PSA - 2019 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2019 Supervisory Board’s report: comments by the Supervisory Board on the Managing Board’s report and on the financial statements of the period

The new entity will have a balanced and profitable global presence with a brand portfolio that is both highly visible, and very complementary,coveringall of the key luxury segments,from premiumand mid-rangepassengervehicles,to SUVs, pick-upsand light commercial vehicles. This global presence will benefit from FCA’s strength in North America and Latin America as well as from Groupe PSA’sstrong position in Europe. The new group’s geographicalbalancewill be more even: 46% of its revenuewill come from Europe, 43% fromNorth America, based on 2018aggregated figures. The new entity will have effectivegovernance,structuredto boost performance.The Board of Directorswill have elevenmembers,the majorityof whomwill be independent.Fivewill be appointedby FCAand its mainshareholder(includingJohnElkannas Chairman)andfive by Groupe PSAand its main shareholders(includingthe Lead Directorand the Vice-Chairman).The strategicshareholders,EXOR N.V., EPF/FFPand Bpifrance,will sit on the Board.Once the operationis complete,the Boardwill includetwo employeerepresentatives from FCA and Groupe PSA.Carlos Tavareswill take up the post of Chief ExecutiveOfficerfor an initial five-yearterm and will also sit on the Board. The SupervisoryBoard acknowledgedthe Report of the ManagingBoard and the financial statementsfor the financial year, as approvedup by the ManagingBoardon 25 Februarylast year. The Boardhad no commentto makeon that reportor on the financial statementsfor the year. The SupervisoryBoardwouldlike to congratulateCarlosTavaresand all Groupemployeeson the excellentresultsobtainedin 2019and on the signingof the PSA/FCAmergeragreement,andwill continueto supporttheManagingBoardduringthis important“Signingto Closing” phase. Thismergercouldbe a fantasticopportunityto takea strongerpositionin the automotive industry,whilstwe seekto managethe transition to clean,safeandsustainablemobilityand to offerour customersthe verybestproducts,technologiesandservices.TheSupervisoryBoard has every confidencein the ability of Carlos Tavares and Mike Manley, and their respectiveteams, to rebuild businessesand to bring together manufacturers fromdifferent cultures.

259

PSA - GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT