PSA - 2019 Universal Registration Document

GROUPE PSA Risk factors DPEF.B

RISKS RELATEDTO THE EMERGENCE OF NEW BUSINESS MODELS FORNEW

1.5.1.7. MOBILITY AVERAGERISK

Riskfactors

Riskmanagement andcontrolprocesses

[DPEF.B] Development of new mobility solutions The marketshowsa strongtrend towardsnew formsof mobility such as car-sharing, car-pooling, and connected services. Groupe PSA’s ustainability is dependenton its capacityto adapt its businessmodel to new mobilityschemesand to developthe newservicesexpectedby society.Theimminentriskfor theGroup on this newmarketis that its customers’datawill be collectedby data hosting or serviceproviders.

Thecreationof theFree2Movemobilitybrandaddresses theneed for the Groupto participate in a strongandvisiblemannerin the mobilityand future connectedservicesvalue chain. Free2Move aims to offer its customersmobility solutionsto simplify their lives. The Group also invested €100 millionin order to provide an additional range of offers able to cover all mobility needs (See 2.2.1.4), and, in particular: an urbanmobilityapp,accessible in 34 EuropeanandUS cities, > to enable users to select the most appropriate form of transport.Whether it’s renting a bike, a scooter or a car or takingadvantageof a car-sharing serviceofferedby Free2Move or a competitor; all these solutions are possible; B2C,C2Cand B2Bcar-sharing; > short-term rental. > a Servicesapp which facilitatestravel by electricvehicle and > gives access to 130,000 charging stations. For companies: supportforthe electrification of fleetcars; > long-term rental with related services and connected fleet > management. Furthermore, the Groupdevelopsconnectedafter-salesservices and data service activities, primarily forcities.

Operational and industrial risks 1.5.2.

RISKS ASSOCIATEDWITH A DOWNTURN IN THE EUROPEAN MARKET HIGHRISK

1.5.2.1.

Riskfactors

Riskmanagement andcontrolprocesses

Groupe PSA,which concentratesnearly 90% of its sales on the Europeanmarket, is very exposed to the risk of a slowdown, or even a downturn, in thismarket. Thisis all themoretroublesomegiventhe regulatorysurcharges in the Eurozoneand targetsfor the reductionof CO 2 emissions,and moregenerallyspeaking,the environmental constraintswhichare appliedto car manufacturerswhichmayhavea seriousimpacton the number of carssold. Lastly,anotherof the Group’sconcernsin Europeis Brexit,where uncertaintyoverthefuturetradingrelationshipbetweentheUnited Kingdomand the EuropeanUnionare helpingto fuel marketfears on both sides of the Channeland are impactingon supplychain performance. In 2019,Groupsales in the UK represented395,000 vehicles.A one per cent grosschangein the poundsterlingeuro exchange rate has an impact of around €40 million on the Automotiveadjustedoperatingincome.The long-termimpactof the UK's exit from the EuropeanUnion will dependon the exit terms and their consequences, which are not currently known. 

In orderto remaincompetitiveon its historicalmarket,theEurope Region, anumber ofocus areas have been established: adjust production capacities to the market; > maintainthesales offensive; > limittheeffectsof Brexit; > prepare for the possibility of a shrinking market. >

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT