Stellantis N.v. · EURONEXT:STLAP
Stellantis — PSA Peugeot Citroën — FY2015 Earnings Presentation
35 slides from Stellantis's earnings presentation, Feb 24, 2016
Slide 1: Full Year Results 2015
FULL YEAR RESULTS 2015 February, 24th 2016
Slide 2: 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 performa
Slide 3: Carlos Tavares, Chairman of the Managing Board
Carlos Tavares Chairman of the Managing Board
Slide 4: We're back!
c. €6bn c. €5bn 5% 2014 + 2015 Net cash end 2015 2015 recurring operating margin Operational free cash flow for the Automotive division We’re back!
Slide 5: Financial Results
FINANCIAL RESULTS Jean-Baptiste de Chatillon CFO and Member of the Managing Board
Slide 6: Financial achievements
Financial achievements Sharp improvement In million euros Operational free cash flow* Group ROI** Consolidated Net Result 3,803 2,733 1,202 2,082 797 x 1.8 x3 (555) +€1.7bn 2014 2015 2014 2015 2014 2015 * Manufacturing and sales companies 6 ** Recurring Operating Income
Slide 7: Restatement
Restatement Faurecia Automotive Exteriors divestment* Faurecia FY 2015 FY 2015 In million euros Automotive Exteriors Pro forma** IFRS5 IFRS5 impacts Group revenue 56,328 (1,652) 54,676 Group Recurring Operating Income 2,816 (83) 2,733 Consolidated net income / (loss) 1,202 - 1,202 Free cash flow***
Slide 8: Financial Results
Financial Results €1.2bn Net income In million euros FY 2014* FY 2015 Change Revenue 51,592 54,676 3,084 Recurring Operating Income 797 2,733 1,936 % of revenue 1.5% 5.0% Non–recurring operating income and (expenses) (673) (757) (84) Operating income 124 1,976 1,852 Net financial income (expenses)**
Slide 9: Group Revenue
Group Revenue 6% Growth In million euros FY 2014* FY 2015 Change Automotive 36,085 37,514 1,429 Chinese JVs revenue** 4,610 5,181 571 Pro forma Automotive revenue including Chinese JVs** 40,695 42,695 2,000 Faurecia 16,877 18,770 1,893 Other businesses and eliminations*** (1,370) (1,608) (238) Group
Slide 10: Automotive: new car revenue analysis
Automotive: new car revenue analysis Growth +8% (including China) In million euros +8.0%* 29,238 31,584 Incl. 50% China Incl. 50% China 4,754 Volumes Country Mix FX Price Product Mix Others** 4,003 +0.6% +1.4% -0.1% +1.2% +1.5% +1.7% +6.3% 26,830 25,235 2014 New car revenue 50% new car revenue - Chi
Slide 11: Recurring Operating Income (ROI) by Division
Recurring Operating Income (ROI) by Division 5% Automotive recurring operating margin In million euros FY 2014* FY 2015 Change Automotive 63 1,871 1,808 Chinese JVs Recurring Operating Income** 303 377 74 Pro forma Automotive Recurring Operating Income incl.Chinese JVs** 366 2,248 1,882 Faurecia 595
Slide 12: Automotive: Recurring Operating Income
Automotive: Recurring Operating Income Solid performance in a positive context In million euros Market Input Forex Price Product Market Production & SG&A R&D* Others Demand Costs* & Other & Product Mix Share/ Procurement* Expenses Enrichment Country Mix +1,871 +8 +209 +187 +12 +192 (163) +739 +33 +2
Slide 13: Banque PSA Finance
Banque PSA Finance Successful partnership rolling out In million euros FY 2014* FY 2015* Change Revenue 1,703 1,601 (102) Net banking revenue 851 1,065 214 Cost of risk (in % of average loans) 0.55% 0.33% -0.22 pt Recurring Operating Income 337 514 177 Penetration rate 28.7% 29.9% +1.2 pt Number of
Slide 14: Faurecia
Faurecia Significant improvement in profitability In million euros FY 2014* FY 2015 Change Revenue 16,877 18,770 1,893 Recurring Operating Income 595 830 235 % of revenue 3.5% 4.4% Non-recurring operating income and (expenses) (80) (65) 15 Operating income 515 765 250 Net financial income (expenses)
Slide 15: Cash Flow Analysis
Cash Flow Analysis* Strong cash generation from operations In million euros Operational free cash flow** +€3,803M Change in working capital: +942 Net Financial Cash Restruct. Inventories Trade Trade Other Capex BPF Others Net Financial Position Flow Receivables Payables Change & Capitalised Dividend
Slide 16: Inventories
Inventories Right-sized inventories 416 384 339 350 184 169 107 107 Group inventory Independent dealership inventory In thousands of new vehicles* 232 215 232 243 End 2012 End 2013 End 2014 End 2015 16 * World figures excluding China
Slide 17: R&D and Capex
R&D and Capex PSA needs are fully covered Right level Higher efficiency All Brands’ needs of R&D and Capex of are fully covered expenses each € invested & Investing in plant modernisation In line with “Back in the Race” target 17
Slide 18: Back in the Race Achievements
Back in the Race Achievements €2bn cumulated Group operational free cash flow* Reach 2% operating margin** in 2018 for the automotive business, over 2015-2017 targeting 5% within the timing of the next mid-term plan 2019-2023 Outlook 5% Cumulated 2% 2 2015 2017 2015 2018 2019-2023 €3.8bn in 2015 5%
Slide 19: Market Outlook
Market Outlook 2016 Market Outlook Unstable environment EUROPE CHINA Unstable markets: China, Latin America, Eurasia +2% +5% Forex volatility Commodities LATIN AMERICA RUSSIA Emissions regulations -10% -15% Petrol/Diesel mix evolution 19
Slide 20: Carlos Tavares, Chairman of the Managing Board
Carlos Tavares Chairman of the Managing Board
Slide 21: 4 Business Objectives
4 Business Objectives Differentiate Brands and improve net pricing Implement a global core model strategy Ensure profitable growth worldwide Enhance core competitiveness Move Group culture to a fully performance-oriented global mindset 21
Slide 22: Differentiate Brands & improve net pricing
Differentiate Brands & improve net pricing Pricing targets exceeded versus plan Pricing power en Europe* 2013 2014 2015 2016 Initial Back in the Race Target 1 1.7 4.6 1.7 -7.9 -10 -13.7 -13.2 -2.4 -5.3 -4.7 -6.5 22 * Evolution of net price positioning adjusted for content in Europe vs the key compet
Slide 23: Differentiate Brands & improve net pricing
Differentiate Brands & improve net pricing Differentiate customer experiences E M P O W E R P E O P L E Be Different DS ALWAYS BY MY SIDE Feel Good! People Minded Brand 700,000 CLUB DS PRIVILEGE CONNECTED CUSTOMERS Citroën Advisor 35,000 posts in 2015 36,000 members 23
Slide 24: Implement a global Core Model Strategy
Implement a global Core Model Strategy Think global and enhance efficiency of each € invested Global strategy Higher efficiency Global core model strategy Increase productivity Targeting relevant technologies Improve carry-across and carry-over Share investments & resources Focusing on core models a
Slide 25: Implement a global core model strategy
Implement a global core model strategy Dynamic and levelized product momentum • Europe 5 6 4 1 3 2 5 5 3 6 5 5 5 2 Average 2016 2017 2018 2019 2020 2021 2010 - 2015 • China/Asean 2 6 6 5 2 2 3 5 6 5 3 4 3 4 Average 2016 2017 2018 2019 2020 2021 2010 - 2015 New car launches Other major product events
Slide 26: Technology push!
Implement a global core model strategy Technology push! In the street In hand CO2 Leader: 104.4 g/km* POWERTRAIN Next generation of PHEV BEV 3-Cylinder Petrol Engine Blue-HDI SCR ICE/Gearboxes Autonomous test drive on open roads 70% of models with driving assistance ADAS in Europe by 2020 1st Group
Slide 27: Ensure profitable growth worldwide
Ensure profitable growth worldwide Profit improvement in all regions Recurring Operating Income 2,973 2,938 2,818 In thousands of units 2013 1,864 1,761 2014 1,629 2015 742 736 564 227 169 180 303 200 157 21 22 24 74 44 12 Volumes* Total assembled Europe China & SE Asia Middle East & Africa Latin Am
Slide 28: Enhance core competitiveness
Enhance core competitiveness More agile! • 2.0M car break-even target* outperformed Ahead of target on each lever! Brands Pricing Power 2.6M cars 2.1M Fixed cost reduction cars Ratio wages related to revenue = 12%** in 2015 1.6M cars 2013 Production cost savings 2014 2015 -€500/veh. over 2015-2018 B
Slide 29: We're Back in the Race!
7 We’re Back in the Race!
Slide 30: Appendices
PSA PEUGEOT CITROEN ( APPENDICES
Slide 31: Worldwide unit sales
Worldwide unit sales Units* 2014 2015 Change Peugeot 965,090 1,056,103 +9.4% Europe** Citroën DS 709,710 86,044 731,141 76,733 +3.0% -10.8% Total PSA 1,760,844 1,863,977 +5.9% Peugeot 393,508 412,063 +4.7% China & South East Asia Citroën DS 321,602 26,978 302,198 21,479 -6.0% -20.4% Total PSA 742,08
Slide 32: 2014 Restatement
2014 Restatement Faurecia Automotive Exteriors IFRS5 impacts FY 2014 FY 2014 Faurecia Automotive In million euros Published in Pro forma * Exterior IFRS5 impacts February 2016 Group Revenue 53,301 (1,709) 51,592 Group Recurring Operating Income pro forma 875 (78) 797 Consolidated net income / (loss)
Slide 33: Debt Maturity Profile
Debt Maturity Profile Priority to reduce financing costs In million euros Gross debt* in nominal value at 12.31.2015 600 25 1,619** 61 12 847 946 589 659 600 191 2016 2017 2018 2019 2020 - 26 2033 Faurecia Others * Excluding BPF, undrawn credit-line, short term liabilities & other adjustments 33 **
Slide 34: Automotive division net financing costs
Automotive division net financing costs Divided by 2 over 2013-2015 In million euros 2013 2015 Change 2013-2015 Interest income 138 187 49 Of which Automotive Division 128* 182 54 Finance costs incurred (758) (635) 123 Of which Automotive Division (544) (449)** 95 (incurred costs excluding capitalis
Slide 35: Partnerships
Partnerships Partnerships P&L contribution In million euros 2014 2015 Change Share in net earnings of companies at equity 286 437 151 50% Automotive Chinese JVs 263 300 37 50% Chinese Financial JV 11 11 - 50% Banque PSA Finance JVs - 112 112 Other 12 14 2 Net result from operations held for sale or