PSA - 2019 Universal Registration Document

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

MANAGEMENT OFFINANCIAL RISKS 12.6. Financial risk management policy A. In the courseof its business,PSAGroupis exposedto liquidityrisks, as well as interest rate, counterparty,currency and other market risks arising, in particular,from changes in commodityprices and equityprices.The Group’sfinancialrisk managementpolicyapplies in full since 2018 to the operationsof the OpelVauxhall entities. Liquidity risk (1) In the prevailingeconomicenvironment,the Group continuedwith its diversified, proactive financing strategy and conservative liquidity policy in order to meet its general financing needs, particularlythe financing of its business and of its development projects.The financingstrategyis definedby the ManagingBoard, and implementedunder the directionof the Chief FinancialOfficer with the CorporateFinance& TreasuryDepartmentand submitted to the Supervisory Board’s Finance and Audit Committee. The Group’s cash forecasts, financing needs and interest income and expenses,as well as the level of financialsecurityare reviewedat monthly meetings of the Treasury and Foreign Exchange Committeechairedby theChiefFinancialOfficer.The financingplan is implementedby theCorporateFinance &TreasuryDepartment.

Pursuant tothis policy, theGroup: Implement a pro-activemanagementof its debt structure by n issuing bonds under an EMTN programme or implementing LiabilityManagement ransactions; has recourse to bank borrowings inFranceandabroad; n sells receivables; n arranges confirmed lines ofcredit forits financialsecurity; n and, where necessary, issues convertiblebonds or other debt n instruments. The Groupcould alsoraisefunds bya capitalincrease. This financing policy allows it to seize market opportunitiesto pre-finance itself andto thereby optimise its financial security. The repaymentscheduleof financialliabilitiesis set out in the table below. In June 2010,Peugeot S.A. put in place a €5 billionEMTN programme, €2.45 billion of which had been drawn down at end-December 2019. Contractualrepaymentscheduleof financialliabilities and derivativeinstruments– manufacturingand sales companies The followingtable shows undiscountedcash flows from financial liabilities and derivative instruments. They include principal repaymentsas well as futurecontractual interestpayments.Foreign currencycash flows and variableor indexedcash flows have been determinedbased on market dataat the year-end.

Undiscounted contractual cash flows

31 December 2019 (in million euros)

Assets Liabilities

2020 2021

2022

2023

2024 > 5 years

Financial liabilities Bonds - principal repayments Manufacturing and sales companies - excl. Faurecia Other long-term debt - principal repayments Manufacturing and sales companies - excl. Faurecia Faurecia

- (3,748)

(176)

- -

- -

(700)

(700) (2,172)

-

(2,115)

35

-

- (2,150)

- -

(814)

(251) (121)

(66) (66)

(66)

(67) (211)

(307) (213)

(57) (92)

Faurecia

(1,091)

(388)

Total bonds and other borrowings Manufacturing and sales companies - excl. Faurecia

- (4,562) - (3,206)

(427)

(66) (66)

(66)

(767) (1,007) (2,229)

Faurecia

(86)

(388)

(211)

(213) (2,242)

Total interest on bonds and other borrowings Manufacturing and sales companies - excl. Faurecia Commitment to buy out (Dongfeng) (1) Finance lease liabilities Manufacturing and sales companies - excl. Faurecia Faurecia

- - -

(44)

(44)

- - -

- - -

- - -

- - -

- - -

(4)

(4)

(667)

(667)

- -

(808) (906)

(149) (173) (142)

(130) (136)

(104)

(88) (95)

(68) (76)

(269) (315)

Faurecia

(111)

Derivative instruments

108 (142)

-

-

-

-

-

TOTAL

108 (10,339) (1,692)

(398)

(669) (1,161) (1,364) (5,055)

See Note 1. (1)

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PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT