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Statistics
Automotive Equipment working capital
declined by €84 million in 2002, after
increasing by €127 million in 2001 (on a
comparable basis) and €37 million in 2000.
3.2. Cash flows from operating activities
– finance companies
Net cash provided by operating activities
of the finance companies totaled
€796 million in 2002 versus €1,820 million
in 2001.
Working capital provided by operations –
corresponding more or less to net income
– amounted to €239 million in 2002,
€160 million in 2001 and €222 million in
2000. Changes in operating assets and
liabilities had a positive impact of
€557 million in 2002 and €1,660 million
in 2001. These figures correspond to the
combined effect of changes in outstanding
loans and the related refinancing, and to a
lesser extent, to changes in other operating
receivables and payables. As such, they
primarily reflect Banque PSA Finance’s drive
to build up cash reserves, in accordance
with its financing strategy (see section
1 above).
3.3. Cash flows from investing activities
In 2002, gross capital expenditure amounted
to €2,802 million. This was slightly below
the 2001 amount of €2,947 million, which
in turn was close to the 2000 figure of
€2,932 million. Capital expenditure over
the last three years is in line with the
Group’s medium-term target of capping
capital budgets at €3,000 million per year.
The main programs concern new product
launches and the extension of the Group’s
international presence. Capital expenditure,
like R&D spending, has been contained
thanks to the effectiveness of the platform
strategy, which allows plant and tooling
dedicated to a platform to be reused for
all vehicles developed on the platform
concerned.
Capital expenditure breaks down as
follows by business:
Gross capital expenditure
(in millions of euros) 2002 2001 2000
Automobile 2,357 2,398 2,497
Transportation and Logistics 51 85 74
Automotive Equipment 351 436 290
Other businesses 31 19 37
Total manufacturing and sales companies 2,790 2,938 2,898
Finance companies 12 9 34
Total PSA Peugeot Citroën 2,802 2,947 2,932
At €177 million, proceeds from disposals
of fixed assets returned to their recurring
level in 2002, after peaking at €450 million
in 2001. In 2000, fixed asset disposals
generated a cash inflow of €103 million.
The 2001 figure included the €271
million proceeds from the sale of
a real estate complex in the Paris area,
which had become surplus to requirements.
Cash outlays for acquisitions of shares in
consolidated and non-consolidated
companies represented a low €81 million.
Most of this amount consisted of the
Group’s contribution to the initial capital
of Toyota Peugeot Citroën Automobiles
(TPCA). Cash outlays in 2001, totaling
€1,608 million, included the €1,495 million
acquisition of Sommer Allibert’s
automobile business and €63 million
used to buy out the Rio de Janeiro state
government’s stake in Peugeot Citroën do
Brasil. The 2000 total of €182 million
primarily corresponded to the Group’s
€137 million contribution to a share issue
by Dong Feng Citroën Automotive
Company (DCAC).
3.4. Cash flows from financing activities
Including the finance companies,
financing activities generated a net cash
outflow of €2,474 million. In 2001 and
2000, these activities generated net cash
inflows of €3,416 million and €696
million respectively.
Cash outflows include dividend payments
by Peugeot S.A., in the amount of
€294 million in 2002, versus €217 million
in 2001 and €118 million in 2000. Net
cash outflows related to share buybacks
totaled €556 million, corresponding to
the buyback of 12,231,422 shares at an
average price of €45.42. Of the total,
€517 million are included in stockholders’
equity, under “Treasury stock” and
€39 million – corresponding to shares
acquired for allocation on exercise of stock
PSA PEUGEOT CITROËN - MANAGING BOARD REPORT 111