— Groupe PSA

PSA Group is Europe’s second largest car manufacturer. Operations are based on six car brands – Peugeot, Citroën, DS, Opel, Vauxhall and Free2Move, each with its own global reputation and distinct features under a coordinated international marketing strategy and tapping into production synergies. Its activities also extend to auto loans with Banque PSA Finance and automotive parts with Faurecia. The group retains a 25% interest in Gefco, a transport and logistics company.

 https://www.groupe-psa.com/
 
As at Dec 31, 2019

Stake in Groupe PSA

9.3%

Investment date

1890

FFP's investment.

PSA Group’s automotive business was founded by the Peugeot family. FFP bought PSA shares in PSA’s 2012 and 2014 rights issues.

At 31 December 2019, FFP and its parent company Établissements Peugeot Frères (EPF) were one of PSA’s three biggest shareholders with a combined 12.2% equity interest and 19.3% of voting rights. FFP owns 9.3% of PSA equity and 14.7% of voting rights.

The shareholding’s value for purposes of Net Asset Value and the consolidated financial statements is based on the 31 December 2019 share price.

FFP and EPF, acting in concert, are parties to an agreement signed by PSA Group’s largest shareholders on 28 April 2014.

FFP and EPF, represented by Robert Peugeot and Marie-Hélène Peugeot-Roncoroni respectively, sit on PSA Group’s Supervisory Board. FFP, represented by Robert Peugeot, chairs PSA Group’s Strategy Committee and is a Financial and Audit Committee member. EPF, represented by Marie-Hélène Peugeot-Roncoroni, is also Supervisory Board Vice-Chairman, an Asia Business Development Committee member and an Appointments, Remuneration and Governance Committee member.

Frédéric Banzet, Chairman and CEO of FFP Investment UK Ltd, is a non-voting member of the Supervisory Board.

In 2019.

2019 PSA group revenues dipped 10.3% relative to 2018.
In Europe, PSA vehicle sales edged down 2.8% year-onyear. In China and Southeast Asia, 2019 vehicle sales volumes tumbled 55.4%. Sales plunged 52.8% in the Middle East and Africa because PSA pulled out of Iran.
2019 PSA group revenues came in at €74.7 billion, up 1.0% year-on-year. Automotive division revenues edged up 0.7% to €58.9 billion, largely due to recent successful model launches and a better product mix. Faurecia’s revenue rose 1.4% to €17.8 billion.
2019 PSA group underlying operating profit totalled €6.3 billion, up 11.2% year-on-year. Automotive division underlying operating profit rose 12.8% to €5.0 billion representing an 8.5% margin despite higher raw materials costs and currency losses. Earnings were boosted by a better product mix and further cost-cutting. Faurecia’s underlying operating profit came in down 2.9% at €1,227 million.
Automotive division free cash flow was €3.3 billion. The division held net cash of €10.6 billion at 31 December 2019, up from €8.9 billion at 31 December 2019. A €1.23 per-share dividend will be put to shareholders at the forthcoming AGM.
The “Push to Pass” targets, updated in early 2019, have all been confirmed, particularly Automotive division (including Opel/Vauxhall) underlying operating margin averaging over 4.5%.

In 2020, the Group expects the auto market to contract 3.0% in Europe and 2.0% in Russia, and to be stable in Latin America.

In the last quarter of 2019, PSA Group announced the terms of its merger with FCA. The combination of the two companies will give rise to the world’s third-largest automotive firm in terms of revenue, with leading market shares in Europe, North America and South America.
Both companies fit very well in terms of technology and product range. PSA and FCA top management have estimated annual synergies of €3.7 billion arising from the merger. FFP and its parent company EPF have both expressed their support to the planned merger.

Key figures.

2019 net cash

7.9bn

Automotive division profit margin

8.5%

Automotive division net cash in 2019

10.6bn

Voting rights in concert with EPF

19.3%

Shareholding structure.