PSA - 2019 Universal Registration Document

GROUPE PSA Risk factors DPEF.B

Legal risks 1.5.4.2.2.

Riskfactors

Controlmanagement process

Groupe PSAis exposed to legal risks as an employer and in connectionwith the design, manufacturingand distributionof vehicles,the purchase of components and the supply of services.

To managetheserisks,the Groupimplementspreventivepolicies coveringworkplacehealth and safety, industrialand intellectual property,themanufacturing environment, vehiclesafety,product and servicequalityand the securityof the Group’stransactions from a legal standpoint.

Legal and arbitration proceedings 1.5.4.2.3. As at 31 December2019, no Group companywas involved in any claims or litigationthat had a materialimpact on the consolidated financial statements. During the last 12 months, there were no governmental,legal or arbitration proceedings that may have, or have had, significant effectson the Group’sfinancialpositionor profitability.To the best

of the Group’s knowledge,no such proceedingsare pending or threatened. Concerningthe provisions for commercialand tax litigation, and other disputes, please refer to Note 10 to the 2019 Consolidated Financial Statements, Section 5.6below.

Legal risks associatedwith anti-trust litigation 1.5.4.2.4.

Riskfactors

Controlmanagement process

Likeall economicoperators,Groupe PSA is exposed, in Franceand in the countries where it operates, to legal risks related to competition law. The identifiedrisks have been mapped,and mainly concernthe areas ofprocurement, trade and cooperation. The Group might become the subject of investigationsby the competitionauthorities. In the eventanti-competitive practicesare proven, possible sanctions include administrativefines, criminal penalties and/or liquidateddamages. The Group is at present unable to predict the consequences of such investigations, includingthe administrative,criminaland/or fines civil sanctions that couldbe imposed.

To avoid these risks, the Group, both centrally and in the countries where it operates, has internal and external legal counsel, experts in competitionlaw, working closely with the relevant businesses. In addition, since 2013 the Group has carried out permanent trainingin competition lawfor operationalmanagerswhomaybe facedwiththeriskof anti-competitive practices,specifically in the commercial area. In 2019,theseactionscontinuedandexpandedacrossthe Group, which strengthened its competition compliance programme, in particular, throughtrainingsessions(in-classande-learning) for the employees concerned, to teach them the appropriate responses and the behaviours to avoid, using practical examples.

RISKSASSOCIATED WITH THE EMPLOYER'S RESPONSIBILITY HIGHRISK

1.5.4.3.

Riskfactors

Riskmanagement andcontrolprocesses

[DPEF.B] [DV.4] Health, safety and well-being in the workplace Followinga risk analysis,Groupe PSAselectedthe followingfive priorities on which to base its health and safety prevention policy: psychosocial risks; > musculoskeletal disorders (MSD); > dangerousbehaviouror hazardous situations at workstations. > In fact, Groupe PSA is facedwith a rangeof situationsthat could affectemployeehealth,safetyandwell-being.Workingconditions can cause situationsof stress or discomfortthat, in additionto theirimpacton health,candirectlyinfluenceemployeemotivation. Shiftwork, involving physical demands, is the main cause of occupational illnesses. Moreover,commutinginside and outsideof the Group’sfacilities may causeworkplaceor commutingaccidents.Lastly,the use or presenceof certainchemicals in productionprocessesmayleadto risks relatedto air quality,generatepollutionor create a risk of explosion. chemical risks; > road safety risks; >

As part of its responsibledevelopmentambition, the Group leverages an Occupational Safety and Health Management System (OSHMS). TheOSHMS aim: to reduceriskof workplace accidents and occupational illnesses; > to improvesafetyand well-being at work, particularly through > stress detection measures. Thisprocedurereliesfirst and foremoston the steady,frequently reaffirmedcommitmentof management (in 2018all themembers of the Global Executive Committeeof Groupe PSA,including thosefromOpeland Vauxhall,signedthe newGroupHealthand Safety Policy), structuredguidance and resources to help all employees take charge of theirhealthand safetyon a dailybasis. The Group'stotal lost-timeincidentfrequencyrate is one of the best in the automotive industry(demonstrating the effectiveness of ourmanagement system). (See 2.4.4)

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GROUPE PSA - 2019 UNIVERSAL REGISTRATION DOCUMENT