The PSA Group's Push To Pass Plan is really working with improved profits, sales and cash flow.

For the third year in a row, the Group achieved growth on three fronts:

• Growth of the Automotive division operating margin to 6%^[1] versus 5% in 2015
• Growth of sales : 3.15 million vehicles sold^[2], up 5.8%
• Growth of the net financial position thanks to a positive €2.7 billion Free Cash Flow^[3] in 2016

The Group is improving its medium-term operational outlook.

For the first time since 2011^[4], a dividend of €0.48 per share will be submitted for approval at the next Shareholders’ Meeting.

Carlos Tavares, Chairman of PSA Group Managing Board, comments: “These results demonstrate our ability to consistently deliver an excellent performance in an adverse environment. 

They are the outcome of the Group’s operating efficiency improvement and our competitive teams’ focus on the execution of the Push to Pass plan. 

Day after day, the Group is building the conditions for profitable and sustainable growth, reinforced by the success of the first launches in its product offensive.”

In 2016, Group revenues were €54,030 million compared to €54,676 million in 2015 and Automotive revenues were €37,066 million, compared to €37,514 million in 2015 which represent respectively a growth of 2.1% and 2.7%, at constant exchange rates, driven notably by the success of recently launched models and the Group’s pricing power strategy. Net of adverse change in exchange rates, both Group and Automotive revenues were down 1.2%.

The Group recurring operating income was €3,235 million, up 18% compared to 2015. The Automotive recurring operating income was €2,225 million, up 19% compared to 2015. In an environment characterised by adverse exchange rates, this growth was driven by higher volumes, positive price and mix effects, and lower fixed and production costs.

The Group non-recurring operating income and expense was a charge of €624 million, compared to a charge of €757 million in 2015. 

Net financial income and expense was a charge of €268 million versus a charge of €642 million in 2015. 

Net income reached €2,149 million, an increase of €947 million compared to 2015. Net income, Group share, reached €1,730 million compared to €899 million in 2015. 

Banque PSA Finance reported recurring operating income of €571 million^[5], up 11% versus 2015.

Faurecia recurring operating income was €970 million, up 17%.

The free cash flow of manufacturing and sales companies was €2,698 million.

Total inventory, including independent dealers, stood at 406,000 vehicles at 31 December 2016, an increase of 56,000 units year on year.

The net financial position of manufacturing and sales companies was €6,813 million at 31 December 2016, compared to €4,560 million at 31 December 2015.

A dividend of €0.48 per share will be submitted for approval at the next Shareholders’ Meeting with an ex-dividend date considered to be on 15 May 2017, and the payment date on 17 May 2017. 

Market outlook

In 2017, the Group anticipates a stable automotive market in Europe, Latin America and Russia, and growth of 5% in China. 

Operational outlook improved

The new objectives of the Push to Pass plan are to:

-   deliver over 4.5% Automotive recurring operating margin^[6] on average in 2016-2018, and target 6% by 2021;

-   deliver 10% Group revenue growth by 2018^[7] vs 2015, and target additional 15% by 2021⁷.

^[1] Recurring operating income related to revenue

^[2] Of which 233,000 vehicles produced in Iran under Peugeot license in 2016, following the final JV agreement signed with Iran Khodro on 21 June 2016

^[3] Sales and Manufacturing companies

^[4] Dividend in respect of 2010, paid on 7 June 2011.  

^[5] 100% of the result of Banque PSA Finance. In the financial statements of the PSA Group, joint ventures are consolidated using the equity method and other activities covered by the agreement with Santander are reclassified as “Operations held for sale or to be continued in partnership.”

^[6] Recurring operating income as a proportion of revenue

^[7] At constant (2015) exchange rates

END OF YEAR WORLDWIDE - PSA GROUP - Europe has been hit but overall there is growth.

• In 2016, sales increased by 5.8%, to 3,146,000 units. ¹
• The product offensive in the Push to Pass plan was launched for the Peugeot and Citroën brands.
• Successful commercial launches for the new PEUGEOT 3008 SUV, new Expert and Traveller, the new CITROËN C3, the new Jumpy and SpaceTourer.
• DS Automobiles consolidated its premium brand bases. 

In executing its profitable strategic growth "Push to Pass" plan, in 2016 the PSA Group launched the start of a worldwide product offensive that provides for 121 regional launches by 2021.

All the products launched are commercial successes in their market segments:

A perfect illustration of the dynamism of the PEUGEOT brand, which grew by 12.3% in 2016, the new PEUGEOT 3008 SUV has seen a total of more than 60,000 orders in only three months, exceeding the targets for 2016 orders set before the launch by 70%. 

Launched in about 30 countries, the roll-out to all regions will continue during the first quarter of 2017. In France, it is already the leader in the C-SUV segment over the final three months of the year. 

The new PEUGEOT 3008 SUV confirms the PEUGEOT brand's move upmarket, with 86% of the orders for the higher trim levels, Allure, GT-Line and GT. PEUGEOT is continuing its internationalisation, with 43% of its worldwide sales generated outside Europe, an increase of four points compared with 2015.

The new PEUGEOT 4008 SUV launched in November 2016 in China and manufactured in the new Chengdu plant dedicated to SUVs achieved 120% of its objectives. In less than six weeks' on sale, it has already recorded 11,500 orders, of which more than 40% were for high-end trims.

The new CITROËN C3, with almost 40,000 sales already since its launch in November, enabled a bound of sales of 63% to be recorded in the fourth quarter, with a very high order mix of almost 50% for the highest trim level and 75% for the two-tone versions. 

These choices reflect the differentiation and well-being values at the core of the CITROËN positioning.

With a range that has been renewed over 12 months, the DS brand is gradually taking its place in the premium segment. The DS 3 stands among the top three best-selling premium city sedans in Europe, the DS 4 Crossback represents 34% of sales of the DS 4 & DS 4 Crossback duo, and 81% of sales of the DS 5 are the high-end versions.

Furthermore, the Group extended its product offensive in the light commercial vehicle segment, with the launch of seven new versions of the PEUGEOT Expert and CITROËN Jumpy in 2016 including the launch of the PEUGEOT Traveller and CITROËN SpaceTourer passenger car versions.

In Europe, the Group's sales were 1,930,000 vehicles a growth of 3.6% in 2016. The PEUGEOT brand, with a 4.4% increase in sales, is maintaining this growth, due in particular to the PEUGEOT 2008 SUV (+16% on sales of 184,200), which stands in second place in its segment, the PEUGEOT Partner (+8% on sales of 114,200) and the PEUGEOT 208, the brand's best-seller, driven by the success of its mid-life (+8% on sales of 274,000). The picture is similar for CITROËN which, with growth of 4.3%, recorded its best sales volume for five years (762,000 units). In addition to new launches during the year (E-Mehari, new Jumpy, SpaceTourer and new C3), the brand's momentum was sustained in particular by the C4 Picasso, the benchmark in people carriers, renewed in September (sales of 109,000) and also by the continued success of the Berlingo LCV, the second best-selling small van in Europe. The DS brand continues to develop its dedicated network with 112 DS Stores and DS Salons, as well as the first DS Urban Store, located in the heart of the prestigious Westfield shopping centre in London, inaugurated on 1 December 2016.

In China and South-East Asia, in a fiercely competitive context, the Group generated 618,000 sales. In December, DONGFENG PEUGEOT achieved its historic best ever monthly performance in China with 43,800 deliveries to customers, mainly due to the success of the PEUGEOT 4008 SUV.

The CITROËN C3-XR SUV confirmed its success with more than 73,000 sales, an increase of 10.5%, which made it the second-best selling DONGFENG CITROËN, behind the C-Elysée (87,000 sales). Orders for the new CITROEN C6 large sedan launched at the end of the year have already reached 4,000, of which nearly 75% are for high-end engines and trims.

With 109 DS Stores, China is the second-largest market for the DS brand, which generated one in every five sales, of which 60% of volumes was for the DS 6 SUV.

On the fast-growing markets of South-East Asia, the PEUGEOT brand recorded growth of 72% in the Philippines and 40% in Singapore. The CITROËN brand continued to grow in South-East Asia, especially in Singapore with the success of the C4 Picasso.

In the Middle-East and Africa region, the PSA Group doubled its sales in 2016 with 383,500 vehicles ². In less than a year, the Group's return to Iran took firm shape with the signature of two joint venture agreements: PEUGEOT with Iran Khodro, the brand's historic partner, and CITROEN with SAIPA. Launched at the start of 2016 in partnership with the Iranian group Arian Motor, DS opened its first DS Store in Teheran and markets the DS 5, DS 5LS and DS 6.

In Latin America, the Group's sales grew by 17.1%, with 183,900 vehicles sold. The Group's market shares increased in Argentina (+1.6 points) and in Chile (+1.3 points), where sales were up 32%. With an overall increase of 23.6%, PEUGEOT sales are growing very sharply, in particular in Argentina (+39%), notably with the success, from its launch, of the PEUGEOT 2008 SUV (almost 10,000 sales), in Chile (+32%) and in Brazil (+7%). CITROËN sales grew by 6.3%, particularly due to the C3 Aircross (+78%). DS occupies fourth place in the Argentinian premium vehicle market.

In Eurasia, the economic climate is still very weak, particularly in Russia, and the PSA Group's sales fell by 12.6% to 10,500 units in a market that declined by 12.5%. In Ukraine, in a dynamic market (+37.4%), the Group's sales grew by 43%. The Group has extended its geographic presence in the region with the commercial launch of its three brands in Georgia.

In the India-Pacific region, following growth of 3.3% in Japan in 2015, the Group saw a rapid increase in its Japanese sales with a rise of 20.6%, making this its best result here since 2007. The PEUGEOT brand made a significant contribution to this performance (+27%), driven in particular by the excellent results for the PEUGEOT 2008 SUV (+63%), the 208 (+46%) and the 308 (+24%). The introduction of the BlueHDi technology in July made it possible to round out the energy offer and will have partially contributed to supporting this growth. CITROËN sales grew by 7.5% across the whole region, mainly due to the launch of the C4 Cactus at the end of the year in Japan and Korea. Officially launched at the end of 2015 in Japan, sales of the DS brand increased by 30% under the effect of major operations such as the first DS WEEK in Tokyo and the launch of a number of limited editions.

Carlos Tavares, Chairman of the Managing Board: "The increase in our sales for the third consecutive year, even though the product offensive of our Push to Pass plan is in its early stages, proves the relevance of our Core Model Strategy. The success of our latest launches is proof that the value-creating growth is the result of the excellence of our products and a virtuous commercial policy".

PSA Groupe, Ericsson and Orange combine forces for the next generation of connectivity.

• Partnership between Ericsson, Orange and PSA Group to test 5G network technology for connected vehicle applications as part of “Towards 5G” initiative.
• The partnership will conduct live testing using a test track on a French site, equipped with an end-to-end wireless network
• The partnership addresses connected vehicle requirements to improve road safety, as well as new automotive connected services for better user experience

Ericsson, Orange and PSA Group have signed a partnership agreement to conduct 5G technology pilot for automotive applications. 

“Towards 5G” connected car partnership aims to leverage 4G to 5G technology evolution to address connected vehicle requirements such as intelligent transport system (ITS) to improve road safety, new automotive and in-car services.

The partnership is technically focused on Vehicle-to-Vehicle (V2V) and Vehicle-to-everything (V2X) architecture and real-time performances for the deployment of ITS and connected services in vehicles. 

Initial tests use end-to-end architecture system with LTE technology and will evolve to LTE-V and 5G technology.

First use cases on Cooperative ITS have been defined and are currently tested on the field test track such as “see through” between two connected vehicles on a road and connected emergency vehicle aiming at notifying in real-time emergency vehicle approach.

Other deliverables will be produced during 2017 in the framework of this research initiative.

“Towards 5G” connected car initiative is an important opportunity for the three partners to combine their expertise in connected vehicles to meet the challenges of new mobility services and of the Internet of Things (IoT).

Ericsson provides the radio and a distributed virtualized core network to enable network slicing capabilities and intelligent geo-messaging service.

Orange provides the cellular network with the associated spectrum on the field trial site and   the on-board connectivity integrating vehicular use cases.

PSA Group is in charge of automotive use case requirement definition, embedded architecture integration, user experience and technical validation.

As a result of their collaboration, the partners will develop a comprehensive experience of the requirements for a 5G infrastructure that fits to the needs of the connected vehicles industry. They will also identify the full potential of innovative services and use cases for the benefit of improving road safety and for better quality of services to end users.

"Connected IoT services are a crucial way to enhance the user experience for our customers, who today demand unprecedented levels of comfort and convenience as well as personalised services in their vehicles," said Carla Gohin, Research, Innovation and Advanced Technologies VP, PSA Group.

"Connected vehicles are part of our IoT strategic vision along with home, smart cities, e-health and Industry 4.0. Vehicle manufacturers expect us to provide the connectivity they need for remote maintenance management, for example, or to keep on-board systems software permanently up-to-date. By teaming with Ericsson and PSA Group, we are combining our capabilities to drive 5G development for innovative services with the perspective of the availability of 5G by 2020," said Mari-Noëlle Jégo-Laveissière, Executive Vice President, Innovation, Marketing and Technologies, Orange.

“5G technology will play a key role in the transport system of tomorrow.Ericsson is bringing Networks, IT and specific innovative solutions to the automotive industry. Along with key players like PSA and Orange, we will ensure the required levels of safety and security as well as contributing to a more sustainable and smart society," saidCharlotta Sund, Vice President and Head of Customer Group Industry & Society, Ericsson.

DS Automobiles adds a new Performance Trim level across all models, to give them a more sporty aura.

DS Performance, synonymous with the FIA Formula E Championship, is the creative force behind a new trim level – ‘DS Performance Line’ that will be available across the DS Automobiles range from October. Officially revealed for the first time today, the DS Performance Line combines the spirit of the GT with refinement and the latest DS brand technologies.

For DS Automobiles, the last year has been all about performance. DS Virgin Racing reached the podium in its first Formula E season by winning the Buenos Aires E-prix and repeatedly finishing in the points or starting at the front of the grid throughout the 2015/2016 campaign. 

DS E-TENSE was revealed at the Geneva Motor Show as a unique, high-performance electric car showcasing future DS technology and styling, and New DS 3 Performance and New DS 3 Cabrio Performance were recently launched as two models proudly expressing their dynamic credentials.

Now, with the introduction of the DS Performance Line, the brand’s engineers and designers – along with the DS Performance motor sport division – have utilised their know-how to create this new offering.

"The ‘DS Performance Line’ offers all the fundamental ingredients of a Grand Tourer, namely style and driving pleasure," said Éric Apode, DS Automobiles’ Vice President for Products and Business Development.

PERFORMANCE APPARENT FROM THE VERY FIRST GLANCE

Be it a New DS 3, New DS 3 Cabrio, New DS 4 or DS 5, a Performance Line model is instantly recognisable.  Each body style is specified with a contrasting black roof, combined with a specific palette of body colours (seven for New DS 3, six for New DS 4, and five for DS 5). The new large gloss black alloy wheels feature the DS logo set against a Carmine Red background on the centre caps to add exclusivity to all DS Performance Line models.

The signature colours of DS Performance (Carmine Red, White and Gold) are seen on key components of the vehicle, such as the door mirrors and the rear spoiler. In addition, the front doors and bonnet are adorned with special new ‘DS Performance Line’ badges.

REFINEMENT AND ATTENTION TO DETAIL TO COMPLIMENT THE DYNAMIC STYLE

Refinement and attention to detail are two fundamental values for DS Automobiles. The DS Performance Line pays tribute to these brand values with a number of specific features including a new style of upholstery with black Dinamica cloth, or a choice of two grades of leather trim. 

The overstitching on the seats reflects the colours of DS Performance. The special stitching also adorns the door panels, the gear lever gaiter and the leather steering wheel.In addition, the front seats are embroidered with a ‘DS Performance Line’ emblem.

The quality of the leather, and the other materials used, enhances the refinement of each interior. A choice of either grained or Nappa leather is available across the entire range. 

There is metallic detailing within the cabin, including chrome inserts on the steering wheel and door sill protectors to further enhance the meticulous style of the interior. Finally, New DS 3, New DS 4 and DS 5 offer LED lighting to illuminate the cabin.

On the outside, the DS grille is accentuated by the DS LED Vision light signature – a technology that takes distinction to a new level.

FROM ENGINES TO CONNECTIVITY: THE MOST EFFICIENT TECHNOLOGIES

The DS Performance Line features a broad range of efficient engines with outstanding torque, ultra-low CO₂emissions and fuel consumption. All these engines feature Stop & Start technology.

The Performance Line also features the DS brand’s latest technological developments including a 7-inch touchscreen, Satellite Navigation, Mirror Screen (MirrorLink® and Apple CarPlay™), and DS connected services via the DS Connect Box.

With its dynamic look, the DS Performance Line is dedicated to drivers seeking GT-inspired styling, combined with a choice of refined and efficient engines.

The DS Performance Line will go ‘on sale’ in the UK on 1 October, 2016.

DS PERFORMANCE LINE	BODY COLOURS	ENGINES & TRANSMISSIONS
New DS 3 & DS 3 Cabrio	Shark Grey, Polar White, Arctic Steel, Perla Nera Black, Pearl White, Sport Yellow, Ruby Red	PureTech 110 S&S manual or EAT6, PureTech 130 S&S 6-speed manual, BlueHDi 100 S&S manual, BlueHDi 120 S&S 6-speed manual (not available on DS 3 Cabrio)
New DS 4	Platinum Grey, Cumulus Grey, Perla Nera Black, Polar White, Pearl White, Ultimate Red	PureTech 130 S&S 6-speed manual, THP 165 S&S EAT6, THP 210 S&S 6-speed manual, BlueHDi 120 S&S 6-speed manual or EAT6, BlueHDi 150 S&S 6-speed manual, BlueHDi 180 S&S EAT6
DS 5	Platinum Grey, Cumulus Grey, Perla Nera Black, Pearl White, Hurricane Grey	THP 165 S&S EAT6, THP 210 S&S 6-speed manual, BlueHDi 150 S&S 6-speed manual, BlueHDi 180 S&S EAT6