The PSA Peugeot Citroën GroupThe PSA Peugeot Citroën Group

April 2008

PSA Peugeot Citroën highlightsPSA Peugeot Citroën highlights

Key figuresKey figures

Key policiesKey policies

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2

4 The Group’s 4 prioritiesThe Group’s 4 priorities

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PSA Peugeot Citroën highlightsPSA Peugeot Citroën highlights1

1810:The Peugeot Frères company is founded.

1890:Peugeot starts manufacturing automobiles.

1919:Citroën produces its first car, the Type A.

1976: The PSA PEUGEOT CITROËN Group is formed.

1998:The Group is reorganised. The technical, industrial, administrative and financial divisions are unified.

2007: The Group sets 4 new operational priorities: quality, cost reduction, products, and international business

Key dates

Present in 150 countries

3,428,400 vehicles sold worldwide, of which more than 1 million outside Western Europe

5.2% of the world market (cars + light commercial vehicles)

No. 2 automobile manufacturer in Europe

Consolidated sales: €60.6 billion

Workforce: close to 208,000 people

Key figures (2007)

Two powerful marques

… serving Peugeot and Citroën, two broadline marques with strong, distinctive identities…

Technological, industrial and financial clout…

Finance

Transport and logistics

Automotive equipment

Other businesses:

� Peugeot Motocycles

� Peugeot Citroën Moteurs

Businesses other than car manufacturing

Organisation chart

Managing Board

Executive Committee

Extended Executive Committee

Chairman of the Managing Board

C. STREIFF

Programs

G. OLIVIER

AutomobilesPeugeot

J.P COLLIN

AutomobilesCitroën

G. MICHEL

Technical and Manufacturing

R. VARDANEGA

Innovation and Strategy

I. MAREY-SEMPER

Finance and Information

Systems

S. RUCAR

Human Resources

J.L. VERGNE

Legal Affairs, Institutional

Relations and Internal AuditJ.C. HANUS

Corporate Communications

L. LACOURT

Replacement Parts

D. MARTEAU

ExecutiveDevelopment

A. SARTORIS

Purchasing

J.C QUERMARD

China

D. DUCHESNE

Mercosur

V. RAMBAUD

Main resultsMain results2

Group sales worldwide

2,323,700 units inWestern Europe …

1,104,700 units outside Western Europe(32,2% of Group sales)

… of which 779,800 unitsin France

In 2007 the Group sold 3,428,400 units (cars + LCVs) worldwide, including more than 1 million outside Western Europe:

Europe’s No.2 car manufacturer2006 market shares in Europe (18 countries)(cars + light commercial vehicles)

In 2006 the Europeancar + LCV market (18 countries)totalled 16.7 million units2,2

3,1

4,7

5,5

5,9

8,6

9,4

9,9

10,9

13,5

18,8

Nissan

Hyundai

BMW

Daimler Chrysler

Toyota

Fiat

Renault

GM

Ford

PSA

VAG

Financial results

51,7

54,4 54,2

56,1 56,3 56,6

60,6

2001 2002 2003 2004 2005 2006 2007

2,72,9

2,2

2,5

1,9

1,1

1,8

2001 2002 2003 2004 2005 2006 2007

Turnover (in M €) Operating margin (in M €)

1,7 1,7

1,51,6

1

0,2

0,9

2001 2002 2003 2004 2005 2006 2007

Net Income (in M €)

Group policiesGroup policies3

Key policies

1. Strong, distinctive products

3. Joint platforms

2. Major innovation

4. An efficient industrial base

5. Targeted cooperation

6. 3 priority regions for international growth

Rapidly renew the core range:

� Strong styling, new car concepts

� Make the ranges distinctive but complementary

� Extend the ranges to cover new market segments

Strong, distinctive products

Launches in 2006

Citroën C6 Peugeot 207

Peugeot Boxer Citroën Jumper

Grand C4 Picasso

Citroën JumpyPeugeot Expert Citroën C-TriomphePeugeot 307 Sedan

C2 China

Launches in 2007

Citroën C4 Picasso

Peugeot 207 CC

Citroën C-Crosser

Peugeot 4007207 RC

Launches in 2008

Citroën NémoPeugeot Bipper

Citroën C5 Tourer

Citroën BerlingoPeugeot Partner

Citroën C5 Peugeot 308 SW

Peugeot 207 SW

The environment

� Solutions for today:• Diesel with particulate filter

• Stop & Start

• Biofuels

� Solutions for tomorrow:• Diesel hybrids

• Fuel cells

Innovation, two focuses:

PSA Peugeot Citroën: European leader for low fuel consumption vehicles

Safety

� Primary safety ➟ accident prevention

� Speed limiters, Lane Departure Warning Systems, etc.

� Secondary safety ➟ occupant protection

� 10 of the Group’s models have received the maximum score of 5 stars in EuroNCAP crash tests.

� Tertiary safety ➟ emergency assistance

� PSA Peugeot Citroën is the only manufacturer to offer emergency callout in Europe: 300,000 vehicles have been fitted with the system.

The Group spends more than €200 million a year on safety

Innovation, two focuses:

Sustainable developmentSustainable development

The Group has identified 3 challenges

� Greenhouse effect

� Road safety

� Urban mobility

An creative reporting interfacea dedicated Group website

www.sustainability.psa-peugeot-citroen.com

A priority action plan

� Provides concrete answers to the challenges identified

� Involves all the divisions, employees and suppliers

� Encourages a progress approach

A recognised commitment

The Group is included in CSR indices

What is a platform?

Different profiles can be developedfrom the same vehicle base

Hatchback Saloon

SW

Coupé Cabriolet

Coupé

3 vehicle platforms within the Group

4 platforms jointly operated with other manufacturers

Number of vehicles rolling off the 3 Group platforms:

1 million in 2003

2.2 million in 2006

Platform policy

An efficient industrial base

RennesRennes

PoissyPoissy

MulhouseMulhouseSochauxSochaux

VigoVigo

MangualdeMangualde

MadridMadrid

AulnayAulnay

Porto RealPorto Real

Buenos AiresBuenos Aires

WuhanWuhan

KolinKolin

TrnavaTrnava

SevelnordSevelnord

Val di Sangro(Sevelsud)

Val di Sangro(Sevelsud)

2010 : New plant in Russia

JeppenerJeppener

XiangfanXiangfan

Porto RealPorto Real

Component and casting plants

DouvrinDouvrin

AsnièresAsnières

CaenCaen

Sept-FonsSept-Fons

MulhouseMulhouseSochauxSochaux

Saint-OuenSaint-Ouen

ValenciennesValenciennes

TrémeryTrémery

MetzMetz

CharlevilleCharleville

HérimoncourtHérimoncourt

7 cooperation agreements with othermajor global manufacturers

Win/win arrangements:

� Shared investment costs (design and manufacturing)

� No excess volumes

Cooperation policy

The cooperation policy enables PSA Peugeot Citroënto remain independent and boost growth.

Fiat

� MPVs and lightcommercial vehicles

Vehicle cooperation agreements

Mitsubishi

� SUV: 4007 and C-Crosser

Toyota

� Small cars (107, C1)

Renault

� Engines and automatic transmissions

Ford

� Direct-injection diesel engines

BMW

� Small capacity petrol engines

3 engine cooperation agreements

Central and Eastern Europe:

� 132 000 units sold in 2007

� + 15.5%

Brazil, Argentina:

� 216 000 units sold in 2007

� + 29.8%

China:

� 208 900 units sold in 2007

� + 3.1%

3 priority regions for internationalgrowth

Group prioritiesGroup priorities4

Quality

Cost reduction

Products

International

business

Four priorities

Purchasing activities : organization and strategy

PURCHASING DIVISIONPURCHASING DIVISION

PurchasingPurchasing OrganizationOrganization

SUPPORT

PROJECTS

PURCHASING

Vehicle parts : €11 bn/year, 230 suppliers

Power train & Chassis parts : € 11bn/year, 315 suppliers

Industrial equipment & services : € 5 bn/year,7000 suppliers

IT & B2B, controlling, reportingStrategy, Quality, Global sourcing

Vehicle projectsEngines projectsInnovation

25 project teams€9bn/year bound in new projects

Our ambitions

In 2004, 95% of our purchases were done in High costs countries (Western Europe, USA)

Inde (partenariat à l’étude)

Our target is to buy around 40% in LeadingCompetitive Countries by the year 2010 throught our 5 purchasing offices.

Our ambitions

30 200

1 500

3 500

5 200

8 000

2005 2006 2007 2008 2009 2010

M €

QualityQuality�� QualityQuality systemsystem (ISO TS 16949 + PSA audits)

�� QualityQuality mindsetmindset (Management)(Management)

�� QualityQuality RigorRigor (Cultural)(Cultural)

�� ContainmentContainment / / ProtectProtect the the customercustomer

�� ProblemProblem solvingsolving cultureculture (root cause analysis, process control, living FMEA’s)

ExpectedExpected resultsresults ::�� 0 or 0 or competitivecompetitive lowlow PPMPPM

�� No No deliverydelivery crisiscrisis

�� No No projectproject developmentdevelopment surprise (timing, surprise (timing, resultsresults))

PSAPSA’’ss requirementsrequirements

Product and Process Product and Process capabilitycapabilityAs As PSAPSA’’ss specificationsspecifications are are mostlymostly functionalfunctional, , supplierssuppliers must must

have have productproduct and process and process capabilitiescapabilities ::

�� TechnicalTechnical mindsetmindset integratingintegrating costcost optimizationoptimization�� R&D R&D capabilitycapability (3D design,FEA,CAO exchange, test benches,

DFMEA’s)�� Project management Project management linkedlinked to PSA to PSA needsneeds (understanding of

functional context, analysis of potential solution, argumentation of proposal)

�� ManufacturingManufacturing capabilitiescapabilities (process simulation, monitoring of process parameters, statistical control, key characteristics, PFMEA’s)

� Adequate resource assigned to projects

ExpectedExpected resultsresults ::�� RobustRobust designs and designs and productsproducts�� 0 Delay on 0 Delay on milestonesmilestones�� PerfectPerfect responseresponse and 0 default on all and 0 default on all functionalfunctional featuresfeatures�� No No priceprice creepcreep

PSAPSA’’ss requirementsrequirements

LogisticsLogistics requirementsrequirements

EDIEDI

�� Anticipation of Anticipation of deliverydelivery program program ((flexibilityflexibility in production)in production)

�� RiskRisk management of global management of global supplysupply chainchain

�� Permanent Permanent reactivityreactivity to manage to manage anyany spillspill

�� InsuranceInsurance to to covercover logisticlogistic costcost crisiscrisis

MeasuresMeasures�� 100 % of 100 % of deliverydelivery on timeon time

PSAPSA’’ss requirementsrequirements

BrazilBrazilOfficeOffice

ArgentinaArgentinaOfficeOffice

Central EuropeCentral EuropeOffice Office

China / China / KoreaKoreaOfficeOffice

CENTRAL CENTRAL OFFICEOFFICE

TurkeyTurkeyOfficeOffice

IndiaIndiaOfficeOffice

Strategy supported by regional Strategy supported by regional OfficesOffices

IranIranOfficeOffice

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A A completecomplete process to supportprocess to supportyouyou

…During the pre-selection phase : Close to you, hel ping you to understand our needs and to give the best answer to our RFQs.

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A A completecomplete processprocess to support to support youyou

… During the development phase : Close to you and PS A corporate teams, accompanying you in our organizati on, helping to achieve our mutual commitments

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A A completecomplete processprocess to support to support youyou

… During Mass production : being close to you to guarantee the best service to PSA Peugeot-Citroën

• Sourcing policy : find the best opportunities for PSA, wherever it is…

• There is now a window to enter PSA’s panel, don’t miss it….

• Support Office : based in Shanghai : The Closer, the better

ConclusionConclusion

Thank you for your kind attention

www.psa-peugeot-citroen.com

Eurorepar networ

• A Repair Shop network build in 2003 for all brands,

• 1300 Repair Shop in France,

• Extended with Peugeot Brand,

• In Extention in Europe until now

http://www.eurorepar.fr

Motaquip network

• Motaquip was established in 1981 and is one of the PSA Peugeot Citroen group of companies.

• From our massive Coventry distribution facility we deliverto more than 200 distributors throughout the UK.

http://www.motaquip.co.uk