July 2008 1Interim Results July 23, 2008
July 2008 2
This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company’s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in theCompany’s annual report available on its Internet website (www.psa-peugeot-citroen.com). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
More comprehensive information about PSA Peugeot Citroën may be obtained on its Internet website (www.psa-peugeot-citroen.com), under Regulated Information.
July 2008 3
Christian Streiff
First Half Highlights
July 2008 4
Key Highlights
� CAP 2010 plan: one year after its launch, a key competitive edge to face the difficult environment
� Priority growth regions showing strong momentum
� Successful launch of new models
July 2008 5
First half 2008 sales growth driven
by international expansion
� 15% volume growth in our priority regions
Mercosur: +32.2%
Eastern Europe & Russia: +12.5%
� Vehicles adapted to local market needs
Citroën C-Elysée & Peugeot 307 hatchback in China
Citroën C3 in Mercosur Peugeot 307 hatchback China
Citroën C3 Mercosur
Citroën C-Elysée China
July 2008 6
First half 2008 sales growth driven by product momentum & environmental leadership
� Successful launch of 10 new models
� Leadership in light commercial vehicles:253,400 units sold, up 13.6%
� Leadership in low emission vehicles: 568,000 vehicles sold emitting less than 140g CO
2/km in Europe
(47% of PSA unit sales in Europe)
Peugeot Bipper
Citroën Nemo
Peugeot Partner
Citroën Berlingo
Citroën C5 Peugeot 308 SW
July 2008 7
� Russian development accelerated by new JV with Mitsubishi and new plant under construction
� Environmental leadership to be reinforced by:
New family of 1-litre 3 cylinder petrol engines
Cooperation project for electric powertrainswith Mitsubishi
� Acceleration of product launch rhythm
Major new steps in building future growth
July 2008 8
400
June 30, 2007 June 30, 2008
CAP 2010Competitiveness
CAP 2010Development
Inflationand R&D
In million euros
633-188
+882
-461
Competitiveness plan drives 58% growth in automotive recurring operating income
+58%1.7%
2.6%
July 2008 9
Warranty expenses in constant decline(basis 100)
66.0
78.0
86.0
100.0
72.0
H1 2006 H2 2006 H1 2007 H2 2007 H1 2008
CAP 2010 drives improvement in quality
July 2008 10
CAP 2010: 5.3%* productivity gains in the automotive division
24,50224,169
47,45644,566
2006 2007 June 30,
2007
June 30,
2008
132,200
136,900134,100
139,600
2006 2007 June 30,
2007
June 30,
2008
Automotive division sales and revenue(in million euros)
Automotive division workforce(end of period, in number of people)
�
+1.4%
�
-3.4%
* On the basis of average workforce
Decrease in Western Europe: -7,823 people (-6.3%)
July 2008 11
June 30,
2007
June 30,
2008
Group headcount reduction in Western Europe
In number of people
172,247
-6,304
Voluntary
separation
Natural
attrition
-1,519-1,952
Automotive division Non Automotivedivision
162,472
Group workforce decrease in Western Europe: -9,775 people
-7,823
July 2008 12
CAP 2010 delivers a boost to financial performance
� Group operating margin increases to 3.6%
� Competitiveness plan generates gross savings of €882 million
� Net profit climbs 49% to €733 million
� Free cash flow generation* positive at €134 million
* Manufacturing and sales companies
July 2008 13
Isabel Marey-Semper
First Half Results
July 2008 14
Profit attributable to equity holders of the parent 733492
2.3%1.6%% of sales
2.3%1.6%% of sales
731483Consolidated profit for the period
6523Share in net earnings (losses) of companies at equity
(293)(91)Income taxes
(70)(4)Net financial income (expenses)
(86)(287)Non-recurring operating income and (expenses)
3.6%2.7%% of sales
+32.4%1,115842Recurring operating income
+1.6%31,29930,818Sales and revenue
ChangeJune 30,
2008June 30,
2007
Group results
In million euros
Operating income 1,029555
July 2008 15
+2.3%308301
+32.4%1,115842
+3.9%7976
+42.9%9063
+58.3%633400
ChangeJune 30,
2008June 30,
2007
All Group businesses contribute to recurring operating income growth
% margin
% margin
1.7
1.0
4.2
nm
2.7
2.6
4.1
1.4
nm
3.6
Faurecia
PSA Peugeot Citroën
Gefco
Banque PSA Finance
Automotive
Others businesses and eliminations
2 - 5 -
In million euros
July 2008 16
2007
Positive cash flow generation
In million euros – Manufacturing and sales companies
Net financial position
(Dec. 31, 2007)
Net financial position
(June 30, 2008)
1,404 1,257
+2,158
(464)
(1,143)(179)
Cash flowChange
in WCR
Capitalized
R&D
Capex
(excl. R&D)
Net
dividends
(417)
Others
(102)
Free cash flow: +134
July 2008 17
Faurecia: recurring operating income up 43%
Free cash flow (6)(10)
(1,856)(1,865)
-0.3%-0.6%% of sales
(19)(40)Consolidated profit (loss) for the period
(48)(43)Net financial income (expenses)
(27)(39)Non-recurring operating income and (expenses)
1.4%1.0%% of sales
9063Recurring operating income
6,6016,512Sales and revenue
June 30, 2008
June 30,
2007
Net financial position
In million euros
6324Operating income
� Turnaround continues
� Positive profitability in North America
� Encouraging outlook
July 2008 18
Gefco: sales and revenueup 6%
7976Recurring operating income
713701� Third parties
1,1911,096� PSA Peugeot Citroën
1,9041,797Sales and revenue
% of sales 4.2% 4.1%
Non-recurring operating income and (expenses)
(1) (1)
In million euros June 30, 2008
June 30,
2007
Operating income 75 78
� International growth
� Customer base diversification
� Tight cost control
July 2008 19
Recurring operating income
Net banking revenue
Penetration rate
Number of new contracts(lease and financing)
Total outstanding loans(end of period)
Sales and revenue
€308 m
€504 m
25.5%
444,598
€24.4 bn
€1,059 m
June 30, 2008
€301 m
€492 m
25.2%
443,700
€23.5 bn
€975 m
June 30,
2007
Banque PSA Finance: a solid performance
� International growth
� Cost of riskstill benchmark
� Solid profit performance
July 2008 20
(at June 30, 2008 - average net outstandings)
Banque PSA Finance: instalment sales continueto account for the bulk of the business
By product (new + used vehicles)
Long-term rental
Leasing
Instalment sales62%
14%
24%
20
July 2008 21
Banque PSA Finance: increase in Tier 1 capital, while the risk-weighting of assets remains low
10.54%
10.36%
9.62%
9.90%
December 2005 December 2006 December 2007 June 2008
*
(1) Equity /aggregate credit risk exposure
* Tier one ratio: 2007: 10.46% 2008: 10.60%
European capital adequacy ratio (1)
Regulatory capital (in million euros)
2,063 2,321 2,543
21
2,649
*
July 2008 22
Banque PSA Finance: diversification, a core component of the financing strategy
June 08Dec. 07June 07
Stockholder’s
equity +
subordinated debt
Other
liabilities
Bank
facilities
Capital
Markets
Securizations
16%17%15%Loan securizations
45%52%56%Capital markets
39%31%29%Interbank facilities
June 30,
2008
Dec. 31,
2007
June 30,
2007
2.72.9 2.9
2.01.72.0
6.87.5
9.3
13.112.6
10.6
3.64.13.8
22
Excluding undrawn confirmed lines of creditIn billion euros
July 2008 23
Automotive: strong profit growth
(58)(247)Non-recurring operating income and (expenses)
2.6%1.7%% of sales
+58.3%633400Recurring operating income
+1.4%*24,50224,169Sales and revenue
� o/w restructing costs & impairment losses
� o/w others
(339)
92
(61)
3
June 30,
2007ChangeIn million euros
June 30, 2008
575153Operating income
Citroën C4 Picasso
* +2.6% at constant scope
2.3%0.6%% of sales
July 2008 24
In million euros
New car salesJune 30, 2007
New car salesJune 30, 2008
+0.4%
+1.0%
+1.1%
-0.2%
+2.1%
-1.2%
18,207
Country mix
Others (inc. CKD)*
CurrencyProduct mix
Volume
Price
* Excluding DPCA
New car sales growth driven by volume, product mix and price
17,638+3.2%
July 2008 25
H1
2007
H1
2008
In million euros
Competitiveness plan drives 58% growth in automotive recurring operating income
+89
(143)
PayrollWarranty,
general expenses,
fixed costs
Others
Production
& procurement
(46)
(277)
(90)
Raw
materials
Currency
(179)
+484
+398
Europe
and
overseas
Mercosur
and
other BUs
-188 +882 -461Development Competitiveness Inflation
R&D
(3)
6332.6%
4001.7%
+58%
� Major fixed costs and SG&A reduction now flowing
� Substantial savings delivered by production & purchasing performance
� Currency impact due to decline in GBP versus €
June 30,
2007
June 30,
2008
July 2008 26
Christian Streiff
Second Half Key Priorities and Outlook
July 2008 27
� Reap full benefits of successful new models launched in first half
� Build on positive trends and demand for low consumption & CO2 emission vehicles
� Launch 9 new models:
Europe: passenger versions
of the Peugeot Bipper and Citroën Nemo
Mercosur: Peugeot 207 Hatchback,
SW and Passion and Citroën C4 Hatchback
China: Citroën C-Quatre and 2 new models for Peugeot
Key priorities for second half:momentum of vehicle sales to continue
New vehicle sales
July 2008 28
Key priorities for second half: driving costs down
Continuously drivingcosts down
� Downward trends in production& fixed costs and SG&A to continue
� Quality improvement to continueand warranty expenses to be reduced
� Extend benefits from PSA production system
July 2008 29
Key priorities for second half: new actions
Prices� Pass through of raw materials cost
increases
Commercial costs
� Media cost reductions
� New internal efficiency initiatives
Lean everywhere
� Roll out lean process to all areas
July 2008 30
Outlook for full year 2008
Full year marketvolume trends
� Western Europe expected -4%
� Growth regions expected around +15%
Total Group unit sales objectiveof around 5% confirmed
Full year raw materials& currencyheadwinds
� Raw materials cost inflation expected in range of €300-350 million
� Negative currency impact of GBP at 80 pence/€
Group operating margin target of 3.5% confirmed
July 2008 31
Appendices
July 2008 32
Sales and revenue
In million euros
+1.6%31,29930,818PSA Peugeot Citroën
(2,767)(2,635)Other businesses and intra-company eliminations
1,059975Banque PSA Finance
1,9041,797Gefco
6,6016,512Faurecia
24,50224,169Automotive
June 30, 2008
June 30,
2007
+8.6%
+6.0%
+1.4%
+1.4%
Change
-
July 2008 33
Sales and revenue
109119Other businesses
31,29930,818PSA Peugeot Citroën
829762Banque PSA Finance
713701Gefco
5,1685,090Faurecia
24,48024,146Automotive
June 30, 2008
June 30,
2007
(net of intra-company sales)
In million euros
July 2008 34
4.44.44.5
2.4
3.6
3.1
2.7
1.6
2.4
3.33.33.4
0.7
1.7
1.0
0.2
2.6
2.0
H1-04 H2-04 H1-05 H2-05 H1-06 H2-06 H1-07 H2-07 H1-08
PSA Peugeot Citroën
Automotive
Operating margin expansion continues
As a % of sales and revenue
July 2008 35
Inventories
668,000604,000566,000619,000620,000578,000641,000644,000Total
302,000329,000280,000290,000333,000269,000326,000339,000Independantdealership inventory*
366,000275,000286,000329,000287,000309,000315,000305,000Group inventory
70,00060,00057,00062,00059,00058,00061,00055,000Proprietary dealership inventory
296,000215,000229,000267,000228,000251,000254,000250,000Manufacturer inventory
June 30,
2008
Dec. 31,2007
Sept. 30,2007
June 30,2007
Dec. 31,2006
Sept. 30,2006
June 30,2006
Dec. 31,2005
(in units)
* Change in perimeter: from the beginning of 2007, addition of independent dealership inventories from overseas countries not included in previous years. Figures have been updated from December 31, 2005
July 2008 36
Automotive: a 4.6% growth in worldwide unit sales
In thousand units
1,234.5 1,210.7 -1.9%
68.7 70.0 +1.9%
1,670.7 1,679.3 +0.5%
93.4 165.4 +77.0%
Western Europe (18)
Eastern Europe*
Total assembled vehicles
Total CKD units
TOTAL AV + CKD units 1,764.1 1,844.7 +4.6%
Change
154.3 144.7 -6.3%Rest of the world
16.7 26.0 +56.0%Russia
93.9 124.1 +32.2%Mercosur**
102.6 103.8 +1.2%China
(assembled vehicles and CKD units)
H1 2007 H1 2008
+81
+9
+15%
* Croatia, Hungary, Poland, Czech Republic, Slovakia, Slovenia, Lithuania, Latvia, Estonia, Cyprus, Malta** Brazil, Argentina
July 2008 37
Registrations
Registrations
103,100
124,000
25,200
67,800
1,225,800
4.0%
7.5%
1.4%
11.7%
14.1%
1.3
26.8
61.7
3.4
-3.9
14.3
26.5
32.9
8.3
-3.0
H1-07 H1-08
14.0%
11.2%
1.7%
7.5%
3.5%
H1-08/H1-07 change in %
PSAMarket
China
Mercosur
Russia
Eastern Europe
Western Europe
37
(cars and light commercial vehicles)
Market share
July 2008 38
Western Europe
Others
Italy
United Kingdom
Spain
France
Germany
Europe
Registrations
246,400
140,700
139,800
159,700
438,700
100,500
1,225,800
12.5%
10.2%
10.5%
20.0%
31.6%
5.6%
14.1%
-7,9
-3.4
7.2
-10.8
-20.1
5.2
-3.9
-0.6
3.9
-11.2
-1.4
-19.0
4.6
-3.014.0%
31.8%
19.8%
9.8%
10.2%
5.7%
12.2%
H1-07 H1-08
Market share
PSAMarket
(cars and light commercial vehicles)
H1-08/H1-07 change in %
July 2008 39
In thousand units
Worldwide sales
268 276
159 155
H1 2007 H1 2008
427 431
Peugeot 207 SW
Peugeot 207 CC
H1 2007 H1 2008
11.111.5
In %
206 + 207 market sharein its segment – Europe 18 countries
Peugeot 207
Peugeot 206
�
+1.0%
207 + 206 leader in the B segmentin Europe for the second year in a row
39
July 2008 40
In thousand units
Xsara Picasso + C4 Picasso market sharein its segment – Europe 18 countries
In %
92119
7145
H1 2007 H1 2008
+0.6%163 164
22.7
Picasso leader in the compact MPVs segment in Europe for the second year in a row
Citroën C4 Picasso
Citroën Grand C4 Picasso
H1 2007 H1 2008
19.0
Citroën
C4 Picasso
Citroën
Xsara Picasso
�
40
Worldwide sales
July 2008 41
Peugeot 308: on track with its 2008 target
151
99
H1 2007 H1 2008
+13.0%
� 250
Worldwide sales
Peugeot 308
Peugeot 307
350,000 units sold
In thousand units
41
220
S1 2007 S1 2008
307 + 308 market sharein its segment – Europe 18 countries
In %
6.3
H1 2007 H1 2008
5.5
2008 Target
Peugeot 308 SW
July 2008 42
New Citroën C5
� Launched in April 2008
� Orders since launch:
52,000 orders
� Full year target:
150,000 units sold
42
Citroën C5
Citroën C5 Tourer
July 2008 43
Worldwide sales (LCVs)
Peugeot Expert Tepee
H1 2007 H1 2008
18.8
19.6
Market share Europe 18 countries
Light commercial vehicles (in %)
113
82
348
PSA: reinforced leadership in light commercial vehicles in Europe
In thousand units
94 86
40 44
55 63
2934
31
H1 2007 H1 2008
223253
+13.6%
Partner/Berlingo
Expert/Jumpy
Boxer/Jumper
Bipper/Nemo
�Others
Peugeot Bipper
Citroën Nemo
July 2008 44
In million euros
DPCA recurring operating income
103.8102.6
H1 2007 H1 2008
+1.2%
�
In thousand of units sold
H1 2007 H1 2008
12.0
39.5
China
Market:
+14.3%
July 2008 45
79.7
55.4
H1 2007 H1 2008
44.538.4
H1 2007 H1 2008
In thousand of units sold
+43.7%Market:
+30.2% +15.7%Market:
+12.9%
Brazil
� �
Argentina
61.0
-14.0
H1 2007 H1 2008
In million euros
Automotive division recurring operating income
Mercosur
July 2008 46
22.3
11.5
3.7
5.2
H1 2007 H1 2008
Russia
+56.0%
�26.0
16.7
Market:
+32.9%
Citroën C6Peugeot 207
� Peugeot: 58 sales points at June 30, 2008 (40 at end-2007)
� Citroën: 31 sales points at June 30, 2008 (37 at end-2007)
In thousand of units sold
Citroën
Peugeot
July 2008 47
2,580,000 vehicles
Russia: to capture part
of the market in value
9.7%
36.2%
17.6%
5.7%2.7%
3.9%
15.1%
9.1%
2007 units
19.4%
19.1%
9.5%
9.1%
3.8%
28.2%
7.1%
3.7%
2007
A B C D E MPVs SUVs LCVs
Market value (in €)
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