PSA - 2019 Universal Registration Document

PEUGEOT S.A. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 Statutory Auditors’ Report on related party agreements

2. WithEtablissementsPeugeot Frères (EPF) and FFP (shareholders withmore than 10% of the votingrights) Persons concerned Mr Robert Peugeot, permanent representative of FFP on theSupervisory Board of your Company. n Mrs Marie-Hélène Peugeot-Roncoroni, permanent representative of EPF on theSupervisory Board of your Company. n Natureandpurpose At its meetingon 17 December 2019, the SupervisoryBoard of your Company(“PSA”) authorised,pursuantto Article L. 225-86of the FrenchCommercialCode,the signatureof a letterof commitmentbetweenEtablissementsPeugeotFrères,FFP (hereafter“EPF/FFP”)and PSA,which wasexecutedon the sameday. The conclusionof this letterof commitmentcomesin the contextof the conclusionAgreemententeredintoon the samedaybetweenPSA and Fiat ChryslerAutomobilesN.V. (“FCA”)to set out the termsand conditionsfor the completionof the proposedmerger(the “Merger”) betweenthe PSAandFCA groupsannounced on October 30, 2019 andon December 17 2019. Terms and Conditions EPF/FFPhascommitted to the following main commitments in the letterof commitment: Commitmentof support : EPF/FFPhas undertakento vote in favor of the Merger at the PSA GeneralMeetingcalled to approvethis n operation. Standstillcommitment : EFP/FFPhas undertakennot to acquire,alone or in concert,sharesof PSA, FCA or the futurecombinedentity n until the seventhanniversaryof the completionof the Merger.As an exceptionto the foregoing,EFP/FFPmay acquire,if it so wishes, additional shares of PSA (before completionof the Merger) or of the future combined entity (after completionof the Merger) representingup to 2, 5% of the capitalof the futurecombinedentity(or 5% of the capitalof PSA),exclusivelyby acquiringsharesfrom BPI andDMHK,or on themarketup to 1% of the capitalof the futurecombinedentity(or 2%of the capitalof PSA)plusthepercentageof PSAshares orof the future combined entity soldby BPIto any personotherthanEPF/FFP(or theiraffiliates). Conservationcommitment : EPF/FFPwill not be able to transferits interestin PSAand then in the futurecombinedentityuntil the third n year ofthe completion of the Merger. No financialconsideration is due underthe letterof commitment with ETH/FFP. Reasons justifying why theCompanybenefitsfromthe agreement Your SupervisoryBoard gave the followingreasons::The SupervisoryBoard consideredthat the letter of commitmentwith EPF/FFPis justifiedin light of your Company’scorporateinterestin that it contributesto the completionof the MergerbetweenPSA and FCA, an operation whose benefits for Peugeot S.A.were acknowledgedby the SupervisoryBoard at its meetings on October 30,2019 and December 17, 2019. 3. Withthe companiesof the DongFeng MotorGroup (shareholder withmore than 10% of the votingrights) Personconcerned Mr LI Shaozhu,permanentrepresentativeof DongFengMotor (HongKong) InternationalCo. Ltd(DMHK)on the SupervisoryBoardof n your Company Natureandpurpose At its meetingof December 17,2019, the SupervisoryBoard of your Company(“PSA”) authorized,pursuantto Article L. 225-86of the FrenchCommercial Code, the conclusion: of letter-agreementsbetween PSA and the companies of the DongFeng Motor Group (“DongFeng”)under the terms of which n commitments were made by DongFengandPSA;and of thebuy-backagreementbetweenPSAandDMHKfor theacquisition byPSAof 30,700,000 PSA shares fromDMHK. n Theconclusionof the letteragreementsandthe buy-backagreementtakesplacein the contextof the conclusionAgreementconcludedon the same day betweenPSA and Fiat ChryslerAutomobilesN.V. (“FCA”)to set out the terms and conditionsfor the completionof the proposed merger (the“Merger”) between the PSAandFCA groups announced on October 31,2019. Lettersof agreement DongFenghas committedto thefollowingkey commitments under the Letters ofAgreement: Supportcommitment : DongFenghas committedto vote in favor of the Mergerat the PSA shareholders’meetingcalledto approvethe n transaction. Standstillcommitment : From the signingof the commitmentletter and until the seventhanniversaryof the completionof the Merger, n DongFengundertooknot to acquire,alone or in concert,any shares of PSA, FCA or the future combinedentity that may increaseits stakein the future combined entitybeyondthe stakethat wouldbe obtained athe dateof the execution of the commitment letter. Conservationcommitment : DongFengwill transfer30,700,000PSA sharesprior to the completionof the Mergerwith PSA, under the n conditionsdescribedbelow,or to thirdparties.DongFengwill be subjectto a lock-upcommitment for the remainderof its shareholding in PSAuntil completion of the Merger. No financialconsideration is due underthe letteragreements withDongFeng.

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT