 * IFRS15 application with 2017 restated
Slide 47: Group Recurring Operating Income by Division
ATTACHMENT GROUP RECURRING OPERATING INCOME BY DIVISION* In million Euros 2017 H1 2018 H1 Change Automotive PCD 1,442 1,873 431 Automotive OV - 502 502 Faurecia 583 642 59 Other businesses and eliminations 12 0 (12) Group Recurring Operating Income 2,037 3,017 980 47 * IFRS15 application with 2017 r
Slide 48: Banque PSA Finance
ATTACHMENT BANQUE PSA FINANCE* In million Euros 2017 H1 2018 H1 Change Revenue 710 1,022 312 Net banking revenue 543 830 287 Cost of risk (in % of average loans) 0.25% 0.12% -0.13 pt Recurring operating Income 312 510 198 Penetration rate 29.3% 27.0% -2.3 pts Number of new contracts (lease and finan
Slide 49: Faurecia
ATTACHMENT FAURECIA* In million Euros 2017 H1 2018 H1 Change Revenue 8,545 8,991 446 Recurring Operating Income 583 642 59 % of revenue 6.8% 7.1% Consolidated net income 360 391 31 Free Cash Flow 93 165 72 Net Financial Position (646)** (665) (19) * IFRS15 application with 2017 restated (excluding e
Slide 50: Partnerships Contribution to Net Result
ATTACHMENT PARTNERSHIPS CONTRIBUTION TO NET RESULT In million Euros 2017 H1 2018 H1 Change 50% Dong Feng Motor company Partnership (25) 12 37 50% Changan Partnership - (9) (9) 50% Chinese Financial JV 10 7 (3) 50% Banque PSA Finance JVs with Santander 103 119 16 50% Banque PSA Finance JV with BNP Pa
Slide 51: Financial Security
ATTACHMENT FINANCIAL SECURITY In million Euros 31 December 30 June Change 2017 2018 Cash and Cash Equivalents 11,582 13,608 2,026 Financial Investments 165 100 (65) Current & non current financial assets 1,575 1,639 64 TOTAL Cash & Financial assets 13,322 15,347 2,025 Lines of Credit (undrawn) – exc
Slide 52: Debt Maturity Profile
ATTACHMENT DEBT MATURITY PROFILE Gross debt* in nominal value - End of June 2018 PSA: €650m, 7 years, 2% bond issue, In million Euros successfully priced on March 9, 2018 Faurecia: €700m 7 years 2.625% bond issue successfully priced on February 22, 3 2018 700 702 26 Faurecia: €700m June 2022 bond wa