Stellantis N.v. · EURONEXT:STLAP
Stellantis — PSA Peugeot Citroën — FY2014 Earnings Presentation
48 slides from Stellantis's earnings presentation, Feb 18, 2015
Slide 1: Full Year Results 2014
FULL YEAR RESULTS 2014 February, 18th 2015
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: Paving the way for a profitable growth
Paving the way for a profitable growth PSA teams are back in the race to achieve a profitable growth with the support of our stakeholders 4
Slide 5: Financial Results
FINANCIAL RESULTS Jean-Baptiste de Chatillon CFO and Member of the Managing Board
Slide 6: Group Recurring Operating Income
Group Recurring Operating Income €1.3bn operating recovery FY 2013* FY 2014 In million euros Change Incl. 100% BPF Incl. 100% BPF Revenues 53,922 54,359 437 Recurring operating income (147) 1,116 1,263 % of revenues -0.3% 2.0% Non–recurring operating income and (expenses) (1,165) (681) 484 Operating
Slide 7: Financial Results
Financial Results €1.3bn operating recovery FY 2013* FY 2014 In million euros Change IFRS 5 IFRS 5 Revenues 53,079 53,607 528 Recurring operating income (364) 905 1,269 % of revenues -0.7% 1.7% Non–recurring operating income (1,165) (682) 483 and (expenses) Operating income (1,529) 223 1,752 Net fin
Slide 8: Group Revenues
Group Revenues Increase in automotive revenues including China +1.8% FY 2013* FY 2014 In million euros Change IFRS 5 IFRS 5 Automotive 36,415 36,085 (330) DPCA & CAPSA Revenues** 3,552 4,610 1,058 Pro forma Automotive Revenues incl. DPCA & CAPSA** 39,967 40,695 728 Faurecia 18,029 18,829 800 Other b
Slide 9: Automotive: new car revenue analysis
Automotive: new car revenue analysis New car revenues +1.6% (including China) In million euros +1.6% pro forma incl. DPCA & CAPSA *** 28,774* 29,238 Incl. China Incl. China 3,064 Volumes Others** 4,003 Country mix FX Price Product mix -2.5% +0.0% +3.0% -0.7% -2.7% +1.2% 25,235 25,710* -1.8% 2013 201
Slide 10: Group Recurring Operating Income
Group Recurring Operating Income Positive Automotive ROI main driver of the recovery FY 2013* FY 2014 In million euros Change IFRS 5 IFRS 5 Automotive (1,039) 63 1,102 DPCA & CAPSA Recurring operating income** 159 303 144 Pro forma Automotive Recurring operating income incl. DPCA & CAPSA** (880) 366
Slide 11: Automotive: Recurring Operating Income (ROI)
Automotive: Recurring Operating Income (ROI) Strong improvement driven by ‘Back in the Race’ levers In million euros R&D Others +63 SG&A expenses Production & + 138 procurement +94** Product Market share/ +128 mix Country mix (48) +331** Market demand Price & product Input costs Forex enrichment (1,
Slide 12: Banque PSA Finance
Banque PSA Finance Towards best-in-class refinancing conditions from 2015 In million euros FY 2013* FY 2014* Change Revenues 1,773 1,703 (70) Net banking revenue 891 851 (40) Cost of risk (in % of average loans) 0.61% 0.55% -0.06pt Recurring operating income 369 337 (32) Penetration rate 29.1% 28.7%
Slide 13: Faurecia
Faurecia Solid results and prospects In million euros FY 2013 FY 2014 Change Revenues 18,029 18,829 800 Recurring operating income 538 673 135 % of revenues 3.0% 3.6% Non–recurring operating income and (expenses) (107) (86) 21 Operating income 431 587 156 Net financial income (expenses) (234) (244)
Slide 14: Cash Flow analysis
Cash Flow analysis* Net debt free In million euros Operational free cash flow*** + €2,182m Net Financial Auto Change in working capital: +1,752 Position Net Financial Faurecia Other Capex Right Issue Position Trade Trade change & Capitalized Auto receivables payables in WCR R&D Inventories Auto Cash
Slide 15: Working capital
Working capital 2 years ahead of plan – now in line with best practice Automotive division inventory Actions on working capital In billion euros 4.5 Reduction of Auto division inventory’s structural needs 3.1 Supply chain optimization Action plans on all categories of inventories: Industrial parts -
Slide 16: Inventories
Inventories Structural improvement 416 384 339 184 Group inventory 169 107 Independent dealership inventory In thousands of new vehicles* 232 215 232 31.12.12 31.12.13 31.12.14 16 * World figures excluding China
Slide 17: R&D and Capex
R&D and Capex Right on target Automotive div.: Capex and R&D related to revenues Level in line with “Back in the Race” target 8.2% 7% to 8% at €2.7bn* 7.5% Implementation of the core model strategy EMP1, ADAS and connectivity Gasoline Hybrid Plug-in Engines (€6.2, €7…) 2013 2014 Back in the Race tar
