PSA Peugeot Citroën: Third-Quarter 2012 Group Revenues

  PSA Peugeot Citroën: Third-Quarter 2012 Group Revenues

Business Wire

PARIS -- October 24, 2012

Regulatory News:

  *Third-quarter 2012 Group revenues of €12.93 billion, down 3.9% compared
    with the previous year

       *Automotive Division revenues down 8.5% year-on-year, within a
         European market down 7.8% at end September and impacted by ongoing
         pricing pressure
       *Revenue growth of 7.9% at Faurecia and slight 4.5% decline at Banque
         PSA Finance, reflecting lower volumes in Europe

  *Alliance with GM^1: key stages executed, with four projects selected and
    the confirmation of next steps in the creation of a joint purchasing
    organization. Synergy target confirmed by both Groups
  *Banque PSA Finance^1: new financing
  *Restructuring program progressing according to social consultation process
    underway
  *Opening of the capital of Gefco: exclusive negotiations underway with RZD
    for the sale of 75% of the capital for €800 million plus €100 million in
    dividends
  *2012 cost reduction target of €1 billion confirmed

Consolidated                           %         9 months   9 months   %
revenues (in €    Q3 2011  Q3 2012  change   2011      2012      change
millions)
Automotive         9,310     8,523     -8.5%     31,895     28,726     -9.9%
Division
Faurecia           3,787     4,086     +7.9%     11,938     12,850     +7.7%
Gefco              850       852       +0.2%     2,867      2,733      -4.7%
Banque PSA         493       471       -4.5%     1,435      1,450      +1.1%
Finance
Other businesses
and intersegment   (990)     (1,001)   -         (3,550)    (3,275)    -
eliminations
                   _______   _______   ____      _______    ______     ______
PSA Peugeot        13,450    12,931    -3.9%     44,585     42,484     -4.7%
Citroën
PSA Peugeot
Citroën proforma
(with Gefco        13,123    12,576    -4.2%     43,540     41,386     -4.9%
reclassified as
a discontinued
operation*)

(*) Application of IFRS 5 – Non-current Assets Held for Sale and Discontinued
Operations.

Alliance with GM^1

PSA Peugeot Citroën (Paris:UG) and General Motors today confirm important key
steps in their Global Strategic Alliance consistent with the terms of the
Master Agreement signed on 29 February 2012, the Alliance partners have
selected four vehicle Projects as well as confirmed next steps in the creation
of a joint purchasing organization. The aim is to sign the detailed contracts
no later than 31 December 2012, so that the Alliance can be implemented.Both
companies confirm the previously stated synergy target of $2 billion annually
achievable within five years.

Banque PSA Finance^1

PSA Peugeot Citroën announces that the financing of the Banque PSA Finance
should be reinforced. The Banque PSA Finance banking pool has been requested
to provide a total of €11.5 billion in cash facilities, of which €1 billion in
additional liquidity. At the same time, the French State has announced its
intention to provide up to €7 billion in refinancing guarantees for new bond
issues, utilisable over the next three years. These steps complete the other
measures already taken by the Group to strengthen Banque PSA Finance’s funding
capacity, which include an increase in the securitization programme to 30% of
total assets and the early-2013 introduction in France of a passbook savings
account for retail customers.

2012 Outlook

The Group now expects the European automotive market to contract by 9%, while
the Chinese market should grow by around 7%, the Latin American market by
around 5% and the Russian market by some 11%.^2

The competitive environment is getting tougher, with increased pricing
pressure and ongoing deterioration in the markets of Southern Europe.

In this context, the Group’s net debt is expected to stand at around €3
billion at 31 December 2012 with favourable elements, the asset disposals and
unfavourable elements, production adjustments to be undertaken in the fourth
quarter and change in Faurecia's cash flow.^3

The cost reduction measures undertaken in 2012 are on track to meet the target
of €1 billion. The asset disposals plan was pursued during the third quarter
with the entry into exclusive negotiations with RZD for the opening of the
capital of Gefco, and will be completed with the disposal of the remaining
real estate assets by the end of the year. The target of raising €1.5 billion
from asset disposals will therefore be fully met.

AUTOMOTIVE DIVISION

Automotive Division revenues fell by 8.5% in the third quarter of 2012 to
€8,523 million from €9,310 million in the third quarter of 2011. This
reflected the suspension of CKD deliveries to Iran in February 2012 and
contractions in Europe and Latin America, partially offset by the increase of
unit sales in China and Russia. Worldwide sales of assembled vehicles totalled
625,267 units, down 6.3% year-on-year excluding CKD units.

Revenues from new vehicle sales amounted to €6,125 million compared with
€6,689 million in third-quarter 2011. The 8.4% decline was attributable mainly
to a sharp fall of 8.7% in assembled vehicle volumes excluding China,
reflecting the unfavourable country mix in Europe. The pressure on prices was
maintained in a highly competitive commercial environment.

These adverse factors were partially offset by a further 2% improvement in the
product mix, driven by successful new launches and the development of sales of
the Peugeot 208, following the introduction of petrol engines in July and
October.

New vehicle inventories at 30 September totalled 471,000 units, a decline of
20,000 units. The target of reducing inventories by the end of the year to a
level ca. end of December 2010 level is confirmed.

GEOGRAPHICAL HIGHLIGHTS

Europe^4:
The European automotive markets contracted sharply, down by 9.4% in the third
quarter.
Markets in Western Europe were down by 9.3%, with wide variations by country.
The markets in Southern Europe, to which the Group is heavily exposed with 53%
of its European sales, saw further sharp declines, with decreases of 11.7% in
France, 23.2% in Italy and 18.8% in Spain. The German market contracted by 7%,
while the United Kingdom market grew by 6.8%.

In Central and Eastern Europe, markets fell by 11.4% overall during the
quarter.

Reflecting this unfavourable market mix for the Group, its market share in
Europe narrowed slightly to 12.3% from 12.5% in the third quarter of 2011. At
comparable country mix, market share in the third quarter would have been
12.5%.

PSA Peugeot Citroën maintained its leadership in the light commercial vehicle
market with a 20.6% share at the end of September. The market itself was down
10% over the quarter.

China:
The Chinese market grew again on an invoice basis in the third quarter. The
Group increased its sales by 7.6%, with a successful program of model launches
including the Peugeot 308 and the new C Quatre helping to deliver a market
share of 3.4%. DPCA will expand its model line-up in the fourth quarter, with
the addition of the Citroën C4L and another C segment vehicle, while at the
same time continuing to develop its dealer network.

Russia:
The Russian market continued to improve, and grew by 13% in the third quarter.
The Group’s sales in this country rose 9.4% over the first nine months of the
year. Its market share stood at 2.7% at the end of September, reflecting the
launch of the Peugeot 408 and a 37.5% increase in the light commercial
vehicles segment.

Latin America:
In Argentina, the automotive market contracted slightly over the first nine
months of the year, with demand in the third quarter down sharply by 9%. In
Brazil, tax incentives helped to drive a 5.5% increase in the market over the
first nine months, led by the popular B segment in which the Group has
traditionally had only a limited presence. Its market share in Latin America
at the end of September stood at 5.0% compared with 5.8% a year earlier. Unit
sales for the first nine months totalled 203,265 vehicles, following the
successful launches of the Citroën C3 and Peugeot 308 and before the launch of
the Peugeot 208.

CKD units:
The virtual absence of CKD sales in the third quarter was due to the
suspension of CKD sales in Iran since February following tighter international
sanctions and the attendant financing difficulties affecting payments.

PRODUCT HIGHLIGHTS

With over 130,000 orders, the Peugeot 208 is a success and the segment leader
in diesel in Europe since July. The launch of models powered by the latest
three-cylinder engines reinforces the range. More compact than the Peugeot 207
and 110 kg lighter, the Peugeot 208 offers fuel consumption of 3.4 litres per
100 km with CO[2] emissions of just 87g per km.

Brand upscaling continued in the third quarter, with premium models accounting
for 18% of consolidated Group sales in the first nine months of 2012, versus
17% in the same period of 2011. The trend will continue with the ramp-up of
deliveries of the DS line, which already accounts for 15% of Citroën sales,
and with the upcoming launch of the new Citroën DS3 Cabrio. The four diesel
hybrid models (Peugeot 3008HY4, 508RXH, 508HY4 and Citroën DS5HY4) underscore
the Group’s technological advance. These models account for over 20% of
Citroën DS5 sales and 10% of sales of the Peugeot 3008 and 508.

FAURECIA

Faurecia reported revenues of €4,086 million for the third quarter of 2012, an
increase of 7.9%. Revenues declined by 2.4% in Europe but increased in all
other regions, with gains of 51.4% in North America, 2.9% in South America and
23.2% in Asia. Revenues from product sales were up 12.3% at €3,217 million.
Across the business base, automotive seats gained 6.8%, interior systems
30.1%, emissions control technologies 8.0% and automotive exteriors 3.6%.

GEFCO

At €852 million, Gefco’s revenues were stable compared with the third quarter
of 2011. Two key stages were passed during the third quarter:

  *The logistics agreement with GM announced on 2 July
  *Entry into exclusive negotiations with RZD on 20 September to form a
    strategic partnership. The agreement will accelerate the development of
    Gefco with clear operational synergies with RZD and new opportunities in
    high growth markets that will drive revenue growth. In accordance with
    IFRS 5 relating to non-current assets held for sale, Gefco’s activities
    have been reclassified (see table in appendix).

BANQUE PSA FINANCE

Banque PSA Finance's revenue decreased slightly, by 4.5% to €471 million in
the third quarter. A total of 192,000 new loans were originated, down 4%. This
was due to the slowdown in Group vehicle sales in Europe over the period, the
effects of which were partially offset by strong commercial performance
(global penetration of 30.9%, +1.1pt compared to third quarter of 2011). At
the end of September, Banque PSA Finance had €7 billion in available
liquidity, covering over six months of financing, as well as a solid capital
base, with a core tier one ratio of 13%.

  Worldwide Automobile Sales – Third Quarter and First Nine Months (cars and
                          light commercial vehicles)

                      Q3      Q3     CHANGE   9       9       CHANGE
                                                     MONTH    MONTH
IN THOUSAND OF UNITS*     2011     2012              2011     2012
Europe**          AP      221      195     -11,80%   835      720      -13,80%
                          378      186               936      542
                  AC      191      164     -14,40%   731      619      -15,30%
                          911      291               786      656
                  Total   413      359     -13,00%   1 567    1 340    -14,50%
                  PSA     289      477               722      198
Russia            AP      11 143   11      2,20%     33 208   34 436   3,70%
                                   389
                  AC      8 285    7 958   -3,90%    21 619   25 519   18,00%
                  Total   19 428   19      -0,40%    54 827   59 955   9,40%
                  PSA              347
Latin America     AP      49 103   49      1,80%     138      126      -9,00%
                                   978               708      155
                  AC      35 835   31      -11,20%   100      77 110   -23,40%
                                   817               607
                  Total   84 938   81      -3,70%    239      203      -15,10%
                  PSA              795               315      265
China             AP      42 500   50      19,00%    123      154      24,90%
                                   571               393      106
                  AC      54 391   53      -1,00%    168      159      -5,10%
                                   873               064      447
                  Total   96 891   104     7,80%     291      313      7,60%
                  PSA              444               457      553
Rest of the       AP      33 221   39      19,20%    109      123      13,30%
world                              603               095      613
                  AC      19 870   20      3,70%     57 285   60 946   6,40%
                                   601
                  Total   53 091   60      13,40%    166      184      10,90%
                  PSA              204               380      559
Total assembled   AP      357      346     -3,00%    1 240    1 158    -6,60%
vehicles                  345      727               340      852
                  AC      310      278     -10,20%   1 079    942      -12,70%
                          292      540               361      678
                  Total   667      625     -6,30%    2 319    2 101    -9,40%
                  PSA     637      267               701      530
CKD               AP      120      770     -99,40%   328      143      -56,10%
                          280                        075      883
                  AC      -        -       -         -        -        -
                  Total   120      770     -99,40%   328      143      -56,10%
                  PSA     280                        075      883
Total assembled   AP      477      347     -27,20%   1 568    1 302    -16,90%
vehicles                  625      497               415      735
+ CKD units       AC      310      278     -10,20%   1 079    942      -12,70%
                          292      540               361      678
                 Total   787      626     -20,50%   2 647    2 245    -15,20%
                  PSA     917      037               776      413

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

  PSA Peugeot Citroën is organising an audio conference in English with Jean
 Baptiste de Chatillon, CFO and member of the Managing Board, on Wednesday 24
     October at 9:00 am Paris time / 8:00 am London time. To participate:

              France: 01 70 77 09 37 UK: +44 (0) 203 367 94 58

      You can also listen to the audio conference and download the 2012
  third-quarter revenues presentation in the Analyst/Investor section of the
                 Group’s website www.psa-peugeot-citroen.com.

Financial Calendar:

  *13 February 2013: 2012 annual results
  *24 April 2013: 2013First-quarter revenues
  *31 July 2013: 2013 First-half results

                                   APPENDIX

                        Restatement of Gefco revenues*

in million euros                        Q3 2011  Q3 2012  9m 2011  9m 2012
Total revenues (Incl. Gefco)             13,450    12,931    44,585    42,484
Change in Gefco Revenues                 -850      -852      -2,867    -2,733
Change in Intra-group Eliminations       523       497       1,822     1,635
Total revenues pro forma (after
reclassifying Gefco under discontinued   13,123    12,576    43,540    41,386
operations)

(*) Application of IFRS 5 – Non-current Assets Held for Sale and Discontinued
Operations.

^1 See press releases published today.
^2 Versus -8% for Europe 30, +2% for Latin America and +9% for Russia
announced in July 2012.
^3 Versus the target announced in July 2012 of stabilizing net debt at
December 2012 around the June 2012 level.^4 Europe = EU + EFTA + Albania +
Bosnia + Croatia + Kosovo + Macedonia + Montenegro + Serbia

        PSA Peugeot Citroën - 75 av. de la Grande Armée - 75116 Paris
                         www.psa-peugeot-citroen.com

Contact:

Media Relations
Jonathan Goodman +33 (0) 1 40 66 47 59
jonathan.goodman@mpsa.com
or
Pierre-Olivier Salmon +33 (0) 1 40 66 49 94
pierreolivier.salmon@mpsa.com
or
Jean-Baptiste Mounier +33 (0) 1 40 66 54 22
jeanbaptiste.mounier@mpsa.com
or
Investor Relations
Carole Dupont-Pietri +33 (0) 1 40 66 42 59
carole.dupont-pietri@mpsa.com
or
Olivier Sartoris +33 (0) 1 40 66 43 65
olivier.sartoris@mpsa.com
or
Christophe Fournier +33 (0)1 40 66 57 45
christophe.fournier@mpsa.com
 
Press spacebar to pause and continue. Press esc to stop.