PSA - 2019 Universal Registration Document

GROUPE PSA Activities and strategy

The Group’s strategic trends 1.3.3.

D IGITALISATION C USTOMER BEHAVIOUR

M ARKET

S HARING

A UTONOMOUS

C O 2 /NOX

C ONNECTIVITY

7 MEGATRENDS

DIVERGENCE

GROUPE PSA 2021 FROM TURNAROUND TO PROFITABLE SUSTAINABLE GROWTH: A CUSTOMER-DRIVEN TRANSFORMATION

OUR BUSINESS TARGETS

FROM PRODUCT TO CUSTOMER

FROM OWNERSHIP TO EXPERIENCE

FROM CAR TO MOBILITY

FROM ONE BUSINESS TO A PORTFOLIO OF BUSINESSES

FROM LOCAL TO GLOBAL

A GREAT CAR MAKER

A MOBILITY PROVIDER For a lifetime customer relationship

OUR VISION

Scale-up of business activities: after-sales services, used vehicles, multi-brand o erings

Expansion to mobility services: car-sharing, connected services, leasing, fleet management and sharing

International expansion and profitable growth in all its host regions

Product o ensive: launch of one new vehicle per region, per brand and per year

OUR STRATEGY

OUR OBJECTIVE

ENLARGE OUR CUSTOMER BASE

1. EFFICIENT GOVERNANCE AND COMPETITIVE TEAM 2. DIGITAL BOOSTER 3. CSR POLICY

OUR ENABLERS

On 5 April 2016, Groupe PSA presented its strategic plan for profitablegrowth,“Pushto Pass”,coveringthe periodfrom2016 to 2021.Havingoverpassedthe initialtargetsof the “Pushto Pass”plan for the period 2015-2018, Groupe PSA set and presented on 26 February 2019 the following target for the period 2019-2021 (includingOpel Vauxhall): deliver over 4.5% Automotiveadjusted operating margin (1) on n averagein 2019-2021. The “Push to Pass” plan marks a first stage towardsGroupe PSA’s vision for itself: “a world-rankingcar manufacturerwith optimum efficiency,supplyingstandard-settingmobilityservices”,makingthe customer thecore concern of its activities. Thisplanbuildson themomentumof the previousplan,“Backin the Race”, in terms of operational excellence and differentiation betweenthe Peugeot,CitroënandDS brands. In addition,the “Push to Pass” plan is drawingon the digitalisation of theGroupand its competitive teams in orderto build: a productoffensiveenablingthe launchof “one new vehicleper n region,per brand and per year”. This productoffensiverevolves arounda global vehicledesignstrategy(“Coremodel strategy”) incorporating target technologies (“Core technology strategy”);

theGroup’sinternationalexpansionandprofitablegrowthin all its n host regions; the expansionof the Group’sbusinessactivities,primarilyin the n areas of after-salesservicesand used vehicles,incorporatingthe developmentof multi-brandofferingswith the aim of expanding its customerbase. The Group is also expandingits activitiesto mobility services to meet the needs of its customers (“Core services strategy”), including car-sharing, connected services, leasing,fleetmanagement and sharing. The acquisition of Opel Vauxhall, effective at 1 August 2017, constitutesan opportunityfor acceleratingthe Groupe PSAgrowth plan, underthe benefitof: the leveragingof operational excellence over awidenedgroup; n a higherR&Dcapacity; n volume andsynergy gains; n newautomotivebrands,withconsiderablesynergyby theirimage n andgeographical footprint.

Automotive division (PCDOV) adjusted operating income related to revenue. (1)

20

GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT