COMPANY’S INFORMATION Operating income

Profit

Employees

Subsidiaries

(€1.416 billion) (2009)

(€1.161 billion) (2009)

186,000 (2009)

Citroën, Peugeot, Faurecia(majority stake), Gefco, Banque PSA Finance, Peugeot Motocycles, Peugeot Citroën Moteurs, Process Conception Ingénierie

CONTINUED Website

Founded

Headquarters

Type:

Industry

Psa-peugeot-citroen.com

1976

16th arrondissement, Paris, France

Société Anonyme

(Euronext:UG)

Vehicle manufacture

CONTINUED Area served

Key people

Worldwide, except North America, South Asia

Philippe Varin (CEO), Thierry Peugeot (Chairman of the supervisory board)

CONTINUED Products

Revenue

Cars, motorcycles, trucks

€48.42 billion (2009)

HISTORY : In December 1974 Peugeot S.A. acquired a 38.2% share

of Citroën

In May 1976 they increased their stake of the then bankrupt company to 89.95%, thus creating the PSA Group stake of the then bankrupt company to 89.95%, thus creating the PSA Group

CONTINUED Peugeot was typically prudent in its own finances, the

PSA venture was a financial success from 1976 to 1979

In late 1978, PSA purchased the failing Chrysler Europe from the troubled U.S. parent firm for a nominal USD $1.00

.Key Figures : Automotive production is the core business of

PSA Peugeot Citroën. Nearly 85,000 men and women working in 16 production centres(including one CKD manufacturing and shipping plant) and 15 powertrain and casting plants, together with many partners and suppliers, produced, in 2009, 3,042,400 vehicleS

CONTINUED In 2009, PSA Peugeot Citroën's production sites

manufactured 3,0422,400 vehicles ( 1, 739,000 for Peugeot and 1,302,900 for Citroën)

Some 13,000 vehicles are produced every day by the Group's plants, along with 11,000 engines and 12 500 gearboxes.

CONTINUED Nearly 85,000 employees work in the production

activity (final assembly plants and powertrain and casting plants)

The Group employs 45 ergonomists who seek to improve working conditions at PSA Peugeot Citroën sites worldwide

Since 2007, all the sites' Group received ISO 14001 certification, an endorsement of the environmental management of production activities.

CONTINUED The Group's stamping plants use around 5,000 tonnes

of sheet steel every year.

A manual gearbox consists of an average 300 parts - for an automatic gearbox, this number can rise to 400.

Between 1995 and 2009, the water consumption by vehicle produced was reduced more than 2,5.

MISSION : The mission of PSA Peugeot Citroën production

facilities is to manufacture, each day, vehicles that meet both the design teams’ expectations and customer requirements while complying with cost targets and delivery deadlines

COMPANIES IN INDIA TATA MOTORS

MARUTI SUZUKI

MAHINDRA & MAHINDRA

HONDA MOTORS

94,481.34 crore(US$ 21.45 billion)

US$4.8 billion

31,957.83 crore (US$ 7.25 billion)

US$39.8million

Companies of U.S.A

GENERAL MOTORS

FORD MOTORS

CHRYSLER

US$ 98.7 billion

US$ 118.308 billion

US$ 17,710 million

COMPANIES IN JAPAN HONDA MOTORS

TOYOTA MOTORS

NISSAN MOTORS

SUZUKI MOTORS

MITSUBISHI MOTORS

US$ 98.7 billion

¥18.9 trillion

¥7.517 trillion / $80.92 billion

US$ 17,710 million

¥1,445,616 million

COMPANIES IN GERMANY BMW

VOLKSWAGEN

DAIMLER AG

US$ 17,710 million

US$332.8,million

€78.92 billion

Selective product

Manufacturer:- citroen

Assembly:- okazaki, aichi, japan(mitsubishi motors)

Production:-2007-present.

Class:- compact crossover suv

Bodystyle:-4 door-suv

Layout:- all wheel drive.

Platform:-mitsubihisi platform

Transmission:-6 speed manual.

SALES AND REVENUE

CONSOLIDATED SALES AND REVENUE BY BUSINESS (€ millions)

Automobile Division

Faurecia

Gefco

Banque PSA Finance

Other businesses and Intersegment eliminations

Total PSA PEUGEOT CITROËN

2008 2009

41643 38265

12.011 9.262

3.536 2.888

2.088 1.823

(4.922) (3.851)

54.356 48.417

RECURRING OPERATING INCOME

Recurring operating income(€ millions)

Consolidated operating margin as a % of sales and revenue

Automobile division operating marginas a % of sales and revenue

2008 2009

550 (689)

1% 1.4%

-0.5% 3.3%

FINANCING AND FINANCIAL SITUATION (€ millions)

Cash flow*

Capital expenditure (excl. R&D)*

Free cash flow

Net financial position

Equity

Gearing

2008 2009

2.781 1.342

1.701 1.615

(3.764) 809

(2.906) (1.993)

13.289 (12.447)

21.9% 16%

AUTOMOBILE DIVISION RESEARCH AND DEVELOPMENT EXPENDITURE(€ millions)

2008 2009

2.116 2.148

5.1% 5.6%

€ millions

As a % of Automobile Division Sales and revenue

Brand positioning

With two strong, consistent and complementary brand identities, PSA Peugeot Citroën has what it takes to be leading world carmaker. The Peugeot and Citroën brands reasserted their personalities in 2009-2010 to reflect their own specific values and contexts while responding to customer concerns on mobility and the environment common to both marques.

Since February 2009, Citroën has made "CREATIVE TECHNOLOGIE" its brand signature.

Since the brand came into existence, 90 years ago, it has continually demonstrated its capacity to ally creativityand technological innovation: these values are written into its DNA. Citroën dares to imagine, invent and reinterpret the car. Technological innovation associated with creativity allows the brand to propose concrete, modern solutions for individual mobility. The "DS line" perfectly illustrates the new Citroën spirit, with products that stand out with their creativity, design intelligence and finish quality.

Peugeot gets a new signature in January 2010: MOTION & EMOTION to convey its brand image project.

The brand is thus allying progress and sentiment. It is always Peugeot's intent to place emotion at the heart of the motoring experience, so that a Peugeot can never be considered a merely functional vehicle. The brand is also renewing its styling, summed up by the SR1. It suggests the broad brushstrokes of what to expect from its upcoming models: the feel, the harmony, the feline grace and the dynamism.To mark its bicentenary, Peugeot is reinventing itself in the eyes of the world.

An efficient industrial base In 2009, PSA Peugeot Citroën manufactured 12,350

vehicles, 9,100 engines and 10,100 gearboxes a day. With its shot of generalization the best industrial practices and its policy of platforms, the Group reduced production costs. To attain its growth objectives, PSA Peugeot Citroën has developed an industrial base of global dimensionsconsisting of 15 production centers (of which 6 as part of joint-ventures) and 16 power train and casting plants (engines, gearboxes, running gear, etc.).

To boost this industrial base, the Group has introduced a plan to improve industrial efficiency based on principles. In each of its plants, the Group works on continuously improving working conditions and ergonomics, notably by making assembly easier and by standardizing parts. The Group has also signed strategic cooperation agreements with other manufacturers. These agreements concern vehicle bases (platforms) and components (engines), produced in the plants of one of the manufacturers or in new plants

People human resources strategy focuses on securing the

best talent available to support our growth objectives and international development. We apply the principal components of our human resources policy in all of our host countries.

Number of employees by subsidiary worldwide at December 31, 2009

Ambitions Since its appointment in June 2009, the new managing board of PSA Peugeot

Citroën has defined for the Group and set priorities accordingly.

Environmental performance

PSA Peugeot Citroën is a leader in low emission vehicles, which are amongst the best in the world in terms of consumption and emissions. In order to offer a "clean car" that suits the needs of each customer (extra-urban use / urban use / long range with maximum flexibility), the Group will enrich its range of low emission vehicles and technologies over the next 3 years.

For vehicles, the Group will launch :

In 2009 and 2010 : small diesel cars emitting less than 99g of CO2/km : Peugeot 207, Citroën C3 and Citroën DS3.

In 2010 an Electric vehicle in the fourth quarter.

In 2011 diesel hybrid versions of two premium models : 3008 and DS5.

In 2012 a full plug-in diesel hybrid Peugeot 3008, emitting less than 50g of CO2.

In terms of other technology, the Group will deploy in 2010 the new generation STT (Stop Start technology) across its ranges, which reduces CO2 emissions up to 15%. In 2011, PSA will launch a 1litre gasoline engine emitting less than 99g of CO2/km in small and medium cars

Vehicle design

. PSA Peugeot Citroen is already a step ahead in vehicle design. Its new

concepts & vehicle designs are widely respected, as witnessed by the success of recent launches like Citroën C5, Citroën C3 Picasso or Peugeot 3008.

The Group's first priority is to maintain its new model momentum across all segments in 2009 and 2010. In 2009, the Group will launch both the Peugeot 5008 and the new Citroën C3 in Europe, and a new Citroën C4 (Quatre?) sedan in China. Further new launches are planned for the first half of 2010 such as the Citroen DS3, the Peugeot RCZ in Europe, the Citroen C5 in China and the 207 Pick Up in Brazil.

The Group's second priority is to enhance the value proposition of the two brands in order to increase their pricing power. The Group's objective is also to develop a clear differentiation between Peugeot and Citroën. Having common supervision of the two brands will help to pave the way.

Services

To improve its performance in services, the Group has defined three priorities.

Catch up quickly on customer service, where the Group's performance is below par.

Improve the Group's financial services offer, where it has a strong position with Banque PSA Finance.

Be at the leading edge of mobility and connectivity services to meet the evolving requirements of customers. With regard to connectivity, PSA Peugeot Citroën is a step ahead in emergency call systems, with 650 000 vehicles already equipped in Europe. In mobility, Peugeot is currently testing an innovative mobility credit system with 80 000 customers in 4 major French cities.

International Operations: Priority Growth Regions

PSA Peugeot Citroën’s three priority growth regions are China, Latin America and Russia, which represent major drivers of the Group’s future expansion. In each one, production capacity, R&D capabilities and brand dealership networks have been strengthened to align the vehicle offering with local demand.

In line with its vision of being a global automobile manufacturer, PSA Peugeot Citroën is committed to building critical mass in Latin America and Asia (beginning in China), to adapting its models more quickly to the needs of non-European carbuyers and to making its management teams more international.

China: Building critical mass in the world’s largest market

The world’s largest automobile market, China is also PSA Peugeot Citroën’s second largest market. The Group is committed to becoming one of the country’s major carmakers, with an 8% share of the market in 2015-2016.

PSA Peugeot Citroën enjoyed a record year in 2009, when local sales returned to growth with a 52% increase to 272,000 vehicles. It also pursued its marketing offensive with the launch of the Citroën C4, Citroën C5 China and Peugeot 408.

Increasing production capacity As part of its joint venture with Dong Feng, the Group

currently has two production plants in China: Wuhan 1, whose capacity was doubled to 300,000 units a year in 2008, and Wuhan 2, inaugurated in 2009, which can currently produce up to 150,000 vehicles a day. Moreover, discussions are underway concerning the opening of a third plant.

In addition, PSA Peugeot Citroën and Chinese carmaker Chang’An announced in May 2010 that they had signed a letter of intent to create a 50/50 joint venture to produce passenger cars and light ercialvehicles.

Virtual visit Producing cars to meet the needs of each consumer

involves a subtle alchemy between man and machine, between quality requirements and respect for the environment. It would be impossible to “virtualise” the thousands of operations and many years of experience required to produce a motor vehicle – symbol of mobility in the modern world.Nevertheless, we hope that our virtual guided tour of the key stages in vehicle manufacture will stimulate your curiosity and encourage you to visit one of the real production plants run by the PSA Peugeot Citroën Group.

Production The production facilities are divided into four workshops: stamping, body-in-white construction, paint and

assembly. Planning is based on firm orders from customers, which are transformed into Production Orders and then grouped and dispatched among the Group’s production facilities.

Satisfying end customersProduction’s ultimate goal is to satisfy the end customer as concerns the product’s aspect, services and comfort. Since manufacturing plays a key role in the Group’s brand image, each production facility contributes significantly to the strategic objective of placing each model within the top three cars in its category. The plants have to get things right the first time, which makes end-to-end control of the production process crucial.

Integrating plants into the surrounding environmentControlling production processes also entails continuously improving the plants’ impact on the surrounding environment. PSA Peugeot Citroën pays particular attention to reducing emissions and effluent, to recycling industrial waste and to preserving the soil and landscape. The Group has developed an effective environmental management strategy and conducts regular programs to train employees and raise their environmental awareness. All the sites of the group are certified ISO 14001 certification, the internationally recognized standard in this area.

Capacity utilizationTo optimize the utilization of production capacity involved in making the basic components shared by all Group vehicles, production has been organized three platforms with five more cooperation platform : two platforms in cooperation with Fiat (LCV +MPV), a platform in cooperation with Toyota (small vehicles range’s entrance), a platform in cooperation with Mitsubishi (4x4 and a platform in cooperation with Fiat and Tofas (LCV). This politics of flat shape evolves by integrating more modularity and flexibility.

Manufacturing plants

PSA Peugeot Citroën's manufacturing plants perform the end processes in the carmaking cycle, including stamping, body-in-white assembly, painting and final assembly. Vehicles are transferred to the marques as soon as they roll off the final assembly lines.

- Aulnay (France) - Mulhouse (France) - Poissy (France) - Rennes (France) - Sevelnord (France) - Sochaux (France) -

Buenos Aires (Argentina ) - Madrid (Spain) - Mangualde (Portugal) - Porto Real (Brazil) - Sevel SpA (Italy) - Trnava (Slovakia) - Vigo (Spain) - Wuhan (China)

Component and casting plantsPSA Peugeot Component and casting plants supply the Group's other plants with engines, transmissions, chassis assemblies, foundry parts (cast iron, die cast, forged) and tooling.

- Caen (France) - Charleville (France) - Française de Mécanique (France) - Hérimoncourt (France) - Metz (France) - Mulhouse (France)

· Two innovative brands with differen ciated skills PSA growth is driven by two complementary full-line

brands with international reach : Peugeot and Citroën. Each brand markets a broad range of vehicles that meets a broad range of customer expectations

EnvironmentOver the years, PSA Peugeot Citroën has gained a

worldwide reputation for its environmental leadership. In 2008, fort the third year in a row, it sold more than one million vehicles emitting less than 140 g CO2/km. In order to stay one step ahead, the Group will go even further, with a fully aligned offering (improvement of internal combustion engines, EVs in 2010, then hybrids and hybrid plug-ins).

Road safetyRoad safety is also a Group

priority. The emergency call system, which aims to accerlerat and improve the intervention of emergency services, is a PSA Peugeot Citroën initiative.

· Continuous labour-management dialogue

PSA Peugeot Citroën’s human resources policy is based on professional equality, responsibility and continuous dialogue with the workforce and management.

· Other PSA Peugeot Citroën activities

Vehicle financing with Banque PSA Finance. Automotive equipment with Faurecia. Transport and logistics with Gefco

2010 ChallengeBack to growth and profit

2015 AmbitionEach business:•Among the best in the industry in growth and profitability• To reach the highest possible enterprise value

Key Drivers

•Our employees’ commitment to winning•A move towards a culture of speed, action, results

Faurecia

2010 Challenge 3% operating margin

A cleaned-up business portfolio

A best-in-class product portfolio

A broader customer portfolio

A restructured, competitive manufacturing base

Among the best in innovation and technology

Continued

2015 Ambition

Among the worldwide leaders in each business

Gefco

“FORCE 10” Significant growth, 5% operating margin

Fast geographic expansion

Broader customer portfolio

A unique automotive logistics network in Europe

2015 Ambition European leader in automotive logistics

Increase the contribution of services to the business

The preferred logistics partner of all carmakers

Banque PSA Finance2010 Objectives Maximize synergies with the Peugeot and Citroën b

Develop related services

Speed up international expansionrands

2015 Ambition Secure growth

Remain the benchmark in profitability

Automotive DivisionFrom CAP 2010 …

Product and service quality

European product offensive

Competitiveness plan

International offensive

… to Ambition 2015

The most competitive carmaker in Europe

The leader in environmentally friendly cars

With a broad and profitable international base

Delivering long-term profit growth

Product and service qualityAcustomer-centric company

Product quality Halve the number of quality incidents

Divide by three incident resolution time

Service quality Peugeot and Citroën ranking among the European

Top

A “revolution” in customer service

One back office for both brands

European product offensiveBroaden the Peugeot and Citroën lineups

Take our share of the growing market segments

Boost our leadership in commercial vehicles

Develop “competitive premium” models in each segmen

European product plan

New concept

Lineup extension

Model renewals

Restylings

Total

Sedans

Non-sedans

Light commercial vehicles

Total

2003-06 2007-10

2 5

4 5

9 18

7 1

22 29

11 9

7 14

4 6

22 29

European product offensive Peugeot’s powerful comeback+ Citroën’s acceleration2010 Europe Increase the differentiation between our two brands

Add 300,000 units to 2006 sales

2015 Ambition

Offer the widest, most innovative lineup in Europe

Enhance the image value of the Peugeot and Citroën brands

European marketing offensiveGet our share back … and make it richer

Expand in the “corporate” market

Differentiate and energize our partnership with our car dealers

Increase the return on media spend

Transform our proprietary dealerships into real profit centers

continued

2015 Ambition

Offer the widest, most innovative lineup in Europe

Enhance the image value of the Peugeot and Citroën brands

International offensive: Mercosur2010 Mercosur Double the number of model launches to 12 Be a player in the entry-level segment Strengthen and extend the two brands’ dealer networks Swiftly free up additional production capacity Increase local content, strengthen R&D

continued2015 Ambition

Brazil: join the "Big 4"

Argentina: become the undisputed market leader

Objective: 400,000 unit sales

International offensive: ChinaA new dimension through an extended

geographic coverage2010 China JV with Dongfeng Start-up manufacturing facilities on the East cost Renew the Peugeot and Citroën lineups and double the number of model launches to 12 China Business Unit Develop R&D and styling centers Strengthen purchasing Feasibility study for a JV with Hafei Extend product coverage to 80% of the market 3rd plant in the South

continued2015 Ambition

Become an established, profitable industry player

Objective: 1 million units in the medium term

International offensive

New growth regions

Russia

Plant search underway

2010 objective: 100,000 units (300,000 in the medium term)

CONTINUED

India & Mexico

Strategic assessment underway

Product strategyCompetitive premium Entry-level

Distinctive cars in each The competitive model segment whenever necessary

Core models

(Sedan – Non-sedan)

A strengthened presence

in growth segments

The leader in environmentally friendly Cars

Facts A major competitive advantage for PSA Peugeot Citroën The best CO2 performance in Europe: • 1 million vehicles sold < 140g/km (in 2006) • Of which 500,000 < 120g/km HDi + biodiesel: as environmentally friendly as gasoline

hybridsStop & Start: available on the C3 since 2004 2 million DPF-equipped vehicles World’s largest diesel engine manufacturer with FordThe world’s best gasoline engine technology with BMW

continuedObjectives Strengthen our leadership position:

o A strengthened engine strategy

o Extensive deployment of hybrid technologies

• Micro Hybrid: 1 million Stop & Start units sold in 2011

• Mild Hybrid: roll out in 2010 in the mid-range

o • Full Hybrid: market launch of the Hybrid HDi in 2010 30% biodiesel: compatible with all our engines

o Bioethanol offer: wherever needed

Gain at least 10g/km of CO2 in Europe

Submitted by : Harpreet Kaur

MHS1007008

MBA -1