FULL YEAR RESULTS 2014 February, 18 th 2015 This presentation does - - PowerPoint PPT Presentation

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FULL YEAR RESULTS 2014 February, 18 th 2015 This presentation does - - PowerPoint PPT Presentation

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FULL YEAR RESULTS 2014 February, 18 th 2015 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

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FULL YEAR RESULTS 2014

February, 18th 2015

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  • 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 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 registration document filed with the French Autorité des Marchés Financiers (AMF). 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 group website

(www.psa-peugeot-citroen.com), under Regulated Information.

2

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Carlos Tavares

Chairman of the Managing Board

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Paving the way for a profitable growth

4

PSA teams are back in the race to achieve a profitable growth with the support of our stakeholders

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SLIDE 5

Jean-Baptiste de Chatillon

CFO and Member of the Managing Board

FINANCIAL RESULTS

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Group Recurring Operating Income

5

In million euros

FY 2013*

  • Incl. 100% BPF

FY 2014

  • Incl. 100% BPF

Change

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 income (1,312) 435 1,747

* IFRS 10&11 and IFRIC 21 adjustments ,before IFRS 5, detailed in appendix,

€1.3bn operating recovery

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SLIDE 7

Financial Results

7

In million euros

FY 2013*

IFRS 5

FY 2014

IFRS 5

Change

Revenues 53,079 53,607 528 Recurring operating income (364) 905 1,269 % of revenues

  • 0.7%

1.7% Non–recurring operating income and (expenses) (1,165) (682) 483 Operating income (1,529) 223 1,752 Net financial income (expenses)** (664) (763) (99) Income taxes (306) (313) (7) Share in net earnings of companies at equity 173 282 109 Net result from operations to be continued in partnership ** 99 16 (83) Consolidated net income / (loss) (2,227) (555) 1,672 Net income, Group Share (2,327) (706) 1,621

* IFRS 11 and IFRIC 21 adjustments detailed in appendix ** Detailed Appendices

€1.3bn operating recovery

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SLIDE 8

Group Revenues

8

In million euros

FY 2013*

IFRS 5

FY 2014

IFRS 5

Change 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 businesses and eliminations*** (1,365) (1,307) 58 Group Revenues 53,079 53,607 528

* Restated according to IFRS 10, IFRS 11 ** 50% of DPCA & CAPSA revenues *** Including remaining activities of Banque PSA Finance

  • /w Automotive new car revenues, including China**

28,774 29,238 464

Increase in automotive revenues including China +1.8%

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SLIDE 9

Automotive: new car revenue analysis

9

25,235 25,710* 2013 2014 +1.2% +3.0%

  • 2.7%
  • 0.7%

+0.0%

In million euros

* PSA revenues restated according to IFRS10 & 11 ** CKD, accounting treatment of buy back commitment, short term rental *** Including 50% of DPCA and CAPSA new car revenues

28,774*

  • Incl. China

29,238

  • Incl. China

4,003 3,064

Product mix FX Others** Country mix Volumes Price

  • 2.5%
  • 1.8%

+1.6%*** pro forma incl. DPCA & CAPSA

New car revenues +1.6% (including China)

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Group Recurring Operating Income

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In million euros

FY 2013*

IFRS 5

FY 2014

IFRS 5

Change 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 1,246

Faurecia 538 673 135 Other businesses and eliminations*** 137 169 32 Group Recurring Operating Income (364) 905 1,269

* Restated according to IFRS 10, IFRS 11 ** 50% of DPCA & CAPSA revenues *** Including remaining activities of Banque PSA Finance

Positive Automotive ROI main driver of the recovery

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Automotive: Recurring Operating Income (ROI)

11

In million euros

(97) (52)** (351)

+63

+500

Operating environment (500) Performance +1,602

2014 2013 + 138 +331**

(1,039)*

+94** +128

Market demand Forex & other Market share/ Country mix Others Input costs Production & procurement R&D SG&A expenses Product mix Price & product enrichment

(48) +458

* Vs (€ 1,042m ) published in 2013, restated with IFRS 10, IFRS 11 and IFRIC 21 - see Appendix ** IAS 36 on Automotive division impact: +€ 122m on 2014, registered on Production & procurement and R&D and input costs

Strong improvement driven by ‘Back in the Race’ levers

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Banque PSA Finance

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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%

  • 0.4pt

Number of new contracts (lease and financing) 731,003 700,855

  • 30,148

* 100% basis, before IFRS5

Towards best-in-class refinancing conditions from 2015

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Faurecia

13

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) (10)

Consolidated net income for the period

143 229

86

% of revenues 0.8% 1.2% Free Cash Flow 99 186 87 Net Debt (1,629) (1,483) 146

Solid results and prospects

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Cash Flow analysis*

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In million euros

(4,181)

**

  • /w Faurecia

(1,629)

+2,709 405 (2,507)

  • /w Faurecia

(858)

+548

  • /w Faurecia

(1,483)

Cash Flow Trade receivables Trade payables Other change in WCR Capex & Capitalized R&D Net dividends received

Free Cash Flow: +1,792

Inventories

+1,329

Restruct.

(583)

Other

+193

Net assets disposal

(27) (58) +2,995 +228

Right Issue

+45 31.12.2013 31.12.2014

Net Financial Position Net Financial Position Auto Faurecia Faurecia Auto Auto

Change in working capital: +1,752

* Industrial: Automotive & Faurecia ** Vs (€ 4,148m ) published in 2013, restated with IFRS 10, IFRS 11 and IFRIC 21 - see Appendix *** Excluding restructuring and net assets disposal

Net debt free Operational free cash flow*** + €2,182m

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SLIDE 15

Working capital

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Automotive division inventory

4.5 3.1

2013 2014

In billion euros

“Back in the Race” 2016 target was at €3.5bn

Actions on working capital

Reduction of Auto division inventory’s structural needs Supply chain optimization Action plans on all categories of inventories: Industrial parts -29% Spare parts -21% New car inventory -36% Used car inventory -28%

2 years ahead of plan – now in line with best practice

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SLIDE 16

Inventories

16

232 215 232 184 169 107 31.12.12 31.12.13 31.12.14

416 384 339

In thousands of new vehicles* Independent dealership inventory Group inventory

* World figures excluding China

Structural improvement

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SLIDE 17

R&D and Capex

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2013 2014 Back in the Race target 7.5% 8.2% 7% to 8% Level in line with “Back in the Race” target at €2.7bn* Implementation of the core model strategy EMP1, ADAS and connectivity Gasoline Hybrid Plug-in Engines (€6.2, €7…)

Right on target

Automotive div.: Capex and R&D related to revenues

* 2014 total expenses

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Debt Maturity Profile

18

600

846 1,780 738 1,144 668 210 600 365 655 77 278 11 16 2015 2016 2017 2018 2019 2020-26 2033

Faurecia Others

Priority to reduce financing costs

Gross debt* in nominal value at 31.12.2014

In million euros

* Excluding BPF, undrawn credit-line, short term liabilities & other adjustments

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SLIDE 19

Carlos Tavares

Chairman of the Managing Board

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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

20

Move Group culture to a fully profit-oriented global mindset

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Further differentiate Brands

Different Brands

EXCELLENCE ALLURE EMOTION OPTIMISTIC HUMAN SMART AVANT-GARDE REFINEMENT TECHNOLOGY

21

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Implement a global core model strategy

  • Worldwide market segmentation*

22

= 23 segments

PSA core model strategy is based on 26 models by 2022 1 segment

D C B A

5 segments 6 segments 6 segments

E/F

5 segments

PC Models

MPV Estate CUV SUV Sedan Hatch PLS

Three different Brands to ensure PSA full market coverage

* Internal source

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SLIDE 23

Implement a global core model strategy

  • First global* model Peugeot 2008

23

Production Plant Sales Regions

* Adapted , Industrialized & commercialized for all regions

Mulhouse (since April 2013)

From a Regional to a Worldwide range of products

Production since launch: 286,000 units

Wuhan

(since April 2014)

Porto Real

(launch in 2015)

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4 4 2 4 2 4 4 1 2 5 5 2 2 2

Average 2010-2013 2014 2015 2016 2017 2018 2019

Implement a global core model strategy

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Average number of commercial events worldwide

New car launches Other major product events

Dynamic and levelized commercial activity

3.5 2.8 2.9 3.2 3.1 3.3 3.4

Average 2010-2013 2014 2015 2016 2017 2018 2019

Average age of the range – worldwide*

* PC Europe and China

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Strong technologies Improved efficiency

Implement a global core model strategy

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* Cost efficiency p.a

EV

  • n EMP1

Gasoline PHEV

  • n EMP2 2019

ADAS Capex and R&D efficiency

€600m*

annual savings

Core model strategy Partnerships Program management Internal productivity Sub-contracting

EB Pure Tech

Powertrain 2020

More technology on higher efficiency

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Improve net pricing

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* Market Share 2014, Europe 30 countries

11.8%

market share* stable vs 2013 at iso market mix

1 1.7 1.7 2 2.5

  • 6.5
  • 5.3
  • 4.7
  • 3

2013 2014 2016 2020

  • 13.7
  • 13.2
  • 10
  • 3
  • 7

2013 2014 2016 2020 Net price positioning adjusted for content – gap in % vs key competitor

Pricing power up in Europe, on track to reach targets

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2,818 1,629 564 303 74 21 227 2,939 1,761 742 200 44 22 169

Total Assembled Vehicles Europe China & SE Asia Latin America Eurasia India & Pacific Middle East & Africa

Ensure profitable growth worldwide

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In thousands of units

2013 2014

* Assembled vehicles, excluding CKD’s

Profitability

+4.3% +8.1%

  • 33.8%

+31.6%

  • 41.1%

+6.7%

  • 25.4%

Volumes

Consolidated worldwide unit sales*

Clear focus on profit improvement

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SLIDE 28

Ensure profitable growth worldwide

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CO2 110.3 g/km

1st 1st

C-MPV segment Citroën C4 Picasso

1st

  • n LCV segment

Group Group

2014

* Stable at iso market mix

Europe: improving margins at iso market share

Coming

11.8%* market share Improved brand positioning Strong CO2 leadership LCV leadership Competitive financing offers Pricing power up Production costs down (PSA & Suppliers) Fixed costs reduction

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2013 2014 2015 Target 2017

557* 734* 850* >1m*

DS 6 Launch in Dec. 2014 Citroën C3 XR

Ensure profitable growth worldwide

* (000) Units sales in China

29

2014 Coming

+0.7pt market share (4.3%) DFG strategic partnership Peugeot growth rate CAPSA: 3 recent launches 1st full year Purchasing R&D tech center Operational efficiency Preparing Asean growth strategy

China & SE Asia – DPCA: consolidate profitable growth – CAPSA: break-even in 2016

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Ensure profitable growth worldwide

30

Fixed costs

  • 34%

Local integration

+3pts

Pricing power up

+1.4pt

Peugeot 2008 Launch in 2015

Achieved in 2014 vs 2013

2014 Coming

Local industrial footprint Young range of models Strong commercial position in Argentina Improve unit margin & Stabilize volumes vs 2014 Halve fixed costs vs 2012 Improve local integration Converge to 1 platform & 1 locally sourced engine

Latin America: ongoing rightsizing to reach break-even point in 2017

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SLIDE 31

Ensure profitable growth worldwide

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New partnership in Kazakhstan

Achieved in 2014 vs 2013

Eurasia: manage the Rouble chaos and prepare for break-even in 2017

2014 Coming

Fixed costs

  • 50%

Local integration

+1pt

* in Russia in 2014

Price increase

+31%*

Local industrial footprint 2 locally produced vehicles Profitable new frontiers: Belarus, Kazakhsta & Ukraine Focus on locally produced models Minimum cost structure Deeper local integration Create opportunities including local partnerships

Eurasia: manage the Rouble chaos and prepare for break-even in 2017

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Ensure profitable growth worldwide

32

+15%

Retail sales in Korea

Peugeot 2008

2014 Coming

Dedicated business team Leveraging Peugeot brand strength Competitive transmission & Peugeot 308 in Japan, Korea, Australia Study India as a supply “best cost” country Study growth opportunity in India

India Pacific: focus on profitability and mid-term growth opportunities

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SLIDE 33

Ensure profitable growth worldwide

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Start of Peugeot 301 assembly

2014 Coming

Nigeria

in Tunisia

1

st

Group

in Morocco

2

nd

Group

in Algeria

2

nd

Brand

Dedicated business team Strong position in North Africa Relevant products Nigerian operations Back to Iran New industrial opportunities to supply the region Develop DS brand

Middle East & Africa: leverage Brands’ image and drive profitable growth

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SLIDE 34

500,000 units break-even point* improvement in 2014

excluding China

Enhance core competitiveness

34

2.6M

cars

€

2013

2.1M

cars

2014

€

2M

cars

Target

€

* Based on Recurring Operating Income

Ready for a profitable growth

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SLIDE 35
  • Total wage costs related to revenues*

Enhance core competitiveness

35

* Restated in accordance with IFRS 11, Group own network excluded

2013 2014 Target 2016 Bench OEM's

12% 13.4% 14.5% 11%

A leaner and more efficient company

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SLIDE 36

Enhance core competitiveness

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* 100% = 2 shifts wording 8 hours / day, 235 days a year

Product costs: 130€/veh. better than target

Plants & engineering Purchasing

  • €730/veh.

achieved 2012 End 2014 Target

  • €600/veh.

Ongoing plan: -500€/veh. over 2015-2018 (incl. €6)

2012 2013 2014 75% 72% 79%

  • 3pts

+7pts Utilization rate* improvement in Europe

Cost competitive European industrial base

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Market Outlook 2015

Europe: +1% China: +7% Latin America:

  • 10%

Russia:

  • 30%

37

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Outlook

38

* Free cash flow without restructuring and exceptional ** ROI relating to revenues

Former outlook New outlook

Done €2.2bn done in 2014 Positive Group operational free cash flow* by 2016 at the latest Unchanged €2bn cumulated Group operational free cash flow*

  • ver 2015 – 2017

€2bn cumulated Group operational free cash flow* over 2016-2018 Reach 2% operating margin** in 2018 for the automotive business, targeting 5% within the timing of the next mid-term plan 2019-2023

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All “Back in the Race” levers are now pulled

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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

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Paving the way for a profitable growth

40

We are now ahead of our main targets and ready for a mid-term profitable growth

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Q&A

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SLIDE 42

APPENDICES

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Worldwide unit sales

43

units* 2013 2014 Change

Europe**

Peugeot Citroën DS Total PSA

878,950 643,023 106,691 1,628,664 965,090 709,710 86,044 1,760,844 +9.8% +10.4%

  • 19.4%

+8.1%

China & South East Asia

Peugeot Citroën DS Total PSA

277,918 281,110 4,818 563,846 393,508 321,602 26,978 742,088 +41.6% +14.4% ++ +31.6%

Latin America

Peugeot Citroën DS Total PSA

182,943 115,670 4,058 302,671 120,857 77,827 1,185 199,869

  • 33.9%
  • 32.7%
  • 70.8%
  • 34.0%

Eurasia

Peugeot Citroën DS Total PSA

40,700 31,931 1,767 74,398 23,765 19,198 0,867 43,830

  • 41.6%
  • 39.9%
  • 50.9%
  • 41.1%

India-Pacific

Peugeot Citroën DS Total PSA

15,049 3,208 2,705 20,962 16,933 3,961 1,456 22,350 +12.5% +23.5%

  • 46.2%

+6.6%

Middle East - Africa

Peugeot Citroën DS Total PSA

155,996 68,384 2,655 227,035 114,513 52,936 1,942 169,391

  • 26.6%
  • 22.6%
  • 26.9%
  • 25.4%

Total Assembled vehicles

Peugeot Citroën DS Total PSA

1,551,556 1,143,326 122,694 2,817,576 1,634,666 1,185,234 118,472 2,938,372 +5.4% +3.7%

  • 3.4%

+4.3%

* Assembled vehicles, CKD units ** Europe = EU + EFTA + Albania + Bosnia + Croatia + Kosovo + Macedonia + Montenegro + Serbia

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Group: Net financial income (expenses)

44

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

(incurred costs excluding capitalised costs)

(544) (521) 23 Other financial income 64 96 32 Other financial charges (243) (306) (63) Financial result (664) (763) (99)

* Restated according to IFRS 10, IFRS 11 and IFRIC 21

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SLIDE 45

Total wage costs related to revenues

45

PSA 2013 PSA 2013 restated PSA 2014 PSA 2014 restated PSA target 2016 PSA target 2016 restated Bench OEM's

15.1% 14.5%* 14.2% 13.4%* 12.5% 12%* 11%

* Restated in accordance with IFRS 11, Group own network excluded

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Reconciliation table

46

In million euros

FY 2013

published

IFRS 10&11 IFRIC 21 IFRS 5 PMTC FY 2013

  • Incl. 100% BPF

IFRS5 BPF FY 2013

IFRS5

Revenues 54,090 (71) (97) 53,922 (843) 53,079 Recurring operating income (177) 3 27 (147) (217) (364) Non–recurring operating income and (expenses) (1,169) 4 (1,165) (1,165) Operating income (1,346) 7 27 (1,312) (217) (1,529) Net financial income (expenses) (658) (6) (664) (664) Income taxes (387) (7) (10) (404) 98 (306) Share in net earnings of companies at equity 176 (3) 173 173 Net result from operations to be continued in partnership (3) (17) (20) 119 99 Consolidated net income / (loss) (2,218) (9) (2,227) (2,227)

2013 profit and loss

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Net result from operation to be continued in partnership

47

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 operations to be continued in partnership 99 16 (83)

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Automotive ROI: IAS36 impact

48

In million euros

2014 IAS36 impact 2014

  • 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) (48) Production and procurement 262 69 331 Fixed & marketing costs 128 128 R&D 70 24 94 Others 138 138 Performance 1,508 93 1,602 Automotive ROI 2014 63