PSA - 2019 Universal Registration Document

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2019 AND OUTLOOK Financial position and cash

FINANCIAL POSITION AND CASH 4.2.

Net financial position and financial security of manufacturing 4.2.1. and sales companies

The net financialpositionof manufacturingand sales companies cash position of €10,606 millionand Faurecia has a net debt of at 31 December2019 consists of net cash of €7,914 millionafter €2,692 millionat 31 December2019, compared to a net debt of IFRS 16 effect and the acquisitionof Clarion by Faurecia. In this €545 million athe endof December 2018. positive net cash position, the Automotivedivision has a positive

31 December 2018 31 December 2019

(in million euros)

Non current financial liabilities Current financial liabilities Other non current financial assets

(5,257) (2,182)

(8,915) (2,521)

684 892

652 1,319

Current financial assets Cash and cash equivalent NET FINANCIAL POSITION

14,961 9,098 9,643

17,379 7,914 10,606

of which Auto

The Group continued to actively manage its debt in 2019. In time, Faurecia offered to repurchase bond maturing 2023 April 2019, Peugeot S.A. issued a Schuldscheindarlehen of (€700 million)which had a successrate of 76%; the residualnotes €522 millionmaturing in October 2023,April 2026and April 2027 2023 havebeen early repaid.

and then in September 2019, issuedbondsof €600 millionmaturing in September 2029. Moreover, Faurecia issued a bond of €500 million maturing in June 2026 before tapping it in October 2019 for €250 million. In November 2019,Faurecia also issuedbonds for €700 millionmaturingin June 2027.At the same

Liquidity reserves for the manufacturingand sales companies amounted to €23,405 million at 31 December 2019, versus €21,371 millionat 31 December2018,with€19,205 million in cashand cash equivalents,financial investmentsand current & non-current financial assets, and€4,200 million in undrawn lines of credit.

31 December 2018 31 December 2019

(in million euros)

Cash and cash equivalent

14,961 1,460 16,421 3,000 1,950 21,371

17,379

Current & non current financial assets

1,826

Total

19,205 3,000

Lines of credit (undrawn) - excluding Faurecia

Lines of credit (undrawn) - Faurecia TOTAL FINANCIAL SECURITY

1,200

23,405 3,604

of which Faurecia

4,211

Free cash flow from manufacturing and sales operations 4.2.2.

The free cash flow generated over the period stood at €2,745 million, €3,265 million of which was contributed by the Automotivedivision. The free cash flow over the period mainly stemmedfrom: €8,545 million in cash flowsgeneratedby recurringoperationsof n which acontribution of €6,543 million of the Automotive division; €(1,161) million in cash flows related to restructuring plans n including €(966) million for the Automotive division; €1,173 millionimprovementin the working capital requirement, n including€745 millionin trade payables, €(197) millionin trade receivables,€485 millionin inventoriesand €140 millionof other variations;

€(5,909) million in capitalisedcapitalexpenditureand research& n development,of which the Automotivedivision’s share which represented €(3,550) millionand €(901) million in exceptional investments/assetdisposals,mainly linked to the acquisitionof Clarion by Faurecia for €(969) million. Total research and developmentexpensesincurred increasedin 2019 comparedto 2018 and are presentedin Note 5 to the ConsolidatedFinancial Statementsat 31 December 2019; €97 million ofdividendsreceived fromBanquePSAFinance. n

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT