Draft February Annual Results February 11, 2009

Transcription

1 1 Draft Annual Results February 11, 2009

2 This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company s annual report available on its Internet website ( These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements. More comprehensive information about PSA Peugeot Citroën may be obtained on its Internet website ( under Regulated Information. 2

3 Christian Streiff Key highlights 3

4 2008 FINANCIAL HIGHLIGHTS Sales & Revenue down by: -7.4% -15.7% decline in H2 Recurring operating margin of 1% at 550 m CAP2010 competitiveness plan: 1.4 bn cost savings Non recurring charges of -917 m Automotive restructuring & impairments: -473 m Faurecia restructuring & impairments: -431 m Net loss, Group share: -343 m Free Cash Flow consumption of: -3.8 bn Sharp market drop in H2 Massive production cuts in Q4 4

5 MACRO ENVIRONMENT World market for PC & LCV -CAGR 15% 10% 5% 0% -5% -10% -15% 9% 10% 7% 6% 7% 8% 5% 4% 4% 3% 2% Jan.06 Jan.07 Jan.08-2% -3% -6% -4% -11% -8% -13% -20% -21% -25% -25% Exchange rate / 0,95 0,93 1 = x 0,90 0,88 0,85 0,83 0,80 0,78 0,75 0,73 0,70 0,68 0,65 Jan.06 Jan.07 Jan.08 Jan $/b North sea Brent Oil Jan.06 Jan.07 Jan.08 Jan.09 Spot Steel market HDG /t Ex-Works N. Europe domestic Jan.06 Jan.07 Jan.08 Jan.09 5

6 2008: TAKING ACTION IN AN INCREASINGLY DIFFICULT ENVIRONMENT Market variation Q1 Q2 Q3 Q4 Europe 18-9% Emerging countries +8% -3% -3% -11% -21% +23% +18% +6% -9% Spain declines Sterling slides France Bonus Malus Italy declines UK & Germany decline Credit crunch Financial markets close in Sept European recession Emerging markets decline Scrappage incentive in France PSA Peugeot Citroën Agreement to build PSA plant in Kaluga Price increases in Spain UK selective sales Strong Russian growth Electric powertrain cooperation with MMC Decision to develop 100 g CO 2 engine plant Leading price rises & discipline Massive production cuts New employee separation plan Sales from inventory 6

7 2008: REAPING THE REWARDS OF PRODUCT DEVELOPMENT EFFICIENCY Record rhythm of new vehicle launches Market share maintained at 13.8% in Europe European market share gain in Q4: 14.1% vs 13.6% Q1 Q2 Q3 Q4 Peugeot Bipper Citroën C5 Citroën C3 Mercosur Citroën Nemo Citroën C5 Tourer Peugeot 307 China Peugeot 308 SW C-Quatre China 0.5 point Gain in European market share Citroën Berlingo Peugeot 207 Do Brazil Peugeot Partner Peugeot 207 Compact 7

8 2008 ACHIEVEMENTS Success of new models C5, 308 with record quality Light Commercial Vehicles: leadership reinforced with European market share up to 19.9% vs 18.6% Leadership in low emission vehicles, 3 rd year of more than one million units vehicles sold emitting <140g of CO 2 /km. 27% market share in Europe in vehicles <120g of CO 2 /km New hybrid and electrical solutions announced Year end inventory close to 2007 level Banque PSA Finance market share increased by 1.2 points CAP2010 competitivity plan: 1.4 bn cost savings 8

9 Isabel Marey-Semper 2008 Full Year Results 9

10 GROUP RESULTS In million euros 2007 H1 H Change Sales and revenue* 58,676 30,066 24,290 54, % Recurring operating income 1,752 1,115 (565) % % of sales 3.0% 3,7% -2,3% 1.0% Non-recurring operating income and (expenses) Net financial income (expenses) Income taxes (632) (917) Operating income 1,120 1,029 (1,396) (367) (40) (302) (86) (70) (293) (831) (216) 389 (286) 96 Share in net earnings (losses) of equity affiliates Consolidated Net Profit (Loss) (8) (1,231) 57 (500) Net Profit (Loss), Group share (1,076) (343) Earning per share (in euros) (4.72) (1.51) 10 * Restated sales & revenue

11 MAJOR NON RECURRING CHARGES PSA Automotive downsizing & alignment to unprecedented market environment and outlook Faurecia competitiveness plan and interior system asset impairment -461 In million euros Automotive division Faurecia Others Total Restructuring costs (335) (166) (11) (512) Impairments Total (138) (265) (2) (473) (431) (13) (405) (917) 11

12 CASH CONSUMPTION DUE TO LOWER CASH FLOWS AND SIGNIFICANT CHANGE IN WORKING CAPITAL REQUIREMENT Net financial position of industrial & commercial activities - In million euros +2,380 Change in WCR +1,404 Net financial position 31/12/07 Cash Flow -2,924 Capitalized R&D Capex (excl. R&D) -1,065 Free Cash Flow -3,764-2,156 Net Dividends -191 Others ,906 Net financial position 31/12/08 12

13 SERIOUS CASH CONSUMPTION DUE TO SHARP Q4 PRODUCTION CUTS & INVENTORIES REDUCTION Net financial position of industrial & commercial activities - In million euros H ,158 Cash Flow Change in WCR -417 Capitalized R&D -464 Capex (excl. R&D) H ,404 Net financial position 31/12/07 Free Cash Flow -1,143 Net Dividends Others ,257 Net financial position 30/06/ Cash Flow Change in WCR ,507 Capitalized R&D Capex (excl. R&D) -602 Net Dividends Others Free Cash Flow -3,899-1, ,906 Net financial position 31/12/08 13

14 INVENTORIES BROUGHT UNDER CONTROL Immediate actions launched from September to tackle inventory level Q4 vehicle production reduced by 196,000 vs Q (-26%) Independent dealership inventory decreased by 20% in 2008 In K units In K units Total Group inventory Independent dealership inventory /12/06 31/12/07 31/12/08 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 14

15 NO IMMEDIATE LONG TERM DEBT MATURITIES IN 2009 & EXTENSIVE UNDRAWN CREDIT LINES PSA Peugeot Citroën Faurecia 2.4 bn Undrawn credit line 1.6 bn Bond 0.7 bn 0.5 bn Bond EIB loans 0.5 bn Others 0.9 bn Syndicated credit lines drawn 0.3 bn Bond Maturities 15

16 ALL DIVISIONS HIT BY MARKET COLLAPSE BUT TO VARIOUS EXTENTS Recurring Operating Income In million euros 2007 % margin H1 H % margin Change Automotive (858) (225) Faurecia % Gefco % Banque PSA Finance 608 nm nm -8.4% Others businesses and eliminations (5) 0 0 PSA Peugeot Citroën 1, ,115 (565) % 16

17 BANQUE PSA FINANCE 2008 HIGHLIGHTS Solid 2008 results New contract stability and 1.2 points increase in penetration rate Business development in four countries Robust cost control with SG&A unchanged from 2007 despite business development Cost of risk among industry lowest at 0.48% Solid balance sheet European capital adequacy ratio increases 70 bps to 11.2% Successful 1 bn securitization in July SFEF loan of 446 m Long-term financing increased to 75% 6 bn of undrawn credit lines 1.3 bn cash & cash equivalent 17

18 BANQUE PSA FINANCE: A SOLID PERFORMANCE Stability of net banking revenue & new contracts Penetration rate increase by 1.2 points Recurring operating income at 557 m 2007 H1 H Net banking revenue 981 m 504 m 472 m 976 m Sales and revenue 1,999 m 1,059 m 1,029 m 2,088 m Total outstanding loans (end of period) 23.5 bn 24.4 bn 22.3 bn 22.3 bn Number of new contracts (lease and financing) 850, , , ,077 Penetration rate 26.1% 25.5% 29.6% 27.3% Recurring operating income 608 m 308 m 249 m 557 m 18

19 BANQUE PSA FINANCE: COST OF RISK AMONG THE LOWEST IN THE INDUSTRY Cost of risk remains benchmark Benefits of strict customer choice (In million euros) 2007 H H Recurring cost of risk Non-recurring items Cost of risk (as a % of average net loans) Recurring cost of risk 0.33% 0.37% 0.60% 0.48% 19

20 BANQUE PSA FINANCE: INCREASE IN TIER 1 CAPITAL, WHILE THE RISK-WEIGHTING OF ASSETS REMAINS LOW European capital adequacy ratio (1) 11.2% * 10.4% * 10.5% * 9.9% 9.6% December 2005 December 2006 December 2007 June 2008 December 2008 Regulatory capital - in million euros 2,063 2,321 2,543 2,649 2, (1) Equity /aggregate credit risk exposure * Tier one ratio: 2007: 10.46% June 2008: 10.60% Dec. 2008: 11%

21 BANQUE PSA FINANCE 2008 REFINANCING Excluding undrawn confirmed lines of credit ( 6 bn) In billion euros BPF funding Dec. 31, 2007 June 30, 2008 Dec Bank facilities Capital markets Loan securizations TOTAL CD CP Bonds + BMTN EMTN Securitization in July 08: 1.0 bn SFEF: 0.5 bn Short term capital markets Long term capital markets Dec 2006 Dec 2007 Dec

22 BANQUE PSA FINANCE: KEY 2009 COMMERCIAL PRIORITIES Continue to reinforce commercial performance and to consolidate 2008 market share Control the cost of risk to remain the benchmark of the industry Increase debt collection effort & resources Continue to review & adapt credit scoring criteria as local markets dictate Align cost structure to new market trends Enhance SG&A cost control 22

23 BANQUE PSA FINANCE 2009 REFINANCING NEEDS & PLANS Around 5 bn of new mid-term funding SFEF * : 500 m Current credit line renewals One to two securitizations to be brought to the ECB Bond issuance 23 * (Société de Financement de l Economie Française)

24 FAURECIA: NET RESULT IMPACTED BY MAJOR RESTRUCTURING & IMPAIRMENT CHARGES Second half Recurring Operating Income resilient at breakeven in spite of decline of sales Recovery confirmed for US activities Significant non recurring charges In million euros 2007 H1 H Sales and revenue 12,661 6,601 5,410 12,011 Recurring operating income % of sales 1.0% 1.4% 0% 0.8% Non-recurring operating income and (expenses) (226) (27) (417) (444) Operating income (105) 63 (416) (353) Net financial income (expenses) (115) (48) (147) (195) Consolidated profit (loss) for the period (231) (19) (550) (569) % of sales -1.8% -0.3% -10.2% -4.7% Free cash flow 28 (6) (16) (22) Net financial position (1,844) (1,856) (1,687) (1 687) 24

25 FAURECIA: OPERATIONAL & FINANCIAL RESTRUCTURING Ongoing execution of the Recovery Plan (Quality, program management, cost reduction, North America recovery, emerging markets expansion, cash management) Further restructuring worldwide announced to cope with sales decline Financial plan to strengthen financial position Renewal of main banking facilities secured in 2008 with Peugeot S.A. contribution Rights issue of 450 m to execute recovery plan underwritten by Peugeot S.A. 25

26 GEFCO: RESULTS HOLD UP DUE TO RAPID ACTION PLANS Market drop & client production cuts in Q4 Fuel cost increases impact margins in first 9 months Operating income increased vs 2007 In million euros 2007 H1 H Sales and revenue 3,554 1,904 1,632 3,536 PSA Peugeot Citroën 2,151 1, ,171 Third parties 1, ,365 Recurring operating income % of sales 4.4% 4.1% 2.9% 3.6% Non-recurring operating income and (expenses) (42) (1) 1 0 Operating income

