PSA - 2019 Universal Registration Document

GROUPE PSA Activities and strategy

AUTOMOTIVE DIVISION

1.3.2.1.

2019was a year of consolidation for Peugeot.The brandcompletely renewedits B segmentofferingto supportits sales growthin 2020. Thenewelectrified range,drivenby thePeugeote-208ande-2008,as well as the plug-inhybridversionsof the Peugeot3008Hybridand 508Hybridsedan& SW,arefullyavailable forB2BandB2Ccustomers and feature among thelowestCO 2 emissions of the market. Citroën had the strongest growth among the top 12 best-selling brandsin Europe,increasingits marketsharesin the mainmarkets. Its performance was notably driven by the C5 Aircross SUV, launchedin January 2019,whichwill be availablein a plug-inhybrid versionin 2020. DS Automobilessales surgedglobally,especiallyin the secondhalf of the year (+56%)driven by the successof its renewedrange. In France, DS main market, the successfulDS7 Crossbackand DS3 Crossback models are now strongly positioned and the brand’s performance is being enhanced by the growing exclusive DS network, with356 pointof sales todate. Opel Vauxhallfocusedits strategyon profitablesales channelsand market segments. Through the consistent implementationof the core model strategy, Opel Vauxhall have taken steps toward ambitious future CO 2 targets. The Grandland X (+29%) and Crossland X(+28%) SUVs and the LCVs (+20%) were particularly successful. Middle East– Africa:market share increase inmajor markets Groupe PSA’smarket share increasedby 0.4pt in the region with registrations up 9,100 units compared to 2018, despite markets decliningby 100,000 units (4) . Strong breakthroughswere made in Turkey(+2.1pt),Egypt (+6.1pt)and Morocco(+2.1pt).2019 regional performance versus 2018 remainedimpactedby the wind down in Iran (May 2018) (5) . The productionstarted mid-September 2019 in the Kenitra plant, in Morocco. The production capacity will be doubled toreach200,000 vehicles as early asMid-2020. China & Southeast Asia: reshaping the business model DPCAhas set out its prioritiesin a six-yearstrategicplanpresented last September,basedon profitablesales, a lower breakevenpoint and a progressiveincreasein volumesfor the Peugeotand Citroën brands. The DS brand is committed to the Chinese market and finalizesa new strategicplan. The sale of Groupe PSAsharesin the CAPSAjointventureis partof thisplan.2020will be the firstyearof Groupe PSA’sNEV offensivein China, with five NEV modelsto be launchedand sold in China (6) . In ASEAN,the Group’sMalaysianhub NAM (7) startedproduction with the Peugeot3008 and5008. Latin America: contractingmarkets Marketswere hard hit in Argentina(-43%) and Chile (-11%) by the economicand politicalsituations.Drivenby the successof the new SUV C4 Cactus and the LCV offering,Groupe PSAsales remained brisk in Mexico (+13%), Brazil (+2%) and in smaller markets (Colombia, Cuba, Ecuador andUruguay).

Significant eventsof the sales 1.3.2.1.1. activities in 2019 Worldwide sales at3.5 millionunits in 2019 Electrificationon track: 10 (1) new models launched as a first n milestonetoward a 100% electrified range by 2025. Solidposition in Europe: 16.8% market share. n International businesses focused on profitable growth and n manufacturing footprintdevelopment. Becoming a majorplayer inelectric mobility Groupe PSA has already launched 10 new plug-in hybrid or all-electric models, in line with its roadmap to offer a 100% electrifiedrange (2) from2025,of which50%will be electrifiedby the endof 2021 with 13 additional electrified models. Since 2019, all new models launched by Groupe PSAcome with either an all-electricor a plug-inhybridpowertrain.LEV ordersare promisingand in line with Group objectivesto be compliantwith European2020 CO 2 target fromDay 1. The Companymobilizesits recognizedexpertiseand workswith its partnersand dealersto meet customerexpectationsby producing and offering competitive line-up, with easy and state-of-the-art servicesfor day-to-day life. Growing LCVsales Groupe PSA hashistorically offeredbest-in-class products to coverthe full diversityof customerneeds.In 2019,theGroupsold765,000 units (of which554,000 light commercial vehicles(LCVs)and211 derivative passengercars (PCs)), and consolidatedits positionwith a 25.1% marketsharein Europe (3) , in particulardrivenbythesuccessful renewal of itssmall and medium vans i thelastthreeyears. The PeugeotExpert, Citroën Jumpy and Opel Vivarowill come in all-electric versions from 2020 and the whole LCV range (and passengercarequivalents)electrifiedby 2021. The Group’sLCVdevelopment is advancingat a goodpace in Latin America,wherethe Grouplauncheda comprehensive rangeof LCV productsand services,and in Eurasia,withthe Peugeot,Citroënand Opelmedium vanmodels.

The Group’s markets 1.3.2.1.2. Europe: focused onperformance Leveragingdisciplinedmanagemento meet CO

2 targets,the Group maintained its positionby achievinga 16.8%marketsharein a market that was up a slight1.3%, by growingin mainmarkets,particularly in Italy(+0.5pt)andSpain(+0.2pt),andby maintaining its marketshare in Franceandthe UnitedKingdomwhileslightlydeclining in Germany (-0.6pt).

4 BEV: DS3 Crossback E-Tense, Peugeot e-208 and e-2008, Opel Corsa-e and 6 PHEV: Peugeot 3008 Hybrid, 508 Hybrid and 508 SW (1) Hybrid, Citroën C5 Aircross Hybrid, Opel Grandland X Hybrid4, DS7 Crossback E-Tense 4x4. BEV = Battery Electric Vehicle and PHEV = Plug in Hybrid Vehicle. All-electric or plug-in hybrid. (2) LCV market share excluding PC versions. (3) Excl. Iran. Estimation at 16 January. (4) Volumes manufactured in Iran have not been recorded in consolidated sales since 1 May 2018. (5) NEV = New Energy Vehicles/2 BEV: Peugeot e-2008, DS3 Crossback E-Tense and 3 PHEV: Peugeot 508L Hybrid and 4008 Hybrid, C5 (6) Aircross Hybrid. Naza Automotive Manufacturing. (7)

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT