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➔ Note 21 - Inventories
Inventories can be analyzed as follows:
(in millions of euros) 2002 2001 2000
At cost
Raw materials and supplies 865 864 702
Semi-finished products and
work-in-progress 1,298 1,282 1,009
Goods for resale and used vehicles 1,144 1,153 824
Finished products and replacement
parts 3,429 3,446 2,988
6,736 6,745 5,523
Less: allowances (569) (527) (352)
Total 6,167 6,218 5,171
Movements in inventories are analyzed in note 39-a) 2.
➔ Note 22 - Accounts and notes receivable
a) Securitization
In November 2000, Faurecia and certain of its French subsidiaries
signed a rolling one-year agreement for the sale of up to €400 million
worth of receivables to a banking special purpose entity. The agreement
expires in November 2005.
In December 2002, a second rolling one-year agreement was signed by
other French, German and Spanish subsidiaries of Faurecia with
another banking special purpose entity, for the sale of up to €460
million worth of receivables. This agreement expires in December 2007.
In both cases, the receivables are sold without recourse and Faurecia’s
risk is limited to the amount of the security deposit paid to the special
purpose entity.
At December 31, 2002, total financing raised under these programs,
net of the security deposit, amounted to €651 million, including €281
million in receivables sold but not yet collected. The corresponding
amounts at December 31, 2001 were €260 million and €156 million
respectively. The security deposit, in the amount of €106 million at
December 31, 2002 and €17 million at December 31, 2001, is included
in “Other receivables”.
After taking into account the amount recognized under “Short-term
debt” – €167 million at December 31, 2002 and €125 million at
December 31, 2001 – to offset the inclusion of the sold receivables
under assets, the remaining effect on PSA Peugeot Citroën Group debt
at these dates is not material.
b ) Reclassification
Effective from 2002, “Accounts and notes receivable” include credit
notes deducted from sales corresponding to confirmed or estimated
sales incentives on new vehicles held in inventory in the independent
dealer network, as well as credit notes and accrued credit notes for
sales incentives on vehicles sold to customers that have not yet been
settled by the Group.
These credit notes were previously included in “Other receivables”
for an amount of €404 million at December 31, 2001 and €324 million
at December 31, 2000. They have been reclassified under “Accounts
and notes receivable” to permit meaningful year-on-year comparisons.
c ) Breakdown
(in millions of euros) 2002 2001 2000
Accounts and notes receivable 3,520 3,642 3,154
Credit losses (139) (191) (192)
Total 3,381 3,451 2,962
This item does not include receivables from dealers transferred to the
finance companies which are shown in the consolidated balance sheet
under “Finance receivables”.
Movements in this item are analyzed in note 39-a) 2.
➔ Note 23 Finance receivables
a) Securitization
The Banque PSA Finance Group has carried out two securitization
transactions through “Auto ABS”, a special purpose entity created in
June 2001:
- On June 28, 2001, Din and Sofi, two subsidiaries of Crédipar - a
French subsidiary of the Banque PSA Finance Group - sold €1 billion
worth of automobile loans to the 2001-1 fund of the Auto ABS special
purpose entity. The Auto ABS 2001-1 fund issued €950 million worth
of AAA/Aaa rated preferred asset-backed securities and €50 million
worth of A/A2 rated subordinated asset-backed securities. Crédipar's
retained interest amounts to €10,000. The preferred and
subordinated asset-backed securities are secured by a €20 million
deposit paid by Crédipar.
The fund purchases additional loans from Din and Sofi every month,
to maintain the total asset pool at €1 billion. The asset pool will be
topped up at monthly intervals through July 2003 and will then be
wound down over an estimated period of three years.
- On July 11, 2002, Din and Sofi sold €550 million worth of automobile
loans and the spanish branch of Banque PSA Finance sold €950
million worth of automobile loans to the Auto ABS 2002-1 fund.
The Auto ABS 2002-1 fund issued €1,440 million worth of AAA/Aaa
rated preferred asset-backed securities and €60 million worth of
A/A2 rated subordinated asset-backed securities. Banque PSA
Finance's retained interest amounts to €30,000. The preferred and
subordinated asset-backed securities are secured by a €30 million
deposit paid by Banque PSA Finance.
The fund purchases additional loans from Din, Sofi and the spanish
branch of Banque PSA Finance every month, to maintain the total
asset pool at €1.5 billion. The asset pool will be topped up at monthly
intervals through July 2004 and will then be wound down over an
estimated period of three years.
In both cases, the securitized loans are no longer carried in the balance
sheet. The impact of the operations on earnings for the period was not
material. Banque PSA Finance's retained interest is included in shortterm
investments. In accordance with Group accounting policy,
allowances for credit losses were recorded when the loans were made.
These allowances have been maintained in the balance sheet to cover
the risk of losses on the deposits.
The deposits are carried in the balance sheet under “Other customer
loans”.
PSA PEUGEOT CITROËN - APPENDICES TO THE MANAGING BOARD REPORT 157