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Growth Strategy
Corporate
Governance
Business Review
Corporate Policies
Management’s
Discussion
and Analysis
Statistics
Total financing revenues break down as follows:
(in millions of euros) 2002 2001 2000
From third parties 1,530 1,375 1,203
Intercompany 170 212 184
Total Banque PSA Finance 1,700 1,587 1,387
Revenues climbed 7.1% in 2002, after rising
14.4% in 2001. These strong rates of
growth were directly attributable to
expansion of the loan portfolio and rapidly
growing revenues from sales of maintenance,
insurance and other financing-related
services. Revenues from these services
climbed 13% in 2002 to €111 million,
building on a 19% gain in 2001.
3. OPERATING MARGIN
The Group’s business and earnings targets
for 2002 were set in February 2002 based
on two possible scenarios for the European
automobile market – flat or a 2-4% decline
compared with 2001. Assuming a flat
market, the Group set as its target an
operating margin of €2,900 million,
including a 5% margin for the Automobile
Division. Assuming a 2-4% decline, the
targets were set at €2,800 million and
4.8% respectively. Although the European
automobile market contracted by 3% -
corresponding to the second scenario –
the Group succeeded in achieving the
targets set under the first, more optimistic
scenario. Total operating margin came in
at €2,913 million, while the Automobile
Division margin represented 5% of sales.
Operating Margin
Consolidated operating margin increased by
9.8% in 2002 compared with the 2001 total
of €2,652 million, which in turn was up
25% on the 2000 figure of €2,121 million.
Over the three-year period, the margin rate
climbed from 4.8% of sales in 2000 to 5.1%
in 2001 and 5.4% in 2002. The consolidation
of the Sommer Allibert automobile business
acquired by Faurecia added €134 million
to 2001 operating margin.
(in millions of euros – as % of sales)
3.1. Operating margin by businesses - manufacturing and sales companies
(in millions of euros) 2002 2001 2000
Automobile 2,183 1,992 1,579
Transportation and Logistics 134 119 100
Automotive Equipment 251 262 176
Other businesses 26 31 2
Total 2,594 2,404 1,857
Automobile Division operating margin
stood at €2,183 million, representing 5%
of sales, versus €1,992 million (4.8% of
sales) in 2001 and €1,579 million (4.2%
of sales) in 2000. The increase between
2001 and 2002 was 9.6%.
The main factors underlying the growth
in operating margin in 2002 are as follows:
- higher unit sales, a shift in the sales mix
following the launch of new models and
a shift in the geographic mix had a net
positive impact of €73 million. Volume
growth excluding the effect of mix changes
contributed €268 million to the increase,
while higher margins on the new models
launched in 2001 and 2002 improved the
product mix, adding €54 million. These
gains were partly offset, however, by the
€249 million negative impact of changes
in the geographic mix, resulting from the
contraction of the European market and
lower margins in Brazil.
-the price effect had a positive impact
of €29 million, reversing the traditional
trend towards lower prices that trimmed
€201 million from operating margin in
2001 and €445 million in 2000.
The favorable price impact testifies to
the benefits of the Group’s strategic
commitment to innovation and to
extending and rapidly renewing the model
line-up, as well as to the success of the
two marques’ vehicles. Sales growth and
market share gains were achieved without
resorting to excessive sales incentives and
PSA PEUGEOT CITROËN - MANAGING BOARD REPORT 101