PSA Group is Europe’s second largest car manufacturer. After the acquisition of General Motors’ European business, its growth relies on five car brands – Peugeot, Citroën, DS, Opel and Vauxhall, each with its own worldwide reputation and distinct personality – as part of co-ordinated international strategies and a coherent product plan. PSA Group is also active in automotive financing via Banque PSA Finance, and automotive equipment via Faurecia. The group retains a 25% interest in Gefco, a transport and logistics company.
Stake in Groupe PSA
PSA’s automobile business was founded by the Peugeot family. FFP took part in the group’s capital increases in 2012 and 2014.
At 31 December 2018, FFP and its majority shareholder Établissements Peugeot Frères (EPF) were one of the group’s three main shareholders, with 12.2% of its share capital and 19.3% of its voting rights. FFP owns 9.3% of PSA’s share capital and 14.7% of its voting rights.
FFP and EPF, acting in concert, are parties to an agreement signed by PSA Group’s main shareholders on 28 April 2014.
FFP and EPF, represented by Robert Peugeot and Marie-Hélène Peugeot-Roncoroni respectively, have seats on PSA Group’s Supervisory Board. FFP, represented by Robert Peugeot, also chairs PSA Group’s Strategy Committee and is a member of its Financial and Audit Committee. EPF, represented by Marie-Hélène Peugeot-Roncoroni, is also Vice-Chairman of the Supervisory Board, a member of the Asia Business Development Committee and a member of the Appointments, Remuneration and Governance Committee. Frédéric Banzet, Senior Partner of FFP, is a non-voting
member of the Board.
In 2018, taking into account the Opel/Vauxhall acquisition, the group’s sales volume increased by 6.8% relative to 2017.
In Europe, the group’s volume of vehicle sales increased by 30.6% relative to 2017. In China and Southeast Asia, the group’s vehicle sales volumes fell 32.2% in 2018. Sales volumes fell 52.8% in the Middle East and Africa, because of the group’s withdrawal from Iran.
The group’s revenue totalled €74.0 billion in 2018, up 18.9% year-on-year. Revenue in the PCD (Peugeot Citroën DS) Automotive division rose 5.6% to €43.0 billion, due in particular to the success of recently launched models and an improved product mix. Revenue in the OV (Opel/Vauxhall) Automotive division totalled €18.3 billion in 2018. Faurecia’s revenue rose 3.3% to €17.5 billion.
The group’s recurring operating profit totalled €5.7 billion in 2018, up 43.0% compared with 2017.
Recurring operating profit in the PCD Automotive division rose 21.9% year-on-year to €3.6 billion and equalled 8.4% of revenue, despite higher raw materials costs and negative exchange-rate effects. This strong performance resulted in particular from a favourable product mix and further cost-cutting. Opel/Vauxhall’s recurring operating profit totalled €859 million, equal to 4.7% of revenue. Faurecia’s recurring operating profit rose 9.3% to €1,263 million. The group’s recurring operating margin including Opel/Vauxhall,was 7.7% as opposed to 6.4% in 2017.
Free cash flow from industrial and commercial activities amounted to €3.5 billion, including €1.4 billion from Opel/Vauxhall. The net financial position of industrial and commercial activities was positive at €9.1 billion at 31 December 2018, versus €6.2 billion at 31 December 2017. A dividend of €0.78 per share will be put to the vote in the next AGM.
After exceeding its targets as part of the “Push to Pass” plan for 2016-2018, PSA Group adopted a new target for 2019-2021, including Opel/Vauxhall, of achieving a recurring operating margin averaging over 4.5% in the Automotive division.
PSA Group also announced a new dividend policy for 2019-2021, based on an increased payout ratio of 28% from 2019 onwards.
In 2019, the group expects the auto market to be stable in Europe, to contract by 1% in Latin America and 3% in China, and to grow by 5% in Russia.
2018 net cash
2018 market share in Europe
Voting rights in concert with EPF