PSA Group: Volume Growth Thanks to Middle East Africa, Ahead of Product Offensive

Regulatory News:

PSA Group (Paris:UG):

Group Q3 2016 revenue totalled €11,404 million, compared with €12,016 million in Q3 2015. In the first nine months, Group revenue reached €39,183 million, compared with €40,052 million in 2015, up 1.3% at constant exchange rates.

Automotive division revenue was €7,542 million, compared with €8,052 million in Q3 2015. Negative exchange rate effects (-4.7%) were partially offset by the positive price impact (+1.8%), reflecting the policy of improving the price positioning of the three brands, Peugeot, Citroën and DS.

Consolidated worldwide sales were up 10.6%². Ahead of major product launches in the fourth quarter, which are not yet visible in registrations, sales volumes declined in Europe (-4.3%) and China (-16.5%). In Latin America, they were up 22.6%. In Africa Middle East, volumes increased, driven by sales of vehicles manufactured in Iran under Peugeot licence².

As of end-September 2016, inventories totalled 400,000 vehicles³ (382,000 in the same period last year).

Jean-Baptiste de Chatillon, Chief Financial Officer of the PSA Group and member of the Managing Board, said: "The levers of the Back in the Race plan, especially pricing power and cost reduction, make us confident that we will achieve the objectives of the Push to Pass plan, despite a more challenging external environment, particularly in respect of exchange rates.”

Market outlook

For 2016, the Group expects the automotive market to grow by about 6% in Europe and 15% in China, and to shrink by around 6% in Latin America and 15% in Russia.

Operational targets

The Push to Pass plan, has set the following targets:

• Reach an average 4% automotive recurring operating margin in 2016-2018, and target 6% by 2021;
• Deliver 10% Group revenue growth by 2018⁴ vs 2015, and target additional 15% by 2021⁴.

Financial Calendar – 23 February 2017: 2016 Annual Results

About PSA Group

With sales and revenue of €54 billion in 2015, the PSA Group designs unique automotive experiences and delivers mobility solutions that provide freedom and enjoyment to customers around the world. The Group leverages the models from its three brands, Peugeot, Citroën and DS, as well as a wide array of mobility services including the Free2Move brand, to meet the evolving needs and expectations of automobile users. PSA is the European leader in terms of CO2 emissions, with average emissions of 104.4 grams of CO2 per kilometre in 2015, and an early innovator in the field of autonomous and connected cars, with 1.8 million such vehicles worldwide. 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.

¹ As of 30 September 2016, growth at constant exchange rates (2015) versus cumulated revenue as of 30 September 2015.

² O/w 105 kunits produced in Iran under Peugeot licence

³ Excluding China, including independent dealers.

⁴ At constant (2015) exchange rates

* restated according to IFRS5 (Faurecia Exteriors division)

** Including remaining activities of PSA Finance

Appendix
Worldwide unit sales*

* Assembled vehicles, CKD’s and vehicles sold under licence

** Including vehicles produced in Iran under Peugeot licence : 105kunits in Q3 2016, 115,5 kunits YTD

Communications Division - www.groupe-psa.com - +33 1 40 66 42 00 - @GroupePSA

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