Peugeot Invest : 2023 half-year financial report for the period ended 30 June 2023

Half-year financial report

for the period ended 30 June 2023

Disclaimer : this half-year report is a free translation of the official French version of the half-year

report available on the Peugeot Invest website (www.peugeot-invest.com).

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ACTIVITY REPORT - FIRST HALF 2023

Net asset value (NAV)

Net asset value (NAV) is calculated as the market value of Peugeot 1810 shares plus the gross asset value of Peugeot Invest's Investments, less financial liabilities. Listed companies are valued at market price at the balance sheet date. Peugeot 1810 shares, which include Stellantis and Faurecia shares, are valued at the period-end market price. Details of the valuation methodology used (unchanged from previous publications) are available on the Peugeot Invest website and in the Peugeot Invest Universal Registration Document.

At 30 June 2023,

• The overall value of Peugeot Invest's stake in Peugeot 1810 was €2861 million.
• The gross asset value of Investments was €3566 million at 30 June 2023, compared with €3585 million at 31 December 2022.
• Peugeot Invest's NAV was €5516 million (€221.30 per share) at 30 June 2023, compared with €4972 million (€199.50 per share) at 31 December 2022, up 12.4% (dividends reinvested).

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Activity and results of main investee companies

Peugeot 1810

Stellantis once again turned in a very strong operational and financial performance in the first half of 2023. Group net revenue rose by 12% compared with the first half of 2022, to €98.4 billion, mainly due to the growth in its sales volumes, which reached 3.33 million units, an increase of 9.7%.

Operating profit totalled €14.1 billion, equal to 14.4% of revenue, driven by all geographical zones and North America in particular (17.5% margin) and Africa and the Middle East (25.9% margin).

Cash flow amounted to €8.7 billion, resulting in a net cash position for the group of €30 billion at 30 June 2023.

Stellantis is now the third-largest manufacturer by sales of battery electric vehicles (BEVs) in Europe and ranks second on the American market (light electric vehicles or LEVs).

In addition, as announced during the presentation of its annual results, Stellantis launched a €1.5 billion share buyback programme in the first half of the year, €700 million of which had been carried out at the end of June 2023.

The company's management confirmed its annual targets of operating margin of over 10% and positive free cash flow.

In the first six months of the year, Forvia was boosted by the 11.2% increase in global automotive production (mainly in Europe and China). This increase reflected strong demand and a steady improvement in logistics problems.

Revenue thus reached €13.6 billion, up 21.3% (with the consolidation of Hella causing a substantial scope effect). Operating profit was €675 million, up 69.6% year on year and equal to 5% of revenue (compared with 3.8% in the previous year). Forvia recorded new orders of more than €15 billion in the first half of the year, a high level that reflects the strong dynamic of the group.

The group's net debt was almost unchanged year on year (€8.1 billion vs €8.4 billion). The proceeds of the disposals announced at the start of the year will be received in the second half, enabling debt to be reduced.

Forvia has confirmed its annual guidance of revenue of €26.5 billion to €27.5 billion, an operating margin of 5.2% to 6.2% and neutral cash flow.

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Investments

In a market environment that remained uncertain in the first half of 2023, the Group's equity investments recorded an increase in activity overall, resulting in a sharp rise in its operating performance, fuelled by a recovery of growth. This led, in particular, to substantial rises in the share prices of SEB Group (+21%), Spie (+21.5%) and LISI (+15.5%). Orpea is also working on the implementation of its Accelerated Safeguard Plan to ensure its sustainability.

In an unsteady macroeconomic and geopolitical environment, which was notably marked by a record acceleration in inflation and rising interest rates, the real estate sector (11% of gross asset value at the end of 2022) was hit particularly hard, with upward pressure on capitalisation rates and the impact of remote working on the use and attractiveness of office locations. In this uncertain environment, the valuation of the majority of our real estate assets was adjusted downwards.

The rest of the portfolio, made up of co-investments and private equity funds, continued to demonstrate a high level of resilience and increased its value.

New investments and disposals

Shareholdings

Commitment to invest in Rothschild & Co

In February 2023, Peugeot Invest committed to investing €152 million in Rothschild & Co, alongside Concordia and other long-term investors in a simplified takeover bid for shares of the group. It opened on 24 July 2023 at a price of €38.60 per share, ex-ordinary dividend and ex-extraordinary distribution, and ended on 8 September 2023.

On 12 September, the AMF announced the successful completion of the offer enabling the implementation of the squeeze-out. Peugeot Invest now holds 5.1% of Rothschild & Co's capital and will be represented on the company's Supervisory Board following this transaction.

Rothschild & Co is a leading global financial services group, structured around three businesses: financial advisory; private banking and asset management; and merchant banking. In 2022, it generated consolidated revenue of €3 billion.

Participation in the reorganisation of the capital of CID and LISI

Since 1977, the companies in the family-owned Peugeot group have supported the development of the LISI group, an international leader specialising in the design and manufacture of assembly solutions for the aeronautics, automotive and medical industries.

At 31 December 2022, Peugeot Invest was a shareholder owning 5.1% of the capital of LISI and 25.4% of the capital of Compagnie Industrielle de Delle (CID), LISI's controlling holding company.

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