Slide 1: FY 2016 Results
FY 2016 RESULTS 23 February 2017
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: For the 3rd year in a row: ROI up, volumes up, positive FCF
Recurring Operating Margin* Worldwide Unit Sales** Free Cash Flow (€bn) Automotive Division (in millions) 2016*** 6% 3.15 + 2.7 For the 3rd year in a row : ROI UP, Volumes UP, Positive FCF Recurring Operating Margin* Worldwide Unit Sales** Cumulated Free Cash Flow (€bn) Automotive Division (in milli
Slide 4: Mindset change roadmap for profitable growth
MINDSET CHANGE ROADMAP FOR PROFITABLE GROWTH BUSINESS COMPETITIVE MERITOCRACY SENSE MINDSET 5
Slide 5: Sustainable performance - operational outlook improved
SUSTAINABLE PERFORMANCE - OPERATIONAL OUTLOOK IMPROVED AUTOMOTIVE RECURRING OPERATING MARGIN GROUP REVENUE >4.5% 6% +10% +25% by 2021** vs 2015 average over 2016-2018 by 2021 by 2018** vs 2015 Deliver over 4.5% Automotive Recurring Operating Margin* Deliver 10% Group Revenue growth by 2018** vs 2015
Slide 6: Financial Results
FINANCIAL RESULTS 7
Slide 7: Financial results: net income group share x2
FINANCIAL RESULTS : NET INCOME GROUP SHARE x 2 In million Euros 2015 2016 Change Revenue 54,676 54,030 (646) Recurring Operating Income 2,733 3,235 502 % of revenue 5.0% 6.0% Non–recurring operating income and (expenses) (757) (624) 133 Operating income 1,976 2,611 635 Net financial income (expenses
Slide 8: Group revenue: +2.1% at constant exchange rates
GROUP REVENUE : +2.1 % AT CONSTANT EXCHANGE RATES In million Euros Group* Automotive Division Faurecia +2.1 % +2.7 % +1.6 % At constant Exchange Rates** 54,676 54,030 37,514 37,066 18,770 18,710 -1.2% -1.2% -0.3% 2015 2016 2015 2016 2015 2016 * Breakdown in attachment ** At constant (2015) exchange
Slide 9: Automotive revenue analysis
AUTOMOTIVE REVENUE ANALYSIS In million Euros Volume & Product Sales to FX Price Others* Country Mix Mix Partners +2.3% -3.8% +2.0% +0.0% -1.5% -0.1% 37,514 37,066 variation: -1.2% 2015 2016 * accounting treatment of buy-back commitment, short term rental 10
Slide 10: Consolidated worldwide sales
CONSOLIDATED WORLDWIDE SALES* In thousands of units +5.8% +3.6% -16.0% +112.8% +17.1% -16.4% -12.6% 3,146 2,973 2015 1,864 1,930 2016 736 618 384 180 157 184 24 20 12 10 Volumes* Total Consolidated Europe China Middle East Latin America India & Pacific Eurasia Worldwide Sales* & SE Asia & Africa** *
Slide 11: Group recurring operating income & margin
GROUP RECURRING OPERATING INCOME & MARGIN In million Euros Group* Automotive Division Faurecia 3,235 2,733 6.0% Margin 2,225 5.0% Margin 1,871 6.0% Margin 970 5.0% 830 Margin +18% 5.2% Margin +19% 4.4% Margin +17% 2015 2016 2015 2016 2015 2016 * Breakdown in attachment 12
Slide 12: Automotive recurring operating income analysis
AUTOMOTIVE RECURRING OPERATING INCOME ANALYSIS In million Euros Price Market Market Input Forex Product Production & SG&A & Product Share/ R&D* Others Demand Costs* & Other Mix Procurement* Expenses Enrichment Country Mix +2,225 +1,871 +331 +59 (838) +365 +89 (255) +625 +238 (51) (209) Operating Env
Slide 13: Banque PSA Finance
BANQUE PSA FINANCE* In million Euros Recurring Penetration Rate Cost of Risk** Operating Income 100% basis 571 514 30.8% 0.33% +11.1% 29.9% +0.9 pt 0.24% -0.09 pt 2015 2016 2015 2016 2015 2016 * 100% basis ** In % average loans 14
Slide 14: Faurecia
FAURECIA In million Euros Revenue Recurring Operating Free Cash Flow Income 18,770 18,710 -0.3% 970 830 1,011 +17% 5.2% Margin 4.4% Margin x 5.3 191 2015 2016 2015 2016 2015 2016 Net Financial Position*: (475) M€ * End December 2016 15
Slide 15: Cash flow analysis
CASH FLOW ANALYSIS* In million Euros Net Free Cash Flow : +2,698 Net Financial Financial Position Position Change in working capital : +471 +4,560 +6,813 o/w Faurecia o/w Faurecia (1,026) (475) Faurecia Auto Auto Faurecia +5,097 (631) (365) +291 +389 +156 (2,673) +434 (445) Other Capex & BPF Cash Tr
Slide 16: Rightsized inventories
RIGHTSIZED INVENTORIES In thousands of new vehicles* 406 350 99 107 307 243 Group inventory Independent dealership inventory End 2015 End 2016 * World figures excluding China 17
Slide 17: Outlook
OUTLOOK 2017 Market Outlook Operational Outlook EUROPE CHINA Deliver over 4.5% Automotive Recurring Operating Margin* on average stable + 5% in 2016-2018, and target 6% by 2021 Deliver 10% Group Revenue growth by 2018** vs 2015, LATIN AMERICA RUSSIA and target additional 15% by 2021** stable stable
Slide 18: Push to Pass Highlights
PUSH TO PASS HIGHLIGHTS 19
Slide 19: PSA Group 2021
PSA GROUP 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 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 21
Slide 21: Quality first - uncompromising attitude
QUALITY FIRST – UNCOMPROMISING ATTITUDE Push to Pass Roadmap 2 cars among RV New 3008 +10 pts 7 finalists vs previous 3008 at launch 2013 2014 2015 2016 2018 2021 0 -4 -12 -16 -23 -20 Industrial Right-First Time-Through(3) vs benchmark PRODUCTS SERVICES (1) 1st 2nd Push to Pass Roadmap 2013 2014 201
Slide 22: Core model strategy - product blitz on track
CORE MODEL STRATEGY – PRODUCT BLITZ ON TRACK Rich product momentum as planned Cumulated local launches across 6 regions Cumulated regional launches Vehicles sold to partners 2 Citroën Jumpy Peugeot Expert 1 B-SUV C-SUV 1 31 23 14 Peugeot 5008 2 Peugeot 3008 H1 H2 H1 H2 2016 2017 Citroën C3 7 global
Slide 23: Core techno strategy - multi-energy platforms
CORE TECHNO STRATEGY – TECHNO PUSH ON 2 MULTI-ENERGY PLATFORMS BEST IN CLASS ICE 2 MULTI-ENERGY PHEV C & D segments PLATFORMS Pure Tech from 2019 Gasoline Engine (3 cyl.) 2015 & 2016 EMP2 New BEV Euro6 Diesel 100% SCR B & C segments from 2019 34 CORE MODELS SEDAN 2016 : Mirroring function avai
Slide 24: Core technologies - towards autonomous vehicle
CORE TECHNOLOGIES – TOWARDS AUTONOMOUS VEHICLE ASSISTED DRIVING AUTOMATED DRIVING AUTONOMOUS VEHICLE Level 1 - « hands on » Level 2 Level 3 - « eyes off » Change in IN THE STREET IN DEVELOPMENT regulation IN TEST needed Peugeot 3008 Citroën C4 Picasso Highway Integrated « Hands off » On-going test o
Slide 25: Core technologies - electric vehicles blitz from 2019
CORE TECHNOLOGIES – ELECTRIC VEHICLES BLITZ FROM 2019 …towards a full range of vehicles built on 2 MULTI-ENERGY PLATFORMS C. 80% ELECTRIFIED CORE MODELS BY 2023** 2016 EV From dedicated Registrations +67 %* products & architectures… 2016 EV market +5 %* * BEV registrations in 2016 vs 2015 in Europe
Slide 26: Core efficiency - €1.2bn fixed cost reduction
CORE EFFICIENCY – OUR DNA € 1.2 bn FIXED COST REDUCTION over 2014-2016 Production cost savings in Europe Wages to revenue ratio €/veh. over 2015 - 2018, including Euro6 Automotive division* 700 2015 2016 Bench OEM's 467 On track 256 11.0% 211 11.4% 12.0% 2015 Cum. Cum. 2015-2016 2015-2018 ON TRACK T
Slide 27: Pricing power: mid term target reached
Pricing Power : mid term target reached 2013 2015 2016 2017-2021 +1.0% -1.0% -0.1% -2.4% -6.5% Pricing Power Europe vs Benchmark Actual New Push to Pass target 28
Slide 28: Citroën - the people minded brand
CITROËN - THE PEOPLE MINDED BRAND PRODUCT OFFENSIVE LAUNCHED Pricing Power : mid term target reached +5.0% 4.4% 3.0% +3.0% 2015 2016 2017-2021 Pricing Power Europe vs Benchmark Actual 29 New Push to Pass Target
Slide 29: DS - unique avant-garde experience from Paris
DS – UNIQUE AVANT-GARDE EXPERIENCE FROM PARIS PAVING THE WAY FOR NEW GENERATION OF PRODUCTS Pricing Power : mid term target reached 2013 2015 2016 2017 - 2021 -2.0% -4.0% -3.9% -7.9% -13.7% Pricing Power Europe vs Benchmark Actual figures 30 New Push to Pass targets
Slide 30: Europe - fit for growth
EUROPE – FIT FOR GROWTH 1,930 BUILD PROFITABLE GROWTH Leverage pricing power on new vehicles 1,864 Iconic vehicles 11.5% 10.8% Peugeot 3008 : 88 kunits orders & 84% on highest levels Citroën C3 : 57 kunits orders & c.50% on highest level Orders in pipeline up : +12.2% orders end Jan. 2017(4) (1)
Slide 31: Latin America - profitable growth
LATIN AMERICA – PROFITABLE GROWTH: FROM 3 DIGIT LOSS TO 3 DIGIT PROFIT* SHARPER BUSINESS MODEL 184 LCV offensive 3.6% Local production from 2017 157 3.3% New CMP platform from 2019 Consolidated Sales ('000) Market Share*** ROI 2015 2016 PROFITABLE GROWTH Record ROI Market share & volume up
Slide 32: China & SE Asia - 10% margin target by 2021
CHINA & SE ASIA – TARGET CONFIRMED : 10% MARGIN BY 2021 5 SUV’S LAUNCHED IN 18 MONTHS 736 Peugeot 4008 from end 2016 2.8% 2.1% 22 kunits orders in 2 months / 40% upper 618 versions Peugeot 5008 from H1 2017 2 Citroën SUV’s & 1 DS SUV by 2018 * Consolidated Sales ('000) Market Share ROI ASEAN –
Slide 33: Eurasia - break-even target in 2017 confirmed
EURASIA – BREAK-EVEN TARGET IN 2017 CONFIRMED TACKLING NEW FRONTIERS New LCV launches 12 Mid size LCV locally produced from 2018 10,5 0.8% Operate in new countries 0.7% Georgia, Belarus, Kazakhstan Consolidated Sales ('000) Market Share ** ROI 2015 2016 SITUATION IS SOUND Automotive ROI up* an
Slide 34: Middle East & Africa - profitable growth
MIDDLE EAST & AFRICA – PROFITABLE GROWTH ! STRATEGY ROLLING OUT : 70% Local 384 production 7.2% 2 industrial JV in Iran : 1st vehicle produced in 180 2017 3.2% Morocco: plant building on track Local industrial partnerships : Nigeria, Ethiopia, Consolidated Sales ('000) ** Market Share *** ROI
Slide 35: Middle East & Africa - rolling industrial start in Iran
MIDDLE EAST & AFRICA – ROLLING INDUSTRIAL START IN IRAN JV with Iran Khodro JV with SAIPA 2 INDUSTRIAL JVs 6 H1 2017 H1 2018 MODELS From 2018 2018 2 PETROL ENGINES 3 cyl. 4 cyl. 1 PLATFORM B&C segments 36
Slide 36: India Pacific - ahead of plan in India
INDIA PACIFIC – AHEAD OF PLAN IN INDIA : PARTNERSHIP SIGNED INDIA : FULL ECOSYSTEM BY 2021 24 20 Long-term partnership with the CK BIRLA Group 0.2% 0.2% to produce and sell vehicles and components To be Indian in India Consolidated Sales ('000) Market Share ** ROI Building a full ecosystem, from
Slide 37: Light commercial vehicle - product offensive
LIGHT COMMERCIAL VEHICLE – PRODUCT OFFENSIVE VOLUMES AND PROFIT UP Worldwide Sales up 5% 1st Group in Europe with 18.9% market share 1st in Compact Vans with 31.3% segment share 3rd in Large Vans with 15.6% segment share Midsize Van renewed offer - segment share up 11.8% in Q4 vs 9.2% in Q3 SU
Slide 38: PSA Group 2021
PSA GROUP 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 39
Slide 39: 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 40
Slide 40: Customer inside - boost satisfaction with digital services
CUSTOMER INSIDE – BOOST CUSTOMER SATISFACTION WITH DIGITAL SERVICES Co-creative process A seamless customer journey Online products and services results Selling online 2 countries launched Brazil Nov. 2016 UK Jan. 2017 4.7/5 34 countries 5 countries by end 2017 by end 2017 A personalised relationshi
Slide 41: Multi-brand aftermarket
MULTI-BRAND AFTERMARKET – STRONG ENABLERS TO BUILD PROFITABLE GROWTH 2015 2016 2017 2021 Multi-brand 16 67 140 References c.44,000 Spare parts distribution Hubs Parc Coverage* 5 13 14 20 +10% Sales 95% by 2018** Mister Auto markets ROI & Turnover UP** 2,100 2,645 >4,000 10,000 Euro Repar Car Service
Slide 42: Used car, new customers - multi-brand operator
USED CAR, NEW CUSTOMERS – BECOMING A MULTI-BRAND OPERATOR Dedicated business unit c.430,000 used cars sold in 2016 On-line trading platform operational Aramisauto 1 million unique visitors / month* 360 M€ turnover in 2016 Sell & Buy on-line Operate in B2B, B2C, C2C, with 800,000 sales by 2021
Slide 43: Core mobility services strategy
CORE MOBILITY SERVICES STRATEGY – 1 BRAND, FULL SET OF MOBILITY SERVICES Car Sharing Services 1 App 22 mobility providers New services Smart Services to be launched in 2018 Lease 400,000 cars in fleet B2B Fleet Sharing Launch in 2017 +21 % Revenue Growth B2B Fleet Management 50,000 connected cars 20
Slide 44: Car sharing - one single app
CAR SHARING – ONE SINGLE APP FOR ALL MOBILITY CUSTOMER NEEDS MOBILITY SERVICES ENRICHMENT By end 2017 1 SINGLE APP Launched in Feb. 2017 Madrid, France, Bordeaux & Lyon, Los Angeles 45K reg. users 170K reg. users 6K reg. users France & more, 300K reg. users Canada & France, 48K reg. users & more to
Slide 45: Hassle free mobility - multi-brand leaser
HASSLE FREE MOBILITY – ON TRACK TO BECOME A MULTI-BRAND LEASER LEASE BUSINESS TOWARDS AN INTEGRATED MULTI-BRAND LEASER Multi-Brand OPPORTUNITY Independent offer Leasers 27% Traditional 22% 23% captive Single Brand 20% 20% offer Sub-contracting management All services management DEDICATED BUSINESS UN
Slide 46: North America - 1st step: mobility services provider
NORTH AMERICA – 1st STEP: MOBILITY SERVICES PROVIDER Dedicated team on the ground CAR SHARING B2C starting in Los Angeles with CAR SHARING C2C with 47
Slide 47: Profitable growth: performance matters more than size
PROFITABLE GROWTH : PERFORMANCE MATTERS MORE THAN SIZE GROWTH AS A REWARD OF A JOB WELL DONE FOCUS ON EXECUTION AND STAY OPEN TO STRATEGIC OPPORTUNITIES
Slide 48: Attachments
ATTACHMENTS 50
Slide 49: Consolidated worldwide sales
CONSOLIDATED WORLDWIDE SALES Units* 2015 2016 Change Peugeot 1,056,103 1,102,230 +4.4% Europe** Citroën 731,141 762,576 +4.3% DS 76,733 65,452 -14.7% Total PSA 1,863,977 1,930,258 +3.6% Peugeot 412,271 351,904 -14.6% China & South East Asia Citroën 302,198 250,297 -17.2% DS 21,479 16,151 -24.8% Tota
Slide 50: Group revenue by division
GROUP REVENUE BY DIVISION In million Euros 2015 2016 Change Automotive 37,514 37,066 (448) Faurecia 18,770 18,710 (60) Other businesses and eliminations* (1,608) (1,746) (138) Group Revenue 54,676 54,030 (646) * Including remaining activities of Banque PSA Finance 52
Slide 51: Group recurring operating income by division
GROUP RECURRING OPERATING INCOME BY DIVISION In million Euros 2015 2016 Change Automotive 1,871 2,225 354 Faurecia 830 970 140 Other businesses and eliminations* 32 40 8 Group Recurring Operating Income 2,733 3,235 502 * Including remaining activities of Banque PSA Finance 53
Slide 52: Banque PSA Finance
BANQUE PSA FINANCE* In million Euros 2015 2016 Change Revenue 1,601 1,405 (196) Net banking revenue 1,065 1,026 (39) Cost of risk (in % of average loans) 0.33% 0.24% -0.09pt Recurring Operating Income 514 571 57 Penetration rate 29.9% 30.8% +0.9pt Number of new contracts (lease and financing) 731,70
Slide 53: Faurecia
FAURECIA In million Euros 2015 2016 Change Revenue 18,770 18,710 (60) Recurring Operating Income 830 970 140 % of revenue 4.4% 5.2% Consolidated net income 503 706 203 Free Cash Flow 191 1,011 820 Net Financial Position (1,026) (475) 551 55
Slide 54: Partnerships
PARTNERSHIPS In million Euros 2015 2016 Change 50% Dong Feng Motor company Partnership 350 242 (108) 50% Changan Partnership (50) (292) (242) 50% Chinese Financial JV 11 14 3 50% Banque PSA Finance JVs 112 181 69 Other 14 (17) (31) Share in net earnings of companies at equity 437 128 (309) 100% Banq
Slide 55: Financial security
FINANCIAL SECURITY 31 December 31 December In million Euros Change 2015 2016 Cash and Cash Equivalents 10,465 11,576 1,111 Financial Investments 352 110 (242) Current & non current financial assets 535 1,088 553 TOTAL Cash & Financial assets 11,352 12,774 1,422 Lines of Credit (undrawn) – excluding
Slide 56: Debt maturity profile - priority to reduce financing costs
DEBT MATURITY PROFILE – PRIORITY TO REDUCE FINANCING COSTS Gross debt* in nominal value - End 2016 Faurecia: €700M 7 years 3.625% bond issue successfully priced In million Euros on March 16, 2016 Faurecia: €490M December 2016 bond fully redeemed on April 12, 2016 705 32 PSA Group: €500M 7 years 2,37
Slide 57: Core model & techno strategy - EMP2
CORE MODEL & TECHNO STRATEGY - RICH & SHARP TECHNO STRATEGY Best in class petrol engine (3 cyl.) 2015 & 2016 State of the Art Peugeot 308 Citroën C4 Picasso Emission Control Euro6 Diesel 100% SCR Alternative powertrain 7 PHEV Citroën Jumpy Peugeot Expert from 2019 to 2021 60 km range EMP2 e-AWD From
Slide 58: Core model & techno strategy - CMP
CORE MODEL & TECHNO STRATEGY - RICH & SHARP TECHNO STRATEGY Best in class SUV petrol engine (3 cyl.) 2015 & 2016 State of the Art CMP Emission Control SEDAN Euro6 Diesel 100% SCR e-CMP 4 BEV from 2019 to 2021 HATCH 450 km range ADAS & Connectivity Rolling out from 2019 60