Stellantis N.v. · EURONEXT:STLAP
Stellantis — PSA Peugeot Citroën — H1 2014 Earnings Presentation
41 slides from Stellantis's earnings presentation, Jul 30, 2014
Slide 1: First Half Results 2014
FIRST HALF RESULTS 2014 July 30th
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: H1 2014 Financial Results
H1 2014 Financial Results Jean-Baptiste de Chatillon CFO and Member of the Managing Board
Slide 4: Financial Results
Financial Results In million euros H1 2013* H1 2014 Change Revenues 27,740 27,616 (124) Recurring operating income (100) 477 577 % of revenues -0.4% 1.7% Non–recurring operating income 33 (100) (133) and (expenses) Operating income (67) 377 444 Net financial income (expenses)** (245) (344) (99) Inco
Slide 5: Group Revenues
Group Revenues In million euros H1 2013* H1 2014 Change Automotive 18,740 18,610 (130) o/w Automotive new car revenues 13,282 13,163 (119) DPCA & CAPSA Revenues** 1,745 2,068 323 Pro forma Automotive Revenues incl. DPCA & CAPSA 20,485 20,678 193 Faurecia 9,265 9,328 63 Banque PSA Finance 888 848 (40
Slide 6: Automotive: new car revenue analysis
Automotive: new car revenue analysis Favorable impact of pricing policy, product mix and profitable channels Strong negative impact of exchange rate In million euros Product mix FX Volumes Country mix Price 13,282* Others** 13,163 +0.3% -0.5% +1.0% +3.5% -3.8% -1.4% New car -0.9% revenues H1 2013 H1
Slide 7: Recurring Operating Income by division
Recurring Operating Income by division In million euros H1 2013* H1 2014 Change Automotive (538) 7 545 DPCA & CAPSA Rec. Operating Income (ROI)** 90 121 31 Pro forma Automotive ROI incl. DPCA & CAPSA (448) 128 576 Faurecia 256 311 55 Banque PSA Finance 198 172 (26) Others businesses and eliminations
Slide 8: Automotive: Recurring Operating Income
Automotive: Recurring Operating Income In million euros SG&A R&D Others expenses Production & procurement 7 + 63 +65** Price Market +64 & product share/ enrichment Country mix Market demand Forex Input costs & other Product +14 +254** mix (538)* (49) (33)** +188 (251) +230 H1 2013 H1 2014 Operating
Slide 9: Banque PSA Finance
Banque PSA Finance Penetration rate at 27.3%, negatively impacted by Latin America (-0.6pt) and funding situation Cost of risk improving at 0.50% Signature of a partnership with Santander to recover competitiveness in Europe In million euros H1 2013 H1 2014 Change Revenues 888 848 (40) Net banking r
Slide 10: Faurecia
Faurecia In million euros H1 2013 H1 2014 Change Revenues 9,265 9,328 63 Recurring operating income 256 311 55 % of revenues 2.8% 3.3% Non–recurring operating income and (expenses) (41) (45) (4) Operating income 215 266 51 Net financial income (expenses) (114) (104) 10 Consolidated net income for th
Slide 11: Cash Flow analysis
Cash Flow analysis* In million euros Operational free cash flow***: + € 1,667m Net Net Financial Financial Right Issue Position Position 224 o/w Change in working capital: +1,139 Faurecia Other Capex (1,512) change & Capitalized in WCR R&D Trade Net Cash Trade payables dividends Flow Restruct. Inven
Slide 12: Optimized working capital
Optimized working capital • Automotive division inventories • Actions on working capital In billion euros 4.5 Reduction of Auto division inventory’s < 3.8 structure needs 3.5 Supply chain optimization Local action to reduce inventories 2013 2014 2016 12
Slide 13: Inventories
Inventories Inventories down 30k vehicles vs H1 2013 In thousands of new vehicles* 468 436 406 225 216 170 Independant dealership inventory Group inventory 243 220 236 30.06.12 30.06.13 30.06.14 * World figures, based on forward 3 months delivery expectations, excluding China 13
Slide 14: Automotive division: Capex and R&D
Automotive division: Capex and R&D More efficient R&D and CAPEX As a percentage of Automotive revenues Maintain Automotive division level between 7 and 8% of revenues 8.2% ≥7% H2 H1 2013 2014 14
Slide 15: Debt Maturity Profile
Debt Maturity Profile Average maturity of 3.6 years at the end of June 2014 Gross debt* in nominal value at end 30.06.2014 In million euros 631 0 1,978 283 83 53 1,155 280 1,151 959 840 672 600 218 H2 2014 2015 2016 2017 2018 2019 2020-26 2033 Faurecia Others * Excluding BPF, undrawn credit-line, sh
Slide 16: Back in the Race
Back in the Race H1 2014 Highlights Carlos Tavares Chairman of the Managing Board
Slide 17: Automotive: worldwide unit sales in H1 2014
Automotive: worldwide unit sales* in H1 2014 Total sales increase by 5.5% European sales: +11.7% Sales in China and SE Asia: +27.7% International sales impacted by market evolution and Forex Worldwide unit sales* In thousands of units 1,460 1,541 956 International: -3.2% 856 H1 2013 H1 2014 282 360
Slide 18: Back in the race: 4 business objectives
Back in the race: 4 business objectives • 1. Further differentiate brands and improve net pricing • 2. Focus on a global core model strategy • 3. Ensure profitable growth worldwide • 4. Enhance core competitiveness, including Europe Move the Group’s culture towards a fully profit-oriented global min
Slide 19: Further differentiate brands and improve net pricing
1. Further differentiate brands and improve net pricing Improving Brands net pricing in Europe on track in 2014 2.5 1.7 2 1.0 2013 2016 2020 2013 2016 2020 -3.0 -4.7 -6.5 2013 2016 2020 -3 -7 -10 -13,7* Net price positioning adjusted for content – gap vs key mainstream competitor * 2013 DS restated
Slide 20: Focus on a global core model strategy
2. Focus on a global core model strategy H1 Product momentum towards profitable market segments DS PEUGEOT CITROËN DS 5LS Peugeot 2008: 1st global compact Citroën C4 Picasso success with C- segment premium sedan Launched crossover 170k units since launch, >125k units sold since launch. in China in M
Slide 21: Attractive products and technologies
2. Focus on a global core model strategy Attractive products and technologies DS’s first #1 DESIGN #1 segment C-Estate Premium SUV in France since May Sept 2014 Manifesto of Citroën renewal Citroën C4 Cactus DS 6 Wild & Refined Peugeot 308 SW Group PSA leader #1 in its in CO2 emissions in Europe SEG
Slide 22: Ensure profitable growth worldwide: Europe
3. Ensure profitable growth worldwide Europe • Group sales up +11.7% on a market up 6.6% NEW PEUGEOT 308 #1 of C Segment in France +6.6% 1 000 +11.7% 8 000 900 Car of the year 7 000 800 116k units sold since launch 6 000 700 5 000 600 4 000 500 3 000 H1 2014 400 PEUGEOT 2008 300 2 000 H1 2013 200 #2
Slide 23: Ensure profitable growth worldwide: China & SE Asia
3. Ensure profitable growth worldwide China & SE Asia DPCA • Group sales up +27.7% on a market up 12.8% Commercial development: success of C-Elysée and C4 L / Entire Peugeot line-up gains, 8 000 +12.8% 400 +27.7% with success of 2008 and 3008 7 000 350 6 000 300 FY sales targeted at 700k units, abov
Slide 24: Ensure profitable growth worldwide: Latin America, Eurasia
3. Ensure profitable growth worldwide Latin America Eurasia • Group sales -26.8% on a market down -9.2% • Group sales -26.5% on a market down -9.5% 3 000 -9.2% 40 -26.8% 1 600 -9.5% 40 -26.5% 35 1 400 35 2 500 30 1 200 30 2 000 25 1 000 25 1 500 20 800 20 H1 2014 15 600 H1 2014 15 1 000 H1 2013 10 4
Slide 25: Ensure profitable growth worldwide: India-Pacific, Middle East-Africa
3. Ensure profitable growth worldwide India – Pacific Middle East - Africa • Group sales -3.9% on a market up 1.0% • Group sales -37.2% on a market down -26.9% +1.0% 6 000 12 700 -26.9% 140 -37.2% -3.9% 5 000 10 600 120 500 100 4 000 8 400 80 3 000 6 300 60 2 000 H1 2014 H1 2014 4 200 40 H1 2013 H1
Slide 26: Enhance core competitiveness: Fixed costs and competitiveness
4. Enhance core competitiveness, including Europe Fixed costs and competitiveness • Total wage costs related to revenues Securing cost competitiveness of industrial footprint as agreed in the New Social Contract European restructuring plans on track 15.1% <14.5% Employment chapter progressing with S
Slide 27: Enhance core competitiveness: Increase savings
4. Enhance core competitiveness, including Europe Increase savings • Improving product costs • Optimize utilization rate in Europe -€600/v H1 2009 2011 2012 2013 -€446/v 2014 Utilization 78% 86% 75% 72% 84% rate* -€164/v 2012/2013 2013/2014 Target 2012/2015 -€500 reduction in total product cost 2015
Slide 28: Opportunities & Risks
Opportunities & Risks • Opportunities • Risks Encouraging start, still much to do European markets still low Pricing policy French market growth lower than other markets in Europe Sales in China Emerging markets sharply down (Argentina…) Negative FX in Latin America, Russia… Cost of Euro 6 Increasin
Slide 29: Outlook
Outlook • 2014 market assumptions: Europe: +3%, China: +10%, Latin America: -7%, Russia: -10%* • Positive Group operational free cash flow** by 2016 at the latest • €2bn cumulated Group operational free cash flow over 2016-2018 • Reach 2% operating margin*** in 2018 for the automotive business, targ
Slide 30: Q&A
PSA PEUGEOT CITROEN | Q&A
Slide 31: Appendices
PSA PEUGEOT CITROEN | Appendices
Slide 32: Worldwide unit sales
Worldwide unit sales units* H1 2013 H1 2014 Change Peugeot 460,031 521,986 13.5% Europe** Citroën DS 332,113 63,374 383,801 50,056 15.6% -21.0% Total PSA 855,518 955,843 11.7% Peugeot 142,987 189,108 32.3% China & South East Asia Citroën DS 137,868 957 160,315 10,482 16.3% ++ Total PSA 281,812 359,9
Slide 33: Group: Net financial income (expenses)
Group: Net financial income (expenses) In million euros H1 2013* H1 2014 Change Interest income 116 45 (71) Of which Automotive Division 111 42 (69) Finance costs (269) (331) (62) Of which Automotive Division (250) (276) (26) (incurred costs excluding capitalised costs) Other financial income 27 48
Slide 34: Reconciliation table – Revenues
Reconciliation table – Revenues Impacts of IFRS 10 &11 H1 2013 In million euros H1 2013 IFRS10&11 impact Incl. IFRS10&11 Group revenues 27,710 30 27,740 Automotive revenues 18,695 45 18,740 New vehicles revenues 13,174 108 13,282 35
Slide 35: Reconciliation table – Recurring Operating Income
Reconciliation table – Recurring Operating Income Impacts of IFRS 10&11 and IFRIC 21 H1 2013 In million euros H1 2013 IFRS10&11 and IFRIC 21 impact Incl. IFRS10&11 and IFRIC 21 Group Recurring Operating Income (65) (35) (100) Inc. Automotive Recurring (510) (28) (538) Operating Income 36
Slide 36: Reconciliation table – IAS 36 impact
Reconciliation table – IAS 36 impact In million euros H1 2014 IAS 36 Impact H1 2014 incl. IAS 36 Impact Automotive ROI H1 2013 (538) Input costs (59) 26 (33) Operating environment (359) 26 (333) Product mix 230 230 Price & product enrichment 188 188 Market Share 14 14 Production & procurement 244 10
Slide 37: Market trends
Market trends Cars and light commercial vehicles – Market evolution ∆ vs. previous year H1 2014 H1 2014 Europe 30 +6.6% China* +12.8% Italy +4.0% Latin America** -9.2% France +2.7% Eurasia -9.5% Spain +19.8% UK +11.3% Germany +2.7% * Passengers vehicles on invoices market w/o imports ** Brazil, Arge
Slide 38: Automotive: market share
Automotive: market share Cars and light commercial vehicles – Market share 12.2% 12.1% 4.2% 5.1% 4.6% 3.8% 2.4% 2.0% H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 Europe China* Latin America Eurasia LCV: European leader with 21.2% market share +0.2 pt vs. H1 2013 * Passengers vehic
Slide 39: Capitalized Capex and R&D
Capitalized Capex and R&D • Phasing H2 > H1 in 2014 In million euros* • 2014 trend similar to 2013 3,713 3,814 2,784 2,804 2,397 H2 2009 2010 2011 2012 2013 2014 H1 * XXXX 40
Slide 40: Liquidity
Liquidity* In million euros In million euros End 2012 End 2013** H1 2014 Cash and cash equivalents 5,421 6,185 10,427 Current & non current financial assets 1,903 405 447 Total 7,324 6,590 10,874 Back-up facility (undrawn) – excluding Faurecia 2,400 2,400 3,000 Back-up facility (undrawn) – Faurecia
Slide 41: Framework for a turnaround
Framework for a turnaround 1 Further differentiate brands and improve net Reduced pricing gap vs selected benchmark by 2020 pricing Half of the objective achieved by 2016 2 From 45 to 26 models by 2022 Focus on a global core model strategy Reduced to 38 models by 2016 3 Leveraging Asian growth with