PSA PEUGEOT CITROËN's sustainable mobility commitment for today's and tomorrow's generation

2 Agenda The car in the global context of man made GHG The energetic equation in the car industry & the need for a continental scale low carbon energy scheme PSA Global Policy for today & tomorrow to be a Sustainable Mobility actor Conclusion : our CO2 emission reduction strategy in China

3 The car in the global context of man made GHG

4 The Automotive Object environmental footprint

5 154g g 95g CAFE Europe 200g 145g g of CO 2 /km 110g US government initiative Automotive Industry Worldwide convergence of CO2 objectives

6 The energetic equation in the car industry & the need for a continental scale of low carbon energy scheme

7 Which energy matrix for the 21th century ? ↘For PSA and for the car industry, the CO2 and fuel issue must be considered globally ↘Energy for transport means for today and the future should obey to three basis principles : the “triple” A scheme → A as Affordable → A as Acceptable → A as Accessible ↘For PSA and for the car industry, the CO2 and fuel issue must be considered globally ↘Energy for transport means for today and the future should obey to three basis principles : the “triple” A scheme → A as Affordable → A as Acceptable → A as Accessible

8 Which energetic matrix for the 21th century ? Fossil Fuels  Conventional petrol Coal  Coal to Liquid (CTL) Carbon intensity Electricity (Thermic)  Coal central Electricity (low or “0” CO 2 )  Nuclear power plant  Hydro-electricity  Wind mills  Solar Energy ?... Proven reserves  Petrol = 40 years  Gas = 60 years  Nuclear Isotopes  = dozens years  Lithium = ?  Sun = 5 billion years  Biomass = id  Others = ? Gas CNG Synthesis fuels  Fisher-Tropsch Time scale  Biofuels  2d generation  Algae extracted  Etc. First generation Biofuels

9 A need for a clear view on the energy matrix key issue for the car industry ↘To ensure the right choices, in terms of: → Advanced energy converter (Hybrids, Plug-in, EV’s etc.) → Economic model (tax included …) → Investments security (R&D, industrial investments) ↘We need a clear view on the way the energy matrix will be developed at least at Continental scale ↘Free market can presumably deliver appropriate answers, although without the necessary coherence and timetable → Public – Private Cross fertilization is key to succeed in the development of low carbon, high intensity energy to use in the transport sector → Time is the essence ↘To ensure the right choices, in terms of: → Advanced energy converter (Hybrids, Plug-in, EV’s etc.) → Economic model (tax included …) → Investments security (R&D, industrial investments) ↘We need a clear view on the way the energy matrix will be developed at least at Continental scale ↘Free market can presumably deliver appropriate answers, although without the necessary coherence and timetable → Public – Private Cross fertilization is key to succeed in the development of low carbon, high intensity energy to use in the transport sector → Time is the essence

10 PSA PEUGEOT CITROËN Global Policy for today & tomorrow to be a Sustainable Mobility actor

11 ↘ A wide offer of passenger cars < 130 g.CO2/km ↘ Technologies : → New engines: Direct injection turbocharged → Downsizing → New automatic transmissions → Low rolling resistance tyres → …. ↘ In a nearby future : → Micro Hybrids → Full Hybrids → Electric Vehicles ↘ A wide offer of passenger cars < 130 g.CO2/km ↘ Technologies : → New engines: Direct injection turbocharged → Downsizing → New automatic transmissions → Low rolling resistance tyres → …. ↘ In a nearby future : → Micro Hybrids → Full Hybrids → Electric Vehicles ISO plants Distribution network Recycling: vehicle Valorisation = 95 % DownstreamUpstream

12 PSA Peugeot Citroen low carbon design and architectural methods: a global approach Powertrain 10% engine consumption reduction  15g CO 2 benefit Rolling resistance 10% tyre rolling resistance reduction  2g CO2 benefit Aerodynamic properties 5dm2 benefit on SCx  2.5g CO2 benefit Global weight 100kg weight reduction  4g CO2 benefit

13 Citroen METROPOLIS – Green and Beautiful Battery Pack Lithium ion Hybrid (System) Control unit Electric Engine 70 kW Power Electronic Unit 7 speed Dual clutch Electronic gearbox 2nd generation Stop & Start METROPOLIS 2.0 L V6 Engine 200 kW

14 Our Ambition in China A very ambitious Target : Less 50% CO2 emission By 2020

15 A clear view A clean car offer for every customer Urban & Peri-urban Polyvalent CO 2 Emission Urban Full hybrid Hybrid HY4 HYbrid Plug-in < 50g CO 2 /km New Generation of Gasoline engines Stop & Start up to -15% CO 2 /km Electric Vehicle The way to achieve a 50% consumption reduction - Lots of technologies to be developed

16 PSA PEUGEOT CITROËN's sustainable mobility commitment for today's and tomorrow's generation SHANGHAÏ – September, PSA PEUGEOT CITROËN's sustainable mobility commitment for today's and tomorrow's generation SHANGHAÏ – September,