PSA - 2019 Universal Registration Document

PEUGEOT S.A. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Notes to Peugeot S.A. Financial statements

CARRYING VALUES B. PeugeotCitroënDS Automotivedivision 1) Peugeot S.A. owns automotive subsidiaries through four central companies, namely PSA AutomobilesSA, AutomobilesPeugeot, AutomobilesCitroën, Conceptiond’ÉquipementsPeugeot Citroën, which are inseparable.The shares taken altogether had a gross value of€13,835.8 million at 31 December 2019. At year-end2019, the net carryingamountof these investments,of €13,835.8 million, was compared to the present value of the discountedfuture cash flows. These tests include the business of the Peugeot Citroën DS Automotivedivision excludingChina and the Chineseoperations.The net carryingamountremainedbelowof the presentvalue, noimpairment was recognised. Opel Automotivedivision 2) Peugeot S.A. owns automotive subsidiaries through two central companies,namely OPEL Automobile GmbhandOpelWien.

At year-end2019, the net carryingamountof these investments,of €2,437.6 million,was comparedthe presentvalueof the discounted future cash flows. The net carryingamountremainedbelowof the presentvalue, noimpairmentwas recognised. Faurecia 3) At 31 December2019 the cost valueof PeugeotS.A.’sinvestmentin Faurecia was €1,609.4 million.The investment by Peugeot S.A. (63,960,006 sharesand 127,920,012voting rights) representedat 31 December2019, 46.34%of the capitaland 62.99%of the voting rights. The stockmarketvalueof the Faureciasharesheldby PeugeotS.A. at 31 December2019 was €3,072.0 million.This represented the share price paid in transactionsbetweenminorityshareholdersnot leadingto control. No impairment was recognised at that date as this value far exceededtheircarryingamount. Other Subsidiaries 4) At 31 December2019,the othersubsidiarieswereindividuallyvalued on the basis of their restatedequity.The provisionsfor impairment were adjustedaccordingly.

OTHER LONG-TERM INVESTMENTS

NOTE 5

UNITS IN FCPR INVESTMENT FUNDS Peugeot S.A. holds units in France’s Fonds Avenir Automobiles (FAA), a private equity fund set up by the Frenchgovernmentas partof theAutomobilePactsignedon 9 February2009.Theseunits are measuredat value in use, which correspondsto their market valueat the balancesheetdate.This reflectsthe value in use of the investmentsmadeby the fund.On the assumptionthat theyare not publiclytraded,their valueis estimatedat their cost duringthe first twelvemonths followingacquisition,adjustedif necessaryfor any unfavourablesubsequentevent.Afterthe first twelvemonths,value in useis estimatedusing earnings multiples.

At 31 December2019 the monies already called and paid into the Fund were valued at €39.7 million.The total provision for FAA shares amounted to €37.3 million.A provision for impairmentof €6.7 millionwas thusrecognised over the period. FAA units not yet called at 31 December 2019 amounted to €53.9 million.The liabilityis carriedin the balancesheetunder“Due to suppliersof fixedassets” (Note 1.B). These units are governed by the tax rules relating to FCPR investmentfunds,withthe resultthat long-termcapitalgainson the units willbe taxedat a reduced rate.

OTHER RECEIVABLES AND PREPAYMENTS TO SUPPLIERS

NOTE 6

31/12/2019

31/12/2018

(in million euros)

Recoverable taxes (1)

375.6 595.5

335.9 399.6

Shareholder advances (2)

Other

0.6

-

TOTAL 735.5 Of which receivables from the State as research Tax Credits in the amount of €261.5 million in 2019, versus €304.8 million in 2018, (1) and income tax prepayments in the amount of €107.0 million in 2019 versus €1.6 million in 2018. Of which receivables related to the VAT consolidation of December 2019 for December VAT €224.8 million in 2019 versus €132.5 million (2) in 2018. 971.7

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT