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Stellantis posts record results but declining margin

Stellantis publishes its results for 2023 and once again the group beats its records with positive sales, profit and free cash flow, even if the margin is slightly lower than in 2022, but still at a very high level.

This is why Stellantis has just announced new record results for the year, with net sales up 6% on the previous year to €189.5 billion. Net income was up 11% to €18.6 billion and industrial free cash flow was up 19% to €12.9 billion. Global sales of battery-electric vehicles (BEVs) increased by 21% and sales of light electric vehicles (LEVs) increased by 27% year-on-year, with plug-in hybrids (PHEVs) leading the way in the US and LEVs in second place. The Group's net margin for 2023 is 12.8%, down slightly from 13% in 2022, but still above the 12% target set in the Dare Forward 2030 plan.

Carlos Tavares, CEO of Stellantis, said: "Having just celebrated the third anniversary of the creation of Stellantis, I would like to sincerely thank our teams who are executing our strategy at a remarkable level and contributing significantly to our growth despite the strongest headwinds. The record financial results announced today demonstrate that we have become a new world leader in our sector and that we will remain rock solid in the face of what promises to be an eventful 2024. With the flexibility of our technology and product roadmap, we are prepared for any scenario and are delivering on the commitments of our Dare Forward 2030 plan.

The results are in line with the objectives of the Dare Forward 2030 plan and are supported by the following concrete actions:

COMMITMENT: Stellantis is committed to achieving carbon neutrality by 2038. In 2023, Stellantis will have reduced its absolute emissions in tCO2 on Scopes 1 and 2 by 20% compared to the reference year 2021.Thanks to its constant attention to the customer, Stellantis has reduced the number of defects on its vehicles three months after delivery to the end customer by more than 40% compared to 2021. As part of the implementation of a circular consumption model, the company opened its first Circular Economy Hub in Italy, creating a centre of excellence to industrialise the recovery and sustainable reuse of materials. The sales volume generated increased by 18% compared to the previous financial year. The company implemented an employee share ownership plan called "Shares to Win" in Italy and France, with plans to extend it to other countries in 2024. In addition, more than 600 collective agreements were signed, covering almost 90% of Stellantis employees worldwide. The Stellantis Student Awards recognised more than 600 family members of employees for their commitment to education and training, and the Stellantis Foundation partnered with CERN to inaugurate the Science Gateway in Geneva, a new centre dedicated to science education.

TECH: To support the company's growth in the global market and its electrification strategy in North America, 18 additional BEVs will be launched in 2024, bringing the total number of electric models to 48 by the end of 2024. The all-new Citroën ë- C3 starts at €23,300, making it the most competitive European-produced electric car in the B-segment, while the Jeep® Avenger, named European Car of the Year 2023, continues to win awards. With the Peugeot E-3008, Stellantis launched the first of its four new platforms for BEVs, the STLA Medium platform, which offers the best autonomy in its category (up to 700 kilometres). The second platform, STLA Large, scheduled for launch in 2024, will offer a range of 800 kilometres and is designed to exceed customer expectations. STLA Large is a highly flexible native BEV platform that will serve as the basis for several future D- and E-segment vehicles. It will be able to support different powertrains, including hybrid and internal combustion. Stellantis has secured its feedstock supply until 2027 and signed an agreement with CATL for the supply of LFP battery cells and modules, completing its battery chemistry portfolio. Stellantis and Ample partnered on battery swapping technology for a fully charged car in less than five minutes. Stellantis joined Symbio and the other joint venture shareholders for the inauguration of SymphonHy, the first Gigafactory in France and the largest integrated hydrogen fuel cell production site in Europe. Stellantis is implementing a multi-dimensional strategy to secure semiconductor supply and stimulate innovation. SiliconAuto, a 50/50 joint venture between Stellantis and Foxconn, will produce chips for the new generation of automotive platforms from 2026. In 2023, Stellantis Ventures invested in six new start-ups and Stellantis signed 49 commercial agreements with start-ups.

VALUE: Flexibility, execution, resilience and agility remain core elements of the Stellantis philosophy. With numerous technologies and new models announced, the company is well positioned to respond profitably to customer expectations, market fluctuations and political upheaval. Stellantis continues to grow outside of Greater Europe and North America, with net sales in the "third engine" up 13%. In China, Stellantis invested €1.4 billion in Leapmotor, a new energy vehicle (NEV) OEM, and now holds almost 21% of its capital. This investment allows Stellantis to play a major role in supporting Leapmotor's promising growth in China, while contributing to Leapmotor's international expansion strategy through the new Leapmotor International joint venture managed by Stellantis. Stellantis thus fills a gap in its business model and can now benefit from Leapmotor's competitiveness in China and other countries. The Stellantis Pro One Commercial Vehicles business unit remains the market leader in the EU30 and South America, and is the undisputed leader in electric vehicle sales in the EU30 with a 38.8% market share for BEVs. The business unit aims to be number one in the world by 2027, with an expanded and completely renewed range of internal combustion vehicles, electric vehicles, hydrogen fuel cell models and systems to increase vehicle autonomy. Stellantis' DaaS (Data as a Service) arm, Mobilisights, has created innovative solutions and secured several strategic agreements thanks to its tailor-made data packages and data streaming offering.

TARGETS AND OUTLOOK: Building on the momentum of 2023, management notes a number of factors that should create a favourable backdrop for 2024, including reduced logistics and supply challenges, stabilisation and potential decline in interest rates, and gains from the company's planned product range expansion. The Group reaffirms its commitment to achieving at least a double-digit recurring operating margin and positive industrial free cash flow in 2024, despite macroeconomic uncertainties.

Subject to shareholder approval, Stellantis proposes to pay an ordinary dividend of €1.55 per share, an increase of 16% compared to last year. Stellantis will also implement a €3.0 billion share buy-back programme until 2024, of which €0.5 billion will be repurchased in 2024 as part of share-based compensation and employee participation. Finally, the Group will pay almost €1.9 billion to employees in 2024, with a minimum of €4,100 in France, under the profit-sharing and employee shareholding scheme, which for the third consecutive year represents more than 2.5 months' net salary for the first levels of remuneration. However, despite these record results, the bonuses paid to employees will be lower than in 2022, when the Group will have paid out 2 billion euros, or an average of 4,300 euros for French employees .....

Carlos Tavares commented: "In today's extremely challenging and competitive environment, all Stellantis employees can be proud of what we have built together over the last three years, and I would like to thank each and every one of them. We are delivering solid results that allow us to distribute nearly 1.9 billion euros in profit-sharing and variable bonuses for the third year in a row. These profit-sharing and variable remuneration programmes are much more than a simple reflection of our employees' performance and achievements. They are a fair recognition of their contribution to our collective success.

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