PSA - 2019 Universal Registration Document

ANALYSIS OF THE BUSINESS AND GROUP OPERATING RESULTS IN 2019 AND OUTLOOK Recent events and outlook

RECENT EVENTS AND OUTLOOK 4.6.

Recent events 4.6.1. Theanalysisof theresultswasestablishedby theManagingBoardon February 25, 2020 and the SupervisoryBoard authorized their publicationon February26, 2020. It thereforedoes not take into accountthe impactof the Covid-19pandemicand the pressreleases published by the Group after February 26, 2020. Consequently, paragraph4.1.4 “Otheritems contributingto Groupprofit (loss) for the period”mustbe readin conjunctionwiththe followingadditional information: The developmentof the Covid-19epidemic,particularlyfromMarch 2020,increasesthe uncertaintiesof theglobaleconomiccontextand the markets.Its consequences for GroupePSAare currentlydifficult to assess, and will depend on the scale, durationand geographic extent of the Covid-19crisis, as well as the measurestaken by the countriesconcerned.Wearedoingeverything in ourpowerto ensure the safetyof Groupemployeesas a priorityin the countriesaffected by thishealthcrisis. After closingits productionsites in China,the Groupannouncedon March16 the gradualclosureof all its Europeanproductionsitesand thenin the restof theworld.All Europeansiteswereclosedon March 19.Theproduction sitesremainclosedto thisdaywiththeexceptionof China where production has resumed gradually sincethe endofMarch. TheCovid-19 impacteddemandsignificantly in thefirstquarterwitha sharp drop in the global automotivemarket.The Europeanmarket notablyexperienceda significantdrop of more than 26% in the 1st quarterof 2020compared to the1st quarterof 2019within particular a month of March down by more than 50%. In China, where the epidemicstarted,the car marketwas also veryaffected,witha drop of more than 45% in the 1st quarter of 2020 comparedto the 1st quarterof 2019. Global sales of GroupePSA fell by 29% in the 1st quarterof 2020 comparedto the 1st quarterof 2019,includinga dropof almost30% in Europe,78% in China and 44% in Latin America.The revenueof GroupePSA and its Automobivedivisionin the 1st quarterof 2020 decreasedbynearly16%overthesameperiod. In 2020, the Group now anticipatesa decreaseof the automotive market by 25% in Europe,10% in China, 25% in Latin Americaand 20% inRussia. The developmentof the Covid-19epidemic,particularlyfromMarch 2020, increasesthe uncertaintiesof the global economiccontext andthe markets. Its consequences in terms of outlookfor GroupePSA are currently difficult to assess and will depend on the scale, duration and geographicextent of the Covid-19crisis, as well as the measures takenby thecountriesconcerned. OPERATIONAL TARGETS Giventhe robustnessof its businessmodel,its solid2019resultsand the externalconsensuson a reboundin the automotivemarketsin 2021, Groupe PSA sets the following objective for the period 2019-2021announced inFebruary2019: Deliver over 4.5% Automotiveadjusted operating margin (1) on n averagein 2019-2021. Trend information 4.6.2. MARKET OUTLOOK

Given this uncertain context, Groupe PSA has strengthenedthe financialsecurityof its Automotivedivisionwith a new syndicated lineof € 3 billionsignedin earlyApril2020,whichis in additionto a € 3 billionconfirmedundrawnback-upline for a total amountof € 6 billion;Faureciahasalsostrengthened its financialsecurityby signing on April10, 2020a ClubDealof € 800million,whichis in additionto the € 600millionnot drawnfromthe € 1.2 billionsyndicatedcredit line of which half was recentlydrawn.At the end of 2019, the net financialpositionof the Group'sindustrialand commercialactivities (includingFaurecia)amountedto € 7,914millionand its net financial securityto € 23,405millionwith € 19,205million in cash and cash equivalents,financialinvestments,currentand non-currentfinancial assetsand€ 4,200millionof undrawn linesof credit. DIVIDEND In the context of the Covid-19 epidemic around the world, the ManagingBoardof PeugeotS.A., in agreementwiththe Supervisory Board, has decidedto postponethe Annual Shareholders’General Meeting,initially scheduled on May 14th, to June 25th,2020 A pressreleasewill be issuedat a later date to informshareholders of the arrangements for this Shareholders’Meetingandthepayment of the dividend, taking into account the merger project between FCAandGroupePSA,announced lastDecember 18th, 2019. CREDIT RATING PeugeotSA's ratingwas confirmedto BBB-on April8, 2020by the ratingagencyS&Pwitha negativeoutlookdue to the impactof the Covid-19.The rating agency Moody's has put Peugeot SA "under reviewfor downgrade" on April 2,2020. GroupePSA has built its objectiveson a basis comparableto the Group'shistoricalfinancialinformationand in accordancewith the accountingmethodsapplied in the Group'sconsolidatedaccounts for theyear ended December 31, 2019. This objectiveintegratesthe outlook for market downturnsas set out above for 2020 as well as the actions implementedsince mid-March2020 by the Group to preserveits profitability(closure of factories,partialunemployment)basedon a breakevenpoint (in « adjustedoperatingincome ») reducedto 1.8 million units at the endof 2019. As of the filing date of this universal registrationdocument,the impact of the Covid-19epidemicon the marketsand a fortiori on the financialresultsof GroupePSA is difficultto quantify.For more informationon the impactsand risks associatedwith Covid-19,see the "Risk Factors - Risks Related to the Group’s economic,health and geopoliticalenvironment"sectionof this universalregistration document.

Profit forecasts or estimates 4.6.3.

The Grouphasnot made any profit forecastsor estimates.

Automotive division (PCDOV) adjusted operating income related to revenue (1)

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT