Groupe PSA: Sharp growth and record profitability

  • 40.1% Group revenue growth at €38.6 billion1
  • 8.5% PCD2 Automotive division recurring operating margin3
  • 5.0% OV4 Automotive division recurring operating margin
  • 7.8% Group recurring operating margin, at €3.017 billion
  • €3.191 billion Group operational free cash flow5 of which €1.157 billion for OV

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

Groupe PSA (Paris:UG):

Carlos Tavares, Chairman of Groupe PSA Managing Board said: « The Group demonstrates since 2014 its recurring ability to level up global profitability, efficiency and volumes, despite strong headwinds. Opel Vauxhall teams start to deliver good results to build the New Opel Vauxhall and are eager to unleash further potential. Our agility and strong focus on execution remain a strong asset to reach our targets. »

Group revenue amounted to €38,595 million in the first half of 2018, up 40.1% compared to 2017 H1 and up 22.9%6 at constant 2015 exchange rates and perimeter. PCD Automotive division revenue amounted to €22,149 million up 11.4% versus 2017 H1, mainly driven by volume and country mix (+5.4%), as well as product mix (+4.7%), and sales to partners (+3.2%), offsetting the negative impact of exchange rates (-2.9%). OV Automotive division revenue amounted to €9,946 million in 2018 H1.

Group recurring operating income amounted to €3,017 million, up 48.1% with PCD Automotive recurring operating income up 29.9% at €1,873 million. This 8.5% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to an increase of sales, a positive product mix and further cost reductions. OV Automotive recurring operating income amounted to a €502 million profit in 2018 H1.

Group recurring operating margin stood at 7.8%, up 0.4 pt versus 2017 H1.

Group non-recurring operating income and expenses amounted to -€750 million, compared to -€112 million in 2017 H1.

Group net financial expenses increased to -€218 million compared to -€121 million in 2017 H1.

Consolidated net income reached €1,713 million, an increase of €242 million compared to 2017 H1. Net income, Group share, reached €1,481 million, up €226 million compared to 2017 H1.

Banque PSA Finance reported recurring operating income of €510 million7, up 63.5%.

Faurecia recurring operating income was €642 million, up 10.1%.

The free cash flow of manufacturing and sales companies was €2,577 million and the operational free cash flow was €3,191 million of which €1,157 million for OV.

Total PCD inventory, including independent dealers, stood at 412,000 vehicles at 30 June 2018, an increase of 38,000 units from end June 2017. Total OV inventory, including independent dealers, stood at 216,000 vehicles at 30 June 2018.

The net financial position of manufacturing and sales companies was €8,257 million at 30 June 2018, up €2,063 million compared to 31 December 2017.

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 reminder:
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 H1 2018.

Financial Calendar
24 October 2018: Third-quarter 2018 revenue

Groupe PSA consolidated financial statements at 30 June 2018 were approved by the Managing Board on 18 July 2018 and reviewed by the Supervisory Board on 23 July 2018. The Group's Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

The interim results report and interim financial results presentation for 2018 are available at www.groupe-psa.com, in the “Analysts and Investors” section.

About Groupe PSA

Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all customer expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall and provides a wide array of mobility and smart services under the Free2Move brand. Its ‘Push to Pass’ strategic plan represents a first step towards the achievement of the Group’s vision to be “a global carmaker with cutting-edge efficiency and a leading mobility provider sustaining lifetime customer relationships”. An early innovator in the field of autonomous and connected cars, Groupe PSA 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_EN

Attachements

Consolidated Income Statement*

  First-half 2017     First-half 2018
(in million euros) Manufacturing and sales companies     Finance companies     Eliminations     TOTAL     Manufacturing and sales companies     Finance companies     Eliminations     TOTAL
Revenue 27,476     87     (11)     27,552     38,545     61     (11)     38,595
Recurring operating income (loss) 2,022     15     -     2,037     3,003     14     -     3,017
Operating income 1,910     15     -     1,925     2,253     14     -     2,267
Net financial income (expense) (121)     -     -     (121)     (222)     4     -     (218)
Income taxes (439)     (6)     -     (445)     (404)     (5)     -     (409)
Share in net earnings of companies at equity (1)     113     -     112     (125)     198     -     73
Consolidated profit 1,349     122     -     1,471     1,502     211     -     1,713
Attributable to owners of the parent 1,136     119     -     1,255     1,272     209     -     1,481
attributable to non-controlling interests 213     3     -     216     230     2     -     232
Basic earnings per €1 par value share attributable to equity holders of the parent                   1.43                       1.66
Diluted earnings per €1 par value share – attributable to equity holders of the parent                   1.39                       1.58

* IFRS15 application with 2017 restated (excluding essentially monoliths)

Consolidated balance sheet*

Assets 31 December 2017     30 June 2018
(in million euros) Manufacturing and sales companies     Finance companies     Eliminations     TOTAL     Manufacturing and sales companies     Finance companies     Eliminations     TOTAL
Total non-current assets 28,897     2,313           31,210     31,076     2,432           33,508
Total current assets 25,884     865     (44)     26,705     28,385     871     (30)     29,226
TOTAL ASSETS 54,781     3,178     (44)     57,915     59,461     3,303     (30)     62,734

Equity and liabilities

31 December 2017 30 June 2018
(in million euros) Manufacturing and sales companies     Finance companies     Eliminations     TOTAL Manufacturing

and sales companies

Finance companies Eliminations TOTAL
Total equity                   16,706       17,942
Total non-current liabilities 11,544     7           11,551 13,236 8   13,244
Total current liabilities 29,078     624     (44)     29,658 31,037 541 (30) 31,548
TOTAL EQUITY & LIABILITIES                   57,915       62,734

* IFRS15 application with 2017 restated (excluding essentially monoliths)

Consolidated statement of cash flows*

  First-half 2017     First-half 2018
(in million euros) Manufacturing and sales companies     Finance companies     Eliminations     TOTAL     Manufacturing

and sales companies

    Finance companies     Eliminations     TOTAL
Consolidated profit from continuing operations 1,349     122     -     1,471     1,502     211     -     1,713
Funds from operations 2,960     56     -     3,016     3,715     76     -     3,791
Net cash from (used in) operating activities of continuing operations 3,047     61     -     3,108     4,885     127     (1)     5,011
Net cash from (used in) investing activities of continuing operations (1,931)     3     -     (1,928)     (2,308)     (5)     -     (2,313)
Net cash from (used in) financing activities of continuing operations 669     -     (1)     668     (572)     -     -     (572)
Net cash related to the non-transferred debt of finance companies to be continued in partnership -     -     -     -     -     -     -     -
Net cash from the transferred assets and liabilities of operations held for sale or to be continued in partnership -     -     -     -     -     -     -     -
Effect of changes in exchange rates (58)     (1)     -     (59)     (35)     (2)     -     (37)
Increase (decrease) in cash from continuing operations and from operations held for sale or to be continued in partnership 1,727     63     (1)     1,789     1,970     120     (1)     2,089
Net cash and cash equivalents at beginning of period 11,464     530     (8)     11,986     11,491     320     (8)     11,803
Net cash and cash equivalents of continuing operations at end of period 13,191     593     (9)     13,775     13,461     440     (9)     13,892

* IFRS15 application with 2017 restated (excluding essentially monoliths)

1 Group revenue includes OV since August, 1st 2017

2 PCD (Peugeot, Citroën, DS)

3 Recurring operating income related to revenue

4 OV (Opel, Vauxhall)

5 Sales and manufacturing companies

6 Versus 2015 H1 at constant 2015 exchange rates and perimeter (excluding OV)

7 100% of the result of Banque PSA Finance. In the financial statements of Groupe PSA, joint ventures are consolidated using the equity method.

8 Recurring operating income related to revenue

9 At 2015 constant exchange rates and perimeter (excluding OV)

Contacts

Media:
Groupe PSA
Karine Douet, 06 61 64 03 84
karine.douet@mpsa.com

Contacts

Media:
Groupe PSA
Karine Douet, 06 61 64 03 84
karine.douet@mpsa.com