PSA - 2019 Universal Registration Document

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

Finance costsof manufacturing and sales companies A. Finance costsare actualexpenselessthe capitalisedportion of assets in development.

2019

2018

2017

(in million euros)

Interest on borrowings and bank overdrafts

(248)

(293)

(326)

Interest on finance lease liabilities

(62) (43)

(8)

(11)

Foreign exchange gain (loss) on financial transactions and other

(72)

2

Finance costs incurred

(353) (162)

(373) (249)

(335) (216)

Of which Automotive division and Other Businesses

Capitalised borrowing Costs

63

85

127

TOTAL

(290)

(288)

(208)

Capitalised borrowingcosts Borrowingcosts that are directly attributableto the acquisition, constructionor production of an item of property, plant and equipmentor an intangibleassetthattakesat leasttwelvemonths to get readyfor its intendeduse are capitalisedas part of the cost of that asset (the “qualifyingasset”). Group inventoriesdo not meet the definitionof qualifyingassetsunder IAS 23– Borrowing Costs and their carryingamount does not thereforeinclude any borrowingcosts.

Whenfundsare borrowedspecificallyfor the purposeof obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisationcorrespondsto the actual borrowingcosts incurred during the period less any investmentincome on the temporary investmentof any borrowed funds not yet used. Whenfundsborrowedfor generalcorporatepurposesare usedto obtain a qualifyingasset, the amountof borrowingcosts eligible for capitalisationis determinedby applyinga capitalisationrate equal to the weightedaverageborrowingcosts for the periodof the operating segmentthat obtains the qualifyingasset.

Finance costs incurred, net of interestincome of manufacturing and sales companies

2019

2018

2017

(in million euros)

Finance costs incurred

(353) (162)

(373) (249)

(335) (216)

Of which Automotive division and Other Businesses

Interest income

81

19

42

Of which Automotive division and Other Businesses

-

9

31

TOTAL

(272) (162)

(354) (240)

293) (185)

Of which Automotive division and Other Businesses

Other financialincome and expensesof manufacturingand sales companies B.

2019

2018

2017

(in million euros)

Expected return on pension funds Other financial products OTHER FINANCIAL INCOME

22 86

18

21

141

100 121

108 (32) (65) (149) (246)

159

Interest cost on employee benefit obligations

(23) (97)

(20) (28) (148) (196)

Ineffective portion of the change in fair value of financial instruments

Other financial costs

(226) (346)

OTHER FINANCIAL EXPENSES

218

PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT