PSA - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2019 Notes to the Consolidated Financial Statements at 31 December 2019

GEOGRAPHICAL INFORMATION 4.4. The indicatorsprovidedby regionare revenuebrokendownby customermarketingarea and property,plantand equipmentbrokendown by geographic locationof the consolidated companies.

Middle East & Africa

China & South-Asia

India Pacific

Latin America

North America

Europe (1)

Eurasia

Total

(in million euro)

  2019 Revenue

74,731 16,922

58,758 14,048

595 3,232

1,705 3,383 3,015 4,043

Property, plant and equipment

149

674

363

799

303

586

2018 Revenue

74,027 14,136

58,007

557 122

3,147

1,478 3,842 2,802 4,194

Property, plant and equipment

12,151

541

141

651

166

364

2017 restated  (2) Revenue

62,256 13,218

46,269

477 2,920 1,226 4,490 2,975 3,899

Property, plant and equipment

11,511

143

453

123

578

73

337

of which France : (1)

2017 restated (2)

2019

2018

(in million euro)

Revenue

17,037 16,306 14,751

Property, plant and equipment

6,586 5,991

5,779

Financial statements restated after the first application of IFRS 15 (2)

OPERATING INCOME

NOTE 5

Operatingincomecorrespondsto profit(loss)beforenet financial income or expense,current and deferredtaxes and the Group’s share in the net earningsof equitymethodinvestment.It includes the revenue, the cost of goods and services sold, the selling, general and administrative expenses (general administrative expenses,indirectsellingexpensesand warrantycosts)as well as the researchand developmentexpenses,the restructuringcosts, the impairment of CGUs andother operating income andexpense.

The cost of current and future sales incentive programmesis accountedfor in operatingincomein the periodin whichthe sales are registered.They are providedfor countryby countryon the basis of historicalcosts for the previous three months. In cases where the cost of the programmevaries accordingto sales, it is deducted from revenue. In other cases, it is recognised as an expensein costof goodsand servicessold. TheGroup’sincentiveprogrammes includeretailfinancinggranted at a significant discount to market interest rates. The correspondingcost is recognisedat the time of the sale, as a deduction from revenue. Rebillingof expensesincurredas part of operationsin which the Group is consideredto be an agent are not includedin revenue, but as a deductionfromcosts incurred.The sameappliesto sales of rawmaterials,parts,and subassemblies to sub-contractors that are destined tobe bought back at cost. The Group provides services to its customers(mostly servicing and maintenance contracts and warranty extensions), for consideration or free of charge. These represent distinct performanceobligationsunder IFRS 15, for which the associated revenue is recognised over time as and when the service is performed. The warrantiesprovidedto end customersare designedto cover defectsin the vehiclessold. Insurancetypewarrantiesare subject to provisionsin accordance with IAS 37 (seeNote 10). Sales of new vehicles with a buyback commitment are not recognised in revenueat the timeof deliveryof the vehiclebut are accountedfor as leaseswhenit is probablethat the vehiclewill be boughtback.

REVENUE 5.1. A. Accountingpolicies

IFRS 15 – Revenue from contracts with customers bases the recognitionof revenueon the transferof the controlof goodsand servicesto the customer,whereas IAS 18 – Revenue based it on the transferof therisksand rewards. (1) Manufacturingand sales companies Automotivesegment (a) The bulk of automotivebusinessrevenueis from the sale of new and used vehicles, and the sale of spare parts. The transfer of control takes place at the same time as the transferof risks and rewards. For new vehicles,this transfergenerallycorrespondsto the date when the vehicles are made availableto independentdealers or the delivery date, in the caseof directsales toendcustomers.

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PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT