PSA - 2019 Universal Registration Document

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

Research and development expenses, net B.

2019

2018

2017

(in million euros)

Total expenditure (1)

(4,290)

(3,914) 2,099 (1,815)

(3,586)

Capitalised development expenditure (2)

2,179

2,021

Non-capitalised expenditure

(2,111)

(1,565)

Amortisation of capitalised development expenditure

(741)

(667)

(588)

TOTAL

(2,852)

(2,482)

(2,153)

Including €2,959 million for the Automotive segment (€2,872 million in 2018). (1) In addition to this expenditure, borrowing costs are capitalised pursuant to IAS 23 - Borrowing costs (Revised). (2) The amountspresented inthe abovetable arestated netof researchfunding received by theGroup. In addition,the depreciationof the capitaliseddevelopmentexpenditure is classifiedin “Costof goodsand servicessold”for €439 million in 2019 (€399 million in 2018and€348 million in 2017).

RESTRUCTURING COSTS 5.4.

2019

2018

2017

(in million euros)

Termination costs for employees

(1,041) (490) (1,531)

(755) (296)

(817) (134) (951)

Reengineering costs for plants, R&D and IT systems

TOTAL

(1,051)

In 2019, reeingeeringcosts for plants, R&D and IT systems are global engineering group SEGULA Technologiesannounced the mainly linked to restructuringOpel through the transfer of some signatureof a strategicpartnershipfollowingtheir discussions,in researchand developmentactivitiesto SEGULATechnologiesand accordancewith the announcementmadeon 5 September2018. In the IT convergencebetweenPeugeotCitroënDS andOpelVauxhall November 2019,under this agreement,the transfer of the OPEL for €328 million.On 15 November2018, GroupePSA/Opeland the researchanddevelopmentactivity tookplace. Termination costsfor employees

2019

2018

2017

(in million euros)

Automotive segment

(870) (169)

(654)

(739)

Automotive Equipment segment

(97)

(79)

Other businesses segment

(2)

(4)

1

TOTAL

(1,041)

(755)

(817)

Termination costs for employees consist mainly of workforce reductions. In 2019, the terminationcosts for employeesamountedto €1,041 million.They relate chiefly to the recognitionof restructuringplans (voluntary and seniorleaves, pre-pensions) covering the industrial OpelVauxhall’s sites in Europe (€855 million).

IMPAIRMENT OF CGUS 5.5.

2019

2018

2017

(in million euros)

Impairment of CGUs

(283)

(299)

(96)

The impact in the income statement is disclosed innote ofimpairmenttest(Note 8.3.B)

OTHER OPERATING INCOME (EXPENSE) 5.6.

2019

2018

2017

(in million euros)

TOTAL

158

61

143

In 2019, the otheroperating income (€158 million) stems mainly fromthe disposals of equity investments (€119  million). In 2017,the otheroperating income (€143  million) derived chiefly from the sales ofproperty(€164  million).

194

PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT