PSA - 2019 Universal Registration Document

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

Summarizedinformation relatingto the investees D. EARNINGSITEMSAT 100%

2019

2018

2017

(in million euros)

Sales

12,469

16,283

16,862

Adjusted operating income (loss) Income from continuing operations

819

982 (119) (119)

950 286 286

(299) (299)

NET INCOME

STATEMENTOF FINANCIALPOSITION’SITEMSAT 100%

31 December 2019 31 December 2018 31 December 2017

(in million euros)

Assets Non-current assets Current assets TOTAL ASSETS Liabilities Non-current liabilities

4,107 52,771 56,877

3,876

4,451

46,529 50,405

44,690 49,141

1,664

1,038

1,094 41,783 6,264

Current liabilities

48,747

42,894

Equity

6,467

6,473

of which Non controlling interests TOTAL EQUITY AND LIABILITIES

-

-

-

56,877

50,405

49,141

IMPAIRMENT OF EQUITYMETHOD INVESTMENTS IN THE AUTOMOTIVE BUSINESS 11.5. The companies accounted for using the equity method in the Automotive business include the companies in partnershipwith DongfengMotor CompanyGroupand the Companyin partnership withChanganGroup,basedin China.

In addition,Groupe PSA does additionalimpairmenttesting of its other equity method investments when there are indicators of impairment,such as for example a significant fall in volumes or deterioratingprofitability.The recoverableamountis determinedby looking at the value in use based on cash flow forecasts. These forecasts are taken from the most recent medium-termplan for 2020-2024 approved by the partners. The terminal value is determinedwith referenceto the data in the final years of the plan and havingregardto a perpetualgrowthrate of 2.6%(3.0%in 2018 and in 2017).Thefuturecashflowsare discountedusingan after-tax rate of 12.5% for 2020-2024and 13.5% for the terminalvalue (the same in2018and2017). Changan At 31 December2019, impairmenttestingon the non-currentassets of Changan PSA Automobile Co, Ltd led to maintain the total impairmentof equitymethodinvestmentsand recordedprovisions of €78 million (including €50 million in 2019) for the Group commitment. At 31 December2018, impairmenttestingon the non-currentassets of Changan PSA Automobile Co, Ltd led to maintain the total impairmentof equitymethodinvestmentsand recordedprovisions of €28 millionafter taking into account a loss of €40 millionover the 2018financial year. At 31 December 2017, impairment testing by Changan PSA AutomobileCo, Ltd in cooperationwith Changan Group did not identify any additional impairment losses. At 31 December2019,31 December2018and 31 December2017,the impairmenttestingof equitymethodinvestments in the automotive business did not identify any impairmentlosses on top of those already recognised for the assets of thesecompanies.

The non-current assets of these companies are tested for impairmenton the basis of the sameprinciplesas applicableto the Automotivebusinessof GroupePSA (see Note 8.3.B).When there are indicators of impairment,the assets that are specific to the vehiclemodelsare testedseparatelyand all assets(includingthose that are not specificto the models)are tested in aggregateat the level ofeachpartnership. Dongfeng At 31 December 2019, impairment testing at the companies in partnershipwith the DongfengMotor CompanyGroup resulted in the recognition of RMB 1,364 million in impairment losses (RMB 682 million inPSAshare,i.e. €87 million). At 31 December 2018, impairment testing at the companies in partnershipwith the DongfengMotor CompanyGroup resulted in the recognitionof RMB 2,100 millionin impairment losses (RMB 1,050 million inPSAshare,i.e. €133 million). At 31 December 2017, impairment testing at the companies in partnership with the Dongfeng Motor Group resulted in the recognitionof RMB 1,515 millionin impairmentlosses (the Group’s sharewasRMB758 million, i.e. €97 million).

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PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT