• CORPORATE GOVERNANCE
• SERVICES AND PRODUCTS
  • issues-answers
  • peugeot
  • citroën
  • eco-design
  • adressing climate change
  • safety and telematics
  • mobility services
  • sport
• A GLOBAL PLAYER
  • issues-answers
  • international growth
  • europe
  • china
  • latin america
  • russia
  • 2009-2010 launches
• OPERATING EFFICIENCY
  • issues-answers
  • production resources
  • suppliers
• RESPONSIBLE DEVELOPMENT
  • issues-answers
  • workplace health and safety
  • jobs and capabilities
  • changes in the workforce
  • ethics and social responsibility
  • customer relations
  • community commitment
• OUR PERFORMANCE
• 200 YEARS

CORPORATE GOVERNANCE

• Thierry Peugeot Chairman of the Supervisory Board

  MESSAGE FROM THIERRY PEUGEOT
  
  In 2009, the automobile industry was particularly hard hit by the global economic crisis. PSA Peugeot Citroën had to confront several major challenges, which were met with courage and determination by the Group and its executives. Impelled by the Supervisory Board, the Group embarked on a new improvement dynamic led by the Managing Board.
  
  In early 2009, the Supervisory Board approved the operating and financial measures that the Managing Board decided to implement in response to the crisis, with a priority focus on preserving the Group’s cash. As part of this process, the Board also approved the €3 billion loan from the French government, which it was pleased to accept.
  
  On 17 June 2009, the Supervisory Board appointed a new Managing Board, chaired by Philippe Varin and comprising four other members. It has been tasked with making PSA Peugeot Citroën a more global enterprise and one of the world’s leading automobile manufacturers, while preserving its independence.
  
  In July, Mr Varin presented his new strategic vision for the Group for the next ten years. This vision, which has been embraced by everyone in the Group, has the Supervisory Board’s full support.
  
  The 2009 financial results reflect the impact of the economic crisis.
  
  In a global market down 3.1%, worldwide sales declined by 2.2% to 3,188,000 units. Revenue fell 10.9% to €48,417 million, and the Group ended the year with a recurring operating loss of €689 million. Thanks to the upturn in demand in the second half and the product dynamic, the Group was nevertheless able to drive new market share gains and return to recurring operating income.
  
  Due to the uncertainties weighing on several of our several of our markets, 2010 will be another difficult year.
  The Supervisory Board is confident, however, in Peugeot and Citroën’s ability to increase their market share in Europe and other regions thanks to both the renewed line-ups, integrating low-carbon models, and the services offensive.
  
  In the same way, the Supervisory Board is confident in the Managing Board’s ability to meet its profitability and growth objectives, in particular with the deployment of the
  PSA Excellence System in every aspect of its business.
  
  

• Supervisory Board

  SUPERVISORY BOARD
  
  Since 1972, Peugeot S.A. has had a two-tier management structure comprising a Managing Board, responsible for strategic and operational management, and a Supervisory Board, responsible for oversight and control.
  
  The Supervisory Board, which has twelve members plus two non-voting advisors (censeurs), ensures that the strategy implemented by the Managing Board is consistent with the Group's long-term vision, as defined by the Supervisory Board. The Supervisory Board appoints members of the Managing Board and can remove them from office. It is responsible for overseeing the Managing Board’s management of the business.
  The Supervisory Board meets at least once every quarter; the agenda of each meeting is prepared by the Chairman.
  In 2009, it was assisted by three dedicated committees, who researched and prepared a number of issues for discussion and decision.
  
  FINANCE AND AUDIT COMMITTEE
  
  • Mission: Oversees issues concerning the preparation and control of accounting and financial data.
  • Members: Jean-Paul Parayre, Chairman / Marc Friedel / Jean-Louis Masurel / Robert Peugeot and Marie-Hélène Roncoroni.
  • The Finance and Audit Committee met seven times
  in 2009.
  
  STRATEGY COMMITTEE
  
  • Mission: Consider the Group’s long-term future and strategy; analyse for the Supervisory Board the strategic plan and major projects proposed by the Managing Board.
  • Members: Jean-Philippe Peugeot, Chairman/Jean-Paul Parayre/Robert Peugeot/Thierry Peugeot/Henri-Philippe Reichstul/Ernest-Antoine Seillière and Jean-Louis Silvant.
  • The Strategy Committee met five times in 2009.
  
  

• Philippe Varin Chairman of the Managing Board

  INTERVIEW WITH PHILIPPE VARIN
  
  You were appointed Chairman of the Managing Board in June 2009. How would you describe your first year on the job?
  
  In a year of major crisis for the automobile industry, I discovered a Group that was sharply focused on maintaining the vibrancy of its brands, preparing new model launches and carefully managing its production resources. I applaud the collective efforts that allowed PSA Peugeot Citroën to gain market share, handle employment issues in a socially responsible manner and help suppliers weather the crisis.
  
  Financially speaking, our results reflected the recession’s severity, with a consolidated loss of €1,274 million for 2009. That said, performance improved significantly in the second half of what was a very mixed year. We were able to substantially pare down debt thanks to disciplined cash management and effective reductions in inventory.
  
  You presented a performance plan in November. Can you tell us how it is aligned with the vision you have defined for the Group?
  
  The goal of the plan for 2010-2012 is to return to profitable growth and gradually eliminate the profitability gap between PSA Peugeot Citroën and its top rivals. The €3.3 billion plan focuses on enhancing our sales momentum and reducing our costs.
  
  Our vision sets the course for the next ten years, through 2020, and structures all of the company’s projects and operations. The performance plan is a shorter-term application of this vision with quantified targets and four key ambitions that all our team members have embraced.
  
  Could you summarise the highlights of this vision
  for us?
  
  Our first ambition is to stay a step ahead in automobile products and services. We want to be ahead of the pack in low-carbon vehicles, design and automobile services.
  
  

• The Executive Committee

  THE EXECUTIVE COMMITTEE LOOKS BACK AT 2009
  In June 2009, the Supervisory Board of PSA Peugeot Citroën appointed a new five-member Managing Board for a period of four years.
  Chaired by Philippe Varin, the Managing Board leads the Group and oversees its day-to-day management. The Managing Board is supported by the Executive Committee, which comprises the five members of the Managing Board plus three senior executives who report to the Chairman of the Managing Board.