27 AUTOMOTIVE: A VERY NEGATIVE H2 DUE TO MARKET COLLAPSE Market drop & production cuts in Q4 lead to major loss in H2 Impact of non recurring charges In million euros 2007 H1 H Change Sales and revenue * Recurring operating income 45,519 23,258 18,385 41, (858) (225) -8.5% - % of sales 1.9% 2.7% (4.7)% -0.5% Non-recurring operating income and (expenses) (348) (58) (402) (460) o/w restructing costs & impairment losses (445) (61) (412) (473) o/w others Operating income (1,260) (685) % of sales 1.1% 2.5% -6.9% -1.6% 27 * Restated sales & revenue

28 NEW CAR SALES IMPACTED BY VOLUME DECLINE In million euros 34,495 Volume Product mix Price Currency Country mix Others (inc. CKD)* -8.3% +0.3% +1.0% -1.1% -0.2% 0% 31, % Dec-07 Dec * Excluding DPCA

29 AUTOMOTIVE RECURRING OPERATING INCOME IMPACTED BY MARKET COLLAPSE AND MAJOR PRODUCTION CUTS Recurring operating income - In million euros Europe and overseas Production & procurement +670 Raw materials % Dec-07 Warranty, general expenses, fixed costs Mercosur and other BUs +744 (377) Payroll (52) Currency (324) R&D +28 Others (64) Dec-08 (225) -0.5% (1,566) (141) Volumes & production cuts CAP 2010 Competitiveness Inflation and R&D (1,707) 1,414 (789) 29

30 2008 INDUSTRIAL ACTIVITIES FINANCIAL HIGHLIGHTS Free Cash Flow consumption of -3.8 bn Liquidity is the key priority A proactive approach in 2009 in the context of a conservative liquidity policy 30

31 INDUSTRIAL & COMMERCIAL ACTIVITY FUNDING REQUIREMENTS FOR 2009 A proactive approach in the context of a conservative liquidity policy Faurecia financial restructuring Bridge 2009 loss making period Fund the new competitiveness measures Offset 30 day supplier payment terms reduction Support the key CAPEX & R&D projects to sustain PSA Peugeot Citroën long term strategy Around 4 bn of new funding for

32 INDUSTRIAL & COMMERCIAL ACTIVITY FUNDING SOURCES FOR 2009 Government Loan: 3 bn to be received by the end of March Undrawn credit line 2.4 bn maturing 2011 New syndicated credit line under negotiation Bond issuance as market conditions permit 32

33 Christian Streiff Priorities for

34 A HIGHLY UNCERTAIN BUSINESS ENVIRONMENT Volatile financial markets 2009: likely to decline by 20% in Europe 2010: flat market compared to 2009 Challenging Forex with strong Euro Improvement in raw material price conditions 34

35 PRIORITIES FOR 2009: LAUNCH THE ACTION PLANS TO COPE WITH A PROLONGED RECESSION Faurecia recovery plan Commercial momentum New product & brand offensives CAP 2010 Restructuring initiatives CASH 2009 Inventory reduction Capex & R&D focused on building for the future 35

36 2009: MOMENTUM OF PRODUCT DEVELOPMENT CONTINUES Expand market coverage with new customer solutions & premium offer Q1 Q2 Q3 Q4 Citroën C3 Picasso Peugeot 3008 Crossover Peugeot Compact Monospace Peugeot 308 CC Citroën DS 3 C Elysée Bicorps China Peugeot 207 China 36

37 A NEW BRAND IMAGE FOR CITROËN : " CREATIVE TECHNOLOGY " NEW VISUAL IDENTITY/ NEW CUSTOMER RELATIONS NEW LINE OF PRODUCTS: DS 37

38 BUILDING FOR THE FUTURE Employee reduction plans Shift & line closures SG&A savings Productivity of development projects Reduction of vehicle diversity Continue brand back office synergy initiatives 38

39 QUALITY IMPROVEMENT Warranty expenses in constant decline (basis 100) % H H H H H H Track record of delivery 39

40 PRODUCTIVITY In number of people 176,000 Voluntary separation Natural attrition -6,600-7,400-4, ,000 Automotive division -14,000 Non Automotive division December 31, 2006 December 31, 2008 Group workforce decrease in Western Europe: -18,000 people 40

41 DRIVING ENVIRONMENTAL LEADERSHIP Strengthen N 1 position in environmental performance Stop & start from 2010 Hybrid diesel from 2011 Sustainable & affordable electric solution Available vehicles emitting < 130g CO 2 /km in each A, B and C segments 41

42 MANAGE FOR CASH CASH 2009 Self help measures Further new car inventory reduction in H1 Production levels < sales < registrations Automotive CAPEX & R&D reduction to around 3.5 bn Focused on core products, premium, environmental solutions & geographical expansion Strict controls & initiatives to contain negative FCF in 2009 whilst building for the future 42

43 OUTLOOK IN THE CONTEXT OF A PROLONGED RECESSION Loss making 2009 with an H1 of unprecedented difficulty Negative Free Cash Flow in 2009: CASH 2009 actions more than offset by market drop and restructuring plans Building for the future with new brand images, environmental leadership & product development The level of the dividend will take into account the decline in the Group s financial performance Return to profitability during the course of 2010 in the context of a prolonged recession 43

44 APPENDIX 44

45 CHINA Price war in core segment impacts volumes New Peugeot 207 sedan to renew offer Production stoppage in Q4 In thousand of units sold Market: +5% DPCA recurring operating income In million euros %

46 MERCOSUR In thousand of units sold Market: +14.1% Brazil +15.5% Market: +7.8% 83.7 Argentina -7.2% Strong growth until October Production cuts in Q4 Automotive division recurring operating income (Mercosur) In million euros

47 CAP2010 COMPETITIVENESS PLAN MAINTAINS MOMENTUM OF AUTOMOTIVE COST SAVINGS In million euros Volumes & production cuts CAP 2010 Competitiveness Inflation and R&D H1 H2 H1 H2 H1 H2 (1,707) 1,414 (788) 860 (188) (1,519) +532 (460) +882 (328) (225) Recurring Operating Income Dec-07 Recurring Operating Income Dec-08 47

48 SOLID BALANCE SHEET: LIMITED GEARING December 31, 2008 In million euros Manufacturing and sales companies Finance companies Eliminations Total Total non-current assets 21,610 (25) 21,946 Of which property, plant and equipment 14, ,105 Goodwill 1, ,312 Intangible assets 4, , Total current assets 14,399 26,020 (645) Of which loans and receivables- finance companies - 22,495 (136) Inventories 7, Trade receivables manufacturing and sales companies 2,001 - (146) Cash & cash equivalent 2,040 1,280 (90) 39,774 22,359 7,757 1,855 3,230 Total assets 36,009 26,381 (670) 61,720 Total equity Total non current liabilities Long term debt 9,481 4, ,277 9,955-4,491 Total current liabilities 16,170 22,988 (670) 38,488 Short term debt 14,352 22,988 (545) 36,795 Trade payables 8,428 - (11) 8,417 Total equity and liabilities 61,720 48

49 CONTACTS Media Relations Investor Relations Hugues Dufour +33 (0) hugues.dufour@mpsa.com James Palmer +33 (0) james.palmer@mpsa.com Pierre-Olivier Salmon +33 (0) pierreolivier.salmon@mpsa.com Jean Hugues Duban +33 (0) jeanhugues.duban@mpsa.com Laurent Cicolella +33 (0) laurent.cicolella@mpsa.com Yasmine Casvigny Vernikovski +33 (0) yasmine.casvigny@mpsa.com 49