CAPITAL DAY March 17th, 2015 - Groupe PSA

 
CAPITAL DAY March 17th, 2015 - Groupe PSA
CAPITAL DAY

 March 17th, 2015
CAPITAL DAY March 17th, 2015 - Groupe PSA
•   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.
CAPITAL DAY March 17th, 2015 - Groupe PSA
Welcome

    Jean-Baptiste
     de Chatillon
CFO and Member of the Managing
           Board
CAPITAL DAY March 17th, 2015 - Groupe PSA
Introduction
Driving the recovery plan

                                  2%

          2013

                                                 &   Meanwhile…

        -2,90%
   Automotive division ROI related to revenues
CAPITAL DAY March 17th, 2015 - Groupe PSA
Introduction
    Project pool
CAPITAL DAY March 17th, 2015 - Groupe PSA
Introduction

6
                   5% ROI
CAPITAL DAY March 17th, 2015 - Groupe PSA
Today’s Capital Day

   Core model strategy   Patrice Lucas
   Peugeot Brand         Maxime Picat
   DS Brand              Yves Bonnefont
   Citroen Brand         Linda Jackson
   Core model strategy   Patrice Lucas
   R&D                   Gilles Le Borgne
   Q&A                   with Carlos Tavares
CAPITAL DAY March 17th, 2015 - Groupe PSA
Core Model Strategy

        Patrice
        Lucas
        Executive
     Vice-President,
    Corporate Planning
       & Programs
CAPITAL DAY March 17th, 2015 - Groupe PSA
Core model strategy

 1. Focused core model strategy addressing most profitable market segments

 2. Rationalize platforms and programs portfolio

 3. Enhance R&D and CAPEX efficiency
CAPITAL DAY March 17th, 2015 - Groupe PSA
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         Estate        MPV

* Internal source
Implement a global core model strategy
Focus on profit

     A global & profit oriented product offer                        Market and profit pools coverage
                                                                                                 2013 Profit Pools coverage
                                                    Planned increase
 Adressing key world-wide profit pools                                                        46%
                                                              23%
 Leveraging brands differenciation
                                                                                        2013 Market coverage
 Global models meeting local requirements                           Mid term target
                                                                        (2022)      Planned increase
                                                                                                      60%
                                                                                                            7%

                                                2013 Passenger Car Offers – China, Europe & Latin America
                                                 – excluding Fengshen
Implement a global core model strategy
     Development process adapted to enhance cost sharing

                 Platforms and programs optimization                                                       Double streamlining
     Global B-C         Global C       Global C CUV          Global D    Global D SUV   - Less platforms
       EMP 1                                         EMP 2                              - Different projects’ development

              2014         2022
                                                           18                               From a project logic
                                                                                                 One brand

                                                                                                 One model and sister cars

                7                                                                           To a program vision
                                                                        5
                                                                                                 Several brands
                                 2
                                                                                                 Several models for one brand
                     Platforms                           Projects / Programs                     Global governance
Passenger Car Offers - Excluding cooperation & Fengshen range
Maxime Picat
 Peugeot Brand CEO
M A X I M E P I C AT
CAPITAL DAY - PEUGEOT BRAND
PEUGEOT, HIGH END GENERALIST BRAND TARGETING THE BEST COMPETITION

                              BRAND STRATEGIC AXES

  1.   DEVELOP PRODUCTS THAT REFLECT THE BRAND UPMARKET MOVE

  2.   IMPROVE RANGE EFFICIENCY AND INTERNATIONALIZATION

  3.   REDUCE NET PRICING GAP WITH MAIN COMPETITOR IN 2020

  4.   ROLL OUT EXCELLENCE ALL ALONG CUSTOMER JOURNEY
CAPITAL DAY - PEUGEOT BRAND
THE BRAND
01 THE HERITAGE
Since 1810, PEUGEOT has remained true to the high quality and inventive
nature of French manufacturing. PEUGEOT’s DNA was forged in France's
eastern industrial cradle, its visionary mobility line launched in 1885
with bicycles then cars whose style, reliability and creativity marked
their time.

02 THE MISSION
Faced with major mobility and environmental challenges, PEUGEOT
is focusing all of its energy and resources into creating innovative mobility
solutions, not only for today but for tomorrow, built around one core
philosophy; the search for emotion.

03 THE PROMISE
PEUGEOT is the only brand that combines German excellence with Latin
emotion thanks to uncompromising quality, sharp design and an instinctive
driving experience.
CAPITAL DAY - PEUGEOT BRAND
UP MARKET MOVE – WORLDWIDE PRODUCT FUNDAMENTALS

   EXCELLENCE                                        ALLURE                                               EMOTION
   LEAP IN QUALITY                          DESIGN WITH STRONG CHARACTER                            STIMULATING & ENHANCING
                                                                                                       DRIVING EXPERIENCE

   PERCIEVED QUALITY              DESIGN              INVENTIVE                   UPPER     INNOVATIVE COCKPIT        DRIVING
      & DURABILITY               IDENTITY         VEHIICLE CONCEPTS              VERSIONS      & CONTROLS            EXPERIENCE

                   INVENTIVITÉ

                                                                  CONFIDENTIEL
QUALITY

   Perceived Quality:
       Target: Best Competitor for Interior/exterior
       Valid for all segments
       First application on 308 followed by New C-SUV

   Long term Quality, material life time:
       More stringent targets on visible « serious » defects detected by customers after 3 years
        of use of the vehicle: IQA (Aspect) and IQF (Functional).
       308 first results: outstanding 3 years ageing performance of materials above Golf VI

   Noise Control, soundproofing:
       Objective: 1st quartile of segment on noise items in multi-brand surveys
QUALITY – UP MARKET MOVE

                                GERMANY -DAT            39% (+ 4 PTS VS PREVIOUS 308)
                                ITALY – QUATTRORUOTTE   39% (+10 PTS)
                     RESIDUAL
                                SPAIN – EUROTAX         47% ( +12 PTS)
                     VALUE
                                FRANCE – ARGUS          45% (+ 4 PTS)
                                UK – CAP                32% (+ 6 PTS)
RANGE POSITIONING IN THE MARKET

                                         FIRST DECILE:   80% OF SALES THROUGH   HIGHEST DECILE COVERED
                                        NO BRAND OFFER     MAINSTREAM RANGE      WITH UPPER VERSIONS
                GT LINE / GT
Private range

                  ALLURE

                               VOLUME
                  ACTIVE

                  ACCESS
                                                                     PRICE
I-COCKPIT – A MAJOR DIFFERENCIATION ASSET

ERGONOMICS AND INTUITIVENESS TO SUPPORT AND ENHANCE PEUGEOT DRIVING EXPERIENCE

INNOVATIVE AND ATTRACTIVE AESTHETICS

   COCKPIT                                          I-COCKPIT PEUGEOT

      3008           208              2008                 308       New      New
 Cockpit & head-up    Small steering wheel / Central display        C-SUV   D SEDAN
I-COCKPIT –CUSTOMER FEED BACK

       NUMBER OF COUNTRIES IN EUROPE 5
       WHERE PEUGEOT IS ABOVE SEGMENT

           Ease of reading Instruments   5   5   4
                 Interior Styling        5   5   4
            Appearance of dashboard      5   5   5
CAPITAL DAY - PEUGEOT BRAND
CORE MODEL STRATEGY

      Estate            508 SW
  D
      Sedan             508
      7 seaters         5008
      SUV               3008
      Upper             RCZ
      Sedan Upper Ms    408                                    95% OF WORLDWIDE SALES
  C                                 13 CORE MODELS   IN 2014
      Estate            308 SW
                                                               > 100% OF PROFIT
      Hatch             308
      Sedan Middle Ms   308 sedan
      Sedan Lower       301
      SUV               2008
  B
      Hatch             208
  A   Hatch             108
CORE MODEL STRATEGY

                      PROFIT POOL COVERAGE

                                         51%

                             44%

                             2013        2023
CAPITAL DAY - PEUGEOT BRAND
PRICING – 3 MAIN LEVERS

          SELL            DISCOUNT CONTROL
   AT A HIGHER PRICE
                          PRICE DEPRECIATION MONITORING

                          ENRICHED MIX OF SALE
      SELL BETTER         DEALER NV REMUNERATION
       AND MORE           TRAINING & COMMUNICATION
                          NV & UC COMMERCIAL POLICIES

       IMPROVE            USED CAR PRICING MANAGEMENT
    RESIDUAL VALUE        LIFE TIME RANGE OPTIMIZATION
NET PRICING - IN EUROPE, ON TRACK

                                                                                               2014 - RESULTS

                                                                                            LAUNCH PRICE = MAIN COMPETITOR
                                                                                            MIX TOP: 19%   PERSO: 9%
                                                                                    108

                     2013 2014                    2016               2020                   LEVELS 3 & 3 +: 60% of ORDERS
                                                                              0
                                                                                    2008
                                                                              -3
                                                                                            1/3 NARROWED PRICE GAP IN A YEAR
                                -5.3                -4.7
                                                                                            RESIDUAL VALUE
                      -6.5                                                                        GERMAN –DAT = GAP REDUCED BY 2/3
                                                                                    308           UK- CAP = GAP REDUCED BY 7

                                                                                            3008 AVERAGE PRICE PAID IN 2014 = 2013
                                                                                            NEXT 3008 = 1sr CUSTOMER CHOICE IN CLINIC
                                                                                    3008     TEST

Net price positioning adjusted for content – gap in% vs key mainstream competitor
CAPITAL DAY - PEUGEOT BRAND
ROLL OUT EXCELLENCE ALL ALONG CUSTOMER JOURNEY

  OVERALL SATISFACTION                                                      "EXCELLENT" NETWORK PROGRAM

                         2017 OBJECTIVE = TOP 3                                     NEW VEHICLES OPERATIONAL STANDARD
                                                                                     CONDITIONS FOR A SUCCESSFUL HANDOVER
                                                                                                                             Insert the name of the dealership here
                                                                                                                                                                               HANDOVER SHEET
                                                                                                                                                                                                                                                                                                       HANDOVER SHEET
                                                                                                                                                                                                                                                                                                       New PEUGEOT 508
                                                                                                                                                                                                                                                                                                        Saloon, SW and RXH BlueHDi
                                                                                                                                                                               New Peugeot 508
                                                                         A delivery area                                                                                       Saloon, SW and RXH BlueHDi
                                                                                                                                                                                                                                                                        Prerequisites
                                                                           Heated, calm, clean, organised and correctly lit,
                                                                           Which complies with the Marque’s standards:                                                                                                                                                  It is essential to present the vehicle with the following settings:
                                                                                White tiled floor,
                                                                                A blue wall with the image(s) + a message                                                                                                                                              • Steering wheel in the high position and pushed back fully (to encourage the customer to
                                                                           With an accessories presentation cabinet.
                                                                                                                                                                                                                                                                        adjust the steering wheel),
                                                                         A cover                                                                                                                                                                                        • Driver’s seat at the mid-height position,
                                                                                                                                                                                                                                                                        • Forwards-backwards adjustment of the driver’s seat and seat back angle in the mid-
                                                                           Clean and in good condition,                      Placed on the vehicle
                                                                           In the Marque’s colours,                          “checked conform” to the                                                                                                                   way position,
                                                                           Suited to the size of the vehicle to be           systematic quality control
                                                                           delivered,                                        before handover.                                                                                                                           • Front and rear head restraints in the low position,
                                                                           stored in a cabinet before and after use,

                                                                         An identification label                                                                                                                                                                        Handover steps
           AFTER SALES

                                                                           In A4 format (portrait or landscape),                                                                                                                                                        The handover begins once the vehicle’s cover has been
                                                                           Conforming to the Marque’s graphic charter,
                                                                           Placed on the covered vehicle or on a lectern,
                                                                                                                                                                                                                                                                        removed.
                                                                           Indicating at least the name of the dealership, the name of customer,                                                                                                                        Step 0 allow the customer to become familiar with their
                                                                           the model/finition and the registration number.
                                                                                                                                                                                                                                                                        vehicle by walking round it with them.

                                                                         Handover sheets                                                                                                                                                                                                                                                              Step 0
                                                                                                                                                                                                                                                                        Step 1 (5 min): getting into the vehicle.
                                                                           The person in charge of the handover must:                                                                                                                                                   Step 2 (20 mins): familiarisation with the exterior
                                                                                 Have in his possession the current handover sheet of each
                                                                                                                                                                                                                                                                        and interior of the vehicle (in stages       ).            2
                                                                                  model of the range,
                                                                                 Strictly apply each step of the handover.
                                                                                                                                                                                                                                                                        Step 3 (3 mins): adjustment of the driving
                                                                                                                                                                                                                                                                        position.                                                                      4
                                                                         A wallet of documents always given to the customers
                                                                                                                                                                                                                                                                        Step 4 (45 mins): familiarisation with the                                     3
                                                                           The record - ready to go,                         The service booklet,                                                                                                                       instruments and controls (by working through
                                                                           The handbook,                                     The personalised servicing schedule                                                                                                                                                                                  1
                                                                                                                                                                                                                                                                        the functions to be presented to the customer
                                                                                                                                                                                                                                                                                                                                              Steps 1 to 4
                                                                                                                                                                                                                                                                        from left to right).
                                                                                                                                                                                                                                                                        Step 5 (20 mins): dynamic handover strongly recommended by the Marque, particularly if
                                                                                                                                                                                                                                                                        the vehicle is fitted with one or more of the functions explained in this step.

                                                                                    Supervisor/Manager:                     Dealer Principal:                    Applied by:                                                                                            At the end of the handover, show the customer that they have a “Ready to go” sheet
                                                                                                                                                                                                                                                                        summarising the key vehicle functions presented during the handover.
                                                                     Date/Visa                  /                                      /
                                                                                    Strictly confidential document reserved for internal use by the Peugeot network                                                                                                                 Strictly confidential document reserved for internal use by the Peugeot network   3 / 22
                                                                                                                                                                                      Strictly confidential document reserved for internal use by the Peugeot network

                           VEHICLE DELIVERY

  NETWORK IDENTIFICATION                                                    LOYALTY OFFERS

   EXTERIOR - 100% END OF 2015         INTERIOR - 100% END OF 2017

                                                                                                                                                                                            • FINANCE CONTRACTS
                                                                                                                                                                                            • MAINTENANCE CONTRACTS
                                                                                                                                                                                            • CONNECTED SERVICES
NEW DIGITAL PLATFORM

        SIMPLIFY OUR DIGITAL ECOSYSTEM FOR MORE EFFICIENCY
                  TO ACCELERATE 3 MAIN OBJECTIVES

       ACQUIRE              IMPROVE               LEVERAGE
      NEW PROSPECTS        OUR CONVERSION          CUSTOMER
                                RATE                LOYALTY

                       NEW DIGITAL PEUGEOT
CAPITAL DAY - PEUGEOT BRAND
PEUGEOT, ON TRACK TO MEET TARGETS

             A CORE MODEL STRATEGY ALREADY OPERATIVE

         A DYNAMIC AND LEVELIZED 5 YEAR LAUNCHING PLAN

         SPEED UP PRICE GAP CLOSING VS MAIN COMPETITOR
Yves Bonnefont
   DS Brand CEO
CAPITAL DAY
 March 17, 2015
‘Spirit’ reflects the existence of an attitude around DS. It's the dynamic expression of avant-garde,
        the community spirit around it and the optimistic outlook of those who appreciate it.

            ‘DS’ clearly identifies our brand adding clarity to the crafted monogram.
       ‘Automobiles’ firmly positions DS in its category, whilst also alluding to our Parisian
                    origine and savoir-faire inspired approach to automotive.

  The philosophy at the heart of the brand, ‘avant-garde’ reflects our forward-thinking approach
               to the automotive segment and the products and services we offer.
         As true to our past as it is to our future, this approach injects fresh perspective
           and understanding of the evolving requirements of automotive customers.
1/ DS, a car, a cult object which has played a substantial role in automotive history - 2/ The SM, heiress to DS,
an object of fascination which took DS attributes to a new height - 3/ Paris, the birth place of all DS, city of luxury,
fashion and refinement - 4/ The DS Monogram, sculpted like a jewel, a symbol of refinement and know-how –
5/ The DS Wings grille by which each DS is identifiable, affirming the brand strength - 6/ The DS pattern
which connects DS to the universe of craftsmanship and luxury brands - 7/ The floating roof, a silhouette distinguishing
DS since its origins – 8/ The watchstrap bracelet leather seats, an expression of DS know-how and refinement –
9/ The light signature, from the rotating headlights of DS 21 to the DS Led Vision technology of today - 10/ Two cult
places: DS World Paris and DS World Shanghai, both showcases of the complete and pleasurable brand experience
DS PRODUCTS, CORE CUSTOMER BENEFITS

             AVANT-GARDE DESIGN

           EXPERIENTIAL TECHNOLOGY

           DYNAMIC HYPER-COMFORT

      REFINEMENT AND ATTENTION TO DETAIL
AVANT-GARDE DESIGN

 SENSUAL AND REMARKABLE STYLING

EXTENDED RANGE OF PERSONALIZATION
EXPERIENTIAL TECHNOLOGIY

       EFFICIENT POWERTRAINS

  "MY DS, CONNECTED TO MY WORLD"

EXPERIENTIAL TECHNOLOGY FOR GREATER
 DESIGN COMBINED WITH BEST FEATURES
REFINEMENT AND ATTENTION TO DETAIL

MATERIAL REFINEMENT, KNOW-HOW IN THEIR IMPLEMENTATION

                  FAULTLESS QUALITY
DYNAMIC HYPER-COMFORT

DRIVING BEHAVIOUR WELL BALANCED BETWEEN DYNAMISM AND SERENITY

                       "HYPER-COMFORT"
5 STRATEGIC OBJECTIVES

1   BRAND PROFIT                 BRAND CONTRIBUTION

2   PRICING POWER                PPP VS PEERS EUROPE/CHINA

3   INTERNATIONAL DEVELOPMENT    DEVELOPMENT IN TARGETED CITIES

4   FOCUS ON TARGET GROUP        MARKET SHARE AMONG TARGET CUSTOMER BASE

5   BRAND VALUE                  RESIDUAL VALUE VS PEERS
DS CORE MODEL STRATEGY

                Strengthen DS as a brand
     EUROPE
                  Reinforce DS products
                                                 Establish DS globally
                International development   With 5 next-generation products
China & World    3 new vehicles dedicated
                  to international growth

                     2014 - 2017                 2018 - 2020
DS CORE MODEL STRATEGY
7 Worldwide silhouettes, 2 Industrial basis

        PROFIT POOL COVERAGE

                             15%
           8%

         TODAY              2023
PRICING POWER
    Pricing gap to premium target in Europe

                    DATA IN %
2013         2014            2016      2020

                                              -3
                                              -7
                             - 10
- 13.7      - 13.2

    + 0.5 pt
                     Europe G7
INTERNATIONAL DEVELOPMENT
                          200 MEGA CITIES PLAN

                                                            DRUC 4 CITIES
                                                            Built-up business with selected KD
                                 DEUR 60 CITIES             Sales 2014: 900
                                 Sales 2014: 86,000
                                                                              DASI 31 CITIES
                                                                              China: 3 DS models launched
                              DMOA 31 CITIES                                  in one year at CAPSA plant
                              Focus on Maghreb, GCC, Turkey, RSA              Sales 2014: 26,000
                              Sales 2014: 1,900
                                                              DINP 26 CITIES
DAML 19 CITIES                                                Japan among priorities
                                                              Sales 2014: 1,500
Plan to launch DS in Mexico
Sales 2014: 1,200
INTERNATIONAL DEVELOPMENT
                       DS IN CHINA

3 launches in 12 months: DS 5 - DS 5LS - DS 6
        80 Stores in China in 2014, 100+ by end of 2015
INTERNATIONAL DEVELOPMENT
                             NETWORK GROWTH

Independent DS Store                               DS Store adjacent to another brand

DS Salon
Linda
 Jackson
Citroën Brand CEO
LINDA JACKSON
CITROËN CEO
CITROËN BRAND

A UNIQUE              A UNIQUE    A UNIQUE
HISTORY                 SPIRIT   EXPERIENCE
PROMISE   BE DIFFERENT, FEEL GOOD

VALUES    OPTIMISTIC – HUMAN – SMART
A COHERENT             BRAND EXPERIENCE

SERVICES                    PRODUCT           CUSTOMER EXPERIENCE
• Purchasing                                  • Point of sale
• Connected                                   • Internet
BRAND STRATEGIC LINES

WORLDWIDE BRAND POSITIONING

CORE MODEL STRATEGY

UNIQUE CITROËN CUSTOMER EXPERIENCE

INCREASE OF OUR PRICING POWER
CITROËN PRODUCT MARKERS

  OPTIMISTIC              HUMAN             SMART

PURE & OPTIMISTIC      WELL-BEING     USEFUL & INTELLIGENT
     DESIGN          IN BODY & MIND      TECHNOLOGY
PURE & OPTIMISTIC DESIGN
WELL-BEING OF BODY AND MIND
USEFUL AND INTELLIGENT TECHNOLOGIES
PRODUCT STRATEGIC LINES

•   Target: 7 vehicles, international and creative

•   Consistency with product markers and brand positioning

•   Smart profit-pool targeting

•   LCV: Confirm European Leadership with 3 models

•   Technology: Best in class CO2, electric vehicles, PHEV
CORE MODEL STRATEGY

EUROPE RANGE

                             GLOBAL
2013     2015         2017
                             RANGE

CHINA RANGE
CORE MODEL STRATEGY

            PROFIT POOL (%) COVERAGE
                             43%
                 39%

                 2014          2023

             Avg VOLUME / MODEL (‘000)
                               140

                79       91

               2014     2018     2023
CITROËN PURCHASING SERVICES

FINANCING
     +
SERVICING
     +
ROADSIDE ASSISTANCE
     +
COMPREHENSIVE INSURANCE
     =
FIXED MONTHLY PAYMENT
CITROËN CONNECTED SERVICES

EMERGENCY CALL

LINK MYCITROËN

MIRROR SCREEN
CUSTOMER EXPERIENCE: CITROËN & YOU

                    AMBITION

                               TOP 3 CUSTOMER RECOMMENDATION

                    MEANS
                     • BRAND PROMISE
                     • CITROËN ADVISOR
                     • COACHING
A DIGITAL TRANSPARENCY TOOL

                         7000
                                   YTD ONLINE REVIEWS
                         6000

FIRST Avg RESULTS
                         5000
                         4000
                         3000
                         2000
                         1000
                           0
CITROËN PRICING POWER

                   “ Price is what you pay,   CUSTOMER VALUE BASED PRICING
                   Value is what you get ”    COST BASED PRICING

• Standard equipment based on what really counts
                                                        NET PRICE PAID BY CUSTOMER
• In line with good/mainstream competitors
• Move upmarket by trim, color and packaged options
                                                        BRAND PROFITABILITY
• Rigorous control on discount policy
• Communication
                                                       RESIDUAL VALUE
• Brand Experience
BACK IN THE RACE PRICING POWER TARGETS
50 000
         SALES IN 6 MONTHS

         + 25 AWARDS

         50%       OF UPPER TRIM LEVEL

         2015:
         launches in North-Africa ,
         LATAM and ASEAN

CACTUS
MPV EUROPEAN
LEADER
200 000
SALES SINCE LAUNCH

65%     ON UPPER TRIM LEVEL

                              PICASSO
ON TRACK WITH OUR STRATEGIC LINES

WORLDWIDE BRAND POSITIONING

CORE MODEL STRATEGY

UNIQUE CITROËN CUSTOMER EXPERIENCE

INCREASE OF OUR PRICING POWER
THANK YOU
Patrice Lucas
Executive Vice-President,
  Corporate Planning
      & Programs
Implement a global core model strategy
 From a Regional to a Global 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

* Adapted , Industrialized & commercialized for all regions
Core model strategy
From project to program management

    Program management increases
    the synergies potential:

      Shared R&D
                                     Increased R&D efficiency by 10 to 20%
                                           Capex reduction = c.a. 30%
      Shared Capex
                                      +    added benefits of increased volumes x 2 to 3
                                           versus a std project development
      Shared purchased parts
Implement a global core model strategy
C-CUV Program = 4 Brands (Citroën, Peugeot, DS and Opel) and 5 models
                            China & Europe assembly / Worldwide sales
Implement a global core model strategy
More efficient R&D and CAPEX
                                                                 Improved efficiency
             Maintain the Automotive Division’s
                  level at 7-8% of revenue

        •   Current R&D and CAPEX levels between 8%
            and 10% of revenues for generalist OEMs   Core model strategy              €300m
            12%                                                                          +
            10%
             8%                                       R&D Efficiency                   €300m
             6%
             4%
             2%
             0%
                                                                                   €600m*
                        Generalist   PSA Automotive                             annual savings
                         OEMs           division

* Cost efficiency p.a
Gilles
  Le Borgne
Executive Vice-President,
          R&D
Implement a global core model strategy
More efficient R&D and CAPEX

                          Improved efficiency
                                                                   300m€ R&D efficiency in 2015

     Core model strategy                        300m€
                                            Core model                       PLM
     Program management                      Strategy
                                                                                 16%                    Prototypes

                                                                                              28%
                                                  +          Structure
     Partnerships                                           organization   15%
                                                300 m€                                         11%
     Internal productivity                                                     16%                      Suppliers
                                           R&D efficiency                               14%             validations
                                                                       Regional
     Sub-contracting                        €600m*                    optimization
                                                                                        Engineering
                                         annual savings                                Subcontracting

  * Cost efficiency p.a
Current efficient technologies
CO2 European leader in 2014: petrol & diesel

                                                                  Diesel Engines

                 79g                           82g           28
                             44
                 Of CO2
                                               Of CO2

                             Best in
                                                             &    Petrol Engines
                          Class vehicles

            82g
            Of CO2
                                                    97g
                                                    Of CO2   16
                              94g
                              Of CO2
Increase and convergence of environmental regulations
    A constraint and an opportunity

•   CO2                                   •   Pollutants
                                                     Euro 6.2 (2017), Euro 7 (>2020); Beijing 6 phase1 (2017), phase2
          CAFE, CAFC…
                                                     (2020)…

           Incentives
                 Bonus-Malus   New Energy Vehicles                     Inovar Auto
Convergence of models and platforms
Core models, core technologies

    Powertrain           Gasoline PHEV                     EV               New generation
      2020               on EMP2 2019                   on EMP1              of gearboxes

 Optimized gasoline    Gasoline Plug-In Hybrid   EV technologies deployed    6-speed manual
 and diesel engines   for upper market models      on compact models        8-speed automatic
Conclusion

Jean-Baptiste
 de Chatillon
   CFO and Member
of the Managing Board
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