Slide 18: Debt Maturity Profile
Debt Maturity Profile Priority to reduce financing costs In million euros Gross debt* in nominal value at 31.12.2014 Faurecia Others 655 278 365 1,780 77 11 0 846 1,144 738 668 16 600 600 210 2015 2016 2017 2018 2019 2020-26 2033 18 * Excluding BPF, undrawn credit-line, short term liabilities & othe
Slide 19: Carlos Tavares, Chairman of the Managing Board
Carlos Tavares Chairman of the Managing Board
Slide 20: Back in the Race: business objectives
Back in the Race: 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 profit-oriented global mindset 20
Slide 21: Further differentiate Brands
Further differentiate Brands Different Brands EXCELLENCE OPTIMISTIC AVANT-GARDE ALLURE HUMAN REFINEMENT EMOTION SMART TECHNOLOGY 21
Slide 22: Implement a global core model strategy
Implement a global core model strategy Three different Brands to ensure PSA full market coverage • Worldwide market segmentation* PC Models E/F 5 segments D 5 segments PSA core model strategy C 6 segments = 23 segments is based on 26 models by 2022 B 6 segments CUV SUV PLS Hatch Sedan A 1 segment Es
Slide 23: From a Regional to a Worldwide range of products
Implement a global core model strategy From a Regional to a Worldwide range of products • First global* model Peugeot 2008 Production Plant Sales Regions Mulhouse (since April 2013) Wuhan (since April 2014) Porto Real (launch in 2015) Production since launch: 286,000 units 23 * Adapted , Industriali
Slide 24: Dynamic and levelized commercial activity
Implement a global core model strategy Dynamic and levelized commercial activity Average number of commercial events worldwide 5 2 5 2 2 1 2 4 4 4 4 4 2 2 Average 2014 2015 2016 2017 2018 2019 2010-2013 Other major product events New car launches 3.5 Average age of the range – worldwide* 3.3 3.4 3.2
Slide 25: More technology on higher efficiency
Implement a global core model strategy More technology on higher efficiency Strong technologies Improved efficiency Gasoline PHEV EV Core model strategy on EMP2 2019 on EMP1 Partnerships Capex and R&D efficiency Program management ADAS Powertrain 2020 €600m* Internal productivity annual savings EB P
Slide 26: Improve net pricing
Improve net pricing Pricing power up in Europe, on track to reach targets Net price positioning adjusted for content – gap in % vs key competitor 1.7 2.5 1.7 1 2 2013 2014 2016 2020 -3 -7 -10 11.8% -13.7 -13.2 market share* stable vs 2013 at iso market mix 2013 2014 2016 2020 0 -3 -5.3 -4.7 -6.5 26
Slide 27: Ensure profitable growth worldwide
Ensure profitable growth worldwide Clear focus on profit improvement Profitability Consolidated worldwide unit sales* In thousands of units +4.3% 2013 2,818 2,939 +8.1% 2014 1,629 1,761 +31.6% -33.8% -41.1% +6.7% -25.4% 564 742 303 200 22 227 169 74 44 21 Volumes Total Assembled Europe China & SE As
Slide 28: Europe: improving margins at iso market share
Ensure profitable growth worldwide Europe: improving margins at iso market share 2014 Coming 11.8%* market share 1st C-MPV Competitive financing offers segment Improved Citroën C4 Picasso Pricing power up 1 brand positioning st CO2 110.3 g/km Group Production costs down 1 Strong CO2 leadership (PSA
Slide 29: China & SE Asia
Ensure profitable growth worldwide China & SE Asia – DPCA: consolidate profitable growth – CAPSA: break-even in 2016 2014 Coming >1m* 850* 734* +0.7pt market share (4.3%) 557* Purchasing 2013 2014 2015 Target 2017 DFG strategic partnership Launch in Dec. 2014 Citroën C3 XR R&D tech center Peugeot gr
Slide 30: Latin America
Ensure profitable growth worldwide Latin America: ongoing rightsizing to reach break-even point in 2017 2014 Coming Achieved in 2014 vs 2013 Local Pricing power up +1.4pt Improve unit margin & Stabilize industrial footprint Fixed costs -34% volumes vs 2014 Local integration +3pts Halve fixed costs v
Slide 31: Eurasia
Ensure profitable growth worldwide Eurasia: manage the Rouble chaos and prepare for break-even in 2017 2014 Coming Achieved in 2014 vs 2013 Local Price increase +31%* Focus on locally industrial footprint produced models Fixed costs -50% 2 locally produced Local integration +1pt Minimum cost structu
Slide 32: India Pacific
Ensure profitable growth worldwide India Pacific: focus on profitability and mid-term growth opportunities 2014 Coming Competitive transmission +15% Retail sales in Korea & Peugeot 308 in Japan, Korea, Dedicated Australia business team Peugeot 2008 Study India as a supply “best Leveraging Peugeot co
Slide 33: Middle East & Africa
Ensure profitable growth worldwide Middle East & Africa: leverage Brands’ image and drive profitable growth 2014 Coming Dedicated 1 st Group in Tunisia business team 2 nd Brand in Algeria 2 nd Back to Iran Group in Morocco Strong position Nigeria New industrial opportunities in North Africa Start of
Slide 34: Ready for a profitable growth
Enhance core competitiveness Ready for a profitable growth 500,000 units break-even point* improvement in 2014 excluding China € 2.6M 2.1M 2M cars € cars € cars 2013 2014 Target 34 * Based on Recurring Operating Income
Slide 35: A leaner and more efficient company
Enhance core competitiveness A leaner and more efficient company • Total wage costs related to revenues* 2013 2014 Target 2016 Bench OEM's 11% 12% 13.4% 14.5% 35 * Restated in accordance with IFRS 11, Group own network excluded
Slide 36: Cost competitive European industrial base
Enhance core competitiveness Cost competitive European industrial base Product costs: 130€/veh. better than target Utilization rate* improvement in Europe -€730/veh. Plants & engineering achieved +7pts Purchasing 79% Target -3pts -€600/veh. 75% 72% 2012 End 2014 2012 2013 2014 Ongoing plan: -500€/ve
Slide 37: Market Outlook 2015
Market Outlook 2015 Europe: +1% China: +7% Latin America: -10% Russia: -30% 37
Slide 38: Outlook
Outlook Former outlook New outlook Positive Group operational free Done cash flow* by 2016 at the latest €2bn cumulated Group operational €2.2bn €2bn cumulated Group operational free cash flow* free cash flow* over 2016-2018 done over 2015 – 2017 in 2014 Reach 2% operating margin** in 2018 Unchanged
Slide 39: All Back in the Race levers are now pulled
All “Back in the Race” levers are now pulled Brand repositioned & net pricing on track to meet target Focused regional leadership to enhance business Europe and China major growth engines Break-even point improved by 500k units Best-in-class funding costs 39
Slide 40: Paving the way for a profitable growth
Paving the way for a profitable growth We are now ahead of our main targets and ready for a mid-term profitable growth 40
Slide 41: Q&A
T ay, a EE PSA PEUGEOT CITROEN ( Q&A
Slide 42: Appendices
T ay, a EE PSA PEUGEOT CITROEN ( APPENDICES
Slide 43: Worldwide unit sales
Worldwide unit sales units* 2013 2014 Change Peugeot 878,950 965,090 +9.8% Europe** Citroën DS 643,023 106,691 709,710 86,044 +10.4% -19.4% Total PSA 1,628,664 1,760,844 +8.1% Peugeot 277,918 393,508 +41.6% China & South East Asia Citroën DS 281,110 4,818 321,602 26,978 +14.4% ++ Total PSA 563,846 7
Slide 44: Group: Net financial income (expenses)
Group: Net financial income (expenses) In million euros 2013* 2014 Change Interest income 138 109 (29) Of which Automotive Division 128 108 (20) Finance costs (623) (662) (39) Of which Automotive Division (544) (521) 23 (incurred costs excluding capitalised costs) Other financial income 64 96 32 Oth
Slide 45: Total wage costs related to revenues
Total wage costs related to revenues 15.1% 14.5%* 14.2% 13.4%* 12.5% 12%* 11% PSA 2013 PSA 2013 PSA 2014 PSA 2014 PSA target PSA target Bench OEM's restated restated 2016 2016 restated 45 * Restated in accordance with IFRS 11, Group own network excluded
Slide 46: Reconciliation table
Reconciliation table 2013 profit and loss FY 2013 IFRS 10&11 IFRS 5 FY 2013 IFRS5 FY 2013 In million euros published IFRIC 21 PMTC Incl. 100% BPF BPF IFRS5 Revenues 54,090 (71) (97) 53,922 (843) 53,079 Recurring operating income (177) 3 27 (147) (217) (364) Non–recurring operating income (1,169) 4 (
Slide 47: Net result from operation to be continued in partnership
Net result from operation to be continued in partnership In million euros 2013 2014 Change Other expenses related to the non-transferred financing of operations to be continued in partnership (248) (251) (3) Profit (loss) from operations to be continued in partnership 347 267 (80) Net result from op
Slide 48: Automotive ROI: IAS36 impact
Automotive ROI: IAS36 impact IAS36 2014 In million euros 2014 impact incl. IAS36 impact Automotive ROI 2013 (1,039) Market demand (97) (97) Input cost (81) 29 (52) Forex & other (351) (351) Operating environment (529) 29 (500) Price & product enrichment 458 458 Product mix 500 500 Market share (48)