PSA - 2019 Universal Registration Document

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2019 AND OUTLOOK Parent-company results

PARENT-COMPANY RESULTS 4.3.

PeugeotS.A. performs senior management,oversight and supervisoryfunctionsandprovidesservicesfor whichit receivesa flatfee. PeugeotS.A.’s assets mainly correspond to: equityinvestments indirect subsidiaries; n treasuryshares classified as marketablesecurities. n PeugeotS.A. isalsoHead of a taxgroupset upwithits morethan95%-ownedsubsidiaries in France.

Results

Balance Sheet

NET OPERATING INCOME Operatingincome,which chieflycomprisesfees collectedfrom the main subsidiaries, the re-invoicing of staff costs, totalled €253 million in 2019, compared with €212 million in 2018. Managementfees are calculatedas a percentageof the operating divisions’ revenue, and cover the operatingexpenses incurred by the Company for its corporate functions; they amounted to €173 millionin 2019, comparedwith €145 millionin 2018. Fees are invoiced to direct Peugeot S.A. subsidiaries based on the consolidated revenueof the divisionconcerned. Operatingexpensesamountedto €254 millionin 2019, compared with€232 million in 2018,andmainlycorresponded to payrollcosts, otherpurchasesandexternal charges. Net operating income was accordingly a negative €1 million comparedwith anegative€20 million in 2018. Financial income consists largely of income from shares in subsidiaries and affiliates(Note 17). Incarne from shares in subsidiaries and affiliates amounted to €1,612 million,comparedwith€476 million in 2018. Interestand similarincomeamountedto €3 million,andwerestable compared with 2018. Reversals of provisions for impairment of equitysecuritiesandtreasurysharestotalled€319 million,compared with€20 million in2018. Financial expense for depreciation, amortisation and provisions amounted to€53 million, compared with €38 million in 2018. lnterest and similar expense amounted to €55 million,compared with€82 million in 2018. In view of these items, net financial income result was a positive €1,826 million, compared with a positive €378 million. NET NON-RECURRING INCOME (EXPENSE) Net non-recurring income (expenses) (Note 18), which was a negative€359 million in 2019, mainlyconsistsof chargeson capital transactions. Basic earnings Taking into account the net income tax benefit of €122 million, determined in accordance with the rules governing the tax consolidation of Peugeot S.A. and its 95% or more controlled subsidiaries, Peugeot S.A. reported €1,588 million in net profit, compared with€478 million for 2018. NET FINANCIAL INCOME (EXPENSE)

ASSETS

Equityinvestments in subsidiariesand affiliatesconstitutethemajor shareof non-current assets. Beforedeductingprovisions,the gross value of equity investments was €19,150 millionat 31 December2019, a decreaseof €135 million compared with 2018. Impairment losses on equity securities amounted to €409 million in 2019, compared with €666 million 2018. These items are describedin Note 4 to the parent company Annual Financial Statements. Afterdeductingprovisions,the net valueof equityinvestmentswas €18,740 millionat 31 December2019, comparedwith €18,619 million at 31 December 2018. Current assets primarily correspond to cash investments of €4,684 millionat 31 December2019,comparedwith€3,118 million in 2018 (Note 9) and marketable securities in the amount of €193 millionnet of provisionsat 31 December2019, comparedwith €200 million at 31 December 2018 (Note 7). The 9,943,735 treasury shares held at 31 December 2019 are classified as marketable securities, of which 9,072,000 shares allocated to free share plans and 871,735 to future LTI plans (Note 7). LIABILITIES Shareholders’ equity at 31 December 2019 was €20,675 million, comparedwith€19,774 millionat 31 December2018.On 6 May2019, Peugeot S.A. paid dividends of €697 million. Given the results achievedby Groupe PSA,the SupervisoryBoardhas approvedthe ManagingBoard’sproposai to paydividendsin respect of2019. A free shareplanwas established in2019. Provisions for contingenciesand charges totalled €161 million at 31 December2019,comparedwith€117 millionat 31 December2018. They aredescribed inNote 9 tothe FinancialStatements. Loansand similardebtsamountedto €3,061 million,comparedwith €2,358 millionin 2018. In 2019, Peugeot S.A. redeemedmatured bonds in a total amountof €430 million(Note 12).On 11 April2019, PeugeotS.A. issueda bond via a privateplacementunder German law, Schuldschein , for €522 million, broken down into several tranches with maturities of 4.5 years, 7 years and 8 years. On 18 September2019, a second bond was issued for €600 million bondmaturingin September 2029, paying a coupon of 1.125% Of the €58 million due to suppliers of fixed assets, €54 million correspondsto the uncalledportionof the commitmentto the FAA fund set upto support automotivequipment suppliers (Note 13).

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT