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

  • Successful execution of Push to Pass plan and first concrete results of Opel Vauxhall (OV) turnaround plan PACE!1
  • 15.4% increase of Group sales at 3.63 million vehicles2
  • 20.7% Group revenue growth at €65.2 billion3
  • 7.3% Peugeot Citroën DS (PCD) Automotive division recurring operating margin at a record level4
  • 7.1% Group recurring operating margin4 excluding OV and 6.1% including OV with a Group recurring operating income at €3,991 million
  • 11.5% increase of Net result group share
  • €1.56 billion positive operational free cash flow5

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 Calendar
24 April 2018: First-quarter 2018 revenue
24 April 2018: Shareholders’ Meeting
24 July 2018: 2018 interim results
24 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

Attachements

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 2017
2 Opel Vauxhall (OV) is consolidated since August, 1st 2017
3 Group revenue includes OV since August, 1st 2017
4 Recurring operating income related to revenue
5 Sales and manufacturing companies
6 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 revenue
9 At constant (2015) exchange rates and perimeter (excluding OV)

Contacts

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

Contacts

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