Historic Results of Groupe PSA In 2017: Revenue, Volume of Sales, Recurring Operating Income and Net Result Group Share at a Record Level

RUEIL-MALMAISON, France–()–Regulatory News :

Groupe PSA (Paris:UG) : 

Carlos Tavares, Chairman of Groupe PSA Managing Board said: « Peugeot Citroën DS outstanding results, making significant progress for the 4th year in a row, are the proof of our ability to deliver a profitable and sustainable growth. Our agile, customer focused and socially responsible approach is making the difference. The acquisition of Opel Vauxhall is a great opportunity to boost value creation ».

A dividend of €0.53 per share will be submitted for approval at the next Shareholders’ Meeting.

In 2017, Group revenue amounted to €65,210 million compared to €54,030 million in 2016 up 20.7%. At constant 2015 exchange rates and perimeter, 2017 Group cumulated revenue was up 12.9%6. PCD Automotive division revenue amounted to €40,735 million up by 9.9% compared to 2016. This increase was mainly driven by the product mix (+4.5%) and the volume and country mix (+4.9%) improvement linked to the worldwide success of the Group’s new models that more than compensated the negative impact of exchange rates (-1.6%). OV Automotive division revenue amounted to €7,238 million in 20172.

Group recurring operating income amounted to €3,991 million, up 23.4% compared to 2016. PCD Automotive recurring operating income grew by 33.3% compared to 2016 at €2,965 million. This 7.3% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions. OV Automotive recurring operating income amounted to a €179 million loss in 20172.

Group recurring operating margin excluding OV stood at 7.1% versus 6% in 20164 and Group recurring operating margin with OV stood at 6.1%.

Group non-recurring operating income and expenses had a negative impact of -€904 million, compared to -€624 million in 2016.

Group net financial expenses decreased to €238 million compared to €268 million in 2016.

Consolidated net income reached €2,358 million, an increase of €209 million compared to 2016. Net income, Group share, reached €1,929 million compared to €1,730 million in 2016.

The Opel Vauxhall turnaround plan presented on November 9th is delivering its first concrete achievements such as a joint purchasing organization, social agreements and costs savings.

Banque PSA Finance reported recurring operating income of €632 million7, up 10.7%.

Faurecia recurring operating income was €1,170 million, up 20.6%.

The free cash flow of manufacturing and sales companies was €500 million and the operational free cash flow was €1,554 million.

Total PCD inventory, including independent dealers, stood at 416,000 vehicles at 31 December 2017, an increase of 10,000 units year on year.

The net financial position of manufacturing and sales companies was €6,194 million at 31 December 2017, compared to €6,813 million at 31 December 2016.

A dividend of €0.53 per share will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on May 2nd 2018, and the payment date on May 4th 2018.

Market outlook: in 2018, the Group anticipates a stable automotive market in Europe, and growth of 4% in Latin America, 10% in Russia and 2% in China.

Operational outlook

The Push to Pass plan sets the following targets for Groupe PSA (excluding Opel Vauxhall):

Deliver over 4.5% Automotive recurring operating margin8 on average in 2016-2018, and target over 6% by 2021;
Deliver 10% Group revenue growth by 20189 vs 2015, and target additional 15% by 20219.

Link to the presentation of FY2017.

Financial Calendar24 April 2018: First-quarter 2018 revenue24 April 2018: Shareholders’ Meeting24 July 2018: 2018 interim results24 October 2018: Third-quarter 2017 revenue

Groupe PSA consolidated financial statements for the year ended 31 December 2017 were approved by the Managing Board on 19 February 2018 and reviewed by the Supervisory Board on 28 February 2018. The Group’s Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements. The report on the annual results and the presentation of the 2017 results can be consulted on the Group’s website (www.groupe-psa.com), in the “Finance” section.

Media contact: + 33 6 61 93 29 36 – psa-presse@mpsa.com

About Groupe PSA

The Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all client expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, as well as a wide array of mobility and smart services under its Free2Move brand, aiming to become a great carmaker and the preferred mobility provider. It is an early innovator in the field of autonomous and connected cars. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia. Find out more at groupe-psa.com/en.Media library: medialibrary.groupe-psa.com / @GroupePSA

Attachments

Consolidated Income Statement

 
 
 
2016
 
 
 
2017
 
 

(in million euros)
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL
 
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL

Revenue
 
 
53,884
 
 
 
161
 
 
 
(15)
 
 
 
54,030
 
 
 
65,094
 
 
 
139
 
 
 
(23)
 
 
 
65,210

Recurring operating income (loss)
 
 
3,234
 
 
 
1
 
 
 
 
 
 
 
3,235
 
 
 
3,977
 
 
 
14
 
 
 
 
 
 
 
3,991

Operating income
 
 
2,610
 
 
 
1
 
 
 
 
 
 
 
2,611
 
 
 
3,073
 
 
 
14
 
 
 
 
 
 
 
3,087

Net financial income (expense)
 
 
(272)
 
 
 
4
 
 
 
 
 
 
 
(268)
 
 
 
(241)
 
 
 
3
 
 
 
 
 
 
 
(238)

Income taxes
 
 
(498)
 
 
 
(19)
 
 
 
 
 
 
 
(517)
 
 
 
(691)
 
 
 
(10)
 
 
 
 
 
 
 
(701)

Share in net earnings of companies at equity
 
 
(67)
 
 
 
195
 
 
 
 
 
 
 
128
 
 
 
(9)
 
 
 
226
 
 
 
 
 
 
 
217

Profit (loss) from operations held for sale or to be continued in partnership
 
 
174
 
 
 
21
 
 
 
 
 
 
 
195
 
 
 
(7)
 
 
 
 
 
 
 
 
 
 
 
(7)

Consolidated profit
 
 
1,947
 
 
 
202
 
 
 
 
 
 
 
2,149
 
 
 
2,125
 
 
 
233
 
 
 
 
 
 
 
2,358

Attributable to owners of the parent
 
 
1,532
 
 
 
198
 
 
 
 
 
 
 
1,730
 
 
 
1,702
 
 
 
227
 
 
 
 
 
 
 
1,929

attributable to non-controlling interests
 
 
415
 
 
 
4
 
 
 
 
 
 
 
419
 
 
 
423
 
 
 
6
 
 
 
 
 
 
 
429

Basic earnings per €1 par value share attributable to equity holders of the parent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.18

Diluted earnings per €1 par value share – attributable to equity holders of the parent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.93
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.05

 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 

Consolidated balance sheet

Assets
 
 
31 December 2016
 
 
 
31 December 2017
 
 

(in million euros)
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL
 
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL

Total non-current assets
 
 
22,311
 
 
 
1,654
 
 
 
 
 
 
 
23,965
 
 
 
28,693
 
 
 
2,313
 
 
 
 
 
 
 
31,006

Total current assets
 
 
20,133
 
 
 
1,087
 
 
 
(32)
 
 
 
21,188
 
 
 
25,678
 
 
 
865
 
 
 
(44)
 
 
 
26,499

TOTAL ASSETS
 
 
42,444
 
 
 
2,741
 
 
 
(32)
 
 
 
45,153
 
 
 
54,371
 
 
 
3,178
 
 
 
(44)
 
 
 
57,505

Equity

and liabilities

 
 
31 December 2016
 
 
 
31 December 2017

(in million euros)
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL
 
 
 
Manufacturing

and sales companies

 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL

Total equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,618
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,720

Total non-current liabilities
 
 
10,123
 
 
 
15
 
 
 
 
 
 
 
10,138
 
 
 
11,544
 
 
 
7
 
 
 
 
 
 
 
11,551

Total current liabilities
 
 
19,797
 
 
 
632
 
 
 
(32)
 
 
 
20,397
 
 
 
28,654
 
 
 
624
 
 
 
(44)
 
 
 
29,234

TOTAL EQUITY & LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45,153
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57,505

 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

Consolidated statement of cash flows

 
 
 
2016
 
 
 
2017
 
 

(in million euros)
 
 
Manufacturing and sales companies
 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL
 
 
 
Manufacturing

and sales companies

 
 
 
Finance companies
 
 
 
Eliminations
 
 
 
TOTAL

Consolidated profit from continuing operations
 
 
1,773
 
 
 
171
 
 
 
 
 
 
 
1,944
 
 
 
2,132
 
 
 
233
 
 
 
 
 
 
 
2,365

Funds from operations
 
 
4,466
 
 
 
69
 
 
 
 
 
 
 
4,535
 
 
 
5,205
 
 
 
145
 
 
 
 
 
 
 
5,350

Net cash from (used in) operating activities of continuing operations
 
 
4,937
 
 
 
1,356
 
 
 
177
 
 
 
6,470
 
 
 
5,213
 
 
 
63
 
 
 
1
 
 
 
5,277

Net cash from (used in) investing activities of continuing operations
 
 
(2,673)
 
 
 
113
 
 
 
10
 
 
 
(2,550)
 
 
 
(4,713)
 
 
 
(535)
 
 
 
270
 
 
 
(4,978)

Net cash from (used in) financing activities of continuing operations
 
 
(905)
 
 
 
(330)
 
 
 
(447)
 
 
 
(1,682)
 
 
 
(347)
 
 
 
264
 
 
 
(271)
 
 
 
(354)

Net cash related to the non-transferred debt of finance companies to be continued in partnership
 
 
 
 
 
 
(2,615)
 
 
 
305
 
 
 
(2,310)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net cash from the transferred assets and liabilities of operations held for sale or to be continued in partnership
 
 
(255)
 
 
 
1,097
 
 
 
1
 
 
 
843
 
 
 
(7)
 
 
 
 
 
 
 
 
 
 
 
(7)

Effect of changes in exchange rates
 
 
(93)
 
 
 
16
 
 
 
 
 
 
 
(77)
 
 
 
(119)
 
 
 
(2)
 
 
 
 
 
 
 
(121)

Increase (decrease) in cash from continuing operations and from operations held for sale or to be continued in partnership
 
 
1,011
 
 
 
(363)
 
 
 
46
 
 
 
694
 
 
 
27
 
 
 
(210)
 
 
 
 
 
 
 
(183)

Net cash and cash equivalents at beginning of period
 
 
10,453
 
 
 
893
 
 
 
(54)
 
 
 
11,292
 
 
 
11,464
 
 
 
530
 
 
 
(8)
 
 
 
11,986

Net cash and cash equivalents of continuing operations at end of period
 
 
11,464
 
 
 
530
 
 
 
(8)
 
 
 
11,986
 
 
 
11,491
 
 
 
320
 
 
 
(8)
 
 
 
11,803

 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

1 Opel Vauxhall turnaround plan launched on November, 9th 20172 Opel Vauxhall (OV) is consolidated since August, 1st 20173 Group revenue includes OV since August, 1st 20174 Recurring operating income related to revenue5 Sales and manufacturing companies6 Growth at constant exchange rates (2015) and perimeter (excluding OV)7 100% of the result of Banque PSA Finance. In the financial statements of the PSA Group, joint ventures are consolidated using the equity method.8 Recurring operating income related to revenue9 At constant (2015) exchange rates and perimeter (excluding OV)